Wells Fargo increased its price target for ONEOK Inc to $106 from $98, citing higher near-term EBITDA projections and expected synergies from the $4.4 billion acquisition of Brazos Midstream, which remains on track for completion in the second half of 2026.
The firm raised its 2027 EBITDA estimate for ONEOK to $9.2 billion, up from prior forecasts, while noting the company’s trailing twelve-month EBITDA stood at $7.67 billion. Management’s leverage target for 2027 was confirmed at 3.25 times or lower, and Wells Fargo estimated $80 million in 2027 synergies, with potential for further gains as integration progresses.
The Brazos acquisition will add approximately 30,000 barrels per day of natural gas liquids (NGL) volume, contributing to ONEOK’s projected NGL output of 150,000 barrels per day. Wells Fargo also highlighted an expected increase in the gallons-per-thousand-cubic-feet (GPK) ratio to 5.3 by 2029, with incremental gas volumes potentially reaching a GPK proportion of 6.
Apollo Global Management’s $9 billion non-voting minority equity investment in ONEOK was noted as a strategic capital infusion, though Wells Fargo’s 2027 free cash flow per share projection remains 6% dilutive after accounting for the stake. The firm also assessed a potential 2% accretive impact on return-on-capital distributions.
ONEOK reported second-quarter 2026 earnings per share of $1.53, exceeding the Wall Street consensus of $1.49, though revenue of $8.63 billion fell short of the $8.96 billion forecast. For the full year, the company raised its adjusted EBITDA midpoint to $8.35 billion, marking the second upward revision in 2026, and lifted its diluted EPS midpoint to $5.68.
Other analysts have also adjusted their assessments. Freedom Broker upgraded ONEOK to Buy with a $105 target, while UBS maintained a Neutral rating and $108 target. Scotiabank raised its target to $95. InvestingPro assigned ONEOK a “GOOD” financial health score and flagged the stock as undervalued based on its fair-value assessment.
