We recently published a list of Jim Cramer Commented on These 6 Natural Gas Players. In this article, we are going to take a look at where ONEOK, Inc. (NYSE:OKE) stands against other stocks that Jim Cramer discusses.
On Tuesday’s episode of Mad Money, Jim Cramer weighed in on the recent rally in the natural gas sector and highlighted several companies that, in his view, are well-positioned to benefit from the current environment.
“Alright, lately, we’ve seen this really major rebound in the price of natural gas. It’s up roughly 27% from its lows in under three weeks.”
READ ALSO: 13 Stocks on Jim Cramer’s Radar Recently and 10 Jim Cramer Stocks with Huge Upside Potential.
Cramer said that prices have essentially returned to the levels seen in early January, before concerns over the administration’s now mostly reversed tariff agenda disrupted the market. He explained that the rebound is largely in line with what he expected following President Donald Trump’s election. He contrasted natural gas with oil and noted that Trump’s “drill, baby, drill” mantra would have led to increased drilling, which typically drives oil prices down, but natural gas operates under very different constraints.
He emphasized that natural gas is heavily influenced by federal policy, especially when it comes to exports. According to Cramer, global demand for American natural gas is strong, but meeting that demand requires liquefied natural gas terminals, which cannot be built without regulatory approval. He mentioned that the Biden administration took a less favorable stance on fossil fuel development, while Trump has shown a willingness to approve new pipelines and LNG export infrastructure.
“So here’s the bottom line: In this exciting sector with the natural gas trade coming alive again, I like EQT for production, ONEOK and Enbridge for pipelines and distribution, and the OG Cheniere Energy as a pure play on liquified natural gas exports. I think they very much work here with a fossil-friendly White House.”
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 13. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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.
Overall, OKE ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of OKE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OKE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
