Investors seeking energy exposure often choose between high-growth infrastructure plays and stable midstream giants. Choosing between New Fortress Energy LLC (NFE 2.63%) and ONEOK Inc (OKE 0.85%) requires balancing aggressive expansion against steady cash generation.
New Fortress focuses on liquefied natural gas logistics and power plants in emerging markets, while ONEOK manages a massive pipeline network across the United States. While both play vital roles in energy transport, their financial health and risk profiles diverged significantly heading into 2026.
The case for New Fortress Energy
New Fortress Energy operates as a global energy infrastructure company specializing in liquefied natural gas (LNG) facilities and power plants. It manages logistics and power solutions in markets including Jamaica, Mexico, and Puerto Rico. Key customers include CFE and the Puerto Rico Electric Power Authority (PREPA), and such customer concentration adds a layer of risk to the business.
In FY 2025, revenue reached approximately $1.5 billion, representing a decrease of more than 36% compared to the prior year. The company reported a net loss of nearly $1.8 billion for the period. This performance reflects a challenging period of transition and asset restructuring for the energy provider. Free cash flow was negative $1.49 billion, representing the cash remaining after paying for operations and capital equipment.
The case for ONEOK Inc
ONEOK operates an extensive midstream energy network consisting of approximately 60,000 miles of pipelines for natural gas and refined products. The company gathers and transports energy for a diverse group of producers and industrial customers, including several electric utility stocks. Its business model relies heavily on long-term, fee-based contracts that reduce direct exposure to fluctuating commodity prices.
In FY 2025, the company reported revenue of nearly $33.6 billion, representing a significant 55.4% increase over the previous fiscal year. Net income for the period was nearly $3.4 billion, up from $3 billion. This growth highlights the company’s ability to scale its operations while maintaining steady profitability across its midstream segments. Free cash flow reached nearly $2.5 billion, representing the cash generated after accounting for all operating expenses and capital investments.
Risk profile comparison
New Fortress Energy faces substantial risks related to its current restructuring support agreement and potential insolvency if it fails to complete its financial plans. Development projects like Fast LNG carry risks of cost overruns and technical failures, as seen in prior delays at the Altamira project. Furthermore, the company relies heavily on PREPA, which is in bankruptcy proceedings, creating significant credit risk for its primary revenue streams.
ONEOK faces volumetric risks because its pipeline throughput depends on continued drilling activity by producers, who may reduce production if commodity prices fall. The company also faces operational hazards, such as leaks or equipment failures, that can lead to environmental liabilities and regulatory fines. ONEOK competes for volumes with other large midstream entities, such as Enterprise Products Partners (EPD 2.80%) and Kinder Morgan (KMI +0.15%), a dynamic that may affect its long-term growth potential.
Valuation comparison
New Fortress Energy appears much cheaper based on price-to-sales estimates, though this lower multiple likely reflects the significant financial restructuring risks the business currently faces.
| Metric | New Fortress Energy | ONEOK | Sector Benchmark |
|---|---|---|---|
| Forward P/E | 213x | 15.8x | 20.6x |
| P/S ratio | 0.1x | 1.6x |
Sector benchmark uses the SPDR XLU sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
New Fortress Energy and ONEOK are both oil and gas businesses, but they are at very different stages in their life cycles.
New Fortress Energy is undergoing a restructuring in the U.K. that will reorganize the business, with creditors’ approval. The move should lop $5.1 billion off its debt load, bringing it to a reasonable $528 million. The move will also spin off its Brazilian operations to a separate company owned by creditors. Crucially for common stockholders, the deal will dilute existing New Fortress shares to about 35% of the new entity. The restructuring is expected to close by the third quarter of this year.
ONEOK, meanwhile, sits in an excellent position in its part of the world. As a midstream provider of oil and gas pipelines and other distribution services, it is generally more shielded from the volatility of oil and gas markets than other energy companies. But it still is benefiting from the Iran war and the increased prices and demand it has created.
Longer-term, AI data center growth and LNG export demand are expected to increase demand for U.S.-produced natural gas, benefiting ONEOK’s pipeline network and its efforts to improve and expand natural gas processing and distribution at crucial points.
In short, New Fortress Energy is a distress play for investors seeking to take a flier on a cheap, beaten-down company and its stock. ONEOK, meanwhile, is growing, with revenue in fiscal 2026 seen at about $38.6 billion and net income at $3.6 billion. ONEOK’s price-to-sales ratio and forward price-to-earnings ratios are still attractive on a standalone basis. Compared to restructuring New Fortress Energy, ONEOK is the stock to buy in 2026.