Oneok Inc. (OKE): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


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In third-quarter 2014, ONEOK Inc.'s earnings surpassed the Zacks Consensus Estimate and increased year over year, primarily due to reduced cost of sales and fuel. However, top line failed to beat estimates mainly due to lower commodity sales. The company is following its systematic investment strategy in organic growth projects and acquisitions to expand its scale of operations. Going forward, the company's disciplined capital spending program will enable it to meet increasing customer demand and boost the top line. A stable cash generating capacity also helps the company distribute regular dividends. However, strict regulations and volatile global capital and credit markets might deter growth. Thus, we are maintaining our Neutral recommendation on the stock.


Tulsa, OK-based ONEOK Inc., an energy company, engaged in natural gas and natural gas liquids (NGL) businesses. The company offers safe and reliable energy and services to its customers. ONEOK Inc. is the sole general partner and owner of 41.0% of ONEOK Partners L.P. (OKS), one of the largest publicly traded master limited partnerships.

Previously, ONEOK Inc.'s operations are divided into three reportable business segments: ONEOK Partners, Natural Gas Distribution and Energy Services.

On Mar 31, 2014, ONEOK Inc. completed accelerated wind down of its Energy Services business. In Jun 2013, the company announced its plan to terminate operations of its energy services segment.

In Jan 2014, ONEOK Inc. separated its Natural Gas Distribution business (Kansas Gas Service, Oklahoma Natural Gas and Texas Gas Service) and formed a newly independent entity called ONE Gas, Inc. In Jul 2013, ONEOK Inc. announced its plan to split its natural gas distribution business.

ONEOK Partners: The segment engages in gathering and processing of natural gas and gathering, transporting and fractionating NGL, primarily in the Mid-Continent and Rocky Mountain regions, which include the Anadarko Basin of Oklahoma, Fort Worth Basin of Texas, Hugoton and Central Kansas Uplift Basins of Kansas and the Williston Basin of Montana and North Dakota and the Powder River Basin of Wyoming.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: OKS , NGL , OKE

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