Jim Cramer Commented on These 6 Natural Gas Players

2. ONEOK, Inc. (NYSE:OKE)

Number of Hedge Fund Holders: 47

Calling ONEOK, Inc. (NYSE:OKE) one of his “favorites”, Cramer said:

“I’d also love some natural gas pipeline exposure here in part because most of these pipeline stocks feature generous dividends. How about ONEOK?… It’s one of my favorites. This is a major player in nat-gas gathering, processing, storage, and transportation with a big nat-gas liquid system.

Now, ONEOK’s still down almost 14% for the year, primarily because it got obliterated in the wake of the Liberation Day tariff announcement, with only a modest recovery since then. The most recent quarter was also less than ideal, a revenue beat paired with an earnings miss and light cash flow numbers. Still, ONEOK offers a unique value proposition if you believe in a major natural gas comeback.

Plus, even with the softer first quarter results, management reaffirmed its full year forecast. That’s a real sign of confidence to me. Down here, the stock sells for less than 16 times this year’s earnings estimates. It’s got a 4.8% yield, backed by tons of cash flow. ONEOK, it’s a buy.”

ONEOK, Inc. (NYSE:OKE) operates across the United States in the natural gas and natural gas liquids sector. The company handles gathering, processing, fractionation, storage, transportation, and marketing.