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ONEOK's (OKE) Earnings and Revenues Miss Estimates in Q4

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ONEOK Inc (OKE - Free Report) posted fourth-quarter 2020 operating earnings of 69 cents per share, missing the Zacks Consensus Estimate of 74 cents by 6.8%. Also, the bottom line declined 10.4% on a year-over-year basis.

Revenue Results

Total revenues of $2,570.6 million missed the Zacks Consensus Estimate of $2,909 million by 11.6%. Also, the top line dipped 3.5% from $2,663.6 million in the prior-year quarter due to fall in commodity sales, slightly offset by a rise in services revenues.

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Highlights of the Release

The company spent $1,627.1 million on cost of sales and fuel, down 9.2% from the year-ago quarter’s level.

In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $742 million, up 12% year over year.

The company incurred interest expenses worth $176.9 million, up 36.9% from the prior-year quarter.

Its operating income of $538.7 million in the fourth quarter was up 11% from the prior-year quarter.

Financial Highlights

As of Dec 31, ONEOK had cash and cash equivalents worth $524.5 million compared with $21 million as of Dec 31, 2019.

Long-term debt (excluding current maturities) was $14,228.4 million as of Dec 31, 2020, up from $12,479.7 million as of Dec 31, 2019.

The company’s cash provided by operating activities in 2020 was $1,899.1 million, down from $1,946.8 million in 2019.

Capital expenditures (less allowance for equity funds used during construction) amounted to $2,195.4 million in 2020, down from $3,848.3 million in 2019.

Guidance

Natural Gas Liquids Raw Feed Throughput is expected to be 1,105-1,225 MBbl/d. The company anticipates Natural Gas Gathered and Natural Gas Processed to be 1,850-2,110 MMcf/d and 1,750-2,000 MMcf/d, respectively.

ONEOK projects 2021 net income and adjusted EBITDA in the range of $1,075-$1,375 million and $2,900-$3,200 million, respectively. Also, it expects earnings per share in the range of $2.40-$3.08. Growth capital expenditures are likely to be $335-$465 million in 2021.

Zacks Rank

ONEOK carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Sempra Energy (SRE - Free Report) is slated to release fourth-quarter 2020 earnings on Feb 25. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.55.

CenterPoint Energy, Inc. (CNP - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 23 cents.

American Water Works Company, Inc. (AWK - Free Report) will post fourth-quarter 2020 earnings on Feb 25, 2021. The Zacks Consensus Estimate is pegged at 80 cents per share.

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