TULSA, Okla. - ONEOK , Inc. (NYSE: NYSE:OKE), a significant player in the midstream energy sector, has announced the continuation of its quarterly dividend at 99 cents per share. This declaration, consistent with the previous quarter, leads to an annualized dividend rate of $3.96 per share. Shareholders of record by the close of business on November 1, 2024, will be eligible for the dividend, which is scheduled for payment on November 14, 2024.
ONEOK's operations encompass a range of services vital to the energy sector, including gathering, processing, fractionation, transportation, and storage of natural gas and natural gas liquids (NGLs). The company manages a vast pipeline network extending over 50,000 miles, playing a crucial role in transporting energy products that meet both domestic and international demand.
As part of its strategic positioning, ONEOK is also the managing member and holds a 43% stake in EnLink Midstream, LLC (NYSE: NYSE:ENLC), which offers integrated midstream services for natural gas, crude oil, and NGLs. Headquartered in Tulsa, Oklahoma, ONEOK is recognized as one of North America's most diversified energy infrastructure corporations and is included in the S&P 500 index.
While the press release includes forward-looking statements regarding ONEOK's anticipated financial performance and market conditions, investors are cautioned not to place undue reliance on these projections. The company acknowledges that various known and unknown risks and uncertainties could significantly impact its actual results.
The information provided is based on a press release statement from ONEOK, Inc. It is essential for investors to consider the detailed risk factors and other information provided in the company's filings with the Securities and Exchange Commission, which can influence ONEOK's operations and financial outcomes.
In other recent news, significant changes have occurred at EnLink Midstream, following a major transaction with ONEOK, Inc. This $3.285 billion deal has led to ONEOK acquiring roughly 43% of EnLink's common units and the entirety of its management company. This has resulted in the appointment of three new directors from ONEOK to EnLink's Board, with Pierce H. Norton II assuming the role of Board Chairman.
Furthermore, EnLink Midstream's Q3 EBITDA is projected to reach $325 million, slightly below the average estimate of $330 million, according to Citi. The company has also entered into a Credit Agreement Amendment and finalized an agreement for a public offering of $500 million in senior notes.
However, following the announcement of ONEOK's acquisition, both Morgan Stanley and Wells Fargo have downgraded EnLink Midstream's stock from Overweight to Equalweight. These recent developments indicate a significant shift in EnLink Midstream's financial and leadership structure.
InvestingPro Insights
To complement ONEOK's dividend announcement and its stake in EnLink Midstream (ENLC), let's take a closer look at ENLC's financial metrics and performance. According to InvestingPro data, EnLink Midstream boasts a market capitalization of $6.71 billion, positioning it as a significant player in the midstream energy sector.
EnLink Midstream has demonstrated strong financial performance, with a revenue of $6.83 billion over the last twelve months as of Q2 2024. The company's gross profit margin stands at an impressive 30.08%, indicating efficient operations and cost management. This aligns well with ONEOK's strategic investment in ENLC, as it suggests a potentially lucrative partnership.
InvestingPro Tips highlight that ENLC has maintained dividend payments for 11 consecutive years and has raised its dividend for 3 consecutive years. This consistent dividend policy complements ONEOK's own dividend strategy, potentially enhancing overall shareholder value for both companies.
Moreover, ENLC is trading near its 52-week high, with a strong return over the last five years. This performance could be indicative of the broader strength in the midstream energy sector that ONEOK operates in.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for EnLink Midstream, providing deeper insights into the company's financial health and market position.
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