OKE US S&P 500Russell 1000 Earnings call · transcribed from the recording
Oneok (OKE) · Q2 2026 results and valuation
Share price: $88.17 · 2026-11-11
Oneok is a midstream energy infrastructure company that provides gathering, processing, fractionation, transportation, storage, and marine export services. The company operates a pipeline network to transport natural gas, crude oil, and refined products for domestic and international markets in North America. Source: 10-K annual report (2026-02-24)
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 29 Apr 2026
Net income up 24.8% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+24.8%
Net income vs Q1 2026
Outlook given
Net income 966.0M vs 774.0M
Revenue +25.3%
Against the same quarter last year (Q2 2025) it is +13.2%, so it is not just seasonal.
Why Against the same quarter last year, net income rose because adjusted EBITDA was driven by volume growth, strong segment performance, and record NGL throughput volumes, alongside increased refined products demand and growth in Midland crude gathering.
2 · How management spoke
Upbeat
More upbeat than 87% of company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Oneok expects approximately $2.6 billion in cumulative cash tax benefits based on its latest analysis, compared with the approximately $1.5 billion previously discussed.
Valuation
Is Oneok undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.5% growth a year (3-year revenue growth), the model's fair value is $74.76 a share — the stock trades 18% above it. Today's price assumes 15.9% growth a year.
Current price
$88.17
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.9% for 10 yrs
Fair value / share
$74.76
Buy below
$56.07
Price vs fair value
Overvalued 18%
Price vs buy-below price
Overvalued 57%
Read between the lines
-
Guidance
The company updated its 2026 guidance to a net income midpoint of $3.6 billion, a diluted earnings per share midpoint of $5.68, and an adjusted EBITDA midpoint of $8.35 billion.
-
Guidance
The 2026 capital expenditure guidance remains unchanged at $2.7 billion to $3.2 billion.
-
Guidance
OKE increased its expected cumulative cash tax benefits from approximately $1.5 billion to approximately $2.6 billion based on their latest analysis.
-
Figure
ONEOK reported net income of $965 million or $1.53 per diluted share, a 13% increase year-over-year.
Source quote
“ONEOK reported net income of $965 million (sic) [ $967 million ] or $1.53 per diluted share, a 13% increase year-over-year.”
-
Guidance
OKE reached its targeted contracting threshold of 80% for its 200,000 barrels per day of LPG export capacity currently under construction.
4 more
-
Key theme
New tax attributes will defer significant cash tax payments until 2031, extending the cash tax runway by approximately 2 years to enhance future free cash flow generation.
Source quote
“These additional benefits, combined with our existing tax attributes are expected to defer meaningful cash tax payments until 2031, extending our cash tax runway by approximately 2 years and further enhancing future free cash flow generation.”
-
Figure
OKE was awarded a supply agreement for 1 gigawatt of power plant demand, expanding its participation in a growing source of natural gas demand.
Source quote
“From a power generation perspective, we were recently awarded a supply agreement for 1 gigawatt of power plant demand, further expanding our participation in a growing source of natural gas demand.”
-
Key theme
Quarter results were driven by record NGL throughput volumes, strong refined products demand, and continued volume growth across systems.
Source quote
“Our second quarter results were driven by record NGL throughput volumes, strong refined products demand and continued volume growth across our systems.”
-
Key theme
The company secured another plant to be deployed in the Permian as needed.
Source quote
“We already have another plant that effectively we've secured. So we'll be able to put that out into the Permian and deploy that as needed.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And finally, a growing pipeline of high-return organic projects, bolt-on acquisitions and commercial optimization are creating additional investment opportunities across our system, where commercial discussions are improving our confidence in...”
“We delivered solid volume growth across our integrated system, driven by increased customer activity, healthy domestic and international demand, and continued production growth in key producing basins.”
“Across the portfolio, organic volume growth, EBITDA from recently completed projects and attractive hedging and commercial opportunities are providing momentum in the second half of the year and into 2027.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 12.05B | 9.62B | +25.3% | 7.89B | +52.8% |
| Gross profit | 2.81B | 2.56B | +9.4% | 2.53B | +11.1% |
| Operating income | 1.59B | 1.43B | +11.6% | 1.43B | +11.3% |
| Net income | 966.0M | 774.0M | +24.8% | 853.0M | +13.2% |
| EPS | 1.53 | 1.23 | +24.4% | 1.34 | +14.2% |
| P/E today 13.2 | 15.0 | 16.1 | −1.1 | 15.9 | −0.9 |
Topics
Most discussed now
- Year-over-year refined products volumes shipped increased 8%, supported by gasoline and diesel demand, high refinery utilization and…
- As Oneok steps back, it's clear that demand fundamentals remain strong and the long-term outlook for U.S.
- Following its recently relocated 150 million cubic feet per day plant in the Midland Basin, Oneok remains on track to...
- Upon completion of Oneok's Permian processing upon completion, its Permian processing capacity will increase to nearly 2.4 billion cubic…
- This project adds 35,000 barrels per day of capacity into one of the fastest-growing markets in Oneok's footprint and provides...
Faded since Q1 2026
- Dropped Oneok built a regionally diversified integrated platform at scale across natural gas liquids, natural gas, crude oil and refined…
- Dropped Think as Oneok has stated here, as it continues to go throughout the year and everybody expects the back end of...
- Fading As Oneok looks to the remainder of 2026, its high-level priorities remain consistent, operate safely and reliably, execute its capital...
- Fading Driven in part by a more constructive market environment that developed late in the first quarter.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
ONEOK reported third-quarter 2026 net income of $1.38 billion and adjusted EBITDA of $2.24 billion, which was a 6% increase compared to the same period in 2025.
- Material agreement; Regulation FD disclosure · SEC 8-K
ONEOK, Inc. announced results for cash tender offers to purchase up to $2 billion of its debt securities, with valid tenders received for various notes as of September 14, 2026.
- Material agreement; Unregistered share sale; Regulation FD disclosure; Other events · SEC 8-K
ONEK, Inc. entered an agreement to acquire Brazos Midstream's assets for $4.425 billion, funded by a $9 billion minority equity investment with $5 billion intended for debt reduction.
- Acquisition or disposal; Regulation FD disclosure · SEC 8-K
On August 3, 2026, the company announced its results for the quarter ended June 30, 2026, and increased its 2026 financial guidance.
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Regulation FD disclosure · SEC 8-K
The company announced its results for the quarter ended March 31, 2026, and increased its 2026 financial guidance.
- Director or officer change · SEC 8-K
Pattye L. Moore and Gerald B. Smith will not stand for re-election to the ONEOK, Inc. Board of Directors at the annual meeting scheduled for May 20, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
The company announced its results of operations for the fourth quarter and full-year ended December 31, 2025, along with 2026 financial guidance on February 23, 2026.