Eagle Rock Energy Partners, L.P. (EROC) & Oneok Partners (OKS) Critical Contrast

Eagle Rock Energy Partners, L.P. (NASDAQ: EROC) and Oneok Partners (NYSE:OKS) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Dividends

Oneok Partners pays an annual dividend of $3.16 per share and has a dividend yield of 6.2%. Eagle Rock Energy Partners, L.P. does not pay a dividend. Oneok Partners pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings for Eagle Rock Energy Partners, L.P. and Oneok Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Rock Energy Partners, L.P. 0 0 0 0 N/A
Oneok Partners 0 9 2 0 2.18

Oneok Partners has a consensus price target of $48.11, indicating a potential downside of 5.79%. Given Oneok Partners’ higher probable upside, analysts plainly believe Oneok Partners is more favorable than Eagle Rock Energy Partners, L.P..

Valuation & Earnings

This table compares Eagle Rock Energy Partners, L.P. and Oneok Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Rock Energy Partners, L.P. N/A N/A N/A N/A N/A
Oneok Partners N/A N/A N/A $2.30 22.20

Profitability

This table compares Eagle Rock Energy Partners, L.P. and Oneok Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Rock Energy Partners, L.P. -107.85% -31.24% -15.37%
Oneok Partners 9.82% 11.31% 7.03%

Insider & Institutional Ownership

41.2% of Oneok Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Oneok Partners beats Eagle Rock Energy Partners, L.P. on 7 of the 8 factors compared between the two stocks.

Eagle Rock Energy Partners, L.P. Company Profile

Eagle Rock Energy Partners, L.P. is a limited partnership engaged in developing and producing oil and natural gas properties. The Company’s interests include operated and non-operated wells located in four oil and gas producing regions: The Mid-Continent region consists of operated and non-operated properties in the Golden Trend field, Cana (Woodford) shale play, Verden field and other fields located in the Anadarko Basin of western Oklahoma, the Mansfield field and other fields in the Arkoma Basin of Arkansas and Oklahoma, and various fields in the Texas Panhandle; The Alabama region includes the Big Escambia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama; The Permian region contains various fields, including Ward South and Ward-Estes North located in Ward, Pecos and Crane Counties, Texas, and East Texas/South Texas/Mississippi. These working interest properties included over 561 gross operated productive wells and over 1,217 gross non-operated wells.

Oneok Partners Company Profile

ONEOK Partners, L.P. is engaged in gathering, processing, storage and transportation of natural gas in the United States. In addition, the Company owns natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions. It operates through three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. Its Natural Gas Liquids segment owned and operated facilities that gathered, fractionated, treated and distributed NGLs and store NGL products, in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region where it provided midstream services to producers of NGLs and delivered those products to the two primary market centers, one in the Mid-Continent in Conway, and the other in the Gulf Coast in Mont Belvieu, Texas, as of December 31, 2016.

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