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ONEOK (OKE) Q2 Earnings Beat Estimates, Revenues Miss Mark

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ONEOK Inc (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%. Also, the bottom line improved 140.6% year over year.

Results reflect benefits from increased volumes of natural gas and natural gas liquids in the Rocky Mountain region.

Revenue Results

Total revenues of $3,389 million missed the Zacks Consensus Estimate of $4,013 million by 15.5%. However, the top line improved 104.1% from $1,660.7 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 $2,367 million on cost of sales and fuel, up 151.7% from the year-ago quarter’s level.

In the second quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $801.5 million, up 50.1% year over year.

The company incurred interest expenses worth $185 million, down15.5% from the prior-year quarter.

Its operating income came in at $611.5 million in the second quarter, up 71.9% from the prior-year quarter’s reading.

The company’s Arbuckle II Pipeline expansion project was completed in the reported quarter, which increased its capacity up to 500,000 barrels per day (bpd).

Financial Highlights

As of Jun 30, 2021, ONEOK had cash and cash equivalents worth $374.4 million compared with $524.5 million as of Dec 31, 2020.

Long-term debt (excluding current maturities) was $13,637.6 million as of Jun 30, 2021, down from $14,228.4 million as of Dec 31, 2020.

The company’s cash provided by operating activities in the first six months of 2021 was $1,078 million, up from $736.4 million in the comparable period of last year.

Capital expenditures amounted to $147.4 million in the second quarter of 2021, down from $594.3 million in the corresponding quarter of last year.

Guidance

ONEOK expects its 2021 net income and adjusted EBITDA to be above the midpoints of the earlier guided range of $1,200-$1,500 million and $3,050-$3,350 million, respectively. Maintenance capital expenditures are likely to be $190-$210 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.

Peer Release

ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.

Upcoming Releases

MDU Resources Group (MDU - Free Report) is scheduled to release third-quarter fiscal 2021 operating earnings on Aug 5. The Zacks Consensus Estimate for quarterly earnings is pegged at 53 cents per share.

Sempra Energy (SRE - Free Report) is scheduled to release second-quarter 2021 operating earnings on Aug 5. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.59 per share.


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