Hern Stands Firm on ONEOK While Salazar Exits Stage Right

The recent stock trading activities of U.S. Representatives Maria Elvira Salazar and Kevin Hern reveal contrasting viewpoints on the trajectory of Oneok Inc (OKE:US). Salazar, a Republican from Florida, sold her shares in the natural gas service company, while Hern, a Republican from Oklahoma, increased his stake.

Oneok's shares dipped from $59.45 to $57.95 on May 15th, after the company announced plans for an $18.8 billion acquisition of Magellan Midstream Partners LP (MMP:US). This news was met with varied reactions by the Representatives.

On May 16, 2023, Salazar, who serves on both the Foreign Affairs and Small Business committees, divested her OKE shares. The value of the transaction was in the range of $15,000 – $50,000.

In contrast, Hern added to his existing OKE holdings on May 15, 2023, with a purchase of shares valued between $1,000 – $15,000. This move was consistent with his previous buying activities in February 2023, and in November and August of the previous year.

Fast-forward to June 14, 2023, and Oneok's shares have bounced back, trading at over $60. This recovery followed an announcement by Energy Income Partners LLC, a significant shareholder in Magellan Midstream Partners, opposing Oneok's proposed merger. Energy Income, which holds approximately 3% of Magellan's shares, argued that the tax implications for its funds and investors would exceed the premium offered by Oneok. The asset manager also expressed a preference for Magellan to retain its independence, given its superior returns on invested capital.

Oneok Inc (OKE:US), with a market capitalization of $27.03 billion, is a leading provider of midstream services in the United States. Its operations encompass the gathering, processing, storage, and transportation of natural gas. The company also boasts a broad portfolio of energy infrastructure assets. From a financial perspective, Oneok has a P/E ratio of 11.4, a forward P/E of 11.00, and offers a dividend of 3.82.