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ONEOK (OKE) Lags Q4 Earnings, Surpasses Revenue Estimates

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ONEOK Inc (OKE - Free Report) posted fourth-quarter 2018 operating earnings of 70 cents per share, which missed the Zacks Consensus Estimate of 74 cents by 5.4%. Nevertheless, the figure improved 337.5% on a year-over-year basis.

In 2018, the company delivered earnings of $2.78 per share compared with $1.29 per share in 2017. The upside can be attributed to volume growth across operations.

Total Revenues

Total revenues were $3.14 billion, which beat the Zacks Consensus Estimate of $3.09 billion by 1.6%. The figure declined 17.3% from $3.79 billion in the prior-year quarter.

In 2018, the company delivered revenues of $12.59 billion, up from $12.17 billion in 2017.

ONEOK, Inc. Price, Consensus and EPS Surprise

 

ONEOK, Inc. Price, Consensus and EPS Surprise | ONEOK, Inc. Quote

 

Quarterly Highlights

The company spent $2.32 billion on cost of sales and fuel, down 24.6% from the year-ago quarter’s tally.

In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $347.4 million, up 12.3% year over year.

The company incurred interest expenses of $118.5 million, down 4.6% from $124.2 million in the prior-year quarter. Operating income was $471.8 million in the fourth quarter, up from $400.5 million in the prior-year quarter.

Recently, ONEOK completed capital-growth project worth approximately $500 million.

Financial Highlights

As of Dec 31, 2018, ONEOK had cash and cash equivalents of $12 million compared with $37.2 million as of Dec 31, 2017.

Long-term debt (excluding current maturities) was $8,873.3 million as of Dec 31, 2018, up from $8,091.6 million as of Dec 31, 2017.

The company’s cash flow from operating activities at the end of Dec 31, 2018 was $2,186.7 million, up from $1,315.4 million at the end of Dec 31, 2017.

Capital expenditures (less allowance for equity funds used during construction) amounted to $2,141.4 million, up from $567.6 million in the year-ago period.

Guidance

For 2019, ONEOK projects net income in the range of $1,140-$1,400 million. Also, the company expects 2019 adjusted EBITDA in the range of $2,500-$2,700 million.

Zacks Rank

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

Other Utility Gas-Distribution Releases

ONE Gas, Inc. (OGS - Free Report) recorded fourth-quarter 2018 operating earnings of 84 cents per share, lagging the Zacks Consensus Estimate of 85 cents by 1.2%.

MDU Resources Group Inc. (MDU - Free Report)     delivered fourth-quarter 2018 operating earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 7.14%

National Fuel Gas Company (NFG - Free Report) delivered first-quarter fiscal 2019 operating earnings of $1.12 per share, beating the Zacks Consensus Estimate of $1.07 by 4.7%.

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