This Overlooked Midstream Stock Is Now a Permian Powerhouse

Oneok Inc. (OKE) stands out as the overlooked midstream stock that has rapidly evolved into a Permian powerhouse, thanks to transformative acquisitions totaling over $25 billion in recent years. Previously known primarily for its operations in the Bakken Shale, the company has aggressively pivoted toward the Permian Basin, building a fully integrated network of pipelines, processing plants, and export facilities that now rivals its legacy assets. This strategic shift aligns perfectly with surging Permian natural gas and NGL production, making Oneok a compelling case study for blogs covering Permian Basin energy dynamics, especially amid global uncertainties like the hurdles in Trump's Venezuela oil revival plan.​

Strategic Acquisitions Driving Growth

Oneok's Permian entry accelerated through high-profile deals, including the $6.8 billion acquisition of Magellan Midstream Partners in 2023 and further expansions into NGL infrastructure. By Q3 2025, Permian volumes reached nearly 570,000 barrels per day (bpd), eclipsing Bakken output for the first time and signaling a new growth engine. Projects like the Eiger Express pipeline expansion, set for completion through 2027, will connect Permian gas directly to Gulf Coast export terminals, capitalizing on rising LNG demand. These moves eliminate bottlenecks, positioning Oneok to handle the basin's maturing gas surge without relying on third-party transport.​

Financial Strength and Investor Appeal

Trading at a forward 0.5x 2026 EBITDA multiple, Oneok offers undervalued exposure to Permian upside with a robust 5.8% dividend yield and a commitment to 3-4% annual payout growth. Analysts from Bank of America and Morningstar highlight its top-tier midstream status, praising the diversified footprint across Bakken, Permian, and Gulf Coast refining hubs. Recent earnings show adjusted EBITDA climbing 15% year-over-year, supported by fee-based contracts that shield against commodity volatility—key in a basin facing cautious 2026 budgets amid maturing plays. For Permian-focused investors, this stability contrasts sharply with riskier upstream bets or foreign ventures like Venezuela.​

Permian Basin Context and Competitive Edge

The Permian Basin, powering over 40% of U.S. oil and a growing share of gas, demands robust midstream capacity as production shifts toward wetter gases rich in NGLs. Oneok's integrated model addresses this, outpacing peers like Energy Transfer, which is also expanding but lacks Oneok's recent Permian scale. In Q4 2025 updates, Permian operators project modest drilling growth to 13.5 million bpd total U.S. output, underscoring the need for reliable takeaway capacity that Oneok now provides. Blogs can leverage this narrative to emphasize domestic resilience: while Venezuela's drifting tankers expose sanction and logistics chaos, Oneok exemplifies the Permian's plug-and-play infrastructure advantage.