Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives looking for wonderful businesses — the kind that earn high returns on capital without leverage, raise prices without losing customers, and grow without swallowing their own weight in new capital every year. ONEOK is not one of them. It is a competent, useful, average business: a sprawling toll collector on America's natural gas liquids highway, assembled through $28 billion of acquisitions in three years, carrying $33 billion of debt, and earning a return on total capital in the high single digits. The dividend is generous, the assets are real and hard to replicate, and management is honest and reasonably able. But the balance sheet does the heavy lifting here, not the franchise. At roughly 15 times guided earnings and 10.4 times EV/EBITDA, the price is fair for what it is — and what it is does not deserve our capital when wonderful businesses exist.
Recent filings analysed: 10-Q (2026-08-04), 8-K (2026-08-03), 8-K (2026-05-21), 10-Q (2026-04-29).
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