OKE - Oneok upgraded at J.P. Morgan on relative Bakken advantages

Oneok ( NYSE: OKE ) +2.2% in Tuesday's trading as J.P. Morgan upgraded shares to Overweight from Neutral with a $75 price target, up from $71, seeing the Bakken shale as a relative outperformer in the near term as some Permian producers may begin to curb output on the back of residue takeaway constraints.

By contrast, the Bakken's surprising 40-plus rigs point to steady production after the recent storms wane and winter slows down, according to JPM's Jeremy Tonet, adding Oneok ( OKE ) "clearly possesses the highest Bakken-rich gas/NGL volume operating leverage, with significant torque to NGL volume growth and incremental ethane extraction."

In "a notable derisking event," Oneok ( OKE ) removed an overhang on the stock and surprised expectations to the upside as it announced a resolution to the Medford facility incident .

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