Back to top

Image: Bigstock

ONEOK Misses on Third-Quarter Earnings, Raises 2024 Guidance

Read MoreHide Full Article

ONEOK Inc. (OKE - Free Report) reported third-quarter 2024 operating earnings per share (EPS) of $1.18, which missed the Zacks Consensus Estimate of $1.23 by 4.1%. However, the bottom line improved 19.2% from the year-ago figure of 99 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Total Revenues

Operating revenues totaled $5.02 billion, which missed the Zacks Consensus Estimate of $5.81 billion by 13.5%. However, the top line improved 19.8% from $4.19 billion 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

Adjusted EBITDA came in at $1.55 billion, up 52.2% year over year.

Operating income totaled $1.13 billion, up 52.7% from the prior-year level of $0.74 billion.

ONEOK incurred interest expenses of $325 million, up 51.2% from $215 million recorded in the year-ago period.

Total natural gas processed was 3,236 billion British thermal units per day (BBtu/d), up 4.9% year over year.

The company reported natural gas transportation capacity contracted of 8,231 million British thermal units per hour per day (MDth/d), which increased 6.8% year over year.

Financial Highlights   

As of Sept. 30, 2024, cash and cash equivalents amounted to $579 million compared with $338 million as of Dec. 31, 2023.

As of Sept. 30, 2024, long-term debt (excluding current maturities) totaled $26.9 billion compared with $21.2 billion as of Dec. 31, 2023.

Cash provided by operating activities for the first nine months of 2024 amounted to $3.28 billion compared with $2.91 billion in the corresponding period of 2023.

2024 Guidance

ONEOK has raised its projection for consolidated 2024 net income to the band of $2.895-$3.095 billion from the previous guidance of $2.73-$3.03 billion. The company has also raised its expectation for adjusted EBITDA to the band of $6.53-$ 6.73 billion from the previously guided range of $6.03-$ 6.33 billion.

Interest expense, net of capitalized interest, is now expected to be in the range of $1.205-$1.185 billion from the previous guidance of $1.195-$1.165 billion.

Zacks Rank

ONEOK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Energy Transfer (ET - Free Report) is slated to report third-quarter results on Nov. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 32 cents per unit.

The Zacks Consensus Estimate for sales is pinned at $24.23 billion, implying a year-over-year increase of 16.8%.

Murphy Oil Corporation (MUR - Free Report) is scheduled to report third-quarter results on Nov. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share.

The Zacks Consensus Estimate for sales is pinned at $762.11 million. The company delivered an average earnings surprise of 4.3% in the trailing four quarters.

Occidental Petroleum (OXY - Free Report) is scheduled to report third-quarter results on Nov. 12, after market close. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share.

The Zacks Consensus Estimate for sales is pinned at $7.53 billion. The company delivered an average earnings surprise of 20.6% in the trailing four quarters.

 

Published in