03:46 PM EDT, 07/02/2024 (MT Newswires) -- ONEOK ( OKE ) is well-positioned for future growth due to stable producer activity, UBS Securities said in a note emailed Tuesday.

"Stable producer activity, continued production efficiency, and strong natural gas and [natural gas liquids] volumes set up OKE for future growth," UBS said.

UBS slightly raised its Q2 earnings before interest, taxes, depreciation and amortization estimate to $1.50 billion from $1.49 billion due to higher volumes, the full-quarter impact of the El Paso expansion of the company's refined products pipeline and stronger ethane recovery, according to the note.

While this falls short of Wall Street's expectations, three of four company segments are expected to see EBITDA growth from Q1, UBS said.

The focus of the earnings call will likely include ONEOK's ( OKE ) full-year guidance, upside to the potential near-term synergy of $415 million, update on growth projects and capital allocation strategy, UBS said.

UBS has a buy rating on ONEOK ( OKE ) with a 12-month price target of $93.

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