OKE

ONEOK is a scaled, integrated NGL/natural-gas midstream operator whose FY2025 results jumped on a transformative deal year: revenue rose 55% to $33.6B and net income 11.8% to $3.39B, driven (per the MD&A) 'primarily by a full year of earnings from EnLink and Medallion' plus higher NGL and processing volumes. The quality of the franchise is real — operating income of $5.74B (17.1% margin), $5.60B of operating cash flow, and a 15.1% ROE on assets 'connected with some of the most productive shale basins' in the U.S. The fee-based, integrated asset model is exactly what you want to own through commodity cycles, and at 15.7x trailing EPS the stock is priced sensibly for that profile rather than expensively.

The caveat is that the headline growth is largely bought, not earned. The 55% revenue surge reflects the EnLink (41M shares, $4.0B) and Delaware Basin JV (4.9M shares + $550M cash) acquisitions, so diluted EPS grew only 4.8% — the per-share owner barely participated in the top-line explosion because the share count and balance sheet did the heavy lifting. Long-term plus current debt sits near $32B against $22.5B equity, and cash collapsed 89% to just $78M while ONEOK funds a stack of projects (Texas City LPG terminal ~$700M, Eiger Express ~$350M, MBTC, Bighorn, Greater Denver) with short-term borrowings and a fresh $3.0B August 2025 senior-note offering at 4.95%–6.25%. Dividends paid ($2.58B) consume nearly half of operating cash flow and exceed net income's free portion after $3.15B of capex (+56% YoY), so the payout leans on financing and asset growth, not slack.