Oneok

Methodology

Oneok's natural gas gathering, processing, and NGL infrastructure generate relatively stable fee-based earnings with some commodity exposure. Long-term contracts and strategic positioning in key basins provide revenue visibility. The calculation works reasonably well for this midstream operator when normalizing for commodity price impacts and focusing on contracted cash flow streams.

Methodology

Oneok typically trades at moderate PEG ratios reflecting steady volume growth from basin development offset by commodity exposure and capital intensity. The metric should focus on distribution growth and contracted revenue rather than volatile GAAP earnings. Compare to midstream peers like Williams and MPLX while considering Oneok's basin positioning and contract mix.

Methodology

Oneok offers an attractive dividend typical of midstream energy infrastructure, with distribution growth providing meaningful total returns. The yield adds substantial value to modest growth expectations from volume increases. For midstream investors, dividend sustainability and growth matter as much as earnings metrics in evaluating total return potential.