TULSA, Okla. - ONEOK , Inc. (NYSE: OKE), a leading midstream energy company with a market capitalization of $62.2 billion, announced a 4% increase in its quarterly dividend, raising it to $1.03 per share. This adjustment brings the annualized dividend to $4.12 per share, representing a 3.6% yield. Shareholders on record by the close of business on February 3, 2025, will be eligible for the dividend, payable on February 14, 2025. According to InvestingPro data, ONEOK has maintained strong dividend growth, with yields averaging 8% over the past decade.
In addition to the dividend increase, ONEOK has been actively repurchasing shares as part of its capital allocation strategy. The company has bought back 1.675 million shares of its common stock, spending $171.7 million. These repurchases are a portion of ONEOK’s broader $2 billion share repurchase authorization, which the company plans to substantially utilize within the next three years. The company’s financial strength is reflected in its "GOOD" Financial Health score from InvestingPro, supported by robust revenue growth of 14% in the last twelve months.
Pierce H. Norton II, ONEOK’s president and CEO, emphasized the company’s commitment to a "value-driven capital allocation strategy," crediting their disciplined approach to growth for the financial flexibility that enables them to continue delivering value to shareholders.
ONEOK operates an extensive 50,000-mile pipeline network that transports natural gas, natural gas liquids (NGLs), refined products, and crude oil, playing a crucial role in meeting energy demands both domestically and internationally. The company, headquartered in Tulsa, Oklahoma, is recognized as a significant player in North America’s diversified energy infrastructure sector and is included in the S&P 500 index.
The recent financial moves by ONEOK reflect its strategy to balance growth with shareholder returns. With EBITDA reaching $5.6 billion and analyst price targets ranging from $89 to $147, InvestingPro’s comprehensive analysis indicates the stock is currently trading slightly above its Fair Value. While the company’s forward-looking statements indicate confidence in its financial performance and market position, they are subject to the usual risks and uncertainties inherent in the energy sector.
This news report is based on a press release statement issued by ONEOK, Inc. and does not contain any additional analysis or opinions.
In other recent news, ONEOK Inc (NYSE:OKE). has seen significant developments. The company reported a third-quarter net income of $693 million and an adjusted EBITDA of $1.55 billion, primarily driven by operations in the Rocky Mountain region and natural gas pipeline services. The company has also revised its full-year 2024 financial guidance upward for the second time, attributing the positive changes to robust fee-based earnings and the benefits of recent acquisitions.
ONEOK has announced its agreement to acquire all outstanding EnLink units for $4.3 billion, a strategic move expected to yield earnings accretion in 2025 and 2026. Truist Securities has adjusted the price target for shares of ONEOK, lifting it to $107 from the previous $99, while maintaining a Hold rating on the stock.
In addition, ONEOK made changes to its executive team. Randy N. Lentz, previously CEO and founder of Medallion Midstream, has been appointed as the executive vice president and chief operating officer. Sheridan C. Swords, who formerly served as executive vice president, has transitioned to the role of executive vice president and chief commercial officer.
These are recent developments that highlight ONEOK’s optimistic outlook, focusing on synergy opportunities from recent acquisitions and organic growth. The company’s infrastructure is strategically positioned to support LNG exports in Louisiana, with potential for further consolidation in the Mid-Continent region. As ONEOK moves towards the end of the year, it is preparing for a busy period with the finalization of the Medallion acquisition and the progression of Phase II of the EnLink transaction.
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