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ONEOK (OKE) Misses Q1 Earnings, Reaffirms 2017 Guidance

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ONEOK Inc. (OKE - Free Report) reported first-quarter 2017 operating earnings of 41 cents per share, missing the Zacks Consensus Estimate of 45 cents by 8.89%.

Reported earnings also improved 2.5% year over year.

Total Revenue

ONEOK’s total revenue of $2,750 million missed the Zacks Consensus Estimate of $2,819 million by 2.47%. Revenues also jumped 55% from $1,774 million in the prior-year quarter.

Quarterly Highlights

In the quarter under review, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $459.6, up 4.07% year over year.

In the first quarter, the company spent $2,143.8 million on cost of sales and fuel, up 79.3%.

Operating income came in at $314.4 million in the first quarter, up 0.9%.

The company incurred interest expenses of $116.4 million, down 1.5%.

ONEOK, Inc. Price, Consensus and EPS Surprise

 

Financial Condition

As of Mar 31, 2017, ONEOK had cash and cash equivalents of $310.8 million, compared with $248.9 million as of Dec 31, 2016.

Long-term debt (excluding current maturities) was $7,919.8 million as of Mar 31, 2017, down from the 2016-end level of $7,920 million.

In the first quarter, the company’s cash flow from operating activities was $269 million, up from nearly $230.7 million in the year-ago period.

Capital expenditures (less allowance for equity funds used during construction) in the first quarter was $112.7 million, down from $196.4 million a year ago.

Guidance

ONEOK reaffirmed its 2017, net income guidance in the range of $575-$755 million, adjusted EBITDA in the range of $1,870–$2,130 million, distributable cash flow of $1,245–$1,505 million, capital expenditures in the range of $380-$480 million and maintenance capital expenditures in between $140-$160 million.

Upcoming Peer Releases

South Jersey Industries, Inc. currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate is pegged at 81 cents. It is expected to report first-quarter 2017 earnings on May 9.

Clean Energy Fuels Corp. (CLNE - Free Report) currently carriesa Zacks Rank of #3 (Hold). The Zacks Consensus Estimate is pegged at a loss of 13 cents. It is expected to report first-quarter 2017 earnings on May 4.

Sempra Energy (SRE - Free Report) currently carries a Zacks Rank of #3. The Zacks Consensus Estimate is pegged at $1.59. It is expected to report first-quarter 2017 earnings on May 9.

Zacks Rank

ONEOK currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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