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ONEOK (OKE) Beats on Q1 Earnings, Raises 2021 EPS Guidance

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ONEOK Inc (OKE - Free Report) posted first-quarter 2021 operating earnings of 86 cents per share, surpassing the Zacks Consensus Estimate of 79 cents by 8.9%. Also, the bottom line improved 3.6% year over year.

Revenue Results

Total revenues of $3,194.7 million missed the Zacks Consensus Estimate of $3,526 million by 9.4%. However, the top line improved 3.5% from $2,136.7 million in the prior-year quarter.

ONEOK, Inc. Price, Consensus and EPS Surprise

ONEOK, Inc. Price, Consensus and EPS Surprise

ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote

Highlights of the Release

The company spent $2,121.5 million on cost of sales and fuel, up 66.1% from the year-ago quarter’s level.

In the first quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $866.4 million, up 23.6% year over year.

The company incurred interest expenses worth $185.5 million, up 31.9% from the prior-year quarter.

Its operating income came in at $664.7 million in the first quarter against the prior-year quarter’s loss of $83.5 million.

Financial Highlights

As of Mar 31, 2021 ONEOK had cash and cash equivalents worth $402.4 million compared with $524.5 million as of Dec 31, 2020.

Long-term debt (excluding current maturities) was $13,638.8 million as of Mar 31, 2021, down from $14,228.4 million as of Dec 31, 2020.

The company’s cash provided by operating activities in the first three months of 2021 was $533.3 million, up from $422.7 million in the comparable period last year.

Capital expenditures (less allowance for equity funds used during construction) amounted to $176.7 million in the first three months of 2021, down from $949.7 million in the corresponding quarter of last year.

Guidance

ONEOK raised its 2021 net income guidance from $1,075-$1,375 million to $1,200-$1,500 million. Also, the same for adjusted EBITDA was lifted from $2,900-$3,200 million to $3,050-$3,350 million. Also, it upped its earnings per share expectation to $2.69-$3.35 from $2.40-$3.08. Growth capital expenditures are likely to be $335-$465 million in 2021.

Zacks Rank

ONEOK carries a Zacks Rank #3 (Hold), 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 first-quarter 2021 earnings on May 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $2.60.

UGI Corporation (UGI - Free Report) is scheduled to release first-quarter 2021 earnings on May 5. The Zacks Consensus Estimate for the period’s earnings per share stands at $1.72.

Atmos Energy Corporation (ATO - Free Report) will post first-quarter 2021 earnings on May 5. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2.02 per share.

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