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 Boosts Dividend 4% Amid Stable Cash Flows and Expansion Momentum
- Dividend hike aligns with 3-4% annual growth target, supported by stable revenues from diversified pipeline operations and regulated rates.
- Recent acquisitions and synergies, including $250 million in targeted 2026 savings, bolster cost efficiencies and profitability.
- Organic expansions like new LPG export terminal and natural gas pipeline JVs set to deliver incremental cash flows through 2028.
Targa Resources Seals $1.25B Midstream Deal, Signals Dividend Boost Amid Expansion Push.
- Closed $1.25B Stakeholder Midstream acquisition effective January 1, enhancing Targa's critical midstream network for growing cleaner fuel demand.
- Board approved $1.00/share Q4 dividend payable February 13 to holders of record January 30, with plans to raise it to $1.25/share quarterly starting Q1.
- President Jennifer Kneale net acquired shares in January via zero-cost transactions, disposing some at $185.35 after boosting holdings to over 264K shares.
ONEOK Boosts Dividend 4% Amid Stable Cash Flows and Expansion Momentum
- Dividend hike aligns with 3-4% annual growth target, supported by stable revenues from diversified pipeline operations and regulated rates.
- Recent acquisitions and synergies, including $250 million in targeted 2026 savings, bolster cost efficiencies and profitability.
- Organic expansions like new LPG export terminal and natural gas pipeline JVs set to deliver incremental cash flows through 2028.
Targa Resources Seals $1.25B Midstream Deal, Signals Dividend Boost Amid Expansion Push.
- Closed $1.25B Stakeholder Midstream acquisition effective January 1, enhancing Targa's critical midstream network for growing cleaner fuel demand.
- Board approved $1.00/share Q4 dividend payable February 13 to holders of record January 30, with plans to raise it to $1.25/share quarterly starting Q1.
- President Jennifer Kneale net acquired shares in January via zero-cost transactions, disposing some at $185.35 after boosting holdings to over 264K shares.
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)'s next earnings date is estimated for February 23, 2026, aligning with the company's historical late-February pattern for year-end releases. This report will cover the Q4 2025 period. Confirmation from the company remains pending, with the earnings call likely following shortly thereafter.
Targa Resources (TRGP) Next Earnings Date
Targa Resources (TRGP) next earnings release for the fourth quarter of 2025 is estimated for February 18-19, 2026, consistent with mid-February historical patterns for prior-year Q4 results. Multiple sources converge on February 19, 2026, as the projected date, though not yet officially confirmed by the company. This report will provide midstream operational updates, including Permian and NGL volumes.
ONEOK (OKE) Next Earnings Date
ONEOK (OKE)'s next earnings date is estimated for February 23, 2026, aligning with the company's historical late-February pattern for year-end releases. This report will cover the Q4 2025 period. Confirmation from the company remains pending, with the earnings call likely following shortly thereafter.
Targa Resources (TRGP) Next Earnings Date
Targa Resources (TRGP) next earnings release for the fourth quarter of 2025 is estimated for February 18-19, 2026, consistent with mid-February historical patterns for prior-year Q4 results. Multiple sources converge on February 19, 2026, as the projected date, though not yet officially confirmed by the company. This report will provide midstream operational updates, including Permian and NGL volumes.
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
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