OKE - ONEOK: A Solid Distribution Play With A 5% Yield

2024-04-09 22:45:34 ET

Summary

• ONEOK is a leading midstream service provider with a strong natural gas pipeline network.
• The acquisition of Magellan Midstream Partners has led to strong volume and EBITDA momentum.
• ONEOK projects strong pipeline capacity growth in its natural gas liquids segment, which is expected to contribute to EBITDA growth.
• ONEOK has a solid distribution history, and the company recently announced a $2.0B stock buyback.

ONEOK ( OKE ) is a leading midstream service provider with an extensive natural gas pipeline network. ONEOK is seeing strong volume momentum across its business segments, in part due to the acquisition of Magellan Midstream Partners last year, which has translated into a boost to the company's EBITDA as well. ONEOK submitted a strong EBITDA outlook for FY 2023 and the midstream firm looks back on a quarter of a century of very solid dividend growth. I believe ONEOK is a top income play for investors and the dividend is set to grow going forward!...

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