Andrew Hill Investment Advisors highlighted ONEOK Inc. (NYSE: OKE) in its third-quarter 2026 investor letter as a core holding, positioning the midstream energy company to deliver steady cash flows independent of oil and gas prices.
The fund cites ONEOK's ownership of pipelines, processing facilities, and storage assets that move natural gas and natural gas liquids from U.S. production sites to end markets. Revenue derives from volumes flowing through the network—not from commodity price exposure. Shares closed at $88.06 on October 7, 2026, valuing the company at $56.75 billion.
Recent acquisitions have expanded ONEOK's footprint and cemented its strategic position within the U.S. energy infrastructure sector. The stock traded a 52-week range of $64.02 to $99.85 and declined 6.08 percent over the prior month.
Andrew Hill views OKE as structural defense against commodity volatility, similar to its thesis on midstream peer Cheniere. The thesis rests on the predictability of infrastructure cash flows as refineries and industrial end-users demand steady feedstock regardless of price cycles.
Macro conditions in Q3 2026 cut both ways. Rising oil prices and a 75-basis-point Federal Reserve rate increase to 3.75 percent to 4.00 percent pressured equities and bonds. The S&P 500 gained 3.54 percent, while the Bloomberg U.S. Aggregate Bond Index fell 2.8 percent. Andrew Hill portfolios benefited from software and AI hardware exposure but were offset by fixed-income losses as yields climbed.
In this environment, Andrew Hill is rotating into higher-grade corporate bonds now yielding above 6 percent while maintaining earnings-focused equity positions. The shift reflects conviction that stable, volume-driven businesses like ONEOK offer better risk-adjusted returns than growth-at-any-price or commodity-cyclical trades.
