About $5 billion in planned growth projects over the next two years signaled to investors that if ONEOK Partners wasn't on the radar already, it should be.
Strong earnings reports this year show that ONEOK Partners continues to grow as a major player in the midstream sector.
The Tulsa-based master limited partnership tied with another midstream partnership, Magellan Midstream Partners LP, for ninth in this year's guide.
"We see a growing demand for midstream assets because of the increased U.S. production," said Phillip Bell, vice president of Financial Planning Resources Inc., who ranked ONEOK Partners first on his list. "You have an asset that's in demand and an asset that has a great potential."
ONEOK Partners is in the middle of a five-year capital expenditures plan, with significant growth plans in that time. Recently completed projects include a 600-mile, 60,000 barrels per day natural gas liquids pipeline in the Bakken region of North Dakota, a 100 million cubic feet per day processing plant in western North Dakota and new pipeline connections in Texas.
Many other projects are either under way or planned for the near future.
"We think that's real attractive and will help their growth in the future," said Brett Kramer, managing partner at Pinnacle Investment Advisors.
In recent quarters, ethane rejection has negatively affected earnings for ONEOK Partners and other midstream groups.
The partnership's general partner, ONEOK Inc., announced it was spinning off its natural gas distribution business into a new publicly traded company by early next year, making ONEOK Inc. a pure-play general partner to ONEOK Partners. The deal isn't expected to affect ONEOK Partners.
ONEOK Partners LP
Address: 100 W. 5th St., Tulsa, OK, 74103
Phone: 918-588-7000
Web: www.oneokpartners.com
Chairman/CEO: John W. Gibson
President: Terry K. Spencer
Symbol (Exchange): OKS (NYSE)
Operation: The partnership focuses on natural gas and natural gas liquids gathering, processing and transportation.
Jerry Wofford 918-581-8310
jerry.wofford@tulsaworld.com
Original Print Headline: ONEOK Partners' projects signal its continued growth
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