Benson Adds $5.4 Million Stake in Energy Giant ONEOK

Benson Investment Management initiated a new $5.4 million position in ONEOK (NYSE:OKE) during the third quarter, acquiring 73,875 shares, representing 1.8% of its reportable assets. This strategic investment provides diversification and a 6% dividend yield to Benson's portfolio, which is largely concentrated in growth-oriented technology stocks, despite ONEOK's shares declining 29% over the past year. The move capitalizes on ONEOK's strong underlying fundamentals, including a 9% rise in Q2 2025 net income and a 22% increase in adjusted EBITDA, with full-year adjusted EBITDA guidance of $8 billion to $8.45 billion, positioning it as a stable, fee-based cash generator.

Analysis

Benson Investment Management initiated a new position in ONEOK (OKE) during the third quarter, acquiring 73,875 shares for an estimated $5.4 million. This new stake represents 1.8% of Benson's $292.7 million in reportable U.S. equity holdings, positioning OKE outside their top five holdings. This strategic allocation provides Benson with exposure to energy infrastructure and a significant dividend yield, diversifying a portfolio largely concentrated in growth-oriented technology stocks like Alphabet, Microsoft, and Nvidia.

Despite OKE's shares declining 29% over the past year, significantly underperforming the S&P 500's 12% gain, the investment appears to be based on strong underlying fundamentals. The company reported a 9% year-over-year increase in Q2 2025 net income to $853 million and a 22% rise in adjusted EBITDA to approximately $2 billion, driven by increased volumes in the Mid-Continent and Rocky Mountain regions. ONEOK maintains a robust 6% dividend yield, with an annualized dividend of $4.12, and targets full-year adjusted EBITDA between $8 billion and $8.45 billion.

ONEOK operates extensive midstream infrastructure for natural gas and NGLs, positioning it as a stable, fee-based cash generator. Benson's investment highlights a potential value play, leveraging OKE's consistent cash flow and dividend against its recent stock price underperformance. The company's upcoming earnings report on October 29 will provide further clarity on its operational trajectory and guidance.

Key Decisions for Investors

• Investors seeking portfolio diversification and income generation should evaluate ONEOK (OKE) given its 6% dividend yield and stable midstream energy infrastructure business.
• Monitor ONEOK's upcoming earnings report on October 29 for further insights into operational performance and confirmation of its $8 billion to $8.45 billion full-year adjusted EBITDA target.
• Consider the potential value proposition in OKE, as institutional investors like Benson are initiating positions despite the stock's recent 29% underperformance, signaling confidence in its underlying fundamentals.