Energy company ONEOK (NYSE:OKE) has requested the Federal Energy Regulatory Commission (FERC) to permit the construction of facilities for the exploration of a new intrastate natural gas pipeline at the U.S. and Mexico border in Hudspeth County, TX. This pipeline would link the production in the Permian Basin to international markets.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
ONEOK is engaged in natural gas and natural gas liquids businesses through various subsidiaries, one of which is the Saguaro Connector Pipeline. It was this subsidiary that filed for a presidential permit for the construction of the 155-mile-long, 48-inch wide pipeline, with a design capacity of around 2.8 billion cubic feet per day.
The final decision on the investment in the potential pipeline is likely to be made by mid-2023.
Is OKE Stock a Buy or Sell?
Last week, Wells Fargo analyst Michael Blum upgraded Oneok to a Buy from Hold. The analyst also raised the price target to $75 from $68, encouraged by positive prospects for the company in the midstream sector in 2023. The midstream sector’s strong underlying fundamentals, fair valuations, and increasing free cash flow can support an encouraging performance.
Wall Street, on the other hand, is cautiously optimistic about the stock, with a Moderate Buy rating based on three Buys and six Holds. The average price target of $68.44 indicates an upside of 7.78%.
