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ONEOK (OKE) Q3 Earnings Beat Estimates, Revenues Miss
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ONEOK Inc. (OKE - Free Report) recorded third-quarter 2022 operating earnings per share (EPS) of 96 cents, which surpassed the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line improved by 9.1% from the year-ago quarter’s tally of 88 cents.
The year-over-year improvement was due to increased natural gas and NGL volumes in the Rocky Mountain region, higher realized commodity prices, average fee rates in the natural gas gathering and processing segment, higher average fee rates in the natural gas liquids segment and increased storage rates in the natural gas pipelines segment.
Total Revenues
Operating revenues of $5,913.5 million missed the Zacks Consensus Estimate of $6,519 million by 9.3%. However, the top line improved by 30.4% from $4,536.2 million in the prior-year quarter.
In the third quarter, OKE’s adjusted EBITDA was $902.4 million, up 4.3% year over year.
ONEOK’s operating income came in at $699.2 million in the third quarter, up 4.7% from the prior-year quarter’s reading.
ONEOK incurred interest expenses worth $166.9 million, down 9.3% from the prior-year quarter’s level.
Financial Highlights
As of Sep 30, 2022, ONEOK had cash and cash equivalents worth $22.2 million compared with $146.4 million as of Dec 31, 2021.
The long-term debt (excluding current maturities) was $11,950.7 million as of Sep 30, 2022, down from $12,747.6 million as of Dec 31, 2021.
ONEOK’s cash provided by operating activities for the first nine months of 2022 was $1,865.5 million compared with $1,491.2 million in the year-ago period.
Capital expenditures (including maintenance) amounted to $886.1 million in the first nine months of 2022, up from $490.3 million in the corresponding period of the previous 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 $3.72 per share is lower than $3.76, the midpoint of the guided range.
ONEOK’s Natural Gas Gathering and Processing segment expects 2022 gathered volume in the range of 2,090-2,370 million cubic feet per day (MMcf/d), up from the year-ago level of 2,030 MMcf/d. This segment expects processed volumes in the range of 1,980-2,240 MMcf/d, up from the 2021 levels of 1,903 MMcf/d.
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2022 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.13 by 2.4%.
The Zacks Consensus Estimate for DVN’s 2022 earnings implies year-over-year growth of 150.7%. Devon Energy witnessed an average surprise of 12.3% in the last four reported quarters.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2022 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 72 cents by 175%.
CNX Resources’ long-term (three to five-year) earnings growth is currently pegged at 26.1%. The Zacks Consensus Estimate for CNX’s 2022 earnings implies year-over-year growth of 23.6%.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2022 operating earnings of $3.83 (€3.78) per share, which lagged the Zacks Consensus Estimate of $3.91 per share by 2.04%.
The Zacks Consensus Estimate for TTE’s 2022 earnings implies year-over-year growth of 117.9%. TotalEnergies posted an average surprise of 10.9% in the last four reported quarters.
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ONEOK (OKE) Q3 Earnings Beat Estimates, Revenues Miss
ONEOK Inc. (OKE - Free Report) recorded third-quarter 2022 operating earnings per share (EPS) of 96 cents, which surpassed the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line improved by 9.1% from the year-ago quarter’s tally of 88 cents.
The year-over-year improvement was due to increased natural gas and NGL volumes in the Rocky Mountain region, higher realized commodity prices, average fee rates in the natural gas gathering and processing segment, higher average fee rates in the natural gas liquids segment and increased storage rates in the natural gas pipelines segment.
Total Revenues
Operating revenues of $5,913.5 million missed the Zacks Consensus Estimate of $6,519 million by 9.3%. However, the top line improved by 30.4% from $4,536.2 million in the prior-year quarter.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Highlights of the Release
In the third quarter, OKE’s adjusted EBITDA was $902.4 million, up 4.3% year over year.
ONEOK’s operating income came in at $699.2 million in the third quarter, up 4.7% from the prior-year quarter’s reading.
ONEOK incurred interest expenses worth $166.9 million, down 9.3% from the prior-year quarter’s level.
Financial Highlights
As of Sep 30, 2022, ONEOK had cash and cash equivalents worth $22.2 million compared with $146.4 million as of Dec 31, 2021.
The long-term debt (excluding current maturities) was $11,950.7 million as of Sep 30, 2022, down from $12,747.6 million as of Dec 31, 2021.
ONEOK’s cash provided by operating activities for the first nine months of 2022 was $1,865.5 million compared with $1,491.2 million in the year-ago period.
Capital expenditures (including maintenance) amounted to $886.1 million in the first nine months of 2022, up from $490.3 million in the corresponding period of the previous 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 $3.72 per share is lower than $3.76, the midpoint of the guided range.
ONEOK’s Natural Gas Gathering and Processing segment expects 2022 gathered volume in the range of 2,090-2,370 million cubic feet per day (MMcf/d), up from the year-ago level of 2,030 MMcf/d. This segment expects processed volumes in the range of 1,980-2,240 MMcf/d, up from the 2021 levels of 1,903 MMcf/d.
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.
Recent Releases
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2022 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.13 by 2.4%.
The Zacks Consensus Estimate for DVN’s 2022 earnings implies year-over-year growth of 150.7%. Devon Energy witnessed an average surprise of 12.3% in the last four reported quarters.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2022 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 72 cents by 175%.
CNX Resources’ long-term (three to five-year) earnings growth is currently pegged at 26.1%. The Zacks Consensus Estimate for CNX’s 2022 earnings implies year-over-year growth of 23.6%.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2022 operating earnings of $3.83 (€3.78) per share, which lagged the Zacks Consensus Estimate of $3.91 per share by 2.04%.
The Zacks Consensus Estimate for TTE’s 2022 earnings implies year-over-year growth of 117.9%. TotalEnergies posted an average surprise of 10.9% in the last four reported quarters.