ONEOK: A Smart Deal Unlocks More Growth (Rating Upgrade)

ONEOK, Inc. is upgraded to buy following the Brazos Midstream Permian Basin acquisition and strong Q3 results. OKE's diversified midstream portfolio and strategic acquisition are expected to drive EBITDA growth, with 2027 EBITDA projected at $9.2 billion. The $9B minority equity investment structure enables asset acquisition and debt reduction but limits shareholder access to 100% of cash flows.