$OKE

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.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.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.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.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.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.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.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.

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.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.Price: $86.32, Change: $+0.11, Percent Change: +0.13%