This Overlooked Midstream Stock Is Now a Permian Powerhouse

Oneok (NYSE: OKE) is one of the more underappreciated stories in energy infrastructure. The pipeline operator offers a nearly 6% dividend yield backed by more than 25 years of consistent payouts and 11 consecutive years of earnings before interest, taxes, depreciation, and amortization (EBITDA) growth. Yet the stock has fallen 30% during the past year as investors worry about declining U.S. natural gas volumes and weaker ethane recoveries. Those near-term concerns overlook a fundamental change in Oneok's investment story.Some investors still think of Oneok as a Bakken-focused natural gas liquids (NGL) company. That was true three years ago, but the business looks completely different today. After transformative acquisitions totaling more than $25 billion, Oneok has quietly assembled one of the most integrated midstream platforms in the Permian Basin. Yet the market hasn't fully recognized the shift.Image source: Oneok.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool