Wolfe Research downgrades Oneok stock rating on growth concerns
#Wolfe Research #ONEOK #Stock Downgrade #Energy Sector #EBITDA #Dividend Yield #Financial Outlook
📌 Key Takeaways
- Wolfe Research downgraded ONEOK from Outperform to Peerperform
- Downgrade follows weak Q4 results and disappointing fiscal 2026 guidance
- ONEOK's 2026 EBITDA projected flat year-over-year despite new synergies
- Stock offers 5.16% dividend yield but has limited growth prospects
📖 Full Retelling
Wolfe Research downgraded ONEOK Inc (NYSE:OKE) stock from Outperform to Peerperform on February 25, 2026, citing weak fourth-quarter results and disappointing fiscal 2026 guidance that raised concerns about the energy company's growth prospects. The firm noted that ONEOK's growth appears more challenged going forward, while valuation has become less attractive given the weaker financial outlook, aligning with broader analyst sentiment as five analysts have revised their earnings estimates downward. Wolfe Research attributed part of the year-to-date stock performance to a broader energy sector trade, highlighting that the company's 2026 EBITDA is projected to be flat year-over-year despite $150 million in new synergies, contrasting with its historical performance. The energy infrastructure company generated $7.34 billion in EBITDA over the last twelve months, with core NGL and gathering processing segment volumes expected to remain roughly flat in 2026, adding less than $100 million in EBITDA year-over-year even in a $60 oil environment. While some growth is anticipated in 2027-2028 from new facilities, Wolfe Research forecasts only a 3-4% EBITDA growth compound annual growth rate over 2025-2028, which combined with the current 5.16% dividend yield doesn't meet the firm's desired 10% total return target, despite the company maintaining dividend payments for 56 consecutive years.
🏷️ Themes
Energy Sector, Stock Downgrade, Financial Performance
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Earnings before interest, taxes, depreciation and amortization
Accounting measure of a company's profitability
Earnings before interest, taxes, depreciation, and amortization, commonly known as EBITDA ( EE-bit-dah, EB-it-dah), is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset bas...
Oneok
Oklahoma based energy company
Oneok, Inc. () ONE-oak, stylized as ONEOK, is an American oil and gas midstream operator headquartered in Tulsa, Oklahoma. It provides the oil and gas industry with gathering, processing, fractionation, transportation, and storage services.
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Connections for Earnings before interest, taxes, depreciation and amortization:
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices rebound on tariff jitters; silver, platinum and copper rally Nvidia, Salesforce earnings loom large - what’s moving markets AMD stock surges 14% on Meta AI partnership deal U.S. stock futures drift higher; Nvidia earnings to drive direction (South Africa Philippines Nigeria) Wolfe Research downgrades Oneok stock rating on growth concerns By Investing.com Analyst Ratings Published 02/25/2026, 06:27 AM Wolfe Research downgrades Oneok stock rating on growth concerns 0 OKE -5.08% Investing.com - Wolfe Research downgraded ONEOK Inc (NYSE:OKE) to Peerperform from Outperform, citing weak fourth-quarter results and disappointing fiscal 2026 guidance. The downgrade aligns with broader analyst sentiment, as InvestingPro data shows 5 analysts have revised their earnings downwards for the upcoming period. The firm said the company’s growth appears more challenged going forward, while valuation has become less attractive given the weaker financial outlook. Wolfe Research attributed year-to-date stock performance in part to a broader energy sector trade. The firm noted that ONEOK ’s 2026 EBITDA is projected to be flat year-over-year even with $150 million of new synergies. The company generated $7.34 billion in EBITDA over the last twelve months, and flat growth projections contrast with its historical performance. Core NGL and gathering and processing segment volumes are guided to be roughly flat in 2026 and add less than $100 million of EBITDA year-over-year in a $60 oil environment. Wolfe Research expects some growth in 2027-2028 from a new plant, fractionator, and export dock, though the firm expressed uncertainty about the contracting position of the latter. The firm estimates approximately $100 million of headwinds in 2027 from narrower Permian gas spreads based on historical disclosures. The firm forecasts only a 3-4% EBITDA growth compound annual growth rate over 2025-2028, which when combined with a 5%...
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