We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ONEOK (OKE) Earnings and Revenues Miss Estimates in Q4
Read MoreHide Full Article
ONEOK Inc. (OKE - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of $1.18 per share, which lagged the Zacks Consensus Estimate of $1.21 per share by 2.4%. However, the bottom line improved 9.2% from the year-ago quarter’s figure of 1.08.
OKE reported earnings of $5.48 per share for 2023 compared with $3.84 per share in 2022, which reflects a year-over-year increase of 42.7%.
Total Revenues
Operating revenues for the quarter totaled $5.2 billion, which missed the Zacks Consensus Estimate of $5.5 billion by 5.4%. However, the top line improved 4% from $5 billion in the prior-year quarter.
OKE reported total revenues of nearly $17.6 billion for 2023 compared with $22.3 billion in 2022, which reflects a year-over-year decrease of 21%.
Adjusted EBITDA came in at $1.5 billion, up 56% year over year. Additionally, 2023 results included $465 million of adjusted EBITDA in the refined products and crude segment following the closing of the Magellan acquisition on Sep 25, 2023.
Operating income totaled $1.1 billion, up 45.3% from the prior-year quarter’s level of $756 million.
ONEOK incurred interest expenses of $305 million, up 83.7% from $166 million recorded in the year-ago period.
During the fourth quarter, total natural gas processed was 3,172 Billion British thermal units per day (BBtu/d), up 18.4% year over year.
OKE reported natural gas transportation capacity contracted of 7,920 million British thermal units per hour per day (MDth/d), up 4% year over year.
Financial Highlights
As of Dec 31, 2023, ONEOK had cash and cash equivalents worth $338 million compared with $220 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) totaled $21.1 billion as of Dec 31, 2023 compared with $12.7 billion as of Dec 31, 2022.
Cash provided by operating activities for 2023 amounted to $4.4 billion compared with $2.9 billion in the corresponding period of 2022.
2024 Guidance
ONEOK anticipates consolidated 2024 net income in the band of $2.6-$3 billion. It expects adjusted EBITDA in the range of $5.9-$6.3 billion.
Total capital expenditures are expected between $1.75 billion and $1.95 billion. Capital expenditure guidance includes the MB-6 NGL fractionator West Texas NGL pipeline expansion project and the expansion of the Elk Creek NGL pipeline, which will bring total capacity out of the Rocky Mountain region to 575,000 barrels per day.
CNX Resources (CNX - Free Report) reported fourth-quarter 2023 earnings of 68 cents, which beat the Zacks Consensus Estimate of 27 cents by 151.8%.
CNX’s long-term (three to five years) earnings growth rate is 5.56%. The Zacks Consensus Estimate for CNX’s 2024 earnings stands at $1.52 per share, calling for a year-over-year decline of 20%.
Plains All American (PAA - Free Report) delivered fourth-quarter 2023 adjusted net earnings of 42 cents, which beat the Zacks Consensus Estimate of 38 cents by 10.5%.
The Zacks Consensus Estimate for PAA’s 2024 earnings is pegged at $1.26 per share, implying a year-over-year decline of 11.27%.
TotalEnergies (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 per share, which lagged the Zacks Consensus Estimate of $2.33 by 7.2%.
TTE’s long-term earnings growth rate is 4.45%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating a year-over-year decline of 1.28%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ONEOK (OKE) Earnings and Revenues Miss Estimates in Q4
ONEOK Inc. (OKE - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of $1.18 per share, which lagged the Zacks Consensus Estimate of $1.21 per share by 2.4%. However, the bottom line improved 9.2% from the year-ago quarter’s figure of 1.08.
OKE reported earnings of $5.48 per share for 2023 compared with $3.84 per share in 2022, which reflects a year-over-year increase of 42.7%.
Total Revenues
Operating revenues for the quarter totaled $5.2 billion, which missed the Zacks Consensus Estimate of $5.5 billion by 5.4%. However, the top line improved 4% from $5 billion in the prior-year quarter.
OKE reported total revenues of nearly $17.6 billion for 2023 compared with $22.3 billion in 2022, which reflects a year-over-year decrease of 21%.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Highlights of the Release
Adjusted EBITDA came in at $1.5 billion, up 56% year over year. Additionally, 2023 results included $465 million of adjusted EBITDA in the refined products and crude segment following the closing of the Magellan acquisition on Sep 25, 2023.
Operating income totaled $1.1 billion, up 45.3% from the prior-year quarter’s level of $756 million.
ONEOK incurred interest expenses of $305 million, up 83.7% from $166 million recorded in the year-ago period.
During the fourth quarter, total natural gas processed was 3,172 Billion British thermal units per day (BBtu/d), up 18.4% year over year.
OKE reported natural gas transportation capacity contracted of 7,920 million British thermal units per hour per day (MDth/d), up 4% year over year.
Financial Highlights
As of Dec 31, 2023, ONEOK had cash and cash equivalents worth $338 million compared with $220 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) totaled $21.1 billion as of Dec 31, 2023 compared with $12.7 billion as of Dec 31, 2022.
Cash provided by operating activities for 2023 amounted to $4.4 billion compared with $2.9 billion in the corresponding period of 2022.
2024 Guidance
ONEOK anticipates consolidated 2024 net income in the band of $2.6-$3 billion. It expects adjusted EBITDA in the range of $5.9-$6.3 billion.
Total capital expenditures are expected between $1.75 billion and $1.95 billion. Capital expenditure guidance includes the MB-6 NGL fractionator West Texas NGL pipeline expansion project and the expansion of the Elk Creek NGL pipeline, which will bring total capacity out of the Rocky
Mountain region to 575,000 barrels per day.
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.
Other Releases
CNX Resources (CNX - Free Report) reported fourth-quarter 2023 earnings of 68 cents, which beat the Zacks Consensus Estimate of 27 cents by 151.8%.
CNX’s long-term (three to five years) earnings growth rate is 5.56%. The Zacks Consensus Estimate for CNX’s 2024 earnings stands at $1.52 per share, calling for a year-over-year decline of 20%.
Plains All American (PAA - Free Report) delivered fourth-quarter 2023 adjusted net earnings of 42 cents, which beat the Zacks Consensus Estimate of 38 cents by 10.5%.
The Zacks Consensus Estimate for PAA’s 2024 earnings is pegged at $1.26 per share, implying a year-over-year decline of 11.27%.
TotalEnergies (TTE - Free Report) reported fourth-quarter 2023 operating earnings of $2.16 per share, which lagged the Zacks Consensus Estimate of $2.33 by 7.2%.
TTE’s long-term earnings growth rate is 4.45%. The Zacks Consensus Estimate for 2024 EPS is pegged at $9.28, indicating a year-over-year decline of 1.28%.