ONEOK Inc. (OKE) for Growth + Income - Jan 27

[dan_s]

ONEOK Increases Quarterly Dividend and Announces Share Repurchase Program

Raises Quarterly Dividend 3.7%
Authorizes $2 Billion Share Repurchase Program
Combination of Dividends and Share Repurchases to Target 75% to 85% of Cash Flow From Operations After Capital Expenditures

TULSA, Okla., Jan. 17, 2024 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased its quarterly dividend to 99 cents per share, an increase of 3.7%. This increase results in an annualized dividend of $3.96 per share.

The dividend is payable Feb. 14, 2024, to shareholders of record at the close of business Jan. 30, 2024.

For future dividend increases, ONEOK expects to target an annual dividend growth rate ranging between 3% to 4%.

ONEOK's board has also authorized a $2 billion share repurchase program and targets it to be largely utilized over the next four years. This program will complement the dividend growth rate as a key pillar of shareholder return in the future.

The combination of common dividends and share repurchases is expected to trend towards a target of approximately 75% to 85% of forecasted cash flow from operations after capital expenditures over the next four years, allowing ONEOK to continue pursuing additional high-return growth opportunities, debt reduction or share repurchases.

ONEOK has also opportunistically repurchased approximately $300 million of face value of its outstanding notes at a discount to par value during the fourth quarter of 2023 and finished the year with approximately $340 million of cash on hand. ONEOK remains committed to its previously stated target debt-to-EBITDA ratio of approximately 3.5 times.

"ONEOK is poised to generate substantial cash flow from operations in the coming years," said Pierce H. Norton II, ONEOK president and chief executive officer. "Our commitment to capital-growth opportunities continues as our highest priority in our capital allocation strategy. This priority, combined with dividend growth and share repurchases, reinforces our commitment to maximizing total shareholder return and our belief that ONEOK represents a highly compelling investment opportunity," added Norton.

At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.

ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.

For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.

[dan_s]

TipRanks: "In the last 3 months, 12 ranked analysts set 12-month price targets for OKE. The average price target among the analysts is $77.36. The most recent price target update is from Scotiabank on 1/18/2024, which raised their price target $8 to $86.00."

My current valuation increases to $81/share, driven primarily by the Company's significant ($2 Billion) stock repurchase program.