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Why Is Oneok (OKE) Up 0.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ONEOK Q2 Earnings Beat Estimates, Revenues Miss Mark
ONEOK posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%. Also, the bottom line improved 140.6% year over year.
Results reflect benefits from increased volumes of natural gas and natural gas liquids in the Rocky Mountain region.
Revenue Results
Total revenues of $3,389 million missed the Zacks Consensus Estimate of $4,013 million by 15.5%. However, the top line improved 104.1% from $1,660.7 million in the prior-year quarter.
Highlights of the Release
The company spent $2,367 million on cost of sales and fuel, up 151.7% from the year-ago quarter’s level.
In the second quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $801.5 million, up 50.1% year over year.
The company incurred interest expenses worth $185 million, down 15.5% from the prior-year quarter.
Its operating income came in at $611.5 million in the second quarter, up 71.9% from the prior-year quarter’s reading.
The company’s Arbuckle II Pipeline expansion project was completed in the reported quarter, which increased its capacity up to 500,000 barrels per day (bpd).
Financial Highlights
As of Jun 30, 2021, ONEOK had cash and cash equivalents worth $374.4 million compared with $524.5 million as of Dec 31, 2020.
Long-term debt (excluding current maturities) was $13,637.6 million as of Jun 30, 2021, down from $14,228.4 million as of Dec 31, 2020.
The company’s cash provided by operating activities in the first six months of 2021 was $1,078 million, up from $736.4 million in the comparable period of last year.
Capital expenditures amounted to $147.4 million in the second quarter of 2021, down from $594.3 million in the corresponding quarter of last year.
Guidance
ONEOK expects its 2021 net income and adjusted EBITDA to be above the midpoints of the earlier guided range of $1,200-$1,500 million and $3,050-$3,350 million, respectively. Maintenance capital expenditures are likely to be $190-$210 million in 2021.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Oneok has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Oneok (OKE) Up 0.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ONEOK Q2 Earnings Beat Estimates, Revenues Miss Mark
ONEOK posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%. Also, the bottom line improved 140.6% year over year.
Results reflect benefits from increased volumes of natural gas and natural gas liquids in the Rocky Mountain region.
Revenue Results
Total revenues of $3,389 million missed the Zacks Consensus Estimate of $4,013 million by 15.5%. However, the top line improved 104.1% from $1,660.7 million in the prior-year quarter.
Highlights of the Release
The company spent $2,367 million on cost of sales and fuel, up 151.7% from the year-ago quarter’s level.
In the second quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $801.5 million, up 50.1% year over year.
The company incurred interest expenses worth $185 million, down 15.5% from the prior-year quarter.
Its operating income came in at $611.5 million in the second quarter, up 71.9% from the prior-year quarter’s reading.
The company’s Arbuckle II Pipeline expansion project was completed in the reported quarter, which increased its capacity up to 500,000 barrels per day (bpd).
Financial Highlights
As of Jun 30, 2021, ONEOK had cash and cash equivalents worth $374.4 million compared with $524.5 million as of Dec 31, 2020.
Long-term debt (excluding current maturities) was $13,637.6 million as of Jun 30, 2021, down from $14,228.4 million as of Dec 31, 2020.
The company’s cash provided by operating activities in the first six months of 2021 was $1,078 million, up from $736.4 million in the comparable period of last year.
Capital expenditures amounted to $147.4 million in the second quarter of 2021, down from $594.3 million in the corresponding quarter of last year.
Guidance
ONEOK expects its 2021 net income and adjusted EBITDA to be above the midpoints of the earlier guided range of $1,200-$1,500 million and $3,050-$3,350 million, respectively. Maintenance capital expenditures are likely to be $190-$210 million in 2021.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Oneok has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.