ONEOK (OKE): Operational Recovery and Brazos Acquisition Drive Growth Outlook

Enterprise Products Partners reported a 21% rise in Q2 operational distributable cash flow to $2.3B, while ONEOK raised its 2026 adjusted EBITDA guidance. Enterprise offers a 6.1% yield with 1.69x coverage, while ONEOK has a 4.9% yield with 2.25x coverage and more debt. Investors compare their dividend growth prospects over the next decade.

ONEOK Inc. completed its $4.425 billion acquisition of Brazos Midstream's Permian Midland Basin assets, doubling its processing capacity to 2.3 Bcf per day. The deal includes 700 miles of gathering infrastructure and long-term contracts with producers like ExxonMobil. ONEOK funded the acquisition with a $9 billion equity investment from Apollo, planning to use $5 billion to reduce debt.

Stifel reduced its price target for ONEOK Inc. (OKE) to $100 from $105, maintaining a Hold rating. The stock has risen 23% year-to-date, outperforming the Alerian Midstream Energy Index. ONEOK trades at $90.29, with a 27.5% YTD return. Stifel values it at 10.2x estimated 2027 EBITDA, noting a 5% dividend yield. Recent upgrades from Fitch Ratings and price target increases from other firms follow strategic acquisitions and investments.

Brazos Midstream sold its Midland Basin assets to ONEOK for $4.425B. The deal includes 700 miles of pipelines and 1.1B cubic feet per day of processing capacity. ONEOK aims to double its processing capacity and accelerate EBITDA growth. Apollo Global Management invested $9B to support the acquisition.

ONEOK completed its $4.43bn acquisition of Brazos Midstream's natural gas assets in the Permian Midland Basin, adding 700 miles of pipelines and 1.1bcf/d of processing capacity. The deal increases ONEOK's total processing capacity to 2.3bcf/d, financed by a $9bn equity investment. ONEOK plans to retire $5bn in debt, aiming for a 3.25x leverage ratio in 2027. Brazos Midstream CEO Brad Iles praised the transaction as a milestone.

ONEOK (OKE) completed the $4.425B cash acquisition of Brazos Midstream's natural gas assets in the Permian Midland Basin. The deal strengthens ONEOK's position, doubling its processing capacity to 2.3B cubic feet per day. Shares traded at $89.23 post-announcement.