OKE - This 4.9%-Yielding Dividend Stock Is Adding Fuel to Accelerate Growth
2024-05-14 06:14:00 ET
Oneok (NYSE: OKE) surprised many in the midstream sector last year when it agreed to buy Magellan Midstream Partners in a massive $18.8 billion deal. The transaction enhanced its diversification and growth profile. It expects the deal to deliver free-cash-flow per-share accretion of more than 20% annually through 2027, fueled partly by capturing at least $200 million of synergies each year.
The pipeline company recently made another deal designed to accelerate its ability to capture synergies from Magellan and drive future-earnings growth. That will put it in an even better position to increase its 4.9%-yielding dividend.
Oneok has agreed to buy a natural gas liquids (NGL) pipeline system from Easton Energy. It will pay about $280 million for 450 miles of pipelines in strategic Gulf Coast market centers.
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This 4.9%-Yielding Dividend Stock Is Adding Fuel to Accelerate Growth