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ONEOK Updates 1 Key Risk Factor
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ONEOK Updates 1 Key Risk Factor

Shares of midstream services and natural gas provider ONEOK, Inc. (OKE) have climbed 38.1% over the past 12 months. OKE’s recent fourth-quarter performance was a mixed bag, with its bottom-line lagging estimates despite robust growth in the top line.

Revenue surged 110.9% year-over-year to $5.42 billion, outperforming estimates by $1.08 billion. Meanwhile, earnings per share at $0.85 lagged consensus estimates by $0.04.

Higher operating costs and costs of sales weighed on the company’s bottom line. Notably, during the year, OKE’s natural gas gathering increased 7.2% and natural gas processing increased 6.4%.

Management expects volume growth on the back of higher producer activity, and stronger demand for natural gas and NGLs for 2022.

With these developments in mind, let us take a look at the changes in OKE’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, ONEOK’s top risk category is Finance & Corporate, contributing 10 of the total 14 risks identified for the stock, compared to a sector average of 12 risk factors under the same category.

In its recent report, the company has changed one key risk factor under the Finance & Corporate risk category.

Commenting on its dividend distributions, OKE highlighted that it may not have sufficient cash every quarter to distribute dividends or to maintain current or anticipated dividend levels.

The actual amount of dividend distribution may vary each quarter based on factors including OKE’s working capital requirements, borrowing capacity, restrictions in its credit facility and indentures, cost of acquisitions, or requirements for debt servicing.

Consequently, a failure to pay dividends or to pay dividends at expected levels may lead to lower investor confidence, damage to reputation, and an impact on the company’s stock price.

Hedge Fund Activity

According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in ONEOK by 9.1 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock based on activities of 9 hedge funds. Notably, Ray Dalio’s Bridgewater Associates has a holding worth $647.6 thousand in OKE.

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