Analyzing Cheniere Energy Partners (CQP) and ONEOK (OKE)

Cheniere Energy Partners (NYSE: CQP) and ONEOK (NYSE:OKE) are both large-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Dividends

ONEOK pays an annual dividend of $2.98 per share and has a dividend yield of 5.3%. Cheniere Energy Partners does not pay a dividend. ONEOK pays out 186.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ONEOK has increased its dividend for 14 consecutive years.

Insider & Institutional Ownership

51.3% of ONEOK shares are owned by institutional investors. 1.0% of ONEOK shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cheniere Energy Partners and ONEOK’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cheniere Energy Partners $2.77 billion 4.81 $926.06 million N/A N/A
ONEOK $10.49 billion 2.04 $1.68 billion $1.60 35.13

ONEOK has higher revenue and earnings than Cheniere Energy Partners.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cheniere Energy Partners and ONEOK, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheniere Energy Partners 0 4 1 0 2.20
ONEOK 0 8 5 0 2.38

Cheniere Energy Partners currently has a consensus target price of $35.00, suggesting a potential upside of 27.27%. ONEOK has a consensus target price of $57.00, suggesting a potential upside of 1.42%. Given Cheniere Energy Partners’ higher possible upside, research analysts plainly believe Cheniere Energy Partners is more favorable than ONEOK.

Profitability

This table compares Cheniere Energy Partners and ONEOK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cheniere Energy Partners 4.64% 39.76% 1.08%
ONEOK 3.26% 8.62% 2.11%

Summary

ONEOK beats Cheniere Energy Partners on 9 of the 15 factors compared between the two stocks.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P. (Cheniere Partners) is a limited partnership formed by Cheniere Energy, Inc (Cheniere). The Company operates through liquefaction and regasification operations at the Sabine Pass LNG terminal segment. Through its subsidiary, Sabine Pass Liquefaction, LLC (SPL), it is developing, constructing and operating natural gas liquefaction facilities (the Liquefaction Project) at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Through its subsidiary, Sabine Pass LNG, L.P., it owns and operates regasification facilities at the Sabine Pass LNG terminal, which includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent, two marine berths that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately four billion cubic feet per day.

About ONEOK

ONEOK, Inc. is an energy midstream service provider in the United States. The Company owns and operates natural gas liquids (NGL) systems, and is engaged in the gathering, processing, storage and transportation of natural gas. THe Company’s operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions. The Company operates through three business segments. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute NGLs and store NGL products primarily in the Mid-Continental, Permian Basin and the Rocky Mountain regions. The Natural Gas Pipelines segment provides transportation and storage services to end users.

Receive News & Ratings for Cheniere Energy Partners LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cheniere Energy Partners LP and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply