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ONEOK Partners (OKS) Tops Q3 Earnings, Revenues Up Y/Y
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Oil and gas pipeline operator ONEOK Partners, L.P. reported third-quarter 2016 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 58 cents by 1.7%. Quarterly earnings also surged 31.1% year over year.
The bottom-line improvement was driven by fee-based earnings growth due higher natural gas volumes gathered and processed, higher NGL volumes fractionated from natural gas processing plants, and higher ethane recovery than last year.
In the quarter under review, ONEOK Partners reported total revenue of $2,357.4 million, outshining the Zacks Consensus Estimate of $2,136 million by 10.4%. Quarterly revenues were also up 24.2% from $1,898 million in the year-ago quarter.
Operational Results
ONEOK Partners’ adjusted earnings before interest, tax, depreciation and amortization (EBITDA) stood at $469.4 million, up 16.3%.
Cost of sales and fuel was $1,751.6 million, up 28.7% from $1,360.8 million a year ago.
The partnership reported operating income of $336.3 million, up 16.9%.
ONEOK Partners’ interest expenses were $92.5 million, up 6.7% from $86.7 million a year ago.
In the third quarter of 2016, Natural Gas Liquids reported operating income of $224.5 million, up 8.2% from the prior-year level of $207.5 million.
Natural Gas Pipelines’ operating income soared 31.6% to $49.6 million from $37.7 million recorded a year ago.
Natural Gas Gathering and Processing generated operating income of $62.2 million, up a significant 47% from $42.3 million in the prior-year period.
Financial Condition
As of Sep 30, 2016, ONEOK Partners had cash and cash equivalents of $5.5 million, up from $5.1 million as of Dec 31, 2015.
Long-term debt (excluding current maturities) as of Sep 30, 2016 was $6,691.6 million, almost flat with $6,695.3 million as of Dec 31, 2015.
The partnership’s cash flow from operating activities was $999.4 million in the first nine months of 2016, up 33.8% from $747 million in the year-ago period.
Capital expenditure in the first nine months of 2016 was $489.3 million, down 47.3% from the prior-year level of $928.9 million.
Distributable cash flow (“DCF”) was $358.6 million in the third quarter, compared with $302.8 million a year ago.
Guidance
The company now projects 2016 maintenance capital expenditure to be approximately $110 million, compared with the initial guidance of $140 million.
Upcoming Peer Releases
Enbridge Energy Management LLC is expected to report third-quarter results on Nov 4. The Zacks Consensus Estimate stands at 16 cents.
Summit Midstream Partners, LP (SMLP - Free Report) is slated to report third-quarter results on Nov 3. The Zacks Consensus Estimate stands at 10 cents.
Energy Transfer Partners, L.P. is expected to report third-quarter results on Nov 9. The Zacks Consensus Estimate stands at 28 cents.
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ONEOK Partners (OKS) Tops Q3 Earnings, Revenues Up Y/Y
Oil and gas pipeline operator ONEOK Partners, L.P. reported third-quarter 2016 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 58 cents by 1.7%. Quarterly earnings also surged 31.1% year over year.
The bottom-line improvement was driven by fee-based earnings growth due higher natural gas volumes gathered and processed, higher NGL volumes fractionated from natural gas processing plants, and higher ethane recovery than last year.
Total Revenue
In the quarter under review, ONEOK Partners reported total revenue of $2,357.4 million, outshining the Zacks Consensus Estimate of $2,136 million by 10.4%. Quarterly revenues were also up 24.2% from $1,898 million in the year-ago quarter.
Operational Results
ONEOK Partners’ adjusted earnings before interest, tax, depreciation and amortization (EBITDA) stood at $469.4 million, up 16.3%.
Cost of sales and fuel was $1,751.6 million, up 28.7% from $1,360.8 million a year ago.
The partnership reported operating income of $336.3 million, up 16.9%.
ONEOK Partners’ interest expenses were $92.5 million, up 6.7% from $86.7 million a year ago.
ONEOK PARTNERS Price, Consensus and EPS Surprise
ONEOK PARTNERS Price, Consensus and EPS Surprise | ONEOK PARTNERS Quote
Segment Results
In the third quarter of 2016, Natural Gas Liquids reported operating income of $224.5 million, up 8.2% from the prior-year level of $207.5 million.
Natural Gas Pipelines’ operating income soared 31.6% to $49.6 million from $37.7 million recorded a year ago.
Natural Gas Gathering and Processing generated operating income of $62.2 million, up a significant 47% from $42.3 million in the prior-year period.
Financial Condition
As of Sep 30, 2016, ONEOK Partners had cash and cash equivalents of $5.5 million, up from $5.1 million as of Dec 31, 2015.
Long-term debt (excluding current maturities) as of Sep 30, 2016 was $6,691.6 million, almost flat with $6,695.3 million as of Dec 31, 2015.
The partnership’s cash flow from operating activities was $999.4 million in the first nine months of 2016, up 33.8% from $747 million in the year-ago period.
Capital expenditure in the first nine months of 2016 was $489.3 million, down 47.3% from the prior-year level of $928.9 million.
Distributable cash flow (“DCF”) was $358.6 million in the third quarter, compared with $302.8 million a year ago.
Guidance
The company now projects 2016 maintenance capital expenditure to be approximately $110 million, compared with the initial guidance of $140 million.
Upcoming Peer Releases
Enbridge Energy Management LLC is expected to report third-quarter results on Nov 4. The Zacks Consensus Estimate stands at 16 cents.
Summit Midstream Partners, LP (SMLP - Free Report) is slated to report third-quarter results on Nov 3. The Zacks Consensus Estimate stands at 10 cents.
Energy Transfer Partners, L.P. is expected to report third-quarter results on Nov 9. The Zacks Consensus Estimate stands at 28 cents.
Zacks Rank
ONEOK Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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