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TULSA - ONEOK, Inc. (NYSE:OKE), a $47 billion market cap energy company with a "Good" financial health rating according to InvestingPro, along with WhiteWater, MPLX LP (NYSE:MPLX) and Enbridge Inc. (NYSE:ENB) announced plans for a new natural gas pipeline to transport production from the Permian Basin to the Gulf Coast region, according to a press release statement.
The 450-mile, 42-inch Eiger Express Pipeline will transport up to 2.5 billion cubic feet per day of natural gas from West Texas to the Katy area near Houston, with reserved capacity for deliveries to the Corpus Christi market.
The pipeline joint venture is owned 70% by the existing Matterhorn joint venture, 15% by ONEOK and 15% by MPLX. ONEOK’s total ownership interest stands at 25.5%, which includes its stake in the Matterhorn JV. The company has demonstrated strong performance with 46% revenue growth and $6.8 billion in EBITDA over the last twelve months.
The project is supported by firm transportation agreements with contract terms of 10 years or longer. WhiteWater will construct and operate the pipeline, which is expected to be completed in mid-2028, pending regulatory approvals.
"This important infrastructure project is needed to provide additional transportation capacity out of the highly productive Permian Basin," said Pierce H. Norton II, ONEOK president and chief executive officer.
The pipeline will source natural gas from processing facilities, including those owned by ONEOK and MPLX, and pipeline connections in the Midland and Delaware basins.
The Matterhorn JV is owned by WhiteWater (65%), ONEOK (15%), MPLX (10%) and Enbridge (10%). This joint venture also owns the Matterhorn Express Pipeline and now 70% of the Eiger Express Pipeline. According to InvestingPro analysis, ONEOK is currently trading below its Fair Value, suggesting potential upside for investors. For detailed insights and exclusive ProTips about ONEOK’s growth prospects, visit InvestingPro, where you’ll find comprehensive research reports covering 1,400+ top US stocks.
In other recent news, ONEOK Inc. reported strong financial results for the second quarter of 2025, highlighted by a notable increase in net income and strategic acquisitions, including an investment in the Delaware Basin. The company successfully completed an underwritten public offering of senior notes totaling $3 billion, which will be used to refinance debt. The offering includes $750 million of 4.950% notes due 2032, $1 billion of 5.400% notes due 2035, and $1.25 billion of 6.250% notes due 2055.
RBC Capital has lowered its price target for ONEOK to $88 from $94, maintaining a Sector Perform rating, due to potential commodity price headwinds anticipated in 2026. Similarly, TD Cowen reduced its price target to $87 from $91, citing concerns over ONEOK’s 2026 EBITDA projections, while maintaining a Hold rating. These adjustments follow ONEOK’s recent earnings report, which revealed robust growth and strategic expansions. The company’s financial strategies, including the refinancing of debt, aim to bolster its long-term financial health amidst these analyst concerns.
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