ONEOK vs Targa Resources
ONEOK made a transformative bet by acquiring Magellan Midstream, creating one of the largest and most diversified midstream networks in North America spanning natural gas liquids, crude oil, and refined products pipelines, while Targa Resources runs a growing NGL gathering and processing franchise in the Permian Basin that's been a prime beneficiary of the relentless drilling activity in the most prolific oil basin in the world. Both companies generate fee-based cash flows that support growing dividends, and both have benefited from the structural underinvestment in midstream infrastructure following the 2020 collapse. ONEOK vs Targa Resources determines which midstream platform has the better organic growth backlog and which offers more distribution coverage comfort heading into the next capex cycle.
ONEOK made a transformative bet by acquiring Magellan Midstream, creating one of the largest and most diversified midstream networks in North America spanning natural gas liquids, crude oil, and refin...
Why It's Moving
ONEOK Draws Moderate Buy Consensus as Analysts Eye Steady Growth Amid Q4 Earnings Anticipation
- Analysts project Q4 revenue at $9.49 billion, up 35.6% year-over-year, driven by a 39.4% jump in refined products and crude revenues that signal booming demand.
- Moderate Buy consensus holds firm with 20 analysts assigning an average score of 3.95, underscoring belief in 6.7% annual earnings growth and robust EBITDA gains in key areas.
- Natural gas liquids revenue expected to drop 45.3%, but offsets come from natural gas gathering EBITDA rising to $574 million, highlighting strategic shifts in processing efficiency.
TRGP Faces Analyst Warning of 13% Downside Amid Surging Energy Sector Momentum
- Energy sector peers exhibit strong upward trends, with TRGP mirroring this through noticeable volume spikes signaling investor interest.
- Analysts point to overvaluation risks after recent gains, estimating 13% downside from current levels.
- Increased trading activity underscores short-term momentum but fuels worries about sustainability in a volatile energy landscape.
ONEOK Draws Moderate Buy Consensus as Analysts Eye Steady Growth Amid Q4 Earnings Anticipation
- Analysts project Q4 revenue at $9.49 billion, up 35.6% year-over-year, driven by a 39.4% jump in refined products and crude revenues that signal booming demand.
- Moderate Buy consensus holds firm with 20 analysts assigning an average score of 3.95, underscoring belief in 6.7% annual earnings growth and robust EBITDA gains in key areas.
- Natural gas liquids revenue expected to drop 45.3%, but offsets come from natural gas gathering EBITDA rising to $574 million, highlighting strategic shifts in processing efficiency.
TRGP Faces Analyst Warning of 13% Downside Amid Surging Energy Sector Momentum
- Energy sector peers exhibit strong upward trends, with TRGP mirroring this through noticeable volume spikes signaling investor interest.
- Analysts point to overvaluation risks after recent gains, estimating 13% downside from current levels.
- Increased trading activity underscores short-term momentum but fuels worries about sustainability in a volatile energy landscape.
Investment Analysis
ONEOK
OKE
Pros
- ONEOK is considered undervalued by analysts with a discounted cash flow suggesting a 52.4% upside.
- The company demonstrated strong Q3 2025 earnings with increased EBITDA driven by acquisitions and volume growth in key regions.
- ONEOK has a robust dividend yield of about 6.0%, showing commitment to returning capital to shareholders.
Considerations
- ONEOK's stock price has experienced significant declines recently, down about 36.8% year-to-date, reflecting market challenges.
- The company has a relatively high debt-to-equity ratio and a low quick ratio (0.46), indicating potential liquidity concerns.
- Regulatory changes and shifting energy demand trends pose execution and operational risks to its midstream pipeline business.
Targa Resources
TRGP
Pros
- Targa Resources operates a diversified midstream energy portfolio, supporting resilience across market cycles.
- The company has a lower valuation multiple with a P/E ratio expected to decline from 17.8x in 2025 to 15.3x in 2026, potentially signaling value.
- Targa Resources maintains a stable free-float at 89% and offers a growing dividend yield forecasted to rise to 3.28% next year.
Considerations
- Targa Resources’ stock exhibits higher volatility compared to ONEOK, implying greater price fluctuations and investment risk.
- The company’s stock price has declined about 17.58% year-to-date, reflecting some market and operational headwinds.
- Targa faces commodity price sensitivity and execution risks tied to midstream infrastructure investments and regulatory environment.
Related Market Insights
Riding The OPEC+ Wave: Midstream Energy Plays
Discover how OPEC+ production increases create opportunities for midstream energy companies. Invest in stable pipeline infrastructure with Nemo.
Aimee Silverwood | Financial Analyst
July 25, 2025
OPEC+ Opens The Taps: Midstream's Moment
Discover how OPEC+ oil production increases create compelling opportunities for midstream energy companies. Invest in essential oil & gas infrastructure for steady cash flow & dividends.
Aimee Silverwood | Financial Analyst
July 25, 2025
Related Market Insights
Riding The OPEC+ Wave: Midstream Energy Plays
Discover how OPEC+ production increases create opportunities for midstream energy companies. Invest in stable pipeline infrastructure with Nemo.
Aimee Silverwood | Financial Analyst
July 25, 2025
OPEC+ Opens The Taps: Midstream's Moment
Discover how OPEC+ oil production increases create compelling opportunities for midstream energy companies. Invest in essential oil & gas infrastructure for steady cash flow & dividends.
Aimee Silverwood | Financial Analyst
July 25, 2025
ONEOK (OKE) Next Earnings Date
ONEOK's next earnings date is estimated for April 28 to May 5, 2026, covering the Q1 2026 period, as the company has not yet confirmed the exact date. This follows their Q4 2025 earnings release on February 23, 2026, aligning with historical patterns of late April or early May reporting. Investors should monitor official announcements for confirmation.
Targa Resources (TRGP) Next Earnings Date
Targa Resources (TRGP) is scheduled to report its next earnings on April 30, 2026, with some sources indicating May 7, 2026 as an alternative date. This earnings report will cover the first quarter of 2026 results. Analysts are expecting the company to report earnings per share in the range of $2.37 to $2.46 for this period. Given the proximity of the reporting date, investors should monitor the company's official investor relations announcements for confirmation of the exact release time and conference call details.
ONEOK (OKE) Next Earnings Date
ONEOK's next earnings date is estimated for April 28 to May 5, 2026, covering the Q1 2026 period, as the company has not yet confirmed the exact date. This follows their Q4 2025 earnings release on February 23, 2026, aligning with historical patterns of late April or early May reporting. Investors should monitor official announcements for confirmation.
Targa Resources (TRGP) Next Earnings Date
Targa Resources (TRGP) is scheduled to report its next earnings on April 30, 2026, with some sources indicating May 7, 2026 as an alternative date. This earnings report will cover the first quarter of 2026 results. Analysts are expecting the company to report earnings per share in the range of $2.37 to $2.46 for this period. Given the proximity of the reporting date, investors should monitor the company's official investor relations announcements for confirmation of the exact release time and conference call details.
Which Baskets Do They Appear In?
Riding The OPEC+ Wave: Midstream Energy Plays
OPEC+ is moving forward with its plan to increase oil production to meet summer demand. This creates an opportunity for companies that transport, store, and process the additional crude oil and natural gas.
Published: July 25, 2025
Explore BasketOPEC+ Opens The Taps: Midstream's Moment
OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
Published: July 25, 2025
Explore BasketWhich Baskets Do They Appear In?
Riding The OPEC+ Wave: Midstream Energy Plays
OPEC+ is moving forward with its plan to increase oil production to meet summer demand. This creates an opportunity for companies that transport, store, and process the additional crude oil and natural gas.
Published: July 25, 2025
Explore BasketOPEC+ Opens The Taps: Midstream's Moment
OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
Published: July 25, 2025
Explore BasketBuy OKE or TRGP in Nemo
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
ONEOK vs EQT
ONEOK gathers, processes, and transports natural gas liquids through a sprawling midstream network, while EQT is the largest natural gas producer in the United States. Both are deeply exposed to natural gas market dynamics but sit on opposite sides of the wellhead. The ONEOK vs EQT comparison traces how a fee-based pipeline operator insulated from direct commodity exposure and a production-weighted gas giant leveraged to Henry Hub prices each generate cash flow, fund growth, and reward shareholders in a volatile energy market.
ONEOK vs Diamondback Energy
ONEOK operates one of the most extensive natural gas gathering, processing, and pipeline networks in the U.S., collecting fee-based revenues tied to volume rather than commodity prices, while Diamondback Energy is a pure-play Permian Basin oil producer whose earnings swing directly with WTI crude prices. Both companies are pillars of U.S. energy production, but their financial profiles reflect a fundamental trade-off between revenue predictability and commodity upside. ONEOK vs Diamondback Energy illustrates how investors choose between a midstream fee-machine with bond-like characteristics and an upstream operator that offers leverage to the next oil price rally.
Imperial Oil vs Targa Resources
Imperial Oil extracts and refines Canadian crude while benefiting from strategic alignment with ExxonMobil, giving it access to technology and offtake arrangements that smaller Canadian producers envy, while Targa Resources operates a large midstream gathering and processing network that connects Permian Basin natural gas liquids production to fractionation and export infrastructure. Both companies generate substantial cash flows tied to energy commodity volumes and prices, but their earnings mechanics and risk profiles are structured very differently. Imperial Oil vs Targa Resources compares upstream commodity exposure to fee-based midstream stability to help readers gauge which energy model delivers more predictable shareholder returns across a full cycle.
