ONEOK · OKE

Why not

• –Caution:
  The model doesn't fit this business

  Pipelines and terminals are built to run permanently on debt, and the cash they hand their owners is measured before the capital they spend expanding — distributable cash flow, not the free cash flow this model uses. We subtract every dollar of expansion capital and then the whole of net debt, which makes a company in the middle of a buildout look starved of cash it genuinely has, and one carrying its ordinary leverage look worth less than nothing. The arithmetic runs; it just describes a different business than the one being valued. So we would rather show nothing here than a number the method cannot stand behind.