ONEOK Shares Climb 0.65% on $200M Volume as Eiger Express Pipeline Drives Value Recovery Amid 464th Market Activity Ranking

On August 29, 2025, ONEOK (OKE) rose 0.65% with a trading volume of $0.20 billion, ranking 464th in market activity. The stock’s recent performance follows a strategic partnership to develop the Eiger Express Pipeline, a project aimed at enhancing natural gas transportation from the Permian Basin to Gulf Coast markets. The initiative aligns with ONEOK’s focus on high-demand energy corridors, leveraging long-term transportation agreements to reinforce its growth trajectory.

Analysts highlight ONEOK’s potential for long-term value creation, noting its three-year gain of nearly 50% and five-year return of over 200%. The Eiger Express project is seen as a critical step to restore momentum after a challenging 12-month period marked by a 12% decline in share price. Global demand for U.S. natural gas and NGLs, driven by coal-to-gas transitions, is expected to sustain volume throughput and utilization rates across its infrastructure, underpinning future revenue and EBITDA growth.

Valuation metrics suggest ONEOK is undervalued. A community-driven analysis estimates its fair value at $97.83, a 22% premium to current levels, based on projected earnings, margins, and revenue growth. However, risks such as commodity price volatility and integration challenges from recent acquisitions could temper upside potential. A discounted cash flow model also indicates a significant gap between the stock’s current price and its intrinsic value, though it acknowledges the need to account for industry-specific risks.

Recent analyst activity underscores confidence in ONEOK’s dividend sustainability and expansion plans. With a 5.5% yield and a projected payout ratio of 69.24% next year, the company is positioned to maintain or increase its dividend. Institutional ownership at 69.13% reflects strong institutional trust, while a moderate short interest ratio of 3.2 days to cover suggests limited bearish pressure. The Eiger Express Pipeline, expected to reach operational status by mid-2028, remains a key catalyst for long-term value realization.

Backtesting results indicate a fair value of $97.83 for ONEOK, suggesting the stock is currently undervalued by approximately 22%. This assessment is based on a combination of projected cash flows, growth assumptions, and market conditions. However, the analysis emphasizes the importance of monitoring commodity price fluctuations and integration risks, which could impact future performance.