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ONEOK's (OKE) Earnings Miss Estimates in Q2, Revenues Beat
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ONEOK Inc (OKE - Free Report) posted second-quarter 2020 operating earnings of 32 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 36%. Also, the bottom line plunged 57.3% on a year-over-year basis.
Due to the negative impact of COVID-19 on demand and prices of crude oil, most E&P companies voluntarily ramped down production volumes. This, in turn, induced weak volumes in ONEOK’s pipeline, thereby impacting its results.
Revenue Results
Total revenues of $1,660.7 million surpassed the Zacks Consensus Estimate of $1,641 million by 1.2%. However, the top line declined 32.4% from $2,457.6 million in the prior-year quarter.
The company spent $940.5 million on cost of sales and fuel, down 42.1% from the year-ago quarter’s level.
In the second quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $533.9 million, down 15.6% year over year.
The company incurred interest expenses of $219 million, up 86.4% from $117.5 million in the prior-year quarter.
The company’s operating income of $355.7 million in the second quarter was down 25.3% from $476.1 million in the prior-year quarter.
Financial Highlights
As of Jun 30, ONEOK had cash and cash equivalents worth $945.7 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,276.2 million as of Jun 30, 2020, up from $12,479.7 million as of Dec 31, 2019.
The company’s cash provided by operating activities at the end of the first half of 2020 was $736.4 million, down from $968 million at the end of first-half 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $1,544 million at the end of first-half 2020, down from $1,720.2 million in the same period of 2019.
Guidance
For second-half 2020, ONEOK projects total capital expenditures between $300 and $400 million.
ONE Gas Inc. (OGS - Free Report) delivered second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.
Upcoming Releases
Sempra Energy (SRE - Free Report) is slated to release second-quarter 2020 earnings on Aug 5. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at $1.66.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release third-quarter fiscal 2020 results on Aug 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 77 cents.
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ONEOK's (OKE) Earnings Miss Estimates in Q2, Revenues Beat
ONEOK Inc (OKE - Free Report) posted second-quarter 2020 operating earnings of 32 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 36%. Also, the bottom line plunged 57.3% on a year-over-year basis.
Due to the negative impact of COVID-19 on demand and prices of crude oil, most E&P companies voluntarily ramped down production volumes. This, in turn, induced weak volumes in ONEOK’s pipeline, thereby impacting its results.
Revenue Results
Total revenues of $1,660.7 million surpassed the Zacks Consensus Estimate of $1,641 million by 1.2%. However, the top line declined 32.4% from $2,457.6 million in the prior-year quarter.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Highlights of the Release
The company spent $940.5 million on cost of sales and fuel, down 42.1% from the year-ago quarter’s level.
In the second quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $533.9 million, down 15.6% year over year.
The company incurred interest expenses of $219 million, up 86.4% from $117.5 million in the prior-year quarter.
The company’s operating income of $355.7 million in the second quarter was down 25.3% from $476.1 million in the prior-year quarter.
Financial Highlights
As of Jun 30, ONEOK had cash and cash equivalents worth $945.7 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,276.2 million as of Jun 30, 2020, up from $12,479.7 million as of Dec 31, 2019.
The company’s cash provided by operating activities at the end of the first half of 2020 was $736.4 million, down from $968 million at the end of first-half 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $1,544 million at the end of first-half 2020, down from $1,720.2 million in the same period of 2019.
Guidance
For second-half 2020, ONEOK projects total capital expenditures between $300 and $400 million.
Zacks Rank
ONEOK carries a Zacks Rank #4 (Sell), currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Release
ONE Gas Inc. (OGS - Free Report) delivered second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.
Upcoming Releases
Sempra Energy (SRE - Free Report) is slated to release second-quarter 2020 earnings on Aug 5. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at $1.66.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release third-quarter fiscal 2020 results on Aug 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 77 cents.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>