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ONEOK (OKE) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

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ONEOK Inc. (OKE - Free Report) recorded second-quarter 2022 operating earnings per share (EPS) of 92 cents, which surpassed the Zacks Consensus Estimate of 84 cents by 9.5%. The bottom line improved by 19.5% from the year-ago quarter’s tally of 77 cents.

Total Revenues

Operating revenues of $5,996.7 million missed the Zacks Consensus Estimate of $6,367 million by 5.8%. However, the top line improved by 76.9% from $3,389 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

ONEOK spent $4,878 million on the cost of sales and fuel, up 106.1% from the year-ago quarter’s level.

In the second quarter, OKE’s adjusted EBITDA was $886 million, up 10.5% year over year.

ONEOK’s operating income came in at $689 million in the second quarter, up 12.7% from the prior-year quarter’s reading.

ONEOK incurred interest expenses worth $170.8 million, down 7.7% from the prior-year quarter’s level.

Financial Highlights

As of Jun 30, 2022, ONEOK had cash and cash equivalents worth $135.8 million compared with $146.4 million as of Dec 31, 2021.

The long-term debt (excluding current maturities) was $12,872.7 million as of Jun 30, 2022, up from $12,747.6 million as of Dec 31, 2021.

ONEOK’s cash provided by operating activities for the first six months of 2022 was $1,249.6 million compared with $1,077.9 million in the year-ago period.

Capital expenditures (including maintenance) amounted to $559.3 million in the first six months of 2022, up from $324.6 million in the corresponding period of the last year.

Guidance

ONEOK affirmed the 2022 net income and adjusted EBITDA in the range of $1,550-$1,830 million and the $3,470-$3,770 million range, respectively. OKE reiterated 2022 EPS in the range of $3.45-$4.07. The Zacks Consensus Estimate for 2022 earnings of $3.65 per share is lower than $3.76, the midpoint of the guided range.

Zacks Rank

ONEOK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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