ONEOK (OKE) is back in focus after raising its 2026 earnings outlook for the second time this year, following strong quarterly results and volume growth across its integrated midstream system.

ONEOK's share price has climbed to $91.52 alongside a 23.11% year to date share price return and a 30.30% total shareholder return over the past year. This points to building momentum as investors respond to the upgraded 2026 guidance and recent $1b at the market equity program.

If you are looking for other ways to position around the energy and infrastructure build out, it can be useful to see what is moving in related grid and pipeline plays through the 36 power grid technology and infrastructure stocks

Bulls see ONEOK's raised 2026 outlook, tax benefits, and volume growth as support for a higher multiple. Bears point to the recent rally and fresh equity issuance. Which side does the current valuation lean toward?

Most Popular Narrative: 4.1% Undervalued

ONEOK's most followed narrative places fair value at about $95.48 compared with the last close at $91.52. That gap hinges on a specific earnings and cash flow roadmap that investors are watching closely.

Recent tax legislation changes lowering projected cash taxes until 2028, combined with growing free cash flow and reduced leverage, improve ONEOK's capacity for disciplined capital allocation, accelerating shareholder returns and enabling reinvestment to capitalize on global energy trends. This supports long-term net income and cash flow growth.

Read the complete narrative. Read the complete narrative.

Want to understand why this narrative sees more value in ONEOK than the current share price implies? It hinges on a specific mix of revenue growth expectations, margin assumptions, and the earnings multiple investors might be willing to pay if those targets are met. The full story connects those moving parts into a single fair value line.

Result: Fair Value of $95.48 (UNDERVALUED)

However, ONEOK's narrative can shift quickly if tighter commodity spreads persist or if higher leverage from recent acquisitions begins to restrict financial flexibility.

Another View on ONEOK's Valuation

The first ONEOK narrative leans on future earnings and a target P/E of 17.4x. The current P/E is about 15.8x, which is higher than the US Oil and Gas industry at 12.5x, yet below the peer average of 18.1x and an estimated fair ratio of 22.1x. That mix of premiums and discounts raises the question of whether the market is already paying enough for this story or still leaving some room on the table.

Next Steps

Unsure which way you lean after looking at ONEOK's valuation and recent moves? Take a closer look at the underlying data and weigh both sides quickly. The easiest next step is to review the 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond ONEOK?

If ONEOK has sharpened your focus, do not stop there. Broader idea flow can help you compare opportunities more clearly and avoid overcommitting to a single story.

• Scan for potential value opportunities by checking out 49 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect them yet.
• Strengthen your income watchlist by reviewing 8 dividend fortresses that focus on companies with higher yields and a track record of returning cash to shareholders.
• Reduce surprise risks in your portfolio by looking through 85 resilient stocks with low risk scores built around resilient balance sheets and lower volatility profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.