OKE - ONEOK: The Multiple Is Too High The Dividend Too Low
2024-07-21 10:03:01 ET
Summary
- ONEOK is a major midstream company with a market cap of $48 billion, focusing on natural gas and NGLs.
- OKE has shown consistent adjusted EBITDA growth over the past decade, but its performance closely mirrors the broader midstream market.
- OKE's current valuation and dividend yield are less attractive compared to other midstream companies, requiring significant growth to justify its price.
- In this article, I elaborate on the key reasons why I have assumed a more conservative stance on OKE despite my bullish view on the sector.
ONEOK ( OKE ) is one of the largest midstream companies with a market cap of $48 billion. The core business focus of OKE is in gathering, processing, fractionating, transporting, storing and marketing natural gas and NGLs. This is consistent with the business segments of most other midstream players that have invested in multiple levers across the midstream value chain....
ONEOK: The Multiple Is Too High, The Dividend Too Low