ONEOK Inc. delivered double-digit earnings growth during 2025, capitalizing on favorable market conditions and operational performance. However, the midstream energy infrastructure company projects a significant slowdown in earnings growth for 2026, citing headwinds from elevated corporate costs and anticipated declines in commodity prices that are expected to pressure margins across its portfolio.
The slowdown is expected to be temporary, with management forecasting a reacceleration in earnings growth beginning in 2028. This anticipated recovery is underpinned by the completion of major capital projects, including the Texas City Logistics export terminal and the Eiger Express Pipeline, which are expected to generate substantial revenue contributions once operational. These expansion initiatives represent key drivers in the company's medium-term growth trajectory.
ONEOK maintains its dividend yield at 4.9% and has committed to annual dividend increases in the 3-4% range, providing shareholders with consistent income distribution despite the near-term earnings deceleration. The dividend policy reflects management's confidence in the company's long-term cash generation capabilities and the value creation potential of its infrastructure expansion program.