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Oneok’s 2025 Slide Spurs Bullish 2026 Case on Synergies, Tax Savings

Analysts cite cost synergies, tax relief and lower capex as catalysts for stronger cash returns in 2026.

Overview

  • The stock fell 26.8% in 2025, with Jim Cramer calling Oneok the sector’s caboose but a buying opportunity.
  • Debt swelled to $32 billion by Sept. 30, 2025, up from $12.7 billion in mid‑2023 after a string of large acquisitions.
  • Oneok reported a 14% rise in net income to $2.4 billion for the nine months ended Sept. 30, 2025, supported by fee‑based operations.
  • Management projected roughly $500 million in Magellan-related cost synergies by the end of 2025 and is integrating recent deals.
  • Guidance highlights nearly $1.5 billion in expected cash tax savings over five years, reduced capital spending, dividend growth of 3%–4%, buybacks, and debt repayment, while outside analysis argues the 2025 sell-off may be overdone.