27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Scotiabank analyst Tristan J. Richardson upgraded ONEOK Inc (NYSE:OKE) to Sector Outperform from Sector Perform at an increased price target of $78 from $74.
The analyst is bullish on the completion of the Magellan Midstream Partners, L.P. acquisition last month.
Recently, ONEOK penned a merger deal with Magellan Midstream Partners for $18.8 billion, including assumed debt.
Magellan unitholders received $25 in cash and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit, representing an implied value of $67.50 per Magellan unit.
The analyst notes that OKE has been benefiting from the recent full integration of its wellhead-to-frac-hub strategy and historical returns on capital and projects it to generate around 50% of FY24 EBITDA from the more stable cash flow businesses, including refined product, gas pipeline, and long-haul crude transportation.
The analyst sees the integrated NGL business as a key growth driver and OKE's core business.
Richardson assumes mid-single-digit growth in Rockies gas volumes in FY24 and the Permian basin to boost the top of the funnel.
The analyst estimates an EBITDA of $5.97 billion for FY24 on legacy Magellan assets, mid-single-digit growth in Permian and Bakken feed volumes, and synergy from harvest. The analyst assumes a 6% dividend increase in FY24.
Richardson estimates EBITDA of $6.30 billion in FY25 and $6.55 billion in FY26, including synergy assumptions.
Price Action: OKE shares are trading lower by 2.14% at $62.08 on the last check Monday.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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