A month has gone by since the last earnings report for Oneok Inc. (OKE Quick QuoteOKE - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

ONEOK Q4 Earnings and Revenues Miss Estimates

ONEOK Inc. recorded fourth-quarter 2021 operating earnings per share (EPS) of 85 cents, which missed the Zacks Consensus Estimate of 88 cents by 3.4%. However, the bottom line improved 23.2% from the year-ago quarter’s tally of 69 cents.

ONEOK reported operating EPS of $3.35 in 2021, up 136% from $1.42 in 2020. Total earnings lagged the Zacks Consensus Estimate of $3.39 by 1.2%.

Total Revenues

Operating revenues of $5,420.5 million missed the Zacks Consensus Estimate of $6,106 million by 11.2%. However, the top line improved 111% from $2,571 million in the prior-year quarter.

ONEOK reported total revenues of $16,540 million in 2021, up 94% from $8,542 million in 2020. Total revenues missed the Zacks Consensus Estimate of $17,230 million by 4%.

Highlights of the Release

ONEOK spent $4,319 million on the cost of sales and fuel, up 165.4% from the year-ago quarter’s level.

In the fourth quarter, OKE’s adjusted EBITDA was $847 million, up 14% year over year.

ONEOK’s operating income came in at $652.2 million in the fourth quarter, up 21.1% from the prior-year quarter’s reading.

ONEOK incurred interest expenses worth $178.4 million, up 0.8% from the prior-year quarter’s level.

In November 2021, ONEOK announced the restart of construction activities in Demicks Lake III, the 200 million cubic feet per day natural gas processing plant in the Williston Basin and the MB-5, 125,000 barrels per day NGL fractionator in Mont Belvieu, which is expected to cost $390 million to complete both the constructions.

Financial Highlights

As of Dec 31, 2021, ONEOK had cash and cash equivalents worth $146.4 million compared with $524.5 million as of Dec 31, 2020.

Long-term debt (excluding current maturities) was $12,747.6 million as of Dec 31, 2021, down from $14,228.4 million as of Dec 31, 2020.

ONEOK’s cash provided by operating activities for 2021 was $2,546.3 million, up from $1,899.1 million in 2020.

Capital expenditures (including maintenance) amounted to $206.6 million in the fourth quarter of 2021, down from $271.4 million in the corresponding quarter of the last year.

Guidance

ONEOK expects 2022 net income and adjusted EBITDA in the range of $1,550-$1,830 million and $3,470-$3,770 million, respectively. Growth and maintenance capital expenditures are likely to be in the range of $685-$815 and $215-$235 million, respectively, in 2022.The midpoint of the total capital expenditure for 2022 is expected at $975 million.

ONEOK expects 2022 EPS in the range of $3.45-$4.07. The Zacks Consensus Estimate for 2022 earnings of $3.70 per share is lower than $3.76, the midpoint of the guided range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

At this time, Oneok has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.