ONEOK, Inc. (OKE) Business Profile

What it does

ONEOK is a midstream energy company: it moves and processes oil and natural gas after they are produced and before they reach many of their end users. Founded in 1906 and headquartered in Tulsa, it is led by President and Chief Executive Officer Pierce H. Norton II.

The company gathers raw natural gas from wells, removes natural gas liquids, or NGLs, and delivers the remaining gas to pipelines, storage facilities and customers. NGLs include products such as ethane and propane. ONEOK transports and separates those liquids into individual products for customers including petrochemical companies, propane distributors, refineries and exporters.

ONEOK also transports and stores natural gas for utilities, industrial customers and power generators. Its crude oil and refined products assets move crude to refineries and other markets and distribute products such as gasoline and aviation fuel. Refined products ultimately reach places including fueling stations, railroads and airports.

The business has four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude. Its approximately 60,000-mile pipeline network connects producing regions with processing plants, storage, refineries, customers and export routes. ONEOK provides gathering, processing, fractionation, transportation, storage and marine export services across that network.

How it makes money

ONEOK earns money from fees for handling energy products and from buying and selling commodities. Each of its four segments is primarily fee-based; consolidated earnings were approximately 90% fee-based in 2025.

In gathering and processing, producers pay for services such as gathering, treating, compression and processing. Some contracts charge fees based on volumes handled. Under other arrangements, ONEOK purchases raw gas, sells resulting commodities and remits a portion of the proceeds to producers after deducting contractual fees. The company can retain a portion of commodity proceeds under certain contracts.

The NGL business charges for gathering, transportation, fractionation and storage. Fractionation separates mixed NGLs into products that can be sold individually. Some exchange-service contracts include minimum volume commitments, providing a minimum level of revenue regardless of throughput. ONEOK also buys and sells NGLs and uses its network and storage to capture differences in prices between locations, products and seasons.

Natural Gas Pipelines earns primarily from transportation and storage fees. Under firm-service contracts, customers reserve capacity and generally pay for it even if they do not use it; they also pay charges tied to actual volumes. The company offers interruptible service when capacity is available and trades natural gas to capture location and price differences.

Refined Products and Crude earns transportation, storage and terminal fees, as well as proceeds from product sales and blending. Transportation charges depend on the origin and destination of a shipment and can be set through published tariffs or negotiated rates.

For the third quarter of 2026, net income attributable to ONEOK was $1.35 billion.

Customers and how it sells

ONEOK serves major and independent oil and gas producers that need their production gathered, processed or transported. Its NGL customers also include other gathering and processing companies. Downstream customers include petrochemical and refining companies, utilities, industrial companies, propane distributors, exporters and municipalities.

The refined products and crude business serves customers including producers, refiners, wholesalers, retailers, traders, railroads and airlines. Products move through pipelines and terminals to end markets such as gasoline stations, truck stops, railroad fueling depots and commercial airports. Natural gas pipeline customers include local distribution companies, electric-generation facilities, industrial companies and marketers.

ONEOK’s gathering and processing operations span the Rocky Mountain and Mid-Continent regions and the Permian Basin. NGL markets include Conway, Kansas; Mont Belvieu, Texas; Louisiana; and the upper Midwest. Its refined products pipeline system extends from the Texas Gulf Coast across a 15-state area in the central and western United States.

Natural gas infrastructure connects to supply areas in Canada and the United States and to export markets in Mexico. Gas can also reach international markets through liquefied natural gas exports. In 2025, one customer accounted for 12.0% of revenue. ONEOK had 6,326 employees in FY2025.

Suppliers and costs

ONEOK obtains natural gas, NGLs, condensate and crude oil from producers and other counterparties. Some products are purchased as part of service arrangements, with contractual fees deducted before proceeds are remitted to producers. Its NGL segment also purchases products from ONEOK’s own gathering and processing business. Commodity purchase prices and volumes therefore affect both revenue and cost of sales.

The company processes gas and separates NGLs at its facilities rather than manufacturing finished consumer goods. Its cost base includes operating and maintaining pipelines, processing plants, fractionators, storage facilities and terminals. Power prices can affect fractionation and transportation costs, while fuel is needed to run equipment such as compressors.

New and expanded facilities require capital spending on equipment, materials, labor and rights of way. ONEOK typically finances capital expenditures with operating cash flow and short- and long-term debt. Environmental and safety requirements can also require spending, including on pollution controls or cleanup. ONEOK said it expects approximately $3.5 billion of capital expenditures in 2026, including spending associated with the Brazos acquisition and additional growth projects.

Competitive position

ONEOK competes for oil, gas, NGL and refined products volumes with other midstream companies, integrated oil companies and producers that own gathering systems, processing plants, pipelines, fractionators, terminals or storage. Competition depends on fees, the services offered, proximity to supply and markets, operating reliability, access to capital and the connections available at each facility.

No individual competitor is identified as such in the available company disclosures. MPLX LP is a joint-venture partner on ONEOK’s Texas City export terminal and related pipeline, rather than identified there as a competitor. ONEOK and its partners also plan the Eiger Express natural gas pipeline from the Permian Basin to Katy, Texas.

ONEOK’s systems connect gas processing with NGL gathering and fractionation, and link production areas with pipelines, storage, terminals and customers. In 2025, its wholly owned natural gas pipelines were 91% subscribed, while its NGL fractionators were 94% utilized. Some processing contracts have acreage dedications, and some pipeline customers reserve capacity under firm contracts.

Our reading: The connected network is a meaningful competitive asset because it can serve customers at several stages between production and end markets. Our reading: Firm capacity contracts and dedicated acreage support customer relationships, but their protection varies by asset and contract; competing infrastructure can still displace volumes.

Growth opportunities

ONEOK’s growth plans include adding processing capacity near production, expanding pipelines and fractionation, and connecting its network to export and power-generation demand. The company has a mid to high single-digit adjusted EBITDA growth target for the next five to seven years from its 2025 base.

ONEOK completed the acquisition of Brazos Midstream’s Permian Midland Basin assets in October 2026. The company is connecting the acquired systems with its existing Midland assets and expects the connections to improve capital efficiency and commercial flexibility. It also completed processing expansions in the Delaware Basin in the third quarter of 2026 and expects volumes to continue ramping toward capacity in early 2027.

ONEOK increased the planned capacity of its Bighorn processing plant to 400 million cubic feet per day and expects completion in mid-2027. It also expects the first phase of its Medford fractionation project to add 100,000 barrels per day of Mid-Continent capacity in the fourth quarter of 2026, with the second phase expected in the first quarter of 2027.

With MPLX LP, ONEOK is developing a liquefied petroleum gas export terminal and a connecting pipeline in Texas. ONEOK expects the projects to be completed in early 2028. The company has also been awarded an agreement to supply natural gas for a power plant expansion.

Structural risks

• A substantial decline in drilling near ONEOK’s assets could reduce volumes and revenue. Gathering and processing volumes also face natural well declines, outages and severe weather disruptions.
• Although earnings are primarily fee-based, commodity prices and differences between locations and products affect processing, marketing and other activities. Power prices can also affect operating costs. ONEOK uses hedges to reduce some commodity exposure.
• Competing infrastructure can change price differences or displace supply volumes. ONEOK said the Waha-to-Katy opportunity moderated as additional Permian gas transportation capacity entered service and price differences narrowed.
• New projects can exceed cost estimates, face permitting or rights-of-way difficulties, or be delayed. Facilities built for anticipated production or demand may not see that growth materialize.
• Environmental and safety laws can require permits, capital spending and cleanup. Noncompliance or releases can lead to penalties, claims, lawsuits or interruptions. Regulators can also reduce pipeline rates or limit future increases.
• Financing is part of the company’s capital program. A credit downgrade could increase borrowing costs or affect access to the commercial paper market.

Bottom line

Our reading

Our reading: ONEOK is an integrated energy infrastructure business whose fee-based services connect production to processing, storage, customers and export markets. [item1] Our reading: Its contracts and network support recurring earnings, but volumes, commodity exposure and the cost and execution of expansion projects remain important to results. [item1] [item1a] The Brazos acquisition and planned capacity additions extend that network while adding to the company’s investment commitments. [call_prepared] [facts]