Analysts Spotlight ONEOK’s Fundamentals Amid Market Weakness

Oneok US6826801036

Despite a challenging year for equities in 2025, market researchers are returning their focus to the underlying strength of midstream energy specialist ONEOK. A fresh examination of the firm's solid quarterly performance has prompted several analysts to reaffirm their positive stance, debating whether the company's core financial health can overcome persistent downward pressure on its share price.

The foundation for this renewed analysis is ONEOK's third-quarter 2025 report, released in late October. The company delivered a double beat, surpassing Wall Street's projections for both revenue and profit. Revenue reached $8.63 billion, while earnings per share (EPS) came in at $1.49. This represents a remarkable year-over-year revenue surge of more than 70%, a leap primarily attributed to the successful integration of the EnLink and Medallion acquisitions. Synergies from these integrations are currently pegged at $450 million, with a projected increase to $700 million.

Beyond acquisitions, ONEOK is advancing organic growth initiatives. These include a new gas processing facility in the Permian Basin and the "Eiger Express" pipeline project. The company's business model provides stability, with approximately 90% of earnings from its NGL and pipeline segments being fee-based, thus insulating it from direct commodity price volatility.

Valuation Gap Presents Opportunity

Notwithstanding this operational robustness, ONEOK's stock has declined by nearly 39% since the start of the year. This disconnect is where current analyst commentary finds its focal point. Multiple research firms interpret the share price weakness as a potential entry point for investors.

The consolidated analyst price target currently sits around $88 per share, suggesting an upside potential exceeding 20% from present levels. Furthermore, the equity offers an attractive dividend yield of 5.6%. A key challenge noted by observers remains the company's relatively elevated debt load, which management has committed to reducing significantly by the end of 2026.

Looking Ahead to Year-End and Beyond

Investors are likely to await further clarity from the final annual results for 2025 and the subsequent guidance for 2026. The company has recently reaffirmed its full-year 2025 EBITDA target range of $8.0 to $8.45 billion. The continued realization of merger synergies and the planned expansion of infrastructure capacity are expected to be the central performance drivers in the coming quarters.