Is OKE a good stock to buy? We came across a bullish thesis on ONEOK, Inc. on Hazelnuts Research’s Substack. In this article, we will summarize the bulls’ thesis on OKE. ONEOK, Inc.’s share was trading at $84.69 as of April 21st. OKE’s trailing and forward P/E were 15.46 and 15.04 respectively according to Yahoo Finance.
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ONEOK Inc. (OKE) is a large North American midstream operator with a 60,000-mile pipeline network spanning natural gas, NGLs, crude oil, and refined products, connecting key basins like the Permian and Williston to major demand centers and export hubs. Roughly 90% of its earnings are fee-based, providing resilience against commodity price volatility.
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Following acquisitions of Magellan, EnLink, and Medallion, the company has significantly expanded its scale and integration capabilities. A key structural tailwind is the rising demand for reliable, continuous energy driven by AI data centers and semiconductor manufacturing, where natural gas is emerging as a critical bridge fuel. This demand is further supported by global supply disruptions, including the shutdown of Qatar’s Ras Laffan LNG facility, which has increased the strategic importance of U.S. energy exports.
Financially, ONEOK generated $33.6 billion in revenue and $5.42 in EPS over the last twelve months, with 2026 EBITDA guidance of ~$8.1 billion supported by acquisition synergies. The company offers a 4.9% dividend yield, well covered by free cash flow, while progressing toward its 3.5x leverage target by 2027. Despite these fundamentals, the stock has remained flat over the past year, creating a potential valuation disconnect.
Trading at ~15.5x earnings versus a historical ~20x multiple, ONEOK appears undervalued relative to its asset quality and growth positioning. The combination of deleveraging, AI-driven energy demand, and potential long-term contracts with large energy consumers could drive a rerating, while its stable, fee-based model and essential infrastructure provide downside protection.
Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke in October 2024, which highlighted the company’s expanding project backlog driven by AI-linked demand, reshoring trends, and potential regulatory tailwinds tied to political outcomes. KMI’s stock price has appreciated by approximately 27.24% since our coverage. Hazelnuts Research shares a similar view but emphasizes on valuation disconnect, deleveraging, and AI-driven structural demand supporting ONEOK Inc.’s rerating potential.
ONEOK, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held OKE at the end of the fourth quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of OKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
