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This is XLE’s Strongest Energy Stock

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ONEOK: XLE’s top energy performer this year

Year-to-date, ONEOK (OKE) has been the Energy Select Sector SPDR ETF’s (XLE) strongest energy stock, rising ~29%. One of the largest US midstream service providers, ONEOK gathers, processes, and stores natural gas and natural gas liquids.

ONEOK has outperformed XLE, which has risen ~3% this year, as well as the Alerian MLP ETF (AMLP), which represents an index of MLPs that earn most of their cash flow from midstream activities. It has also outperformed the First Trust Natural Gas ETF (FCG), which has fallen ~0.4%. FCG represents an index of energy stocks that derive a substantial portion of their revenue from natural gas exploration and production.

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ONEOK’s revenue and earnings

In Q1 2018, ONEOK’s revenue rose 13% YoY (year-over-year) to ~$3.1 billion from ~$2.8 billion, and its net income rose steeply, by ~203% YoY to ~$264 million from ~$87 million. ONEOK’s EPS rose YoY to $0.64 from $0.41. Next, we’ll compare Hess’s (HES) 2018 returns with those of various energy ETFs and energy commodities, and analyze its performance in the last quarter.

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