ONEOK vs Targa Resources
This page compares ONEOK and Targa Resources to explain how their business models, financial performance, and market context differ. It presents a neutral, accessible overview of strategy, operations, and competitive positioning within the energy sector. Educational content, not financial advice.
This page compares ONEOK and Targa Resources to explain how their business models, financial performance, and market context differ. It presents a neutral, accessible overview of strategy, operations,...
Why It's Moving
ONEOK's 2026 Guidance Disappoints Investors Despite Strong Q4 Earnings Beat
- Lower Bakken and Permian volumes are projected to reduce EBITDA by $250 million in 2026, while decreased upgrade opportunities will impact results by an additional $125 million—headwinds that more than offset gains from higher Permian volumes and favorable price differentials.
- 2026 EPS guidance of $5.04 to $5.87 suggests earnings growth, but analyst sentiment has turned cautious, with five analysts revising earnings estimates downward in response to the company's lukewarm outlook and exposure to commodity price volatility.
- The stock dropped from a 52-week high of $103.64 to $84.67 in premarket trading following the earnings announcement, reflecting investor concerns that near-term operational challenges and lower volumes could pressure cash generation and dividend sustainability.
Targa Resources Posts Record 2025 Results and Lifts 2026 Guidance, But Valuation Concerns Keep Investors Cautious
- Record 2025 EBITDA of $4.96 billion marked a 20% increase year-over-year, with net income climbing 47%, demonstrating strong execution across the energy infrastructure platform amid record capital allocation including $642 million in share repurchases and a $1.25 billion acquisition of Stakeholder
- Management guided 2026 adjusted EBITDA of $5.4–5.6 billion (up 11% at midpoint) and announced approximately $4.5 billion in net growth capital deployment, signaling confidence in continued expansion including new Permian plants and the Mont Belvieu Train 13 project
- Stock trades at 27.5x forward P/E, well above the 14.4x oil and gas industry average and 15.3x peer average, suggesting the market is assigning a significant premium that some analysts believe leaves limited upside room despite strong fundamentals
ONEOK's 2026 Guidance Disappoints Investors Despite Strong Q4 Earnings Beat
- Lower Bakken and Permian volumes are projected to reduce EBITDA by $250 million in 2026, while decreased upgrade opportunities will impact results by an additional $125 million—headwinds that more than offset gains from higher Permian volumes and favorable price differentials.
- 2026 EPS guidance of $5.04 to $5.87 suggests earnings growth, but analyst sentiment has turned cautious, with five analysts revising earnings estimates downward in response to the company's lukewarm outlook and exposure to commodity price volatility.
- The stock dropped from a 52-week high of $103.64 to $84.67 in premarket trading following the earnings announcement, reflecting investor concerns that near-term operational challenges and lower volumes could pressure cash generation and dividend sustainability.
Targa Resources Posts Record 2025 Results and Lifts 2026 Guidance, But Valuation Concerns Keep Investors Cautious
- Record 2025 EBITDA of $4.96 billion marked a 20% increase year-over-year, with net income climbing 47%, demonstrating strong execution across the energy infrastructure platform amid record capital allocation including $642 million in share repurchases and a $1.25 billion acquisition of Stakeholder
- Management guided 2026 adjusted EBITDA of $5.4–5.6 billion (up 11% at midpoint) and announced approximately $4.5 billion in net growth capital deployment, signaling confidence in continued expansion including new Permian plants and the Mont Belvieu Train 13 project
- Stock trades at 27.5x forward P/E, well above the 14.4x oil and gas industry average and 15.3x peer average, suggesting the market is assigning a significant premium that some analysts believe leaves limited upside room despite strong fundamentals
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.
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ONEOK (OKE) Next Earnings Date
ONEOK (OKE) is expected to report its next earnings on May 5, 2026, covering the first quarter of 2026. The company typically releases earnings in early May based on its historical pattern. This will be the first earnings report following the February 23, 2026 announcement of full-year 2025 results, which showed net income growth of 11% and adjusted EBITDA growth of 18%.
Targa Resources (TRGP) Next Earnings Date
Targa Resources (TRGP) is expected to announce its next earnings report on April 30, 2026, covering Q1 2026 results. The company has not yet officially confirmed this date, but it is based on the company's historical earnings release pattern. Analysts are projecting earnings per share of approximately $2.46 to $2.47 for the quarter. The earnings call will provide management's discussion of financial results and forward-looking guidance for investors.
ONEOK (OKE) Next Earnings Date
ONEOK (OKE) is expected to report its next earnings on May 5, 2026, covering the first quarter of 2026. The company typically releases earnings in early May based on its historical pattern. This will be the first earnings report following the February 23, 2026 announcement of full-year 2025 results, which showed net income growth of 11% and adjusted EBITDA growth of 18%.
Targa Resources (TRGP) Next Earnings Date
Targa Resources (TRGP) is expected to announce its next earnings report on April 30, 2026, covering Q1 2026 results. The company has not yet officially confirmed this date, but it is based on the company's historical earnings release pattern. Analysts are projecting earnings per share of approximately $2.46 to $2.47 for the quarter. The earnings call will provide management's discussion of financial results and forward-looking guidance for investors.
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
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