Is OKE a good stock to buy? We came across a bullish thesis on ONEOK, Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on OKE. ONEOK, Inc.’s share was trading at $86.94 as of June 30th. OKE’s trailing and forward P/E were 15.50 and 15.58 respectively according to Yahoo Finance.
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ONEOK, Inc. operates as a midstream service provider of gathering, processing, fractionation, transportation, storage, and marine export services in the United States. OKE is benefiting from a supportive macro backdrop and strong operational execution, positioning the company as an attractive midstream investment with multiple long-term growth catalysts. Management based its 2026 guidance on a conservative crude oil price assumption, while market prices have remained meaningfully higher due to geopolitical tensions surrounding Iran and the Strait of Hormuz.
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Sustained higher oil prices encourage additional drilling activity across the Permian, Bakken, and Mid-Continent basins, where ONEOK’s 60,000-mile pipeline network is strategically positioned to capture higher volumes. At the same time, shifting global energy flows are creating a structural opportunity for U.S. hydrocarbon exports. ONEOK’s joint venture with MPLX to develop the 400,000-barrel-per-day Texas City LPG export terminal, expected online in early 2028, is well positioned to benefit from growing international demand for reliable U.S. supply as buyers diversify away from the Persian Gulf.
The company also delivered a strong first quarter of 2026, with net income rising 12% year over year to $776 million, adjusted EBITDA increasing 13% to $2.0 billion, and revenue growing to $9.62 billion. Management raised full-year adjusted EBITDA guidance to a midpoint of $8.25 billion, supported by incremental synergies from the Magellan, Medallion, and EnLink acquisitions, several major expansion projects scheduled throughout 2026, emerging opportunities tied to LNG infrastructure and data centers, continued debt reduction, and no meaningful cash tax obligations expected until 2029.
The investment thesis is further strengthened by a favorable risk-reward profile, as the downside case requires multiple negative macro events to occur simultaneously, while continued strength in energy markets and successful execution of growth projects could provide meaningful upside through higher producer volumes, expanding cash flows, and sustained shareholder value creation.
Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke on Stock Picker’s Journey’s Substack in October 2024, which highlighted the company’s expanding project backlog, AI-driven infrastructure demand, reshoring trends, and potential regulatory tailwinds. KMI’s stock price has appreciated by approximately 28.85% since our coverage. OppCost shares a similar view but emphasizes on favorable energy market dynamics, operational execution, and export-driven growth supporting ONEOK’s outlook.
ONEOK, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held OKE at the end of the first quarter which was 46 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.
