ONEOK Inc. (OKE - Free Report) posted first-quarter 2018 operating earnings of 64 cents per share, beating the Zacks Consensus Estimate of 62 cents by 3.32%. The figure improved 64% year over year.
Total Revenues
Total revenues were $3,102 million, which missed the Zacks Consensus Estimate of $3,490 million by 11.11%. Revenues jumped 12.8% from $2,750 million in the prior-year quarter.
Quarterly Highlights
The company spent $2,368 million on cost of sales and fuel, which rose 10.5% from the year-ago quarter.
In the first quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $570.3 million, up 24% year over year.
The company incurred interest expenses of $115.7 million, down 0.6%. Operating income was $419.7 million in the first quarter, up 32.3%.
The quarterly results improved on the back of volume growth in the STACK & SCOOP areas along with increased optimization and marketing activities in the natural gas liquids segment.
Financial Highlights
As of Mar 31, 2018, ONEOK had cash and cash equivalents of $17.5 million, compared with $37.2 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $7,091.8 million as of Mar 31, 2018, down from the Dec 31, 2017 level of $8,091.6 million.
The company’s cash flow from operating activities in the first quarter was $495.3 million, up from $269 million first quarter of 2017.
Capital expenditures (less allowance for equity funds used during construction) amounted to $264.5 million, up from $112.7 million in the year-ago period.
Guidance
For 2018, ONEOK reaffirmed adjusted EBITDA guidance in the range of $2,215-$2,415 million and net income in the range of $955-$1,155 million.
ONEOK expects its 2018 Capital expenditure in the range of $2,090-$2,480 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.
Upcoming Peer Release
South Jersey Industries, Inc. (SJI ) is expected to report first-quarter 2018 results on May 8. The Zacks Consensus Estimate for earnings is pegged at 96 cents.
National Fuel Gas Company (NFG - Free Report) is expected to report second-quarter fiscal 2018 results on May 3. The Zacks Consensus Estimate for earnings is pegged $1.06 per share.
Chesapeake Utilities Corporation (CPK ) is expected to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for earnings is pegged at $1.34 per share.
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ONEOK Inc. (OKE - Free Report) posted first-quarter 2018 operating earnings of 64 cents per share, beating the Zacks Consensus Estimate of 62 cents by 3.32%. The figure improved 64% year over year.
Total Revenues
Total revenues were $3,102 million, which missed the Zacks Consensus Estimate of $3,490 million by 11.11%. Revenues jumped 12.8% from $2,750 million in the prior-year quarter.
Quarterly Highlights
The company spent $2,368 million on cost of sales and fuel, which rose 10.5% from the year-ago quarter.
In the first quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $570.3 million, up 24% year over year.
The company incurred interest expenses of $115.7 million, down 0.6%. Operating income was $419.7 million in the first quarter, up 32.3%.
The quarterly results improved on the back of volume growth in the STACK & SCOOP areas along with increased optimization and marketing activities in the natural gas liquids segment.
Financial Highlights
As of Mar 31, 2018, ONEOK had cash and cash equivalents of $17.5 million, compared with $37.2 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $7,091.8 million as of Mar 31, 2018, down from the Dec 31, 2017 level of $8,091.6 million.
The company’s cash flow from operating activities in the first quarter was $495.3 million, up from $269 million first quarter of 2017.
Capital expenditures (less allowance for equity funds used during construction) amounted to $264.5 million, up from $112.7 million in the year-ago period.
Guidance
For 2018, ONEOK reaffirmed adjusted EBITDA guidance in the range of $2,215-$2,415 million and net income in the range of $955-$1,155 million.
ONEOK expects its 2018 Capital expenditure in the range of $2,090-$2,480 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.
Upcoming Peer Release
South Jersey Industries, Inc. (SJI ) is expected to report first-quarter 2018 results on May 8. The Zacks Consensus Estimate for earnings is pegged at 96 cents.
National Fuel Gas Company (NFG - Free Report) is expected to report second-quarter fiscal 2018 results on May 3. The Zacks Consensus Estimate for earnings is pegged $1.06 per share.
Chesapeake Utilities Corporation (CPK ) is expected to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for earnings is pegged at $1.34 per share.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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