Oneok Inc

OKE

Natural Gas Transmisison & Distribution

Mkt Cap

$47.46B

PE

21.11

Debt

$22.93B

Cash

$65M

EV

$70.33B

FCF

$1.978B

Market Cap

$47.46B

P/E Ratio

21.11

Debt

$22.93B

Cash

$65M

EV

$70.33B

FCF

$1.978B

Charts data: {"Earnings":[{"time":"2014-12-30","value":314107000},{"time":"2015-12-30","value":244977000},{"time":"2016-12-30","value":352039000},{"time":"2017-12-30","value":387074000},{"time":"2018-12-30","value":1150603000},{"time":"2019-12-30","value":1277477000},{"time":"2020-12-30","value":611709000},{"time":"2021-12-30","value":1498606000},{"time":"2022-12-30","value":1721121000},{"time":"2023-12-30","value":2658000000}],"Sales":[{"time":"2014-12-30","value":12195091000},{"time":"2015-12-30","value":7763206000},{"time":"2016-12-30","value":8920934000},{"time":"2017-12-30","value":12173907000},{"time":"2018-12-30","value":12593196000},{"time":"2019-12-30","value":10164367000},{"time":"2020-12-30","value":8542242000},{"time":"2021-12-30","value":16540309000},{"time":"2022-12-30","value":22386892000},{"time":"2023-12-30","value":17677000000}],"Net Margins":[{"time":"2014-12-30","value":0.025756839370858323},{"time":"2015-12-30","value":0.0315561637807885},{"time":"2016-12-30","value":0.03946212358481747},{"time":"2017-12-30","value":0.031795380069849395},{"time":"2018-12-30","value":0.09136703661246914},{"time":"2019-12-30","value":0.12568190424450434},{"time":"2020-12-30","value":0.07160988883246343},{"time":"2021-12-30","value":0.09060326502969202},{"time":"2022-12-30","value":0.07688074789479486},{"time":"2023-12-30","value":0.15036488091870792}],"Assets":[{"time":"2014-12-30","value":15304560000},{"time":"2015-12-30","value":15446111000},{"time":"2016-12-30","value":16138751000},{"time":"2017-12-30","value":16845937000},{"time":"2018-12-30","value":18231671000},{"time":"2019-12-30","value":21812121000},{"time":"2020-12-30","value":23078754000},{"time":"2021-12-30","value":23621613000},{"time":"2022-12-30","value":24379094000},{"time":"2023-12-30","value":44266000000}],"Stockholders Equity":[{"time":"2014-12-30","value":4005883000},{"time":"2015-12-30","value":3766336000},{"time":"2016-12-30","value":3428915000},{"time":"2017-12-30","value":5685352000},{"time":"2018-12-30","value":6579543000},{"time":"2019-12-30","value":6225951000},{"time":"2020-12-30","value":6042398000},{"time":"2021-12-30","value":6015163000},{"time":"2022-12-30","value":6493885000},{"time":"2023-12-30","value":16484000000}],"ROE":[{"time":"2014-12-30","value":0.0784114263946301},{"time":"2015-12-30","value":0.06504385163724108},{"time":"2016-12-30","value":0.10266775350220113},{"time":"2017-12-30","value":0.06808267984110747},{"time":"2018-12-30","value":0.1748758234424488},{"time":"2019-12-30","value":0.20518584229140255},{"time":"2020-12-30","value":0.10123613174769355},{"time":"2021-12-30","value":0.2491380532830116},{"time":"2022-12-30","value":0.26503718498248735},{"time":"2023-12-30","value":0.16124727008007766}],"ROA":[{"time":"2014-12-30","value":0.07472093284615827},{"time":"2015-12-30","value":0.06449254443400025},{"time":"2016-12-30","value":0.07966390955533052},{"time":"2017-12-30","value":0.0819719912285081},{"time":"2018-12-30","value":0.10883401746334716},{"time":"2019-12-30","value":0.0982373057622411},{"time":"2020-12-30","value":0.06565354438112214},{"time":"2021-12-30","value":0.10991031814804518},{"time":"2022-12-30","value":0.11515682248076979},{"time":"2023-12-30","value":0.09198933718881308}]}

ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions. It also provides midstream services to producers of NGLs. The company owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Missouri, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana; and transports refined petroleum products, including unleaded gasoline and diesel from Kansas to Iowa, as well as owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, it transports and stores natural gas through regulated interstate and intrastate natural gas transmission pipelines, and natural gas storage facilities. Further, the company owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space and rail cars. It serves integrated and independent exploration and production companies; NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; utilities; industrial companies; propane distributors; municipalities; ethanol producers; and petrochemical, refining, and NGL marketing companies, as well as natural gas distribution and electric generation companies, producers, processors, and marketing companies. ONEOK, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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6/30/22
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3/31/22
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12/31/21
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9/30/21
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12/31/20
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3/31/20
10-K
12/31/19
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9/30/19
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6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Oneok Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.978B	$2.527B	$3.164B	$3.881B	$4.664B	$5.486B	$6.315B	$7.109B	$7.824B	$8.413B	$8.834B	$88.34B
DCF		$2.197B	$2.392B	$2.552B	$2.667B	$2.728B	$2.73B	$2.673B	$2.558B	$2.391B	$2.184B	$21.84B
Value	$46.91B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 31%

Earnings Stability 86%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	3.2%	3.9%	3.2%	9.1%	13%	7.2%	9.1%	7.7%	15%	13%
ROA	6.4%	8%	8.2%	11%	9.8%	6.6%	11%	12%	9.2%	8.2%
ROE	6.5%	10%	6.8%	17%	21%	10%	25%	27%	16%	14%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.11%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.48%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.83%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.03%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +19.28%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.74%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-49.82	14.58	12.22	220.12	-6.85	-48.49	7.92	8.60	8.24	11.59
Debt Equity	2.40	3.09	1.73	1.51	2.09	2.38	2.44	2.26	1.41	1.39
MIN
Graham Stability	-	-	100%	100%	100%	65%	100%	100%	100%	65%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 11.59.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -27.33.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.65.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	10%	7%	27%	-21%	3.6%
Net Income	33%	18%	63%	54%	4%
Stockholders Equity	25%	20%	40%	150%	9%
FCF	21%	130%	-	66%	13%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.02%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +3.62%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +18.23%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +4%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +20.16%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +8.98%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +128.62%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +13.05%.