Investment Thesis
ONEOK operates NGL pipelines and natural gas gathering/processing assets focused on the Midcontinent and Permian. Magellan acquisition adds refined products and export optionality.
- NGL Fracs: Integrated NGL system benefits from Permian associated gas growth.
- Midstream Consolidation: Magellan deal diversifies into liquids and export terminals.
- Stable Fee Base: Predominantly fee-based contracts with investment-grade customers.