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Oneok Inc(OKE-N)
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Why Does ONEOK Stock Deserve Investors’ Attention?

TipRanks - Thu Jul 14, 10:01AM CDT

Headquartered in Oklahoma, ONEOK, Inc. (OKE) can be given increased attention post the comments of the U.S. Energy Information Administration (EIA) on July 12. In its Short Term Energy Outlook (STEO) report, the EIA forecasts natural gas production and demand in the U.S. to increase to record high levels in 2022, as the economic growth improves. 

The EIA has projected that U.S. liquefied natural gas export levels will increase from 9.76 billion cubic feet per day (bcfd) in 2021 to 10.85 bcfd in 2022 and 12.69 bcfd in 2023. The agency has also provided encouraging numbers for dry gas production. It estimates the production of dry gas to increase from 93.55 bcfd in 2021 to 96.23 bcfd in 2022 and 99.98 bcfd in 2023.

The figures mentioned above signal solid growth prospects for the company that is engaged in gathering, processing, fractionating, transporting, storing, and marketing of natural gas.

ONEOK, which commands a market cap of $24.58 billion, operates through three business segments: Natural Gas Gathering and Processing, Natural Gas Liquids (NGL), and Natural Gas Pipelines.

Now, lets see what the Street feels about the stock. 

OKE Stock Has 36% Upside Potential

According to TipRanks, the Street has a Moderate Buy consensus rating on the stock, which is based on three Buys and seven Holds. OKE’s average price target of $72.60 implies 36.2% upside potential.

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TipRanks data shows that financial bloggers are 87% Bullish on OKE, compared to the sector average of 68%. Further, retail investors tracked by TipRanks are Very Positive about the stock, as their holdings in OKE stock have gone up by 9.7% in the last 30 days.

OKE stock scores an 8 out of 10 on TipRanks, implying that the stock is likely to outperform the market.

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OKE to Gain from Rising Demand

As global economies are reopening, ONEOK is expected to derive strength from the accelerating demand for natural gas. The companys stock, which has lost 5.5% so far this year, is likely to get a boost going ahead.

Read the full Disclosure.

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