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ONEOK (OKE) to Release Q4 Earnings: What's in the Offing?

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ONEOK Inc. (OKE - Free Report) is set to report fourth-quarter earnings on Feb 27, after market close. This oil and gas midstream company delivered an earnings surprise of 3.23% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

ONEOK’s fourth-quarter earnings are likely to have benefited from the contributions of recently completed projects in high production regions. Rising production volumes are also likely to benefit the company. High fee-based contracts are also expected to have boosted earnings in the fourth quarter.

ONEOK’s fourth-quarter earnings are likely to have gained from strong production volumes at Williston Basin and the company’s increased processing volumes.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings per share and total revenues are pegged at $1.02 and $5.61 billion, which implies year-over-year growth of 20% and 3.5%, respectively.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for ONEOK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

 

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote


Earnings ESP: ONEOK has an Earnings ESP of -0.85%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ONEOK currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings in this reporting cycle.

Clearway Energy (CWEN - Free Report) is set to release fourth-quarter 2022 numbers on Feb 23. CWEN has an Earnings ESP of +77.19% and currently sports a Zacks Rank #1.

Clearway Energy’s long-term (three to five years) earnings growth rate is 10%. The Zacks Consensus Estimate for CWEN’s  2022 earnings implies year-over-year growth of 400%.

EOG Resources (EOG - Free Report) is scheduled to release fourth-quarter 2022 numbers on Feb 23. EOG has an Earnings ESP of +0.21% and a Zacks Rank #3.

EOG’s long-term earnings growth rate is 28.1%. The Zacks Consensus Estimate for EOG’s 2022 earnings implies year-over-year growth of 59%.

Northern Oil and Gas, Inc. (NOG - Free Report) is set to release fourth-quarter 2022 numbers on Feb 23. NOG has an Earnings ESP of +0.23% and currently carries a Zacks Rank #3.

Northern Oil and Gas’s long-term earnings growth is 21.9%. The Zacks Consensus Estimate for 2022 earnings of NOG implies year-over-year growth of 114.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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