Is ONEOK Stock a Buy?
Midstream company ONEOK (NYSE: OKE) is sending out mixed signals in the face of a material energy industry downturn. With a massive 11% yield, however, it's worth taking the time to parse through the contradictions here to figure out if ONEOK is worth buying or not. Here are some key facts to help you decide.
The first thing to remember here is that ONEOK is not like an upstream (energy drilling) oil and natural gas company, where the often-volatile price of energy commodities drives top and bottom line results. It owns a collection of midstream assets. Its collection of pipelines, storage, and processing facilities helps move natural gas from where it is drilled to where it gets used. It largely gets paid for the use of its assets; the price of what's flowing through its system isn't all that important.
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Source Fool.com
