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Zacks' 7 Best Strong Buy Stocks (New Research Report)
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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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ONEOK (OKE) Reveals Plans to Expand Pipeline, To Connect Denver
ONEOK, Inc. (OKE - Free Report) has announced a project to expand the capacity of its pipeline from Kansas to Denver. The plan includes a 230-mile pipeline from Scott City, KS, to Denver International Airport (“DIA”). This $480-million project is set to be completed by mid-2026 and will likely increase system capacity by 35,000 barrels per day.
This expansion of the pipeline will allow ONEOK to meet the rising demand for refined products and renewable fuels in Denver. The company will also upgrade pump stations along the existing system and improve connectivity with DIA, thus supporting the airport's expansion.
Investment in the Production Pipeline Industry
The oil and gas production pipeline industry is very capital-intensive, requiring large and continuous investments to build and maintain pipelines. To execute such pipeline projects the operators, have to incur high costs for materials, construction, and adoption of the latest technology to ensure safe and efficient operations.
The demand for natural gas, a cleaner burning fuel, is likely to continue to grow in the United States, driven by growth of natural gas-fired power plants and the rising exports of LNG. Apart from ONEOK, other operators have also been investing in the United States gas and oil utilities sector.
Enbridge Inc. (ENB - Free Report) is making strategic investments in the gas utilities sector to enhance its financial performance. Total capital expenditures for the first quarter of 2024 were $512 million.
Kinder Morgan, Inc. (KMI - Free Report) is expanding its natural gas pipeline network. The company has recently acquired NextEra Energy Partners’ natural gas pipelines in South Texas for $1.82 billion.
The Williams Companies, Inc. (WMB - Free Report) has consistently expanded its capacity, with a remarkable 50% increase over the past eight years. The company's deepwater portfolio includes a 3,500-mile-long natural gas and oil gathering and transmission pipeline.
Price Performance
Shares of ONEOK have gained 5.1% in the past three months compared with the industry’s 3.9% growth.
Image Source: Zacks Investment Research
Zacks Rank
OKE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.