TULSA, Okla. - ONEOK , Inc. (NYSE: NYSE:OKE), a major player in the midstream energy sector, has announced the continuation of its quarterly dividend at 99 cents per share. This declaration, consistent with the previous quarter's distribution, translates to an annualized dividend of $3.96 per share. Shareholders on record by the close of business on August 1, 2024, will be eligible for the dividend, which is scheduled for payment on August 14, 2024.
As a key midstream service provider, ONEOK plays a pivotal role in the processing, transportation, and storage of energy products such as natural gas, natural gas liquids (NGLs), refined products, and crude oil. The company operates an extensive pipeline network spanning over 50,000 miles. ONEOK's infrastructure is critical in meeting both domestic and international energy demands, contributing to energy security and offering energy solutions that are vital in today's advancing world.
Headquartered in Tulsa, Oklahoma, ONEOK is recognized as one of the largest diversified energy infrastructure corporations in North America. Its operations and services are crucial in delivering energy that impacts the lives of people across the U.S. and globally. The company is also listed on the S&P 500 index, reflecting its significant presence in the industry.
In the announcement, ONEOK included forward-looking statements regarding its anticipated financial performance, including projections of quarterly and annual dividends, liquidity, and market conditions. These statements are based on current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially. ONEOK cautions not to place undue reliance on these forward-looking statements, which are qualified by the inherent risks and uncertainties outlined in the company's filings with the Securities and Exchange Commission (SEC).
This dividend announcement is based on a press release statement from ONEOK, Inc. Investors and shareholders are encouraged to consider the company's latest SEC filings for a more comprehensive understanding of the risks associated with these forward-looking statements.
In other recent news, Easton Energy has agreed to sell its Gulf Coast Liquids Pipeline System to ONEOK, Inc. for $280 million. The system includes approximately 450 miles of pipelines crucial to the natural gas liquids (NGL) and hydrocarbon market in the Texas and Louisiana Gulf Coast region. Following the sale, Easton plans to focus on its storage operations. On ONEOK's side, the acquisition of these pipelines is expected to enhance their network and commercial opportunities in Mont Belvieu and Houston, Texas.
In a related development, BofA Securities has raised its stock price target for ONEOK to $88, up from $86, maintaining its Buy rating on the stock. This follows ONEOK's first-quarter EBITDA of $1,441 million and a raised midpoint of the company's 2024 EBITDA guidance by $75 million. The revised guidance is attributed to factors including anticipated strong volume growth in the Bakken and refined products, among others.
Lastly, ONEOK reported a robust first quarter in 2024, with net income reaching $639 million, prompting the company to raise its financial guidance for the full year. The improved outlook is attributed to higher volumes in the Rocky Mountain region and anticipated synergies.
InvestingPro Insights
ONEOK, Inc. (NYSE: OKE) maintains its commitment to shareholder returns, as evidenced by the steady quarterly dividend. With a market capitalization of $49.74 billion, the company stands as a significant entity in the midstream energy sector. While the dividend yield is a robust 4.66%, reflecting the company's dedication to providing consistent shareholder value, it's important to note the broader financial landscape of ONEOK as of Q1 2024.
Investors may find the company's P/E ratio of 19.72, slightly increasing to 21.04 when adjusted for the last twelve months as of Q1 2024, as an indicator of market sentiment towards its earnings. Moreover, the company's revenue growth shows a quarterly increase of 5.75% in Q1 2024, suggesting a positive short-term trajectory amidst a yearly decline of 16.43%. This juxtaposition of short- and long-term performance metrics could be a focal point for investors assessing the company's growth prospects.
From an operational standpoint, ONEOK's EBITDA growth of 33.2% during the last twelve months as of Q1 2024 is a strong sign of operational efficiency and profitability. This growth rate, coupled with an operating income margin of 21.17%, underscores the company's ability to manage its operations effectively despite the challenges inherent in the energy sector.
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