MMarketMath

OKE

Fast growerQuality: Medium (53/100)3 red flags

Oneok · Energy · Oil & Gas Storage & Transportation

$93.02

52w 64.02 – 97.90

20y monthly, adjusted

Mkt cap

$58.6B

P/E

17.3

P/FCF

24.0

FCF yield

4.2%

ROE

15.1%

Shldr yield

4.5%

div 4.4% + bb 0.1%

What today's price assumes

At $58.6B, the market is pricing in 10.2% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth).

Simple DCF per-share range: $59 · $79 · $99 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 4.8× across 19 years, OKE would trade near $43/share (25th–75th percentile: $25–$72); it trades at 10.5× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+14.5%

Rev 5y

+31.5%

Rev 10y

+15.8%

EPS 5y

+30.7%

EPS 10y

+16.7%

FCF 5y

FCF 10y

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $13.5B
2008: $16.2B
2009: $10.8B
2010: $12.7B
2011: $14.8B
2012: $10.2B
2013: $11.9B
2014: $12.2B
2015: $7.8B
2016: $8.9B
2017: $12.2B
2018: $12.6B
2019: $10.2B
2020: $8.5B
2021: $16.5B
2022: $22.4B
2023: $17.7B
2024: $21.7B
2025: $33.6B
$0$10.0B$20.0B$30.0B
07
11
15
19
23

Net income

2007: $304.9M
2008: $311.9M
2009: $305.5M
2010: $334.6M
2011: $360.6M
2012: $360.6M
2013: $266.5M
2014: $314.1M
2015: $245.0M
2016: $352.0M
2017: $387.8M
2018: $1.2B
2019: $1.3B
2020: $612.8M
2021: $1.5B
2022: $1.7B
2023: $2.7B
2024: $3.0B
2025: $3.4B
$0$1.0B$2.0B$3.0B
07
11
15
19
23

Free cash flow

2007: $146.0M
2008: −$997.5M
2009: $661.4M
2010: $251.3M
2011: $20.1M
2012: −$882.2M
2013: −$961.8M
2014: −$493.5M
2015: −$165.5M
2016: $728.6M
2017: $803.0M
2018: $45.2M
2019: −$1.9B
2020: −$296.3M
2021: $1.8B
2022: $1.7B
2023: $2.8B
2024: $2.9B
2025: $2.4B
$0$2.0B
07
11
15
19
23

Diluted shares (lower is better)

2007: 214.4M
2008: 214.4M
2009: 215.6M
2010: 215.6M
2011: 214.5M
2012: 210.7M
2013: 209.7M
2014: 210.4M
2015: 210.5M
2016: 212.4M
2017: 299.8M
2018: 414.2M
2019: 415.4M
2020: 431.8M
2021: 447.4M
2022: 448.4M
2023: 485.4M
2024: 586.5M
2025: 625.9M
0200.0M400.0M600.0M
07
11
15
19
23

Margins

-20%0%20%07101316192225
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2007: $540.4M
2008: $162.8M
2009: $173.0M
2010: $193.5M
2011: $527.1M
2012: $412.0M
2013: $304.7M
2014: $443.8M
2015: $509.2M
2016: $517.6M
2017: $829.4M
2018: $1.3B
2019: $1.5B
2020: $1.6B
2021: $1.7B
2022: $1.7B
2023: $1.8B
2024: $2.5B
2025: $2.7B
$0$1.0B$2.0B
07
11
15
19
23

Cash vs long-term debt

$0$10.0B$20.0B$30.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $3.7B
Q3'23: $4.2B
Q4'23: $5.2B
Q1'24: $4.8B
Q2'24: $4.9B
Q3'24: $5.0B
Q4'24: $7.0B
Q1'25: $8.0B
Q2'25: $7.9B
Q3'25: $8.6B
Q4'25: $9.1B
Q1'26: $9.6B
Q2'26: $12.0B
$0$5.0B$10.0B
23
24
24
25
26

Net income by quarter

Q2'23: $468.0M
Q3'23: $454.0M
Q4'23: $688.0M
Q1'24: $639.0M
Q2'24: $780.0M
Q3'24: $693.0M
Q4'24: $923.0M
Q1'25: $636.0M
Q2'25: $841.0M
Q3'25: $939.0M
Q4'25: $977.0M
Q1'26: $774.0M
Q2'26: $966.0M
$0$250.0M$500.0M$750.0M
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$12.0B+52.8%$966.0M+14.9%1.53$2.1B
Q1'26$9.6B+19.6%$774.0M+21.7%1.23$934.0M
Q4'25 *$9.1B+29.5%$977.0M+5.9%1.55$1.5B
Q3'25$8.6B+71.9%$939.0M+35.5%1.49$1.6B
Q2'25$7.9B+61.2%$841.0M+7.8%1.34$1.5B
Q1'25$8.0B+68.2%$636.0M−0.5%1.04$904.0M
Q4'24 *$7.0B+33.7%$923.0M+34.2%1.57$1.6B
Q3'24$5.0B+19.9%$693.0M+52.6%1.18$1.3B
Q2'24$4.9B+31.1%$780.0M+66.7%1.33$1.4B
Q1'24$4.8B+5.8%$639.0M−39.1%1.09$596.0M
Q4'23 *$5.2B+4.0%$688.0M+41.9%1.11$1.5B
Q3'23$4.2B−29.2%$454.0M+5.1%0.99$920.0M
Q2'23$3.7B−37.8%$468.0M+13.0%1.04$772.0M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+14.5%+31.5%+15.8%+6.7%
Operating cash flow+24.4%+24.1%+18.5%+13.5%
Free cash flow+12.8%+76.8%+40.9%+16.4%
EPS (diluted)+12.2%+30.7%+16.7%+8.7%
Equity+51.3%+30.1%+52.3%+15.9%
LT debt+34.3%+16.7%+14.0%+15.2%
Diluted shares+11.8%+7.7%+11.5%+7.4%
Stock price+18.4%+18.3%+13.8%+13.6%

$100, 3 years ago

$166vs $176 in SPY

18.4% vs 20.7%/yr

$100, 5 years ago

$232vs $181 in SPY

18.3% vs 12.6%/yr

$100, 10 years ago

$363vs $412 in SPY

13.8% vs 15.2%/yr

$100, 15 years ago

$680vs $813 in SPY

13.6% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$15.70

$35.1B created / $2.2B retained

Last 10 years

$164.77

$45.0B created / $272.9M retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

10.5%

OCF ÷ (equity + debt)

OCF / EV yield

6.3%

MC vs 10× OCF

1.05

≤1 = priced under 10× OCF

Debt / FCF

12.6y

SBC / FCF

3.8%

Owner earnings

$2.4B

OCF − capex − SBC

OE yield

4.0%

Share count 5y

+6.1%

per year; negative = buybacks

Capital intensity

142.3%

net PP&E ÷ revenue

Sales efficiency

$1.14

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 164.1% of operating cash flow at an incremental return of 11.1% — an organically fundable growth rate of about 18.2% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

15 of 24 checks pass · 63%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/6

  • Revenue growth

    31.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    30.7% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    · 5y CAGR ≥ 5%

    na
  • Revenue rises consistently

    6 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    8 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    24.1% vs 31.5% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

5/6

  • Net margin

    10.1% · ≥ 8%

    pass
  • Operating margin

    17.1% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    15.1% · ≥ 12%

    pass
  • Cash ROIC

    10.5% · ≥ 12%

    fail
  • FCF margin

    7.3% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $5.6B vs NI $3.4B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

2/5

  • Debt payable from cash flow

    12.6y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    0% · cash ≥ 50% of LT debt

    fail
  • Leverage

    1.37 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $22.5B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    31% · interest ≤ 15% of operating income

    fail

Capital Allocation

1/4

  • Share count flat or shrinking

    6.1% · ≤ +0.5%/yr over ~5y

    fail
  • Stock comp restrained

    4% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    109% · dividends + buybacks ≤ 100% of FCF

    fail
  • Repurchases are a habit

    2 of 10 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

3/3

  • FCF yield

    4.2% · ≥ 3%

    pass
  • Earnings multiple

    17.3 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    · implied FCF growth ≤ historical FCF CAGR

    na
  • Shareholder yield

    4.5% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy debt load

Long-term debt exceeds 5 years of free cash flow.

Shareholder dilution

Diluted share count has grown by more than 2% per year over ~5 years.

Distributions exceed FCF

Dividends plus buybacks exceeded free cash flow in the latest fiscal year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202533,6295,7413,3935.425,5993,1522,4472,58375927830,75522,485626
202421,6984,9893,0355.174,8882,0212,8672,31315910273331,01817,036587
202317,6774,0722,6595.484,4211,5952,8261,83906333821,18316,484485
202222,3872,8071,7223.842,9061,2021,7041,67205322012,6966,494448
202116,5402,5961,5003.352,5466971,8491,6675414612,7486,016447
20208,5421,3616131.421,8992,195-2961,6052952414,2286,043432
201910,1641,9141,2793.071,9473,848-1,9021,458372112,4806,226415
201812,5931,8351,1522.782,1872,141451,33532128,8736,580414
201712,1741,3923881.291,31551280382926378,0925,528300
20168,9211,2963521.661,353625729518412497,920189212
20157,7639962451.161,0231,188-16550916988,324336211
201412,1952,1071,1443141.491,2861,779-4944440261737,150592210
201311,8721,6508812671.271,2952,257-9623050461467,7542,338210
201210,1841,6449533611.719841,866-882262150375776,5152,130211
201114,8062,3801,1593611.681,3561,3362022730066574,5302,239214
201012,6792,0629433351.55834583251194024303,6872,449216
200910,8061,9988833050.001,453791661173023314,3342,207216
200816,1571,9369173120.004761,473-9971630314964,1132,088214
200713,4771,8108233051.421,03088414615039021192,771214

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.