Is ONEOK Stock a Buy?
Midstream energy company ONEOK (NYSE: OKE) has seen its stock advance by an incredible 180% since the start of 2016. Over that same time frame, the Alerian MLP ETF, which tracks a broad collection of ONEOK's midstream peers, has fallen 36%. After such large gains, investors are likely wondering two things: Why did ONEOK outperform, and is the investment story fully played out? Here's a quick look at ONEOK to help you figure out whether the midstream specialist and its 5.1% yield are worth adding to your portfolio today.
After oil prices hit the skids in mid-2014, it looked like Wall Street didn't want anything to do with energy-related stocks. That included midstream companies, despite the fact that many of these businesses are largely fee-based. ONEOK, for example, gets around 85% of its revenue from fees today. However, that was just 66% in 2014. So there was a reason for investors to be a little negative here a few years ago, but more positive today.
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Source Fool.com
