Oneok Inc
OKE
Natural Gas Transmisison & Distribution
Mkt Cap
$30.2BPE
12.30Debt
$23.6BCash
$284MEV
$53.51BFCF
$2.645BP/E Ratio
12.30Debt
$23.6BCash
$284MEV
$53.51BFCF
$2.645BONEOK, 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.
DCF
Discounted Cash Flow Valuation of Oneok Inc
Value
Growth
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%
Discount
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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 | $2.645B | $3.383B | $4.241B | $5.209B | $6.264B | $7.374B | $8.493B | $9.566B | $10.53B | $11.33B | $11.89B | $118.9B |
| DCF | $2.942B | $3.207B | $3.425B | $3.581B | $3.666B | $3.672B | $3.596B | $3.443B | $3.219B | $2.939B | $29.39B | |
| Value | $63.09B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 30%
Earnings Stability 85%
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.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 2.6% | 3.2% | 3.9% | 3.2% | 9.1% | 13% | 7.2% | 9.1% | 7.7% | 14% |
| ROA | 7.5% | 6.4% | 8% | 8.2% | 11% | 9.8% | 6.6% | 11% | 12% | 8.5% |
| ROE | 7.8% | 6.5% | 10% | 6.8% | 17% | 21% | 10% | 25% | 27% | 15% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.13%.
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 +9.66%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.39%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +17.73%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +3.15%.
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.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | -16.73 | -49.82 | 14.58 | 12.22 | 220.12 | -6.85 | -48.49 | 7.92 | 8.60 | 8.92 |
| Debt Equity | 2.06 | 2.40 | 3.09 | 1.73 | 1.51 | 2.09 | 2.38 | 2.44 | 2.26 | 1.45 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 65% | 100% | 100% | 65% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 8.92.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -19.89.
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.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 16% | 13% | 30% | 35% | 8% |
| Net Income | 32% | 35% | 10% | 15% | 5% |
| Stockholders Equity | 8.1% | 2.7% | 1.4% | 8% | 0.98% |
| FCF | - | 16% | - | -7.9% | 3.6% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +12.96%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +8%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +34.77%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +4.97%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +2.7%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.98%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +16.24%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +3.56%.