ONEOK Submits Presidential Permit Application to FERC for New Intrastate Pipeline at U.S.-Mexico Border
December 25, 2022
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ONEOK ($NYSE:OKE) is a leading energy company that provides natural gas, natural gas liquids, and crude oil gathering, processing, storage, and transportation services in the United States. Operating in the midstream segment of the energy industry, ONEOK serves more than 3 million customers in the US and Canada. On Tuesday, ONEOK’s Saguaro Connector Pipeline unit submitted a presidential permit application to the Federal Energy Regulatory Commission (FERC) to construct and operate facilities at the U.S.-Mexico border for a new intrastate natural gas pipeline. This pipeline would provide a direct link between the Permian Basin’s natural gas production and global markets, allowing for increased access to export markets. The pipeline will pass through four Texas counties, including El Paso County where it will cross the U.S.-Mexico border.
The proposed pipeline is seen as a critical piece of infrastructure for increasing exports from the Permian Basin to Mexico and other international markets. It is also seen as an important step forward for further developing Mexico’s energy infrastructure and increased cooperation between the two countries. The proposed pipeline is still subject to regulatory review and approval from FERC. Once approved, ONEOK plans to move forward with construction and operation of the pipeline as quickly as possible in order to begin providing increased access to export markets for natural gas producers in the Permian Basin.
Market Price
The proposal would allow the transportation of natural gas and natural gas liquids across the border. At the time of writing, media exposure was mostly positive. In response to news of the permit application, ONEOK stock opened at $63.3 and closed at $63.5, up by 0.2% from prior closing price of 63.4. This suggests that investors responded favorably to the announcement and seemed to be optimistic about the possibility of the permit being approved. The proposed pipeline would provide a much needed source of natural gas for Mexico, which is currently facing a shortage of domestic supplies. Additionally, it would provide increased capacity for U.S. natural gas exports to Mexico, providing an economic boost for both countries. For ONEOK, the permitting process could be a lengthy one as FERC must review and approve the proposal before construction can begin.
However, if successful, the project could be a major success for the company and generate significant profits over the long-term. Overall, the news of ONEOK’s permit application was well-received by investors, and if approved, could provide a much needed source of natural gas for both Mexico and the U.S. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Oneok. More…
| Total Revenues | Net Income | Net Margin |
| 22.78k | 1.62k | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Oneok. More…
| Operations | Investing | Financing |
| 2.92k | -1.05k | -2.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Oneok. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.44k | 18.13k | 14.12 |
Key Ratios Snapshot
Some of the financial key ratios for Oneok are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.9% | 12.4% | 12.4% |
| FCF Margin | ROE | ROA |
| 8.0% | 28.4% | 7.2% |
VI Analysis
ONEOK is a low risk investment according to VI Risk Rating. The app showcases the company’s fundamentals and long term potential. Through its analysis, the app has detected two risk warnings in the income sheet and balance sheet. However, these warnings do not appear to be significant in comparison to the company’s financial and business performance. The VI App also provides investors with insights into the company’s financial health, operations, and outlook. It provides a comprehensive overview of ONEOK’s performance, including its assets, liabilities, and cash flows. Investors can also look at ONEOK’s historical performance, compare it to industry peers, and access detailed reports on its operations. The app also provides data on the company’s risk factors, such as its liquidity, capital structure, profitability, and debt structure. This data can provide investors with an indication of how well the company is managed and if there are any potential risks to its long-term success. Overall, ONEOK appears to be a low risk investment option. Investors can use the information provided by the app to make informed decisions about their investments. By registering on vi.app, investors can gain access to more detailed information about the company and its future prospects. More…
VI Peers
ONEOK Inc is a company that operates in the energy sector. The company is involved in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. The company has operations in the United States, Canada, and Mexico. The company’s competitors include Kinder Morgan Inc, Energy Transfer LP, Enterprise Products Partners LP.
– Kinder Morgan Inc ($NYSE:KMI)
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. It owns or operates an extensive network of pipelines and terminals that transport petroleum products, natural gas, and other products. The company also owns and operates a fleet of liquefied natural gas (LNG) carriers. Kinder Morgan has a market capitalization of $40.72 billion as of 2022 and a return on equity of 7.82%. The company is headquartered in Houston, Texas.
– Energy Transfer LP ($NYSE:ET)
Energy Transfer LP is a publicly traded partnerships that owns and operates energy infrastructure assets in the United States. The company’s assets include natural gas pipelines, natural gas gathering and processing facilities, and crude oil pipelines. Energy Transfer LP is headquartered in Dallas, Texas.
– Enterprise Products Partners LP ($NYSE:EPD)
Enterprise Products Partners LP is a publicly traded partnership that owns and operates a diversified portfolio of energy assets. The company has a market cap of 54.94B and a ROE of 15.44%. The company’s operations are focused on natural gas, crude oil, and NGL (natural gas liquids) transportation, storage, and processing. The company also owns and operates a network of natural gas pipelines and gathering systems, as well as crude oil and NGL terminals and storage facilities.
Summary
Investing in ONEOK is an attractive option for investors seeking exposure to the energy sector. The company is a diversified midstream energy provider, delivering natural gas, natural gas liquids (NGLs) and crude oil through its pipelines and terminals. The company’s operations extend throughout the United States and Mexico, giving investors access to both domestic and international energy markets. ONEOK has demonstrated success in the past and is well positioned for long-term growth. The company has increased its dividends for the past seven consecutive years, and it has also delivered strong returns to shareholders. The company’s recent announcement of its submission of a Presidential Permit application to the Federal Energy Regulatory Commission (FERC) for a new intrastate pipeline at the U.S.-Mexico border is expected to further strengthen its position in the energy sector. This new pipeline is expected to reduce transportation costs and increase the flow of natural gas, NGLs and crude oil between the two countries. Given its strong financial performance, diversified operations and future growth prospects, ONEOK is an attractive investment opportunity for those looking to invest in the energy sector.
In addition, ONEOK’s strong balance sheet and efficient capital allocation strategy should provide investors with additional confidence in their investment.
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