Oneok’s $18.8B Merger Approved as Shares Fall 1.01% and Trading Volume Ranks 409th Amid Institutional Buy-In

On September 3, 2025, Oneok (OKE) closed at $73.87, down 1.01% from the previous day’s close. The stock traded with a volume of 2.8 million shares, a 31.08% decline compared to the prior day’s activity, ranking it 409th in trading volume across the market. The company reported second-quarter 2025 operating earnings per share (EPS) of $1.34, matching estimates, while revenues rose to $7.89 billion, a 61.2% year-over-year increase despite missing the $8.57 billion forecast. Adjusted EBITDA reached $1.98 billion, up 22%, and operating income grew to $1.43 billion, a 16.4% rise. However, interest expenses surged 47% to $438 million, and the company lowered its 2025 net income guidance to $3.17–$3.65 billion from $3.21–$3.69 billion. Shareholders approved a $18.8 billion merger with Magellan Midstream Partners, a move backed by proxy advisory firms ISS and Glass Lewis, signaling regulatory and strategic alignment. Institutional ownership remains strong, with entities like Charles Schwab and LPL Financial increasing stakes in the stock.

The merger, expected to consolidate energy infrastructure, has drawn institutional interest, with over $568 million in holdings reported by Schwab and $1.8 million in insider bets. Despite the transaction’s approval, concerns persist over debt levels, as long-term debt climbed to $29.63 billion as of June 30, 2025. The company’s cash reserves fell to $97 million from $733 million year-over-year, reflecting capital deployment in operations and debt management. Analysts note a mixed valuation profile, with a Zacks Rank #3 (Hold) and a VGM Score of C, indicating balanced growth and value potential but weak momentum. The stock’s trailing P/E of 14.55 and forward P/E of 12.30 suggest moderate earnings expectations, though debt-to-equity of 148.22% raises leverage concerns.

Backtesting results show a 1.01% decline in OKE’s share price as of September 3, 2025, with a 31.08% drop in trading volume compared to the prior day. The stock closed at $73.87, reflecting a 0.16% after-hours rebound. Year-to-date, the stock has returned 23.74%, outperforming the S&P 500’s 9.63%. However, the 52-week range of $72.18–$118.07 highlights volatility, with the current price near the lower end. Institutional holdings remain robust, with entities like Aventail Capital Group and Crawford Investment Counsel increasing positions in recent weeks. The merger’s approval by shareholders and proxy advisors underscores strategic momentum, though debt management and operational efficiency will remain critical for sustained performance.