On Apr 16, 2013, the shares of
) climbed to its 52-week high of $50.02 driven by completion of
three important organic projects and strong fourth-quarter and
full-year 2012 results. The strong results were driven by higher
natural gas and natural gas liquids (NGL) volumes and lower
operating costs. We expect the company's long-term earnings
growth to be 13.83%.
ONEOK Inc. continues to invest in several growth projects and
spent $1.9 billion in 2012. The company had a cash balance of
$583.6 million as of Dec 31, 2012 and cash from operating
activities of $1 billion in 2012. In addition, $380.9 million
remains available under the $1.2 billion credit facility. This
financial position will enable ONEOK Inc. to pursue steady
organic growth strategies and spend $4.7-$5.3 billion through
2015 on several projects.
Apart from investment in internal growth projects, its strong
financial position also allows ONEOK Inc. to enhance shareholder
value through share repurchases and regular dividend payments.
In 2012, the company repurchased shares worth $150 million under
its $750 million 3-year share repurchase program. To date, the
company has bought back shares worth $450 million. It can further
repurchase shares worth $300 million in 2013.
In Feb 2013, the board of directors of ONEOK Inc. increased its
quarterly dividend by 9% to 36 cents per share. The company's
practice of raising dividends from time to time will benefit the
stock as it attracts investor attention.
ONEOK Inc.'s full-year 2013 net income guidance is in the range
of $350 million to $400 million. In 2012, the company's net
income was $360.6 million. The Zacks Consensus Estimates for
full-year 2013 and 2014 are $1.78 and $2.21 per share, up 8.84%
and 23.88% year over year, respectively.
ONEOK Inc. currently has a Zacks Rank #3 (Hold). Apart from
ONEOK, other stocks in the sector that are worth considering
Chesapeake Utilities Corporation
The Laclede Group Inc.
Atmos Energy Corporation
). While Chesapeake carries a Zacks Rank #1 (Strong Buy), both
Laclede and Atmos hold a Zacks Rank #2 (Buy).
ONEOK INC (OKE): Free Stock Analysis Report
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