- Natural gas midstream companies have soared back to life as production surges to meet winter storage needs.
- The risk of a widespread U.S natural gas shortage has dissipated in the short run, but it may return as winter ends due to depleted drilled-but-uncompleted well inventories.
- A potential significant drop in natural gas and NGL supply would likely result in lower sales for ONEOK.
- Despite its risks and higher balance sheet leverage, ONEOK will likely remain stable and continue to pay a high dividend.
- Since OKE has partially negative exposure to the energy shortage, it seems unlikely to rise much further but is still a decent long-term investment.
For further details see:
ONEOK: Natural Gas Production May Decline Substantially In 2022