ONEOK, Inc. (OKE): Business Model Canvas [Dec-2025 Updated]

You're digging into how a major midstream operator like ONEOK, Inc. actually builds durable returns, especially after integrating assets like Magellan. Honestly, it boils down to owning the essential infrastructure and locking in predictable revenue. This company runs a $\sim \mathbf{60,000}$-mile network, targeting an Adjusted EBITDA midpoint of $\mathbf{\$8.225 \text{ billion}}$ for 2025, powered by a $\sim \mathbf{90\%}$ fee-based model that keeps cash flow steady. They are definitely investing heavily, guiding CapEx between $\mathbf{\$2.8 \text{ billion}}$ and $\mathbf{\$3.2 \text{ billion}}$ this year to fuel that stability and growth. Check out the full Business Model Canvas below to see the precise mechanics behind their value creation.

ONEOK, Inc. (OKE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that underpin ONEOK, Inc.'s (OKE) infrastructure strategy as of late 2025. These aren't just casual agreements; they are multi-billion dollar commitments that lock in capacity and growth across key basins. Honestly, the partnerships are where the big, long-term fee-based revenue gets secured.

Joint ventures for major capital projects, like the Texas City LPG export terminal.

The most significant recent collaboration is with MPLX LP to build out the downstream NGL value chain. This involves two main joint ventures announced in early 2025:

• - The export terminal, Texas City Logistics LLC (TCX), is a 50/50 JV.
• - ONEOK, Inc. and MPLX each committed $700 million for a total terminal investment of $1.4 billion.
• - TCX will have a 400,000-barrel per day (bpd) LPG loading capacity, primarily for low ethane propane (LEP) and normal butane (NC4).
• - Both parties have contractually reserved 200,000 bpd of capacity each.
• - The pipeline joint venture, MBTC Pipeline LLC, connects ONEOK's Mont Belvieu storage to the terminal.
• - For the pipeline, ONEOK is the 80% owner and operator, contributing approximately $280 million of the total $350 million cost, while MPLX holds the remaining 20% interest, contributing $70 million.
• - ONEOK's total expected capital investment across both the terminal and pipeline JVs is approximately $1.0 billion.

These projects are a crucial part of ONEOK, Inc.'s capital plan; the total 2025 capital expenditures guidance range was set between $2.8 billion to $3.2 billion, which explicitly includes these Texas City export terminal joint ventures.

Strategic equity partners in key pipelines, including 60% ownership in BridgeTex.

ONEOK, Inc. has been consolidating its position in key crude oil infrastructure. The BridgeTex Pipeline is a prime example of this strategy in action during 2025.

The deals for BridgeTex implied a total valuation for the asset of $900 million. You see the impact of these unconsolidated affiliates on the books; for instance, Q1 2025 Adjusted EBITDA reflected a $13 million increase from unconsolidated affiliates due partly to higher BridgeTex earnings.

Long-term contracts with major natural gas and crude oil producers (E&P companies).

This is the bedrock of ONEOK, Inc.'s stability. The business is structured to insulate itself from the day-to-day spot price swings that E&P companies face.

• - Approximately 90% of ONEOK, Inc.'s consolidated earnings were expected to be fee-based in 2025.
• - Earnings are tied to volume commitments under these agreements, not spot prices.
• - The capacity under the new Texas City Logistics JV is fully subscribed under long-term contracts.

This fee-based structure is what allows for the consistent dividend growth, which saw the quarterly dividend increased to $1.03 per share (or $4.12 per share annualized) in July 2025.

Collaboration with MPLX on certain joint venture assets.

The MPLX collaboration is comprehensive, covering both the export terminal and the connecting pipeline, effectively completing a vertical integration path for NGLs to international markets for both partners. ONEOK, Inc.'s commitment to these JVs is substantial, with its expected capital outlay being around $1.0 billion for the combined projects. MPLX will construct and operate the terminal, which is scheduled for an in-service date in early 2028.

Finance: draft 13-week cash view by Friday.

ONEOK, Inc. (OKE) - Canvas Business Model: Key Activities

You're looking at the core actions ONEOK, Inc. takes to keep its integrated energy infrastructure running and growing as of late 2025. These activities are where the company puts its capital and people to work every day.

Operating and maintaining the ~60,000-mile integrated pipeline network is central to ONEOK, Inc.'s existence. This massive system moves natural gas, natural gas liquids (NGLs), refined products, and crude oil across North America. Furthermore, the company is focused on optimizing this network, evidenced by the $1.2 billion cash consideration received from the sale of three wholly owned interstate natural gas pipeline systems, which closed on December 31, 2024, to enhance financial flexibility.

A key financial activity tied to recent inorganic growth is realizing value from acquisitions. ONEOK, Inc. affirmed its expectation to recognize approximately $250 million of synergy-related adjusted EBITDA in 2025, stemming from deals like the EnLink Midstream acquisition finalized on January 31, 2025.

The physical separation and movement of hydrocarbons-natural gas gathering, processing, and fractionation-are critical operational activities. ONEOK, Inc.'s Natural Gas Gathering and Processing segment owns 22,500 miles of natural gas gathering pipelines. The processing capacity is spread across key basins:

The NGL separation process, or fractionation, saw a significant boost with the completion of the MB-6 fractionator in Mont Belvieu, Texas, adding 125,000 bpd of capacity.

Executing major organic growth projects is another core activity, often focused on replacing or expanding capacity in strategic areas. The rebuild of the damaged NGL fractionator near Medford, Oklahoma, is a prime example, estimated to cost $385 million. The first phase of this rebuild is expected to be completed in the fourth quarter of 2025. This project, along with others, supports volume growth, as reflected in the NGL segment, which saw throughput volumes increase by 18% in the first nine months of 2025 compared to the prior year.

Other key organic growth activities in the 2025 capital plan include:

• Relocating a 150 MMcf/d natural gas processing plant to the Permian Basin, expected in service Q1 2026.
• The Denver-area refined products expansion.
• Announcing the Bighorn natural gas processing plant, a 300 MMcf/d facility in the Permian Basin, expected mid-2027.

These activities are supported by total 2025 capital expenditures expected to range between $2.8 billion to $3.2 billion.

Finance: draft 13-week cash view by Friday.

ONEOK, Inc. (OKE) - Canvas Business Model: Key Resources

ONEOK, Inc. maintains a strategically located, ~60,000-mile pipeline network. This system transports natural gas, Natural Gas Liquids (NGLs), refined products, and crude oil, supporting operations across key basins including the Permian, Rocky Mountain, and Mid-Continent regions.

The company's asset base includes significant processing and storage capabilities. Following the completion of the MB-6 NGL fractionator, ONEOK, Inc.'s total fractionation capacity now exceeds 1 million barrels per day (bpd). Furthermore, capacity on the West Texas NGL pipeline system increased to 515,000 bpd, with planned pump stations expected to boost this to 740,000 bpd by mid-2025.

The integration of assets, significantly enhanced by the September 25, 2023, Magellan Acquisition, valued at $14.1 billion, provides a diversified platform across the liquids value chain. This combined entity is positioned to realize annual transaction synergies estimated to exceed $400 million within two to four years. The company also completed the EnLink Midstream acquisition on January 31, 2025, for a fair value of $4.0 billion in stock.

The Natural Gas Pipelines segment alone owns 5,200 miles of state-regulated intrastate transmission pipelines with a peak transportation capacity of 4.3 Bcf/d. Furthermore, ONEOK, Inc. is strategically positioned to benefit from industrial demand growth, with approximately 30 potential power plant expansion projects (including data centers) across its footprint representing over 4 Bcf/d of potential demand.

• Natural Gas Processed Volumes (2Q 2025 vs prior year): 6% increase.
• NGL Volumes (2Q 2025 vs prior year): 18% increase.
• Refined Products Volumes Shipped (2Q 2025 vs prior year): 7% increase.

The company's assets are highly contracted, with more than 95% of transportation capacity contracted across its Oklahoma and Texas intrastate pipeline systems as of its 2025 guidance.

ONEOK, Inc. (OKE) - Canvas Business Model: Value Propositions

You're looking at the core reasons why ONEOK, Inc. is positioned the way it is in the midstream sector as of late 2025. The value proposition centers on stability derived from long-term contracts and the sheer scale of their integrated network.

The foundation of ONEOK, Inc.'s value proposition is its highly resilient, fee-based business model, which translates directly into stable cash flow. For 2025, the company guides for approximately 90% of its earnings to be fee-based across its Natural Gas Liquids, Refined Products and Crude, and Natural Gas Gathering and Processing segments. To be fair, the Natural Gas Pipelines segment is even more secure, with more than 95% of transportation capacity contracted across its Oklahoma and Texas intrastate systems. Honestly, over 90% of the company's 2025 revenues are expected to be derived from these fees.

ONEOK, Inc. offers a full-suite, integrated midstream service offering. This means they handle the entire chain for multiple commodities. Their operations cover gathering, processing, fractionation, transportation, storage, and marine export services for Natural Gas Liquids (NGLs), and similar services for natural gas, crude oil, and refined products. This integration drives synergies, especially following recent acquisitions like EnLink Midstream, which closed in January 2025.

The company provides critical access to key domestic and international export markets, which is a major growth driver. For instance, their Texas intrastate pipeline and storage assets give shippers access to the Houston Ship Channel and exports to Mexico via the Roadrunner system. Furthermore, ONEOK, Inc. is actively building out its export capability, having announced joint ventures in February 2025 to construct a new large-scale 400,000 barrel-per-day liquefied petroleum gas (LPG) export terminal in Texas City. This focus aligns with persistent global demand for U.S. energy products.

This service offering is underpinned by significant operational scale and connectivity across major U.S. supply and demand centers. ONEOK, Inc. operates a strategically located, ~60,000-mile pipeline network. This scale allows them to connect key supply areas, such as the Rocky Mountain region, to demand centers and export hubs. The integration is evident in volume growth; for example, Q3 2025 saw a 17% year-over-year increase in Rocky Mountain region NGL raw feed throughput volumes.

Here's a quick look at some key figures supporting this value proposition as of late 2025:

The company's commitment to growth projects, like the Denver-area refined products expansion and the relocation of a processing plant to the Permian Basin, further solidifies this integrated value chain for the future. Finance: draft 13-week cash view by Friday.

ONEOK, Inc. (OKE) - Canvas Business Model: Customer Relationships

You're running a business where long-term stability is everything, and that's exactly how ONEOK, Inc. structures its customer interactions. Their approach heavily relies on locking in revenue through contractual certainty, which is key to their financial profile.

Long-term, take-or-pay and fee-based contracts form the bedrock of their revenue stability. Honestly, this is what keeps the lights on and supports those dividend payments you're tracking. The company's business model is built on this predictability; for instance, their guidance suggests an approximately 90% fee-based business model for 2025. This means a huge chunk of their expected 2025 net income attributable to ONEOK, which is guided between $3.1 billion and $3.6 billion, is already secured by these agreements.

The commitment level on their infrastructure is quite high. You can see this clearly in their pipeline capacity utilization:

For those large, strategic customers-think major refiners, utilities, and large E&P companies-ONEOK, Inc. definitely deploys dedicated account management. This personal touch is necessary when you're dealing with infrastructure spanning an approximately 60,000-mile pipeline network. These relationships manage the flow of products across their integrated systems, which include NGL fractionation capacity of more than 1 million barrels per day.

Service reliability is non-negotiable when you're delivering essential energy products. ONEOK, Inc. reinforces transport reliability through expansions, which helps stabilize service across utility regions. For example, capacity on the West Texas NGL pipeline was 515,000 barrels per day as of late 2024, with plans to increase that to 740,000 bpd by mid-2025. They use advanced processing technologies to ensure the energy material meets regulated quality standards, supporting those reliable supply chains. Their Q3 2025 results showed strong operational performance, with NGL raw feed throughput volumes in the Rocky Mountain region up 17% year-over-year. The company reported net income attributable to ONEOK of $939 million for the third quarter of 2025.

You'll want to keep an eye on the synergy realization, too; management affirmed they are on track to realize approximately $250 million of synergies in 2025. Finance: draft 13-week cash view by Friday.

ONEOK, Inc. (OKE) - Canvas Business Model: Channels

Physical pipeline network for transportation and gathering.

ONEOK, Inc. operates an approximately 60,000-mile pipeline network that transports natural gas, Natural Gas Liquids (NGLs), refined products, and crude oil across North America.

The network components include:

• NGL Pipelines: 10,100 miles of gathering pipelines and 4,800 miles of distribution pipelines.
• Natural Gas Pipelines: 1,500 miles of FERC-regulated interstate pipelines and 5,100 miles of state-regulated intrastate transmission pipeline.
• Refined Products Pipelines: The longest refined products pipeline system in the U.S.

Specific pipeline capacities and projects include:

• ONEOK NGL Pipeline, L.L.C. operates approximately 2,440 miles of FERC-regulated NGL pipelines with a peak capacity of 393,000 barrels per day.
• The crude oil and condensate pipeline system has a capacity of 450,000 barrels per day, connecting the Eagle Ford Basin to the Gulf Coast waterborne market.
• The Eiger Express Pipeline joint venture (in which ONEOK has a 25.5% total ownership interest) is approximately 450-mile, 42-inch, designed to transport up to approximately 2.5 billion cubic feet per day (Bcf/d) of natural gas from the Permian Basin to the Katy area near Houston, Texas.

Storage facilities and terminals (e.g., Mont Belvieu, Texas City).

ONEOK, Inc. manages significant storage and terminal assets across its segments.

The company also has approximately 115 million barrels of total storage capacity associated with its Refined Products and Crude segment assets (including joint ventures).

Direct connections to refineries, petrochemical plants, and export facilities.

The channel strategy involves direct connectivity to key downstream markets.

• The Refined Products Pipeline system provides access to nearly 50% of U.S. refining capacity.
• ONEOK NGL distribution pipelines deliver purity NGL products to market hubs including Mont Belvieu, Texas.
• Assets acquired from Easton Energy, which include approximately 450 miles of liquids products pipelines in Gulf Coast market centers, are connected to ONEOK's Mont Belvieu assets, with plans to add connections to Houston-based assets beginning mid-2025 through the end of 2025.
• The company is directly connected to utilities, industrials, petrochemical facilities, refineries and exporters.
• The TCX joint venture LPG export terminal is designed to serve export demand.

ONEOK, Inc. (OKE) - Canvas Business Model: Customer Segments

You're looking at the core of ONEOK, Inc.'s (OKE) business, which is moving energy products for major producers and industrial users across North America. The customer base is deeply tied to the physical assets ONEOK operates, which include a 50,000-mile pipeline network.

The company's fee-based structure is a key feature, with the Refined Products and Crude segment reporting approximately 90% fee-based earnings. Similarly, the Natural Gas Gathering and Processing segment is about 90% fee-based, and the Natural Gas Pipelines segment is approximately 95% fee-based. For the nine months ended September 30, 2025, the Natural Gas Gathering and Processing Segment generated $1,597 million in Adjusted EBITDA.

The exploration and production (E&P) companies are served directly through gathering and processing infrastructure. For instance, ONEOK Field Services supports upstream development in areas like the Cana-Woodford Shale. The 2025 volume guidance pointed to natural gas processed between 5,420 MMcf/d and 6,160 MMcf/d.

Refiners and petrochemical manufacturers are key recipients of Natural Gas Liquids (NGLs) after fractionation. ONEOK's NGL Segment reported $566 million in Adjusted EBITDA for the three months ended September 30, 2025. The company is also advancing projects like the Texas City export terminal joint ventures.

The infrastructure supports a broad set of customers, including LDCs and power generators, via its pipeline systems. The Natural Gas Pipelines segment has more than 95% of transportation capacity contracted across its Oklahoma and Texas intrastate pipeline systems.

Wholesale marketers and international buyers are served through export capabilities and extensive NGL and crude transportation. ONEOK is planning for a more than 10% increase in NGL raw feed throughput volumes in 2025, driven partly by the Gulf Coast/Permian regions.

Here's a look at the scale of operations tied to these customer groups as of late 2025:

The operational footprint supporting these customers includes specific processing capacities:

• Mid-Continent Region Processing Capacity: 3.2 Bcf/d
• Rocky Mountain Region Processing Capacity: 1.9 Bcf/d
• Permian Basin Processing Capacity: 1.7 Bcf/d

The overall financial scale of the business serving these segments is reflected in the affirmed 2025 guidance. The midpoint for forecasted Adjusted EBITDA for 2025 is $8.225 billion, with Q3 2025 Net Income reported at $940 million.

ONEOK, Inc. (OKE) - Canvas Business Model: Cost Structure

You're looking at the major outflows for ONEOK, Inc. (OKE) as of late 2025, driven heavily by maintaining and expanding its massive infrastructure footprint following recent large deals. The cost structure is dominated by capital deployment and the fixed costs associated with operating a nearly ~60,000-mile pipeline network.

Fixed Costs and Asset Base

A substantial portion of ONEOK, Inc.'s costs are fixed, stemming from the physical assets. These include depreciation and amortization across its gathering, processing, and transportation assets. Maintenance capital expenditures (CapEx) are a direct reflection of the ongoing cost to keep these facilities running safely and reliably. For the full year 2025, the guidance for maintenance CapEx was set in the range of $475 million to $525 million. Furthermore, the interstate NGL pipelines are regulated by the Federal Energy Regulatory Commission (FERC), which has jurisdiction over rates, including depreciation and amortization policies.

Capital Expenditures for Growth

ONEOK, Inc. has a significant outlay for growth projects, which are essential for realizing synergies from acquisitions like EnLink Midstream and Medallion Midstream. Total capital expenditures for 2025 were guided to range between $2.8 billion to $3.2 billion. This investment supports key projects like the Medford fractionator rebuild and expansions in the Denver area and the relocation of a natural gas processing plant to the Permian Basin.

Operating Expenses

Operating expenses are a variable but significant cost component, influenced by inflation and the sheer scale of operations post-acquisition. For example, in the third quarter of 2025 compared to the third quarter of 2024, operating costs saw an increase, primarily driven by $16 million from higher employee-related costs associated with operational growth, partially offset by lower outside services. Similarly, in the first quarter of 2025, operating costs were up due to higher employee-related costs and accruals for methane fees.

Interest Expense on Debt

The financing of major acquisitions, specifically the Magellan Midstream Partners deal and the EnLink acquisition, has materially impacted the interest expense. Net income in 2024 was offset partially by higher interest expense due to higher debt balances resulting from the Magellan Acquisition in 2023 and the EnLink acquisition in 2024. While specific 2025 interest expense figures aren't in the guidance tables, the debt load from these transactions is a core cost structure element, though the company has also extinguished senior notes, such as repaying $250 million of 3.2% senior notes in March 2025.

Here's a quick look at the key 2025 cost-related guidance figures:

The cost structure is inherently capital-intensive, which is typical for a large midstream operator with a ~90% fee-based business model.

• High fixed costs tied to pipeline and facility maintenance and depreciation.
• Significant capital deployment for growth projects, guided up to $3.2 billion in 2025.
• Operating expenses reflecting inflationary pressures and operational growth.
• Interest expense servicing the debt from major acquisitions like Magellan and EnLink.

Finance: draft 13-week cash view by Friday.

ONEOK, Inc. (OKE) - Canvas Business Model: Revenue Streams

You're looking at how ONEOK, Inc. (OKE) brings in its money, which is heavily anchored in long-term contracts and asset utilization as of late 2025. The core of the business model is designed for stable cash flow, with over 90% of the company's 2025 revenues expected to be derived from fees.

The primary revenue generation comes from the transportation, processing, and storage of natural gas, NGLs, crude oil, and refined products. ONEOK, Inc. expects its full-year 2025 Adjusted EBITDA midpoint to be $8.225 billion, excluding transaction costs.

The expected Adjusted EBITDA contribution by segment for fiscal year 2025 illustrates the revenue breakdown from these core services:

Fee-based revenue from transportation services is supported by expected volume throughputs for 2025, which include:

• Natural gas liquids raw feed throughput: 1,425 to 1,525 MBbl/d
• Refined products volume shipped: 1,500 to 1,600 MBbl/d
• Crude oil volume shipped: 1,900 to 2,100 MBbl/d
• Natural gas processed: 5,420 to 6,160 MMcf/d

Revenue from natural gas processing and NGL fractionation services is a key driver, with the Natural Gas Gathering and Processing segment guiding for $2,200 million to $2,320 million in Adjusted EBITDA. Furthermore, ONEOK, Inc. expects approximately $250 million of incremental commercial and cost synergies related to acquisitions to contribute to 2025 Adjusted EBITDA.

Storage and terminaling fees are embedded within the segment results, reflecting customer utilization of asset capacity across the ~60,000-mile pipeline network. For the Refined Products and Crude segment, while primarily fee-based, the optimization and marketing earnings component shows variability; for example, in the second quarter of 2025, this segment faced reduced optimization and marketing profits from tighter commodity price gaps. The segment's Adjusted EBITDA for Q2 2025 was $557 million, up 19% from Q2 2024.