$OKE

RBC Highlights Preferred Midstream Names as Earnings Season Approaches

BP's midstream benchmark fell 1.6% over the week ended June 11, but still delivered a 16.4% gain so far this year, outperforming the S&P 500's 8.0% advance, RBC Capital Markets said Friday.The sector also outperformed utilities by 1,314 basis points and real estate investment trusts by 160 basis points this year, although it lagged oilfield services by 3,319 basis points and exploration and production companies by 1,306 basis points, RBC said.Commodity prices weakened during the week, with front-month West Texas Intermediate crude dropping about 6% to roughly $88 per barrel and Henry Hub natural gas falling about 7.5% to $3.09 per million British thermal units, according to RBC.Archrock (AROC) led performance among RBC-covered companies with a 3.7% gain, supported by continued strength in the compression market, while Sunoco (SUN) fell 4.4% as investors likely locked in profits, the firm said.C-corporations gained 0.1%, outperforming master limited partnerships, which declined 1.6%.RBC estimates its coverage universe trades at an average 2027 enterprise value-to-adjusted EBITDA multiple of 10.0x and expects midstream stocks to remain sensitive to Iran-related developments that influence commodity prices.The firm said companies with greater perceived commodity exposure, including Targa Resources (TRGP), ONEOK (OKE), and Kinetik Holdings (KNTK), as well as liquefied natural gas-focused names such as Venture Global (VG) and Cheniere Energy (LNG), could react most sharply to geopolitical headlines.Kinder Morgan will kick off the second-quarter earnings season for RBC's coverage universe on July 22. RBC expects management to discuss geopolitical and macroeconomic conditions, stronger export activity, commodity-price support, and growth opportunities across its project pipeline.Among its preferred investments, RBC highlighted Cheniere Energy, citing 95% contracted cash flows through 2035, a $10 billion share repurchase program, and a target to increase dividends by 10% annually through 2030.RBC said Sunoco can build on operational momentum through 2027, benefiting from stronger refining margins at Burnaby, synergies from the Parkland acquisition, and an additional $500 million bolt-on acquisition strategy.The firm also favors Targa Resources, citing customer-backed expansion projects, exposure to leading Permian Basin acreage, and rising gas-to-oil ratios that could support natural gas growth even if crude production levels off.For Williams Companies (WMB), RBC sees growing electricity demand and natural gas consumption creating opportunities for high-return projects tied to Transco expansions and power-related infrastructure through 2030 and beyond.Williams is targeting adjusted EBITDA compound annual growth of more than 10% through 2030, including roughly 9% growth from Haynesville-related projects, while maintaining a balance sheet capable of supporting further expansion, RBC said.Price: $36.67, Change: $+0.59, Percent Change: +1.65%

S&P 500 Posts Monthly Gain to New High, Ninth Straight Weekly Rise

The Standard & Poor's 500 index rose 1.4% this week, marking its ninth consecutive weekly increase and ending the trading month with a 5.15% climb to a record closing high.The S&P 500 ended the week at 7,580.06, its highest close ever. The index also posted a record intraday high on Friday at 7,599.38.The last time the S&P 500 had a weekly winning streak this long was in late 2023. It is now up 11% this year.Friday marked the final trading day of May, a month of consistent weekly gains that followed a 10% jump in April as investors' worries about the war in Iran waned. On Friday, hopes for a peace deal increased as President Donald Trump said on Truth Social that he was meeting in the Situation Room to make a final determination on a memorandum of understanding between the US and Iran.Economic data this week showed the US economy expanded at a slower rate in the first quarter than previously estimated as consumer spending growth decelerated, according to the second estimate by the Bureau of Economic Analysis. Real gross domestic product increased at a 1.6% annualized rate in the March quarter, the report said, down from a 2% increase reported in the initial estimate.The advance this week wasn't broad; only four of the S&P 500's 11 sectors rose, led heavily by a 4.6% jump in the technology sector. The consumer discretionary rose 1.5%, materials added 1.2% and industrials edged up 0.8%.Dell Technologies (DELL) was the best performer in the technology sector, with its stock soaring 43% on the week as the company reported record fiscal first-quarter results that surpassed Wall Street's estimates amid a surge in demand for artificial intelligence-optimized servers. Dell also boosted its fiscal 2027 outlook.Super Micro Computer's (SMCI) stock also boosted the technology sector, with its stock surging 30% as the company said it is collaborating with Taiwanese authorities to prevent illicit diversion of its servers into the restricted Chinese market.AppLovin (APP) was also strong, with its stock jumping 27% as the company reported Q1 earnings per share and revenue above year-earlier results and analysts' mean estimates. AppLovin also forecast Q2 revenue above the Street view.In addition, NetApp (NTAP) shares climbed 25% as the company posted fiscal Q4 adjusted earnings per share and revenue above year-earlier results and analysts' expectations. NetApp also issued fiscal 2027 guidance above Street consensus views.Best Buy (BBY) led the week's gains in consumer discretionary, with its stock leaping 26%. The electronics retailer's fiscal first-quarter results came in stronger than expected and Chief Financial Officer Matt Bilunas said its comparable sales "have started strong in May, with month-to-date growth up high single digits." It has been years since Best Buy generated a high-single-digit increase in comparable sales even for a couple-week period, Truist Securities said in a note.On the downside, the energy sector fell 5.4% on the week, followed by a 3.2% drop in consumer staples, a 2.1% decline in utilities and a 1.4% slip in real estate. Financials, health care and communication services also edged lower.The energy sector's drop came as crude oil futures also fell on the week amid chatter about the US and Iran nearing a peace deal. Hardest-hit stocks included shares of ONEOK (OKE), down 11%, and Williams (WMB), down 9%.Next week, earnings reports are expected from companies including Palo Alto Networks (PANW), Broadcom (AVGO), CrowdStrike Holdings (CRWD) and Medtronic (MDT).In economic data, all eyes will be on the government's May employment report due Friday. Other reports expected next week include April construction spending and factory orders.

BofA Securities Adjusts Price Target on ONEOK to $96 From $94

ONEOK (OKE) has an average rating of overweight and mean price target of $95.25, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $89.27, Change: $+1.06, Percent Change: +1.20%

Demand for North American LPG Will Remain 'Solid' Even if Hormuz Reopens, RBC Says

Demand for North America's liquefied petroleum gas will remain "solid" both in the near- and long term, driven by restocking and building of strategic reserves, even if flow of Middle Eastern LPG through the Strait of Hormuz returns, RBC Capital Markets said Tuesday.Attacks linked to the US-Iran war have damaged LPG-related infrastructure in the Middle East, cutting LPG production and making it difficult to immediately return to pre-war supply levels even if the Strait fully reopens.Infrastructure damage in Qatar, Oman, and Iran has curbed LPG output by around 170,000 barrels per day, with further curtailment likely from reported attacks on eight other LPG sites, according to the International Energy Agency, as cited by RBC.Middle Eastern LPG is primarily exported to Asia, where "normal" demand growth is expected as buyers restock and seek to maintain larger strategic reserves, the research firm said.Cooking is a key LPG demand driver in the region, according to the IEA, with about 80% of Indian households and 90% of Indonesian homes using the fuel for this purpose.RBC noted that terminal operators in North America are "well-positioned" to benefit in the near term from elevated restocking demand, "and especially over the longer term if global LPG buyers enhance their supply diversity by looking to North America."The investment bank expects AltaGas can capture most upside, given the company's LPG growth projects and exposure to the spot market.RBC believes that the greatest upside for AltaGas is "if it can secure new long-term tolling contracts to underpin further expansions of its Ridley Island Energy Export Facility." The company operates two joint venture terminals in Prince Rupert, British Columbia and owns an LPG export facility in Ferndale, Washington.For US Gulf Coast LPG export terminal operators, including Energy Transfer (ET), Enterprise Product Partners (EPD), ONEOK (OKE), and Targa (TRGP), RBC sees "clearer" prospects for additional long-term contracts at higher rates. Additional upside could also materialize if there is demand for capacity expansion, it said.RBC highlighted that alleviation of oversupply concerns prior to the US-Iran war will have a "positive" impact on stocks of LPG companies on the US Gulf Coast, where the LPG market is expansive and where buyers will most likely turn for supplies.

Citigroup Adjusts Price Target on ONEOK to $97 From $95

ONEOK (OKE) has an average rating of overweight and mean price target of $94.85, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $85.95, Change: $-4.08, Percent Change: -4.53%

Research Alert: CFRA Keeps Hold Opinion On Shares Of Oneok Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Our 12-month target price of $96, raised $7, reflects a combination of relative valuation and DCF model analyses. On a relative basis, we apply a 10.5x multiple of enterprise value to projected '27 EBITDA, in line with OKE's historical forward average, which yields an $89 value. Meanwhile, our DCF model, using medium-term free cash flow growth of 3.5% and terminal growth of 2.0%, discounted at a WACC of 5.4%, yields a value of $103 per share. We lift our '26 EPS estimate by $0.09 to $5.78, but cut '27's by $0.06 to $6.08. OKE noted that its U.S. Gulf Coast Permian NGL volumes rose 31% in Q1, which we think is at least partly due to the disruption in the Middle East and overseas buyers looking for alternative sourcing. We estimate that the combination of growth capex and dividend outlays will chew up about 83% of operating cash flow in 2026, implying a modest degree of safety, but only slightly better than peers. Shares yield 4.6%.

Midstream Stocks Climb on Permian Strength, Export Demand Outlook, RBC Says

Midstream energy firms are set for a busy earnings week after a strong run in the sector, with rising oil prices and robust volumes underpinning investor optimism, RBC Capital Markets strategists said in a note on Friday.RBC said the Alerian Midstream Index climbed 4.3% in the week ended Apr. 30, outperforming the broader S&P 500, which rose 1.4%. Year-to-date, the AMZ is up 19.5%, significantly ahead of the S&P 500's 5.3% gain.Though the sector has also outpaced defensive segments such as utilities, RBC said it continues to lag upstream oilfield services and exploration and production companies.Crude prices provided a tailwind, with front-month West Texas Intermediate futures rising about 10% during the week to around $105 per barrel, while US natural gas benchmark Henry Hub gained about 6% to $2.77 per MMBtu.Targa Resources led weekly gains, climbing 8.4% as investors responded to higher crude prices and improving dynamics in the Permian Basin.Rising gas-oil ratios in the region, highlighted in Enterprise Products Partners LP's earnings, are boosting demand for processing and takeaway capacity, RBC said.The bank said additional capital spending by ConocoPhillips (COP) in the Delaware Basin has also reinforced expectations for incremental activity, supporting Targa's growth outlook.Valuations remain elevated but supported by earnings visibility. RBC estimates the midstream universe is trading at about 10.2 times enterprise value to 2027 EBITDA, suggesting investors are willing to pay a premium for stable cash flows and exposure to rising US hydrocarbon exports.Meanwhile, RBC said recent earnings have reinforced that narrative. Enterprise Products Partners (EPD) beat expectations on stronger volumes and gains in natural gas marketing, while Oneok (OKE) raised its 2026 adjusted EBITDA guidance following a Q1 beat and a more constructive outlook for volumes.RBC analysts say export demand, partly driven by disruptions in the Middle East, could provide an additional tailwind for companies with Gulf Coast exposure, including Targa and Energy Transfer.Price: $123.80, Change: $-1.98, Percent Change: -1.57%

Barclays Adjusts ONEOK Price Target to $90 From $82

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $91.97, Change: $+2.65, Percent Change: +2.96%

Wells Fargo Adjusts ONEOK Price Target to $98 From $100

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $91.95, Change: $+2.63, Percent Change: +2.94%

Stifel Nicolaus Adjusts ONEOK Price Target to $99 From $91

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $91.95, Change: $+2.63, Percent Change: +2.94%

Stifel Nicolaus Raises ONEOK Price Target to $99 From $91

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $91.91, Change: $+2.59, Percent Change: +2.90%

TD Cowen Adjusts ONEOK Price Target to $85 From $80

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $91.76, Change: $+2.44, Percent Change: +2.73%

Raymond James Adjusts ONEOK Price Target to $92 From $90

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $91.87, Change: $+2.55, Percent Change: +2.85%

Scotiabank Downgrades ONEOK to Sector Perform From Sector Outperform, Price Target is $89

ONEOK (OKE) has an average rating of overweight and mean price target of $94.65, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Research Alert: Oke: Strong Volume Growth In Q1

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:OKE posted Q1 EPS of $1.23 vs $1.04 prior year, missing consensus by $0.07, while adjusted EBITDA of $2.0B rose 13% Y/Y due to strong volume performance across most segments and enhanced optimization activities. The Natural Gas Pipelines segment led growth, with EBITDA surging 60% to $339M, primarily from $92M increased optimization and marketing activity, including $70M favorable Waha-Katy price differentials and $19M from Winter Storm Fern impacts. Natural Gas Gathering & Processing faced commodity headwinds, with EBITDA declining 5% to $467M despite broad-based volume improvements, while Natural Gas Liquids segment generated solid 11% EBITDA growth to $706M. OKE raised 2026 guidance, with net income increased to $3.5B midpoint and adjusted EBITDA to $8.25B midpoint, reflecting strong segment performance and improved market conditions. The company maintained capex guidance at $2.7B-$3.2B while completing strategic initiatives including the Permian plant relocation and $491M debt redemption.

Oneok Q1 Throughput Rises in NGLs, Gas Processing as Crude Volumes Decline

Midstream firm Oneok (OKE) reported Q1 earnings Tuesday, showing natural gas liquids throughput volumes rose to 1.49 mmb/d, compared with 1.29 mmb/d a year earlier.Natural gas processed volumes totaled 5.49 billion cubic feet per day in Q1, up from 5.25 Bcf/d a year earlier, led by increases in the Mid-Continent, Permian, and Rocky Mountain regions.Crude oil transportation volumes fell to 1.61 million barrels per day for the quarter ended March 31, compared with 1.85 mmb/d a year earlier, the company said.Refined products shipments reached 1.57 mmb/d for Q1, compared with 1.40 mmb/d a year earlier, Oneok said.Gasoline throughput volumes rose 16% at 909,000 b/d for the quarter, compared with 785,000 b/d a year earlier. Distillates jumped 12% to 562,000 b/d, up from 500,000 b/d a year ago.Aviation fuel and other volumes dropped to 97,000 b/d, from 116,000 b/d a year earlier.The company advanced growth projects including the Medford fractionator, with Phase I capacity of 100,000 b/d expected in Q4 2026 and Phase II capacity of 110,000 b/d targeted for Q1 2027, it said.Oneok is also progressing a Texas City LPG terminal with 400,000 b/d capacity, expected online in early 2028, alongside a Denver refined products pipeline expansion adding 35,000 b/d by mid-2026, the company said.In the Permian Basin, Oneok completed a 150 million cubic feet per day plant relocation in Q1 2026 and is building 110 mmcf/d expansions for completion in Q3 2026, with a 300 mmcf/d Bighorn plant planned for mid-2027.

Kinder Morgan Q1 Earnings Beat Estimates, Lifts 2026 Outlook, RBC Says

Kinder Morgan's (KMI) Q1 earnings exceeded expectations, supported by stronger volumes, winter weather tailwinds and firmer commodity prices, RBC Capital Markets strategists said in a note on Friday.RBC analysts said it now expects 2026 adjusted EBITDA to come in at least 3% above its prior budget, reflecting stronger operating conditions across its network.However, despite the upbeat results, Kinder Morgan shares edged lower following the release, which analysts attributed to limited backlog growth, uncertainty surrounding its Western Gateway project and investor positioning ahead of other earnings in the sector.The broader midstream space has continued to outperform this year. The Alerian MLP Index rose 1.6% in the week ended April 23, outpacing the S&P 500, which gained 1%. Year-to-date, the midstream benchmark is up 14.5%, compared with a 3.8% rise in the S&P 500.RBC said that strength in the sector has been supported by steady cash flows and growing demand for natural gas infrastructure, even as commodity prices remain volatile.Front-month West Texas Intermediate crude rose about 2% on the week to about $97 per barrel, while Henry Hub natural gas prices slipped about 2% to $2.59 per million British thermal units.Cheniere Energy (LNG), in contrast, declined 2.1%, in what RBC analysts said could reflect positioning ahead of earnings and a rotation into other midstream names.Master limited partnerships modestly outperformed C-corporations during the week, with MLPs up 1.2% versus a 1% gain for corporates.Going forward, investors are focused on upcoming earnings from Enterprise Products Partners (EPD) and Oneok (OKE), both scheduled to report on April 28.Market participants will be watching for commentary on the impact of higher commodity prices, producer activity, project ramp-ups, export demand and capital allocation plans, as well as the effects of winter weather and evolving price spreads across key basins.RBC analysts flagged potential read-throughs for other operators, including Williams Companies (WMB), Energy Transfer (ET), Targa Resources (TRGP) and Sunoco (SUN), citing expected tailwinds from seasonal demand, marketing optimization and commodity price volatility.

ONEOK Keeps Quarterly Dividend at $1.07 a Share, Payable May 15 to Holders of Record May 4

TD Cowen Adjusts ONEOK Price Target to $80 From $74, Maintains Hold Rating

ONEOK (OKE) has an average rating of overweight and mean price target of $93.55, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $82.22, Change: $-2.99, Percent Change: -3.51%

Scotiabank Adjusts ONEOK Price Target to $92 From $91, Maintains Sector Outperform Rating

ONEOK (OKE) has an average rating of overweight and mean price target of $93.25, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $86.32, Change: $+0.11, Percent Change: +0.13%