Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We have maintained our Neutral recommendation on ONEOK Partners LP (OKS - Analyst Report). The partnership currently has a Zacks Rank #3 (Hold).

Why the Reiteration?

ONEOK Partners has a collection of geographically-diversified assets and its gathering and processing businesses operate in five different basins. The partnership’s future organic growth is expected to come from the Williston Basin, Cana-Woodford Shale, Woodford Shale, Granite Wash areas where it owns and operates the vast majority of its gathering assets. In addition, ONEOK Partners continues to focus on adding new supplies, which will subsequently enable it to serve a large customer base.

In Apr 2013, ONEOK Partners completed three of its important projects - Bakken natural gas liquids (NGL) pipeline, Stateline II plant and an ethane header pipeline. To reap benefits of the vast resources of the Bakken Shale, the operators are making strategic investments in the infrastructure projects to cater to the rising demand from natural gas operators. We believe that continuous investment in the Bakken Shale and its adjacent locations will play a crucial role in meeting the ever increasing demand for fossil fuel. Additionally, these initiatives will likely improve ONEOK Partners’ forthcoming performance.

On the flip side, ONEOK Partners earns a significant part of its revenues as payment for gathering and processing, and transportation and storage services. A decline in commodity prices, particularly natural gas, crude oil and NGL, may result in lesser payments for these services, thus significantly impacting its cash flow.

Other Stocks to Consider

The other stocks in the industry that are presently performing well include Delek Logistics Partners LP (DKL - Snapshot Report) and Summit Midstream Partners, LP (SMLP - Snapshot Report) with a Zacks Rank #1 (Strong Buy), and Enbridge Energy Management LLC (EEQ - Snapshot Report) with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%