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ONEOK (OKE) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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ONEOK Inc (OKE - Free Report) posted third-quarter 2021 operating earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 83 cents by 6%. Also, the bottom line improved 25.7% year over year.

Improving economic conditions led to an increase in volumes of natural gas and natural gas liquids, thus benefiting the quarterly results.

Revenue Results

Total revenues of $4,536.2 million missed the Zacks Consensus Estimate of $5,324 million by 14.8%. However, the top line improved 108.6% from $2,174.3 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 $3,449.1 million on cost of sales and fuel, up 172.5% from the year-ago quarter’s level.

In the third quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $865.2 million, up 15.8% year over year.

The company incurred interest expenses worth $184 million, up 4.4% from the prior-year quarter’s level.

Its operating income came in at $667.9 million in the third quarter, up 21.3% from the prior-year quarter’s reading.

The company completed the 200-million cubic feet per day (MMcf/d) Bear Creek natural gas processing plant expansion and its related infrastructure in the Williston Basin. In September 2021, it announced plans to reduce greenhouse gas emissions (combined Scope 1 and Scope 2 emissions) by 30% within 2030 from the 2019 levels.

Financial Highlights

As of Sep 30, 2021, ONEOK had cash and cash equivalents worth $224.3 million compared with $524.5 million as of Dec 31, 2020.

Long-term debt (excluding current maturities) was $13,640.5 million as of Sep 30, 2021, down from $14,228.4 million as of Dec 31, 2020.

The company’s cash provided by operating activities in the first nine months of 2021 was $1,491.2 million, up from $1,103.1 million in the comparable period of last year.

Capital expenditures (including maintenance) amounted to $166.2 million in the third quarter of 2021, down from $380 million in the corresponding quarter of last year.


ONEOK increased its 2021 net income and adjusted EBITDA to the range of $1,430-$1,550 million and $3,325-$3,425 million, respectively, up from the earlier guided range of $1,200-$1,500 million and $3,050-$3,350 million. 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 third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.

Upcoming Releases

Sempra Energy (SRE - Free Report) is scheduled to release third-quarter 2021 operating earnings on Nov 5. The Zacks Consensus Estimate for the metric is pegged at $1.70 per share.

Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2021 operating earnings on Nov 10. The Zacks Consensus Estimate for the same is pegged at 37 cents per share.

In-Depth Zacks Research for the Tickers Above

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Sempra Energy (SRE) - free report >>

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Atmos Energy Corporation (ATO) - free report >>

ONE Gas, Inc. (OGS) - free report >>