ONEOK Partners L.P.
) said that its board of directors approved a 2.5 cent increase in
the quarterly distribution rate. The fresh distribution rate of 66
cents per unit will be effective from the second quarter of 2012
and is scheduled to be paid on August 15, 2012 to unitholders of
record as of August 6, 2012.
KINDER MORG ENG (KMP): Free Stock Analysis
ONEOK PARTNERS (OKS): Free Stock Analysis
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The partnership's new annualized cash distribution rate stands at
$2.64 per unit, up from the earlier rate of $2.54 per unit by 3.9%.
ONEOK Partners has time and again raised its distribution rate and
the distribution level has surged by 65% since April 2006.
The partnership has been increasing its quarterly cash distribution
rate on a regular basis. The partnership has raised its cash
distribution rate by 2.5 cents in each of the first two quarters of
2012, which is in line with its goal of increasing the distribution
rate by the same margin in every quarter of 2012. The partnership
aims to gradually increase its quarterly cash distribution rate and
realize a 15% to 20% annual distribution growth in 2013 and 2014.
The partnership revised its capital program and plans to invest
$5.7 billion to $6.6 billion on investment projects through 2014.
These developmental initiatives would add to ONEOK's profitability
in the long run which will enable it to provide higher returns to
unitholders. ONEOK Partners' natural gas liquids business (NGL)
continues to do well, generating healthy distributable cash flow
for the ongoing year.
We believe the partnership will continue to ride high on its NGL
operations and growth projects which would aid in keeping investors
interest strong in the coming years.
ONEOK Partners currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. The partnership closest competitor
Kinder Morgan Energy Partners L.P.
). The Zacks Consensus Estimate for the second quarter and full
year 2012 are currently estimated at 70 cents per share and $2.91
per share, respectively.
Based in Tulsa, Oklahoma, ONEOK Partners is involved in the
gathering, processing, storage and transportation of natural gas in
the U.S. and owns one of the nation's premier natural gas liquids
(NGL) systems, connecting NGL supply in the Mid-Continent and Rocky
Mountain regions with key market centers.