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ONEOK (OKE) to Report Q3 Earnings: What's in the Offing?

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ONEOK Inc. (OKE - Free Report) is set to report third-quarter 2023 earnings on Oct 31, after market close. This oil and gas midstream company delivered an earnings surprise of 4% in the last reported quarter.

Let’s discuss the factors that are likely to influence the upcoming quarterly results.

Factors at Play

ONEOK’s third-quarter earnings are likely to have benefited from increased Natural Gas liquid (NGL) volumes and rising global demand during the period. Strong fee-based contracts are expected to have boosted earnings in the third quarter, with more than 90% likely to be fee-based.

ONEOK’s third-quarter earnings are expected to have gained from the acquisition of Magellan Midstream Partners, L.P., which will help create a highly complementary asset base. Pipeline connectivity to the geographically contiguous states is also likely to have boosted the performance of the Natural Gas Pipeline segment in the third quarter.

Expectations

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.04, which implies year-over-year growth of 8.3%.

The Zacks Consensus Estimate for third-quarter Average Raw Feed Throughput Volumes is 1,429 MBbl/d, up 11.8% year over year due to the addition of new assets.

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, which is not the case here.

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 -7.03%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ONEOK carries a Zacks Rank #2.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat for the to-be-reported quarter.

Murphy Oil Corp. (MUR - Free Report) is set to report third-quarter 2023 numbers on Nov 2, before market open. It has an Earnings ESP of +1.77% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

MUR’s average earnings surprise in the past four quarters is 14.04%. The Zacks Consensus Estimate for fourth-quarter 2023 earnings implies year-over-year growth of 40%.

Devon Energy Corp. (DVN - Free Report) is scheduled to release third-quarter 2023 results on Nov 7, after market close. It has an Earnings ESP of +2.35% and a Zacks Rank of 2.

DVN’s long-term earnings growth rate is 51.3%. The Zacks Consensus Estimate for fourth-quarter 2023 earnings implies year-over-year growth of 2.4%.

Evergy Inc. (EVRG - Free Report) is set to report third-quarter 2023 results on Nov 7, before market open. It has an Earnings ESP of +1.98% and presently sports a Zacks Rank of 3.

EVRG’s long-term (three- to five-year) earnings growth rate is 4.8%. The Zacks Consensus Estimate for fourth-quarter 2023 earnings implies year-over-year growth of 53.3%.

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

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