Billions of dollars in key capital growth projects await oil and natural gas pipeline players, which could generate incremental cash flows. Rising clean energy demand from data centers is also brightening the prospects for natural gas transportation companies, enhancing the outlook for the Zacks Oil and Gas - Pipeline MLP industry.
The partnerships belonging to the industry are also benefiting from stable fee-based revenues, as most contracts are for the long term. Key players in this industry include Enterprise Products Partners LP (EPD - Free Report) , Energy Transfer LP (ET - Free Report) and ONEOK Inc. (OKE - Free Report) .
About the Industry The Zacks Oil and Gas - Pipeline MLP industry comprises master limited partnerships (or MLPs) that primarily transport oil, natural gas, refined petroleum products and natural gas liquids (NGL) to consumers in North America. Apart from transporting the commodities, the partnerships have huge capacities to store oil, natural gas and petrochemical products. The partnerships thus provide midstream services to producers and consumers of the commodities. The firms generate stable fee-based revenues from all these transportation and storage assets. The services provided by the MLPs entail the gathering and processing of commodities. The integrated midstream energy players also generate cashflows from ownership interests in fractionators and condensate distillation facilities.
What's Shaping the Future of Oil & Gas - Pipeline MLP Industry? Stable Cash Flow Generation: The midstream assets are usually booked by shippers for the long term, generating stable cash flows. The long-term contracts are mostly take-or-pay contracts, meaning shippers have to pay a minimum amount even if they don’t utilize the midstream assets. Thus, cash flow generation is highly predictable, suggesting that the business model is not very vulnerable to volatility in oil and natural gas prices.
Rising Demand From Data Centers: The natural gas transportation companies and partnerships, belonging to the industry, are well-positioned to gain from the growing clean energy demand from data centers. This is because employing their pipeline networks, the midstream players can transport natural gas to gas-fired power plants, which will provide electricity to the data centers.
Growth Capital Pipeline: Companies and partnerships in the industry are expected to generate incremental cash flow from billions of dollars in key capital projects that are either in service or set to come online.
Zacks Industry Rank Indicates Solid Opportunities The Zacks Oil and Gas - Pipeline MLP industry is a seven-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #53, which places it in the top 21% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries forms a favorable earnings outlook for the constituent stocks in aggregate. Before we present a few stocks that you may want to consider, let’s look at the industry’s recent stock market performance and its valuation picture.
Industry Underperforms Sector, S&P 500 The Zacks Oil and Gas - Pipeline MLP industry has underperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 Composite over the past year. The industry has rallied 16.9% in the past year compared with the broader sector’s 30.8% surge and the S&P 500's 20.5% rise.
One-Year Price Performance
Industry's Current Valuation Since midstream-focused oil and gas partnerships use fixed-rate debt for the majority of their borrowings, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt.
On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 12.14X, lower than the S&P 500’s 18.50X. It is, however, significantly above the sector’s trailing 12-month EV/EBITDA of 6.87X.
Over the past five years, the industry has traded as high as 12.59X and as low as 8.27X, with a median of 10.73X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
3 Oil & Gas Pipeline MLPs to Gain Enterprise Products Partners is a leading midstream player and therefore has a resilient business model. EPD has a pipeline network that spans more than 50,000 miles, transporting oil, natural gas, refined products and other commodities. The partnership generates stable fee-based revenues from the midstream assets as the assets are booked by shippers for the long term.
Due to the resilience of its business model, the partnership, currently carrying a Zacks Rank #3 (Hold), has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned billions of dollars to unitholders through both repurchases and distributions. EPD has increased distributions for 27 consecutive years. Thus, the partnership has successfully kept cash flow steady at all business cycles.
Price and Consensus: EPD
Energy Transfer has a stable business model with its huge pipeline network of natural gas, oil and refined petroleum products across 140,000 miles. The partnership has midstream assets in all the key basins in the United States, generating stable fee-based revenues.
Energy Transfer, sporting a Zacks Rank #1 (Strong Buy), has offered a higher dividend yield than the composite stocks belonging to the industry over the past three consecutive years. For this year, the partnership is likely to see earnings growth of 18.2%.
Price and Consensus: ET
ONEOK Inc also enjoys stable fee-based revenues, banking on its vast pipeline network spanning 60,000 miles, transporting natural gas, natural gas liquids, crude oil and refined products. This shows the player’s resilient business model. Currently, OKE carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of OKE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying OKE stock? Here’s what analysts think:
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Oneok Inc. (OKE - Free Report) , which belongs to the Zacks Oil and Gas - Production Pipeline - MLB industry, could be a great candidate to consider.
When looking at the last two reports, this natural gas company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 3.95%, on average, in the last two quarters.
For the last reported quarter, Oneok came out with earnings of $1.3 per share versus the Zacks Consensus Estimate of $1.26 per share, representing a surprise of 3.17%. For the previous quarter, the company was expected to post earnings of $1.48 per share and it actually produced earnings of $1.55 per share, delivering a surprise of 4.73%.
Price and EPS Surprise
For Oneok, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Oneok has an Earnings ESP of +7.20% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 3, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
TULSA, Okla., July 15, 2026 (GLOBE NEWSWIRE) -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of $1.07 per share, unchanged from the previous quarter, resulting in an annualized dividend of $4.28 per share.
The dividend is payable Aug. 14, 2026, to shareholders of record at the close of business Aug. 3, 2026.
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At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.
ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.
For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," “outlook,” "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC’s website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Oneok Inc. (OKE - Free Report) Tulsa, OK-based ONEOK Inc. was founded in 1906. The company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. On Jun 30, 2017, ONEOK acquired all the shares of ONEOK Partners. In September 2023, ONEOK completed its acquisition of Magellan Midstream Partners, L.P. for $18.8 billion. The agreement opened up Magellan's primarily fee-based refined products and crude oil transportation business to ONEOK.
OKE is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.69; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $5.51 per share. OKE boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, OKE should be on investors' short list.
Whenever investors are required to take on even modest amounts of risk, "best" is a subjective word. It means different things to different market participants, and that's true with energy stocks and any other corner of the equity market, for that matter.
For some, the best stock is simply the top-performing name. Others assess "best" in value terms, while some investors view leadership from an income perspective. On the note of dividends, there's Oneok (OKE +2.52%), an Oklahoma-based midstream powerhouse that's been in business for 120 years.
Image source: Getty Images.
The stock currently has a dividend yield 4.7%, which is enough to entice many income investors. Yield alone doesn't make any stock "good" or "the best." That said, Oneok is undoubtedly one of the energy sector's top dividend ideas. Here's why.
Oneok has the two Cs Dividend investing is a long-term style. When accounting for that, investors ought to consider the two Cs: commitment and consistency.
When evaluating dividend stocks, regardless of sector, investors should prioritize companies' commitments to their dividends and the consistency with which those payouts grow and are delivered. Oneok easily checks those boxes, highlighting why it's one of the best payout names in energy.
Over the past 30 years, not only has this midstream company's payout been delivered uninterrupted, but it's also grown more than 14-fold. Over the past 12 years, Oneok's dividend growth easily trounced the payout growth rates of multiple C-Corp peers. The energy company is also clear about its dividend intentions, telling investors it expects to grow the payout at an annual rate of 3% to 4% while maintaining a payout ratio of 85% or lower. If inflation normalizes, Oneok's dividend growth would likely outpace rising consumer costs, fortifying the stock's status as one of the best energy dividend names.
Today's Change
(
2.52
%) $
2.27
Current Price
$
92.19
All of that sounds great, and it is, but astute investors know that, for energy dividend payers, payout consistency must be rooted in earnings growth, not taking on debt to fund shareholder rewards. This is another area in which Oneok shines as one of the best. The company holds investment-grade credit ratings and has a 12-year streak of growing earnings before interest, taxes, depreciation, and amortization (EBITDA).
There's no shortage of oil dividend stocks to consider, but they're not all cut of the same cloth. There are some questionable characters and, to borrow a phrase from "Top Gun," there are energy payout names that are the best of the best.
Oneok is in the latter camp, and that's not hyperbole. It's a claim supported by other fundamental factors, including smart deal-making that generated $500 million in savings to bolster the bottom line. Additionally, Oneok's capital spending is forecast to decline after this year. Throw in some significant tax deferments, and free cash flow could top $2 billion by 2027.
Plus, Oneok trades at a discount to peers, but if the company hits its cost-savings and deleveraging objectives, that gap could close in its favor, potentially generating significant upside for investors exclusive of the dividend.
Oneok Inc. (OKE - Free Report) closed at $89.50 in the latest trading session, marking a -1.82% move from the prior day. This change lagged the S&P 500's 0.81% gain on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 1.3%.
Coming into today, shares of the natural gas company had gained 0.65% in the past month. In that same time, the Oils-Energy sector lost 3.61%, while the S&P 500 gained 1.13%.
The investment community will be closely monitoring the performance of Oneok Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.41, reflecting a 5.22% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.81 billion, up 37.11% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.5 per share and revenue of $46.96 billion, which would represent changes of +1.48% and +39.64%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Oneok Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Oneok Inc. is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Oneok Inc. is holding a Forward P/E ratio of 16.57. This signifies a premium in comparison to the average Forward P/E of 14.12 for its industry.
Also, we should mention that OKE has a PEG ratio of 7.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Production Pipeline - MLB industry had an average PEG ratio of 1.33.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow OKE in the coming trading sessions, be sure to utilize Zacks.com.
TULSA, Okla., July 09, 2026 (GLOBE NEWSWIRE) -- ONEOK, Inc. (NYSE: OKE) will release second-quarter 2026 earnings after the market closes on Aug. 3, 2026. Members of ONEOK’s management team will participate in a conference call the following day.
What: ONEOK second-quarter 2026 earnings conference call and webcast
When: Aug. 4, 2026, at 11 a.m. Eastern (10 a.m. Central)
Where: 1) Conference call: Dial 800-330-6710 and use confirmation code: 3334626
2) Webcast: Join at www.oneok.com
If you are unable to participate in the conference call or the webcast, a recording will be available at www.oneok.com for one year.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.
ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.
For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
July 1 carries a particular significance for many liquids pipelines in the U.S. Each year on this date, these pipelines are able to adjust their rates using an index based on inflation. This July marks the first adjustment with a new five-year level for the index. Today’s note provides an overview of the Oil Pipeline Index and why it matters for midstream, especially in periods of inflation.
Key Takeaways Liquids pipelines and other assets following FERC’s Oil Pipeline Index could increase rates by up to 1.43% on July 1. The increase for July 2026 was the smallest of the last five years. However, rising inflation could drive a more noticeable increase for July 2027. Whether based on the FERC index or another metric, long-term midstream contracts typically include an annual inflation adjustment. This and real asset exposure helps midstream/MLPs perform well in periods of inflation. What Is the Oil Pipeline Index? The Oil Pipeline Index is overseen by the Federal Energy Regulatory Commission (FERC). FERC is tasked with ensuring that interstate pipeline rates are just and reasonable for both oil and natural gas. Many pipelines that transport liquids (oil, natural gas liquids, refined products like gasoline and diesel) use the FERC’s index, which sets the ceiling for annual rate changes. As discussed more below, other assets use the FERC index as well. The index is based on the Producer Price Index for Finished Goods (PPI-FG) with an adjustment.
The Oil Pipeline Index is reviewed every five years to ensure that: 1) it appropriately reflects changes in industry costs, and 2) rates remain just and reasonable. The industry-wide index was established in the 1990s to help avoid cumbersome cost-of-service filings and litigation for individual pipelines.
In April, FERC announced that the index would be based on PPI-FG – 0.55% for the next five years beginning with July 1, 2026. For the midstream industry, this marked a better outcome than the initial index level of PPI-FG – 1.42% that was proposed back in November 2025. In short, annual rate adjustments will be based on inflation, modestly tracking below the change in PPI-FG.
What Was the Rate Adjustment for 2026? How Does It Compare to Recent Years? The change in PPI-FG for 2025 is used in the formula to calculate the rate adjustment for 2026. For 2025, PPI-FG increased by 1.979%. Therefore, pipelines following the index were able to increase their rates by up to 1.429% on July 1 (1.979% – 0.55%).
The chart below shows the annual rate changes as outlined by the FERC’s Oil Pipeline Index since 1995. Notably, 2023 saw a record-high adjustment of 14.3% reflecting soaring inflation in 2022. For 2024 and 2025, the adjustments were more modest at around 2%. The ceiling rate increase for July 2026 marks the lowest increase of the last five years. With inflation heating up again, there may be a more noticeable increase for July 2027.
So What? Certainly, the pipeline index is important for the 195 FERC-regulated pipelines that rely on the index for ratemaking. However, the impact for midstream is broader. Many midstream assets outside of FERC’s jurisdiction incorporate the index into contracts to ensure their rates are adjusting with inflation. Intrastate pipelines (regulated by states), terminals, and storage facilities may rely on the index for annual rate adjustments.
It is also worth noting that liquids pipelines do not have to follow the FERC index. Some liquids pipelines use market-based or negotiated rates, where the pipeline provider and customer essentially agree to a certain rate. ONEOK (OKE) said on their 1Q26 earnings call that 70% of the volume in their Refined Product and Crude segment used market-based rates, instead of the FERC index.
Importantly, whether assets use the FERC index or not, long-term midstream contracts typically include an annual inflation adjustment. As just one example, Enterprise Products Partners (EPD) highlights that approximately 90% of its long-term contracts include escalation provisions to limit the impact of inflation on cash flows and distributions. In addition to real asset exposure, this factor also contributes to midstream/MLPs typically holding up well in periods of inflation.
As shown below, MLPs represented by the Alerian MLP Infrastructure Index (AMZI) and broader midstream represented by the Alerian Midstream Energy Select Index (AMEI) tend to outperform in periods of elevated inflation. Specifically, AMZI outperformed the S&P 500 on a total-return basis in seven of the nine years since 2000 when inflation has exceeded 3%. AMEI has less history but outperformed the S&P 500 in five of the six years shown.
Bottom Line: The FERC Oil Pipeline Index provides one relevant example of the inflation protection built into midstream cash flows. Annual inflation adjustments in contracts and the real asset exposure in the space have historically been supportive for midstream/MLP performance in periods of elevated inflation.
Related Research:
Real Assets May Be the Missing Piece in Portfolios
It’s July 1 & US Liquids Pipelines Are Raising Rates
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AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMEI is the underlying index for the Alerian Energy Infrastructure ETF (ENFR) and the Alerian Energy Infrastructure Portfolio (ALEFX).
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, MLPB, ENFR, and ALEFX, for which it receives an index licensing fee. However, AMLP, MLPB, ENFR, and ALEFX are not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of AMLP, MLPB, ENFR, and ALEFX.
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A caller on the June 29 episode of Mad Money laid out the trade that has been eating at retail investors for two years. “If I can get a guaranteed interest rate of over 5% by purchasing a 6-month Treasury bond, why should I invest in the equities market given market conditions?” Jim Cramer did not laugh it off. He owns short-dated paper himself. But he also thinks the framing quietly costs people money.
The first problem with the premise is that the 5% is already gone. The 6-month T-bill yields about 4% and the 1-year sits near 4%. The 10-year benchmark closed June 29 near 4.4%. So the debate is really about a sub-4% guarantee versus something that might grow.
Cramer’s verdict, and why he is right Cramer validated the safety trade, then flipped it. “The stock market has far exceeded longer term anything that you’re going to get in the short.” His point is mechanical. A T-bill locks a coupon for six months. When it matures, you reinvest at whatever the market is paying that morning, which nobody controls. The 6-month yield alone swung between 3.8% and 4% inside June 2026. That is reinvestment risk in a single month.
The second half of the argument is compounding. “No growth on any treasuries,” Cramer said, and this is the sentence to underline. A bill pays you a number and returns your principal. A quality dividend grower pays you a number, raises that number most years, and lets the underlying business reprice higher over time. Two vehicles, two entirely different jobs.
How Enbridge and Oneok illustrate the point Cramer named two names as illustrations, not recommendations.
For example, Enbridge (NYSE:ENB | ENB Price Prediction) currently yields roughly 6.9% at a share price near $54. That starting yield already beats a 6-month bill by nearly three full points. The Canadian pipeline operator just delivered its 31st consecutive annual dividend increase, a 3% raise declared in December 2025, and management guided to roughly 5% compound growth in EBITDA, EPS and distributable cash flow per share after 2026. Over the last twelve months the stock has returned about 26% before you count the dividends.
Oneok (NYSE:OKE) tells a similar story with a different shape. Shares trade around $86, the yield sits near 4.7%, and the company just raised the quarterly payout from $1.03 to $1.07 in February 2026, a 4% bump. Roughly 90% of 2025 earnings were fee-based, meaning the cash flow behind the dividend does not care much where oil trades day to day. The stock is up about 21% year to date.
The rough math looks like this. Park $10,000 in a 6-month bill at about 4% and you collect roughly $199 across the term, then face whatever the reinvestment rate happens to be. Put the same $10,000 into a 6% yielder growing its dividend around 4% a year, and year one income lands near $600 with a raise built in for year two. You also carry price risk in both directions. That is the trade Cramer is asking you to see with clear eyes.
The variable that decides it for you The factor that flips this decision is your time horizon, and specifically whether you can sit through drawdowns. If you need the principal back in eight months for a house down payment, a T-bill wins because you do not care what Enbridge trades for in March. The certainty is the product. If your money has five years or longer to work, the picture inverts. Enbridge has returned about 85% over five years and Oneok about 102%, and neither includes reinvested dividends. No bill ladder was going to match that.
Volatility is the price of admission. Enbridge’s 52-week range runs from about $41 to $58. Oneok’s runs from about $62 to $96. If those swings would force you to sell at the bottom, you should not own the stocks regardless of the yield differential.
What to actually do this week Pull up your last twelve months of expenses and separate the dollars you will spend inside a year from the dollars that can compound. The near-term bucket belongs in bills at whatever the current auction clears at. The long-term bucket has a real opportunity cost sitting in cash equivalents.
Then, for any dividend name you consider, check three things: the payout ratio against free cash flow, the streak of consecutive raises, and the dividend growth rate over the last five years. A 4% yield growing 5% a year quietly outruns a 5% bill you cannot renew at 5%.
The T-bill solves for six months. Dividend growers solve for the next decade. Cramer’s answer is really just a reminder that those are different questions.
Contact [email protected] for any questions or corrections.
In the latest trading session, Oneok Inc. (OKE - Free Report) closed at $85.73, marking a -1.39% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.66%.
Heading into today, shares of the natural gas company had gained 0.25% over the past month, outpacing the Oils-Energy sector's loss of 4.76% and the S&P 500's loss of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of Oneok Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $1.41, up 5.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.81 billion, up 37.11% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.5 per share and revenue of $46.96 billion, which would represent changes of +1.48% and +39.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Oneok Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Oneok Inc. is currently a Zacks Rank #3 (Hold).
In the context of valuation, Oneok Inc. is at present trading with a Forward P/E ratio of 15.8. This signifies a premium in comparison to the average Forward P/E of 13.42 for its industry.
Meanwhile, OKE's PEG ratio is currently 6.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 1.3 as of yesterday's close.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Some investors are currently focused on falling artificial intelligence (AI) stocks, and understandably so. In addition to the misery this setback has already dished out, the weakness has bigger-picture implications. Namely, it could mark the start of a broader sell-off.
This is precisely the time to make some smart, long-term moves for your portfolio, while few others are considering the same.
To this end, if you're an income investor seeking some new dividend payers, here are three dividend stocks to consider in the midst of all the noise.
Image source: Getty Images.
1. Oneok The prospective wind-down of hostilities between the United States and Iran has let oil prices peel back from their April peak to a multi-month low just last week, dragging most energy stocks down with it.
There's a reason, however, Oneok (OKE 0.55%) is defying this headwind. It's a midstream energy company, meaning it owns and operates 60,000 miles of pipelines that transport both oil and natural gas from one point to another, regardless of the price of either. It charges by volume, however, meaning that as long as the country continues consuming both, Oneok's toll booth keeps churning out revenue.
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This is an ideal business model for a dividend-paying business. To this end, the company has not only paid a dividend like clockwork for decades, but raises it on a reliably regular basis.
2. Sun Communities Most investors are probably familiar with the market's better-known real estate investment trusts (REITs). Sun Communities (SUI 0.02%) is not one of these names.
Perhaps it should be, though, not because its forward-looking yield of 3.7% is wildly thrilling, but because this often-overlooked REIT is quietly building an impressive dividend pedigree. The company has now raised its dividend payout for nine consecutive years.
Sun Communities owns a bunch of mobile home and RV parking rental properties, by the way, which is proving to be a surprisingly resilient market.
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3. Accenture Finally, add Accenture (ACN 0.58%) to your list of dividend stocks to buy while the market is distracted.
Accenture offers a range of business services, including marketing, technology installation, supply chain optimization, personnel recruitment, and more. Its customers include names like Bosch, Levi's, Spotify, and Uber, just to name a few.
The stock hasn't performed all that well for a while now. In fact, shares are now down more than 60% from last February's peak, mostly due to worries that the proliferation of artificial intelligence tools poses a threat to its business.
And in some way, maybe it does.
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It's not quite the danger the stock's recent performance suggests, as artificial intelligence still can't handle much of the real-world, physical work that Accenture is doing. To the extent it is a threat, however, the company is using AI -- and helping its clients use it -- rather than simply ignoring it. The stock's prolonged sell-off has simply pumped its forward-looking dividend yield up to a solid 5.1%.
That's based on an annual dividend, by the way, which has been raised every year for a couple of decades now.
The energy infrastructure sector includes a range of different business models, from gathering systems at the wellhead to long-haul pipelines and export facilities. Comparing midstream companies without a standardized framework of midstream classifications can be difficult. With all the varying contract structures, growth drivers, and risks inherent in each of these businesses, it’s important for investors to understand this framework as well. Learn more below about how the Energy MLP Classification Standard (EMCS) solves this by organizing companies into clear subsectors, how these categories shape major midstream benchmarks, and what factors are driving valuations and year-to-date performance across the space today.
Key Takeaways The Energy MLP Classification Standard (EMCS) categorizes energy infrastructure companies based on their primary source of cash flows. This provided an essential framework to accurately benchmark indexes, compare peer groups, and analyze relative performance. Applying the EMCS framework to midstream benchmarks highlights the differences between broad midstream indexes and MLP-only indexes, particularly regarding their weightings toward natural gas infrastructure. Forward EV/EBITDA multiples and total returns vary by subsector based on contract visibility, customer quality, and commodity exposure. The Mechanics of Midstream Classification The Energy MLP Classification Standard (EMCS) is the framework used to standardize the business activities of companies within the Alerian midstream index suite.
Before its introduction a decade ago, investors lacked a unified benchmark for attribution analysis. Research analysts frequently disagreed on categorizations. Without a standardized framework, stakeholders often resorted to a vague “diversified” label for highly integrated companies. By establishing a unified benchmark, the EMCS enabled investors to better analyze relative performance by subsector.
In the EMCS, energy infrastructure companies are categorized by their primary business activity, based on what generates the majority of cash flow on a trailing-four-quarter basis. Classifications are determined using a variety of publicly available resources. This included SEC filings, press releases, and investor presentations. The classifications and their definitions are included below:
By having one standardized classification, energy infrastructure companies have a more objective way of determining their peer group. Companies are assigned to a single classification, even if their revenues are relatively evenly split across multiple business lines. There is no “diversified” category by design. It wouldn’t make sense to compare a highly defensive, long-haul pipeline operator to a commodity-sensitive gathering and processing company.
Interpreting Index Weightings Using EMCS Subsectors Within the Alerian suite, two broad benchmarks are frequently used to delineate and analyze the midstream sector across C-Corps and Master Limited Partnerships (MLPs). The Alerian Midstream Energy Corporation Index (AMCC) represents North American energy infrastructure corporations, while the Alerian MLP Index (AMZ) serves as the leading gauge of energy infrastructure MLPs. As of June 26, AMZ was yielding 6.7%, and AMCC was yielding 3.5%.
Structurally, midstream C-Corps tend to have a larger footprint in natural gas infrastructure compared to their MLP counterparts. When analyzing these weightings, it is also important to note that marketing and distribution, as well as compression, are not qualifying activities for AMCC.
As shown above, AMCC skews significantly more towards subsectors primarily focused on natural gas. This include the natural gas pipeline transportation, gathering & processing, and liquefaction subsectors. As of June 26, over three-fourths of AMCC by weight was dedicated to natural gas infrastructure, whereas roughly half of AMZ by weight focuses on natural gas.
Comparing Subsector Multiples in the Midstream Space Broadly, C-Corps tend to command higher valuations than MLPs. This is due to a combination of factors such as simplified tax reporting without K-1s, more traditional corporate governance, and eligibility for inclusion in broad market equity indexes. For instance, four midstream C-Corps collectively constitute roughly 0.4% of the S&P 500 by weight: Kinder Morgan (KMI), ONEOK (OKE), Targa Resources (TRGP), and Williams (WMB).
Overall, on a weighted average basis, AMCC is trading at 11.94x 2027 EBITDA as of June 25, while AMZ is trading at 8.89x 2027 EBITDA. While corporate structure clearly impacts valuations, the underlying business is also important in determining multiples. In general, investors will pay a premium for longer-term cash flow visibility. Looking at the broader Alerian Midstream Energy Index (AMNA), which is trading at 11.56x 2027 EBITDA overall, subsectors exhibit a clear variance in valuation. The subsector multiples below are simple averages and track lower than the overall AMNA index because the largest constituents command higher valuations.
Long-haul pipeline transportation, both petroleum and natural gas, commands higher multiples alongside liquefaction. This is because long-haul pipelines are typically backed by investment-grade counterparties and sticky, long-term, fee-based contracts. This business model provides stronger cash flow certainty and longer visibility, which justifies higher EBITDA multiples.
Liquefaction vs. Gathering & Processing Contracts Liquefaction names also tend to have higher forward multiples. This is driven primarily by their long-term revenue visibility, often backed by 20-year sales agreements, and their ability to generate substantial cash flow once operational. Currently, these companies are building out liquefied natural gas (LNG) export capacity to meet global natural gas demand. By 2031, U.S. LNG export capacity is set to roughly double, an increase of 18.7 billion cubic feet per day (Bcf/d). More broadly, this buildout has been a key tailwind for natural-gas-focused names in the midstream space alongside rising power needs, including from data centers, that could drive an incremental 9.9 Bcf/d of U.S. natural gas demand to 2030. For reference, U.S. natural gas demand was 92.0 Bcf/d in 2025.
With this expected natural gas demand growth, the slew of expansion projects underway are largely for demand-pull natural gas pipelines. These tend to command higher premiums due to longer contract terms and stronger customers. Notably, growth projects span the U.S., instead of being concentrated in Texas. Natural gas pipelines tend to be more utility-like, which can also support stronger valuations.
Conversely, gathering and processing (G&P) assets tend to command some of the lowest EBITDA multiples in the sector. These smaller pipelines move hydrocarbons away from the wellhead, and are thus highly dependent on localized producer output, face greater regional competition, and typically operate on much shorter-term contracts. Furthermore, G&P operators frequently rely on acreage dedications. These are usually lower quality contracts that only promise the output of a specific area, rather than minimum volume commitments. This inherent volume risk and greater commodity exposure results in a valuation discount compared to other subsectors.
Gathering & Processing Leads AMNA Subsectors in YTD Performance The macroeconomic narrative in 2026 has been dominated by the conflict with Iran and the closure of the Strait of Hormuz. While broader equity markets experienced heightened volatility, energy has been a clear standout, and AMNA has generated a robust total return of 25.9% through June 26. Entering the year, there were some concerns in the energy sector about U.S. production growth slowing down this year and in 2027. However, with West Texas Intermediate (WTI) crude up 20.6% year-to-date through June 26 and the crude futures curve at a supportive level, those fears have evaporated. The U.S. Energy Information Administration (EIA) now expects U.S. oil production to reach a new record high in 2027, reversing prior expectations for a decline. The improved volume outlook and strong free cash flow generation have driven robust performance across the midstream space.
As shown above, the gathering & processing (G&P) subsector has clearly stood out, handily outperforming AMNA’s year-to-date total return. Due to their proximity to the wellhead, shorter contract lengths, and fee structures that can include a portion of commodity prices, G&P operators tend to be more commodity-sensitive than long-haul pipelines. In a rising commodity price environment, this allows them to capture more immediate upside.
Other Strong Performance Factors in 2026 Liquefaction names also posted strong returns, stemming from Middle East supply shocks, specifically the closure of the Strait of Hormuz and strikes that reportedly took about 17% of Qatar’s LNG export capacity offline for an estimated 3-5 years. U.S. LNG exporters with the flexibility to sell spot cargoes into this higher-priced international market have been the primary beneficiaries. For example, Venture Global (VG), which was only 69% contracted as of February, is up 60.6% on a total-return year-to-date through June 26. Cheniere Energy (LNG), though heavily contracted at over 90%, has also benefited significantly, returning 24.3% over the same period.
Meanwhile, natural gas and petroleum pipelines have benefited from the resulting long-term demand-pull and a resilient oil price backdrop, though trailing the broader index. Still, due to its heavier weighting relative to other subsectors, natural gas transportation contributed the most to AMNA’s overall performance year-to-date.
Bottom Line As the energy sector evolves, the EMCS framework makes it easier to understand the midstream space by providing essential context. By grouping similar companies together, investors can accurately compare indexes and better analyze performance drivers.
Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates.
For more news, information, and analysis, visit the Energy Infrastructure Content Hub
Related Research:
U.S. Oil Production Outlook & Midstream Implications
Is Oil’s Peak Behind Us? Does It Matter for Midstream?
Surging U.S. Power Needs Drive Gas Infrastructure Opportunity
U.S. LNG Exports Surge Despite 4Q25 Headwinds
MLP 101: Addressing Common Investor Questions
Energy MLP Classification Standard
AMZ is the underlying index for the JPMCFC Alerian MLP Index ETN (AMJB), the ETRACS Alerian MLP Index ETN Series B (AMUB), and the ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN (MLPR).
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMJB, AMUB, and MLPR, for which it receives an index licensing fee. However, AMJB, AMUB, and MLPR are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMJB, AMUB, and MLPR.
The U.S. and Iran traded shots over the weekend. Iran attacked a couple of ships in the Strait of Hormuz in the past week. The U.S. military retaliated over the weekend, launching strikes on targets in Iran. However, both sides agreed to halt their hostilities and are reportedly meeting in Qatar this week to work towards a permanent peace deal.
Oil prices have had a relatively muted reaction to the renewed hostilities. Both Brent oil (the global oil benchmark) and WTI (the U.S. oil benchmark) were up about 2% on Monday, with WTI regaining the $70-a-barrel level while Brent is approaching $75. Here’s a look at what this means for energy investors.
Images source: Getty Images.
All eyes on the StraitWhen the U.S. and Iran signed their Memorandum of Understanding (MOU) to implement a 60-day ceasefire earlier this month, Iran was to allow the safe passage of commercial ships through the Strait of Hormuz with no charge during that period. However, instead of abiding by the agreement, Iran has continued to threaten commercial traffic in the Strait, including launching drones that have struck a couple of ships.
As a result, traffic through the Strait has slowed down considerably after an initial spike. However, Middle East energy producers are still loading oil and liquefied natural gas (LNG) on ships, with Saudi Arabia resuming crude oil loadings at its Ras Tanura terminal for the first time in four months.
Getting more Persian Gulf oil and LNG to global markets is crucial, given the among of inventory the global economy has burned through since the war began. For example, oil storage in the key U.S. hub in Cushing, Oklahoma (one of the largest in the world), fell to 19 million barrels, its lowest level since 2014 and below the minimum for normal operations. Meanwhile, the U.S. Strategic Petroleum Reserve is down to 331.2 million barrels, its lowest level in more than 40 years.
What this means for energy stocksThe continued Iranian attacks on ships attempting to transit the Strait of Hormuz are delaying the global energy market’s recovery. While energy market watchers believe Persian Gulf oil exports can quickly rebound to at least 75% of their pre-war levels, others believe the continued uncertainty will curtail the recovery. That could keep oil prices elevated in the coming weeks while the U.S. and Iran work towards a more permanent peace deal. There’s continued concern that low inventory levels could cause another spike in oil prices.
Investors have a couple of options. They can invest in oil stocks on the thesis that crude prices should remain at or above their current levels for the foreseeable future, with upside potential if the Strait doesn’t fully reopen soon. A $70 price point is more than adequate for most oil stocks. For example, Chevron (CVX 1.42%) initially expected to generate an additional $12.5 billion in free cash flow this year at $70 oil, driven by expansion projects, cost-savings initiatives, and its acquisition of Hess. Further, Chevron expects to grow its free cash flow by more than 10% annually through 2030 at that price point. Chevron also offers strong upside to higher prices, as every $1-per-barrel increase in Brent's average annual price would boost its 2026 cash flow by $600 million. The company’s ability to thrive at the current pricing level positions it to grow shareholder value.
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Another option for investors is buying pipeline stocks. These companies typically generate fee-based cash flows backed by long-term contracts that mitigate the impact of commodity price volatility. For example, Oneok (OKE 0.47%) expects to get between 85% and 90% of its earnings from stable fee-based sources this year. That provides it with significant stability and visibility. The pipeline company offers a high dividend yield (currently 4.8%) and expects to grow its payout by 3% to 4% per year, driven by contractually secured expansion projects. As a result, Oneok should deliver predictable results regardless of crude prices.
Uncertainty remains highThe renewed skirmishes in the Middle East increase uncertainty about when the Strait of Hormuz will return to normal. As a result, it’s unclear whether crude prices will continue to cool off or experience a resurgence. While that can make it harder to invest in oil stocks, given their sensitivity to oil prices, companies like Chevron can thrive in the coming years even if oil prices are lower. Meanwhile, pipeline stocks like Oneok can deliver steady growth and income regardless of crude prices.
In the latest trading session, Oneok Inc. (OKE - Free Report) closed at $89.52, marking a +2.53% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.46%.
The natural gas company's stock has dropped by 1.02% in the past month, exceeding the Oils-Energy sector's loss of 9.23% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Oneok Inc. in its upcoming release. The company's upcoming EPS is projected at $1.41, signifying a 5.22% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.81 billion, up 37.11% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.5 per share and a revenue of $46.96 billion, indicating changes of +1.48% and +39.64%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oneok Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% downward. Currently, Oneok Inc. is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Oneok Inc. is currently being traded at a Forward P/E ratio of 15.87. For comparison, its industry has an average Forward P/E of 13.29, which means Oneok Inc. is trading at a premium to the group.
Investors should also note that OKE has a PEG ratio of 6.78 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 1.29 based on yesterday's closing prices.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
ONEOK remains a core long position, complemented by writing puts to generate 'income' and potentially increase exposure opportunistically on a pullback. OKE trades ever so slightly below its five-year average forward EV/EBITDA, which makes it only modestly attractive on the valuation front. With guidance for continued growth in EBITDA and EPS, that can continue to support a growing dividend and likely lead to potential long-term upside.
ONEOK (OKE) offers a compelling mix of acquisition-driven growth, aggressive CapEx, and a high, growing dividend yield. OKE's 76% natural gas/NGL focus positions it to benefit from surging AI Data Center demand, especially in the Permian Basin. OKE trades at a 10.5X EV/EBITDA, below peers, with potential for a 12.5X multiple and 19% upside if growth accompanied by deleveraging efforts continue.
On June 15, 2026, ONEOK Inc OKE shares fell 3.5% to $87.45. This decline is notable within the context of the stock's performance over the past year, where it has fluctuated between a 52-week high of $96.07 and a low of $64.02.
GF Value™ verdict: Current price is $87.45, which is 16.1% below the GF Value™ of $104.18.GF Score™ of 87/100 indicates a strong overall performance in key financial metrics.Most notable signal: The momentum rank of 10/10 suggests strong recent price performance. Is OKE Overvalued or Undervalued? ONEOK Inc OKE is currently trading at $87.45, which is significantly below its GF Value™ estimate of $104.18. This represents a margin of safety of 16.1%, indicating that the stock may be undervalued. The GF Valuation label describes OKE as "Modestly Undervalued," suggesting that there may be an opportunity for price appreciation if the market corrects this discrepancy. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Investors might view this undervaluation as an opportunity; however, it is essential to consider the broader market conditions and the company's financial health before making any decisions. While the valuation suggests potential growth, the inherent risks of investing in the oil and gas industry should also be acknowledged.
How Does OKE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.6x 16.8x Forward P/E 15.3x - ONEOK's current P/E (TTM) of 15.6x is below its 5-year median P/E of 16.8x, suggesting that the stock is trading at a discount compared to its historical valuation. This analysis aligns with the GF Value™ verdict of being undervalued, indicating that the stock may have further room for growth as it approaches its historical averages.
What Does OKE's GF Score™ Tell Us? Metric Rating GF Score™ 87/100 Financial Strength 4/10 Profitability 8/10 Growth 8/10 Valuation 10/10 Momentum 10/10 The GF Score™ provides a comprehensive overview of ONEOK's financial health. With a score of 87/100, this indicates a strong overall performance, particularly in valuation (10/10) and momentum (10/10). However, the financial strength score of 4/10 highlights a potential area of concern, suggesting that while the stock may be undervalued and has good growth prospects, it may face challenges in financial stability.
What Are Insiders Doing with OKE Stock? In the last three months, there have been no insider transactions reported for ONEOK Inc OKE . This lack of activity may indicate that insiders are confident in the current valuation and future performance of the company, or it could suggest a wait-and-see approach amidst market volatility. Regardless, the absence of insider buying or selling provides no additional signals for investors considering OKE.
What This Means for Investors Based on the current analysis, ONEOK Inc OKE appears to be undervalued with a current price of $87.45 compared to a GF Value™ of $104.18, indicating a potential upside. However, investors should remain cautious due to the company's moderate financial strength and lack of insider activity, which may warrant further investigation before making investment decisions.
For the complete analysis, visit the ONEOK Inc OKE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is OKE's GF Score™?
OKE's GF Score™ is 87/100, indicating strong performance across key financial metrics, which historically correlates with higher long-term returns.
Is OKE overvalued or undervalued?
OKE is currently undervalued, trading at $87.45 compared to a GF Value™ of $104.18, suggesting a potential upside of 16.1%.
What is OKE's P/E ratio?
OKE's P/E (TTM) is 15.6x, which is below its 5-year median P/E of 16.8x, indicating that the stock is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Power has become one of the biggest bottlenecks in the global artificial intelligence (AI) build-out. Goldman Sachs expects the demand for power in the U.S. data center market to rise from 31 gigawatts (GW) in 2025 to 66 GW by 2027, driven mainly by the rapid expansion of AI infrastructure.
Hence, companies that provide the power and energy infrastructure supporting the AI economy, such as Bloom Energy (BE +4.66%) and Oneok (OKE +1.56%), can also prove to be smart picks. Here's why.
Image source: Getty Images.
Bloom Energy Bloom Energy's solid oxide fuel cells provide on-site power, which is becoming increasingly valuable for data-center developers facing electricity shortages and grid connection delays.
Bloom Energy is positioning itself as a core AI power supplier, not just a backup power vendor. Oracle's (ORCL 0.05%) Project Jupiter, an upcoming multi-gigawatt AI factory in New Mexico, will use up to 2.45 GW of power from Bloom Energy servers. That replaces previously planned gas turbines and backup diesel generators.
Additionally, more than half of Bloom Energy's current data-center backlog comes from contracts with other hyperscalers, AI-focused cloud providers, and colocation operators that lease data-center capacity to customers at the end of the first quarter of fiscal 2026 (ending March 31, 2026). The company also exited fiscal 2025 with roughly $20 billion of total current backlog.
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The financial results are beginning to reflect that demand momentum. The company's revenue surged 130.4% year over year to $751.1 million. Management now expects full-year fiscal 2026 revenue to fall in the range of $3.4 billion to $3.8 billion.
However, Bloom Energy is also exposed to significant project-timing risk. Shares recently fell nearly 10%, after reports that construction was paused at a 1.8 GW Crusoe Energy data center project, which also involved Bloom Energy. Hence, the company now needs to demonstrate that its large backlog can be converted into revenue without major delays.
Oneok Oneok is a major midstream energy company that transports, processes, stores, and exports natural gas liquids, natural gas, refined products, and crude oil.
Oneok's infrastructure is becoming more relevant, as data centers increase demand for natural gas-fired power. The company is in advanced discussions with data center customers in Oklahoma and Texas. The company is also evaluating more than 40 data-center-related counterparties representing more than 5 billion cubic feet per day of potential natural gas demand. Some data-center projects that were initially expected to be small pipeline connections have grown into larger opportunities, as hyperscalers now require bigger gas volumes and larger pipelines.
Oneok is not reliant only on AI demand. U.S. natural gas demand is also growing across industrial activity and due to liquefied natural gas (LNG) exports. Since roughly 65% of U.S. natural gas production contains recoverable natural gas liquids, stronger gas demand also supports the company's natural gas liquid (NGL) infrastructure.
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Oneok's financials have been impressive. The company's adjusted EBITDA increased 13% year over year to nearly $2 billion in the first quarter of fiscal 2026. The company is guiding for fiscal 2026 adjusted EBITDA in the range of $8 billion to $8.5 billion.
Oneok still faces risks from commodity cycles, debt, and project execution delays. Yet its growing role in powering the AI economy makes it an attractive pick now.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Oneok Inc. (OKE - Free Report) Tulsa, OK-based ONEOK Inc. was founded in 1906. The company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. On Jun 30, 2017, ONEOK acquired all the shares of ONEOK Partners. In September 2023, ONEOK completed its acquisition of Magellan Midstream Partners, L.P. for $18.8 billion. The agreement opened up Magellan's primarily fee-based refined products and crude oil transportation business to ONEOK.
OKE is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. OKE has a Momentum Style Score of A, and shares are up 4.2% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.58 per share. OKE boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, OKE should be on investors' short list.
ONEOK offers a compelling income and value proposition amid surging AI-related energy demand and robust infrastructure growth. OKE delivered strong Q1 2026 results, with 13% YoY adjusted EBITDA growth and rising NGL and refined product volumes. OKE benefits from AI-driven power demand, LNG export expansion, and Permian/Delaware Basin growth, supporting long-term tailwinds.
ONEOK, Inc. delivered a 30% total return since I rated it a strong buy in December. Energy prices have soared, and the company is posting strong results, leading it to upgrade its 2026 guidance. I detail why I recently exited my position despite the strong momentum.
There are several different paths to retiring on dividends. However, they all have major drawbacks. I share an approach that I have honed over time that seeks to bring out the best of each strategy and minimize its deficiencies.
ONEOK has outperformed peers YTD, up 24%, and offers a 4.6% dividend yield with further upside potential. OKE's diversified asset base, post-Magellan acquisition, drives mid-teens revenue growth and supports guidance raises for both revenue and adjusted EBITDA. Valuation remains attractive at 11.1x EV/EBITDA, with a price target of $109, implying 19% upside, and a competitive yield versus peers.
ONEOK leverages a vast pipeline network, critical to the U.S. economy, and is well-positioned to benefit from surging data center demand. OKE's Q1 revenue rose 19.6% year-over-year, with adjusted EBITDA up 12.5%, driven by volume growth, acquisitions, and favorable price differentials. OKE targets a 3.5x leverage ratio by end-2026, supporting its BBB credit rating, with capex winding down by mid-2027 to enable dividend growth and buybacks.
Most income investors default to broad dividend exchange-traded funds (ETFs) for steady payout exposure. The Schwab US Dividend Equity ETF (NYSEARCA: SCHD) ended 2025 with $71.6 billion in net assets and a 0.06% expense ratio, but its yield, like that of many of its peers, is in the low-single-digit range. With the 10-year Treasury at 4.57%, many traditional dividend baskets barely clear the risk-free line.
Natural gas equities offer a different story. Though the upstream side is volatile, the midstream operators and select producers consistently outyield the dividend ETFs. Here is how the five payers rank, counted down to the highest sustainable yield.
Yield Benchmark Ticker Type Yield EQT Gas Producer 1.1% WMB Midstream 2.7% KMI Midstream 3.5% OKE Midstream 4.6% ET Midstream (MLP) 6.7% 5. EQT EQT (NYSE: EQT | EQT Price Prediction) is the largest U.S. natural gas producer, with a $36.2 billion market cap and shares at $57.92. The yield is modest at 1.1%, but EQT raised the quarterly payout to $0.165 in November 2025 and generated $1.83 billion of free cash flow in Q1, repaying $1.73 billion in debt. With a PE of 11, EQT is a deleveraging growth story more than an income vehicle.
4. Williams Companies Williams Companies (NYSE: WMB) yields 2.7%, light compared to peers but anchored by 52 consecutive years of dividend payments. The board raised the annualized payout 5% to $2.10. FY26 adjusted EBITDA guidance of $8.05 billion to $8.35 billion and a 40.3% one-year return reflect Transco’s data-center pull. Williams trades at 34x earnings, the richest multiple in the group, so income buyers pay for that durability.
3. Kinder Morgan Kinder Morgan (NYSE: KMI) yields 3.51% at $33.79 per share, with the quarterly payout lifted to $0.2975 in May. The $10 billion project backlog is roughly 90% natural gas, and 70% of future data center power demand lies within Kinder Morgan’s footprint. Net debt to adjusted EBITDA of 3.8x and the S&P upgrade to BBB+ support coverage, even as the stock has run 22.9% year to date.
2. ONEOK ONEOK (NYSE: OKE) pays a 4.6% yield after a 4% raise to $1.07 per share quarterly. The model is roughly 90% fee-based, insulating cash flow from commodity swings. FY26 guidance calls for adjusted EBITDA of $8.0 billion to $8.5 billion and diluted EPS of $5.06 to $5.99. ONEOK extinguished $3.1 billion of long-term debt in 2025, and at 17x earnings the payout looks well covered.
1. Energy Transfer Energy Transfer (NYSE: ET) tops the yield table at 6.7%, the only name here paying multiples of what the major dividend ETFs offer. The distribution has climbed $0.0025 per quarter for four consecutive quarters, reaching $0.3375 in May 2026. FY26 adjusted EBITDA guidance was raised to between $18.2 billion and $18.6 billion, and the Oracle data center supply contract of roughly 900 million cubic feet per day adds visibility. Forward P/E of 13x is the cheapest in the group.
The trade-off matters: Energy Transfer’s Q4 earnings of $0.25 per unit missed estimates by 31.9% on impairments and interest expense, the master limited partnership (MLP) structure issues a K-1, and the partnership previously cut its distribution in 2020. The income still beats a Treasury or any major dividend ETF by a wide margin, but the structure is not bond-equivalent.
What Income Buyers Should Watch These five natural gas names deliver yields that most diversified dividend ETFs cannot replicate. Henry Hub spot prices spiked to $30.72 per million Btu in late January 2026 before normalizing near $3, a reminder that yield premiums compensate for commodity, leverage, and concentration risk. For investors comfortable with that profile, the natural gas value chain currently pays better than the broad dividend indexes. More yield, however, is not the same as better total return, and Williams’ run already shows how quickly multiples can stretch when the income story gets crowded.
TULSA, Okla., May 26, 2026 (GLOBE NEWSWIRE) -- ONEOK, Inc. (NYSE: OKE) will participate in an investor conference this week and in a fireside chat session at 2:30 p.m. Eastern Time (1:30 p.m. Central Time) on Wednesday, May 27.
The session will be webcast live on ONEOK’s website at www.oneok.com. The webcast will also be available for replay. ONEOK’s latest investor materials are available at www.oneok.com.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.
ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.
For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oneok due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for ONEOK, Inc. before we dive into how investors and analysts have reacted as of late.
OKEOK Q1 Earnings Beat Estimates on Volume Growth, Guidance Up
ONEOK Inc. delivered a mixed quarter relative to expectations, with earnings coming in ahead of the Zacks Consensus Estimate while revenues fell slightly short. The company posted operating earnings of $1.30 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $1.26 by 3.2%.
On a reported basis, first-quarter net income rose 12.3% year over year to $776 million, while diluted earnings per share increased 18.3% to $1.23 from $1.04 in the year-ago quarter.
OKE’s Total RevenuesRevenues totaled $9.62 billion, missing the consensus mark of $9.68 billion by 0.6%. Total revenues were up 19.6% year over year from $8.04 billion.
OKE’s Operational HighlightsA key operating highlight was a 5% increase in total natural gas volumes processed to 5,490 million cubic feet per day, reflecting continued throughput resilience across the system. Management attributed the quarter’s improvement to volume growth and ongoing operational execution across its integrated asset footprint.
Operational momentum was visible in NGL raw feed throughput, which increased 15.4% year over year to 1,493 thousand barrels per day (“MBbl/d”). The company highlighted particularly strong growth in the Gulf Coast/Permian region, reinforcing the value of its market-connected assets and integrated NGL value chain.
Beyond optimization, the Pipeline segment also saw higher firm transportation revenues and improved earnings from unconsolidated affiliates, including Northern Border Pipeline.
Capacity utilization metrics remained supportive, with transportation capacity contracted at 93%, underscoring the fee-based nature of this part of the business.
Cost trends offered some relief. The company noted lower operating costs, including the absence of methane fees in 2026 due to regulatory changes, helping cushion the impact from pricing.
ONEOK’s Financial HighlightsBalance sheet positioning shifted modestly in the quarter. Cash and cash equivalents ended the period at $172 million, up from $78 million at the end of 2025, while short-term borrowings increased as the company funded investment needs and shareholder distributions.
Cash flow reflected the capital intensity of the portfolio. Operating activities generated $934 million during the quarter, while capital expenditures totaled $864 million. Dividends paid were $674 million, and the funding mix included higher net short-term borrowings, consistent with an active approach to managing liquidity while executing on the 2026 investment program.
Capital expenditure in the first quarter was $864 million compared with $629 million at the end of 2025.
OKE Raises 2026 Targets as Outlook StrengthensFollowing the quarter, ONEOK increased its full-year 2026 financial guidance. Net income is now expected in a range of $3.21 billion to $3.79 billion, resulting in a diluted earnings per common share range of $5.06-$5.99. The company also lifted earnings per diluted share outlook, citing stronger segment performance and broader opportunities across its system. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.65.
Capital allocation priorities remained intact. Total 2026 capital expenditure guidance was maintained at $2.7 billion to $3.2 billion, supporting a slate of organic projects and infrastructure investments.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM ScoresAt this time, Oneok has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Oneok Inc. (OKE - Free Report) Tulsa, OK-based ONEOK Inc. was founded in 1906. The company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. On Jun 30, 2017, ONEOK acquired all the shares of ONEOK Partners. In September 2023, ONEOK completed its acquisition of Magellan Midstream Partners, L.P. for $18.8 billion. The agreement opened up Magellan's primarily fee-based refined products and crude oil transportation business to ONEOK.
OKE is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.86; value investors should take notice.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $5.49 per share. OKE boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, OKE should be on investors' short list.
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Oneok (OKE +2.22%) currently offers a 5.1% dividend yield. That's enticing at a time when the S&P 500's dividend yield is down to around 1%, its lowest level since the 1800s.
While a higher dividend yield often indicates that a company has a higher risk profile, that's not the case with Oneok. You can buy the high-yielding pipeline stock for passive income and never look back.
Image source: Getty Images.
As bankable as you'll find Oneok has a rock-solid record of paying dividends. The pipeline company has delivered more than 30 years of dividend stability and growth. While Oneok hasn't increased its dividend every year, it has steadily grown its payment over the long term, including by nearly 100% over the past decade.
The energy company's high-yielding payout is currently on a rock-solid foundation. Oneok generates very stable cash flows. Three of its four business segments expect to get around 90% of their earnings from fee-based sources this year, while the fourth segment anticipates fee-based sources will supply about 85% of its earnings this year. Oneok also has a strong investment-grade credit rating and a conservative dividend payout ratio. That gives the company the financial flexibility to invest in growing its operations, which should support continued dividend increases. Oneok is targeting annual dividend growth of 3% to 4%.
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Dual growth drivers Oneok has two main growth drivers. The pipeline company has made several large-scale acquisitions in recent years (Magellan, Medallion, and EnLink) to enhance its scale and diversify its platform. It's still capturing merger synergies from these deals, including more than $150 million expected in 2026 and additional captures anticipated in 2027 and beyond. Oneok has the balance sheet strength to close additional deals as opportunities arise. For example, it acquired the remaining interest in its Delaware Basin joint venture last year for $940 million in stock and cash. Future deals will provide incremental sources of income and growth.
Additionally, the company has several organic expansion projects currently under construction. Notable projects include a $1 billion investment in the Texas City Logistics Export Terminal Joint Venture and its participation in a joint venture to build the Eiger Express Pipeline. The company expects these and other projects to enter commercial service through 2028. Meanwhile, Oneok sees more growth opportunities ahead, especially to support growing gas demand, driven by data centers and liquefied natural gas exports. These projects will help support Oneok's dividend growth plan.
A forever dividend stock Oneok has been a very reliable dividend stock over the past few decades. It's in a strong position to continue delivering sustainable dividend income to investors going forward. As a result, you can confidently buy shares of the pipeline stock and relax knowing that a growing stream of dividend income should steadily flow into your portfolio.
Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy.
I would allocate $10,000 across cyclical value stocks and AI infrastructure bottleneck plays for optimal risk-reward. Union Pacific and Carlisle Companies offer exposure to cyclical recovery, economic reshoring, and robust dividend growth. The Williams Companies and Freehold Royalties provide high-income and strategic leverage to AI-driven energy demand.
The VanEck Energy Income ETF (NYSEARCA:EINC) pays a distribution yield in the 3.2% to 3.6% range while behaving like a commodity-leveraged equity fund, with shares up about 25% year to date and roughly 27% over the past year. That gap between yield and total return defines EINC: investors are buying midstream cash flow, but the share price moves with crude. The safety question is whether the distribution itself, sourced from pipeline tolls and processing fees, can hold up through the next cycle.
How EINC Generates Its Income EINC is a concentrated portfolio of North American midstream energy infrastructure operators, with roughly 68% U.S. and 32% Canadian exposure and a 0.46% management fee. The fund’s income comes almost entirely from dividends paid by pipeline, gathering, processing, and storage companies such as Enbridge, TC Energy, Kinder Morgan, and others. These businesses earn most of their cash flow from long-term, volume- and capacity-based contracts rather than from selling commodities directly, which is why midstream dividends tend to survive oil price drawdowns better than upstream payouts.
What the Top Holdings Actually Pay Williams Companies (NYSE:WMB | WMB Price Prediction) is a useful proxy for the high-quality side of the portfolio. Williams just lifted its annualized dividend 5% to $2.10 per share, marking its 52nd consecutive year of dividend payments, and guides 2026 coverage at 2.36x to 2.45x adjusted funds from operations. Williams generates more than twice the cash it needs to fund the payout, leaving room to absorb a meaningful EBITDA miss before the dividend is even a discussion. Leverage at around 4.1x is elevated but within investment-grade norms for the asset type.
ONEOK (NYSE:OKE) raised its quarterly payout 4% in January 2026 to $1.07, putting the run rate at $4.28 annualized. With roughly 90% fee-based earnings and 2026 adjusted EBITDA guided to $7.9 billion to $8.3 billion, the company carries the dividend comfortably on EPS of $5.61. The 2026 plan assumes WTI of $55 to $60, which means current spot near $96 is a tailwind rather than the base case.
Commodity Sensitivity Is Real but Indirect The fund’s distribution tracks throughput volumes, which in turn respond to WTI. Crude has swung between $55.44 and $114.58 over the past 12 months, and Henry Hub spiked to $30.72 in late January 2026 before normalizing near $3 per MMBtu. EIA’s May outlook pegs 2026 marketed gas production at 121.8 Bcf/d, rising again in 2027. Rising volumes are what midstream operators get paid to move, and the throughput backdrop supports current payout levels even if oil drifts back toward the low end of the range.
Total Return Versus Yield EINC delivered a 30% six-month return as crude rallied from roughly $61 to over $100. Almost none of that came from the distribution. Five-year price appreciation of 152% tells the same story. Holders should expect the price line to do most of the work on the way up and most of the damage on the way down. The income piece is the steadier component.
Distribution Looks Safe at Current Levels EINC’s distribution looks safe at current levels. The underlying holdings are fee-based midstream operators with coverage ratios well above 1x, multi-decade dividend records, and growth capex programs aimed at LNG export and data center power demand. The fund itself is cheap to own at 46 basis points. Anyone buying EINC purely for a 3.6% yield is taking on equity-level price risk to get it. Investors who want midstream cash flow without the Canadian C-corp exposure or the commodity beta can find lower-yield, lower-volatility alternatives in broad dividend-growth ETFs. For investors comfortable with the energy cycle, the income stream here is durable.
Midstream energy company Oneok (OKE +2.22%) has had a strong start to 2026 in terms of stock performance. The company has risen more than 19% as of this writing. Oneok's dividend yield is still around 4.9%, but with the price increase, investors may be starting to question whether it's no longer a good time to buy.
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Oneok, which owns and operates more than 60,000 miles of pipelines, processing plants, and storage facilities, raised its 2026 guidance after a strong first quarter. Net income and earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 12% and 13%, respectively. The annual dividend is now $4.28 per share. The company offers investors stability and growth through its diversified asset base.
A 31% increase in natural gas liquids throughput volumes in the Permian and Gulf Coast segments was a large factor in the successful quarter.
Image source: Getty Images.
Of course, with strong earnings, the stock has risen, making valuation metrics less attractive to investors looking to buy in. However, one advantage for investors is that Oneok operates primarily on a fee-based business model, which provides revenue visibility and some stability across macroeconomic climates and volatile commodity prices. Approximately 90% of earnings were fee-based last year.
The stock's forward and trailing P/E ratios are both reasonable at just under 16. The PEG ratio has risen above 2, suggesting the stock may be overpriced, particularly compared to competitors such as Energy Transfer and Enterprise Products Partners. However, the valuation metrics don't support the notion that the company is no longer worth buying, especially considering the recent increase in guidance.
While the stock may not be a bargain at the moment, the energy company's longer-term outlook is good, and it offers a reasonable dividend for those seeking income.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners and Oneok. The Motley Fool has a disclosure policy.
In the latest close session, Oneok Inc. (OKE - Free Report) was down 1.51% at $89.20. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow experienced a rise of 1.86%, and the technology-dominated Nasdaq saw an increase of 2.54%.
The stock of natural gas company has risen by 2% in the past month, leading the Oils-Energy sector's loss of 0.13% and the S&P 500's loss of 1.63%.
The upcoming earnings release of Oneok Inc. will be of great interest to investors. The company is forecasted to report an EPS of $1.43, showcasing a 6.72% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $10.81 billion, indicating a 37.11% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.5 per share and a revenue of $46.96 billion, indicating changes of +1.48% and +39.64%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Oneok Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.69% lower. Oneok Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Oneok Inc. has a Forward P/E ratio of 16.46 right now. For comparison, its industry has an average Forward P/E of 13.6, which means Oneok Inc. is trading at a premium to the group.
One should further note that OKE currently holds a PEG ratio of 7.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Production Pipeline - MLB industry had an average PEG ratio of 1.35 as trading concluded yesterday.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
