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Oneok (OKE) Down 1.2% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oneok due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for ONEOK, Inc. before we dive into how investors and analysts have reacted as of late.
OKEOK Q1 Earnings Beat Estimates on Volume Growth, Guidance Up
ONEOK Inc. delivered a mixed quarter relative to expectations, with earnings coming in ahead of the Zacks Consensus Estimate while revenues fell slightly short. The company posted operating earnings of $1.30 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $1.26 by 3.2%.
On a reported basis, first-quarter net income rose 12.3% year over year to $776 million, while diluted earnings per share increased 18.3% to $1.23 from $1.04 in the year-ago quarter.
OKE’s Total Revenues
Revenues totaled $9.62 billion, missing the consensus mark of $9.68 billion by 0.6%. Total revenues were up 19.6% year over year from $8.04 billion.
OKE’s Operational Highlights
A key operating highlight was a 5% increase in total natural gas volumes processed to 5,490 million cubic feet per day, reflecting continued throughput resilience across the system. Management attributed the quarter’s improvement to volume growth and ongoing operational execution across its integrated asset footprint.
Operational momentum was visible in NGL raw feed throughput, which increased 15.4% year over year to 1,493 thousand barrels per day (“MBbl/d”). The company highlighted particularly strong growth in the Gulf Coast/Permian region, reinforcing the value of its market-connected assets and integrated NGL value chain.
Beyond optimization, the Pipeline segment also saw higher firm transportation revenues and improved earnings from unconsolidated affiliates, including Northern Border Pipeline.
Capacity utilization metrics remained supportive, with transportation capacity contracted at 93%, underscoring the fee-based nature of this part of the business.
Cost trends offered some relief. The company noted lower operating costs, including the absence of methane fees in 2026 due to regulatory changes, helping cushion the impact from pricing.
ONEOK’s Financial Highlights
Balance sheet positioning shifted modestly in the quarter. Cash and cash equivalents ended the period at $172 million, up from $78 million at the end of 2025, while short-term borrowings increased as the company funded investment needs and shareholder distributions.
Cash flow reflected the capital intensity of the portfolio. Operating activities generated $934 million during the quarter, while capital expenditures totaled $864 million. Dividends paid were $674 million, and the funding mix included higher net short-term borrowings, consistent with an active approach to managing liquidity while executing on the 2026 investment program.
Capital expenditure in the first quarter was $864 million compared with $629 million at the end of 2025.
OKE Raises 2026 Targets as Outlook Strengthens
Following the quarter, ONEOK increased its full-year 2026 financial guidance. Net income is now expected in a range of $3.21 billion to $3.79 billion, resulting in a diluted earnings per common share range of $5.06-$5.99. The company also lifted earnings per diluted share outlook, citing stronger segment performance and broader opportunities across its system. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.65.
Capital allocation priorities remained intact. Total 2026 capital expenditure guidance was maintained at $2.7 billion to $3.2 billion, supporting a slate of organic projects and infrastructure investments.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Oneok has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Oneok (OKE) Down 1.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Oneok Inc. (OKE - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oneok due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for ONEOK, Inc. before we dive into how investors and analysts have reacted as of late.
OKEOK Q1 Earnings Beat Estimates on Volume Growth, Guidance Up
ONEOK Inc. delivered a mixed quarter relative to expectations, with earnings coming in ahead of the Zacks Consensus Estimate while revenues fell slightly short. The company posted operating earnings of $1.30 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $1.26 by 3.2%.
On a reported basis, first-quarter net income rose 12.3% year over year to $776 million, while diluted earnings per share increased 18.3% to $1.23 from $1.04 in the year-ago quarter.
OKE’s Total Revenues
Revenues totaled $9.62 billion, missing the consensus mark of $9.68 billion by 0.6%. Total revenues were up 19.6% year over year from $8.04 billion.
OKE’s Operational Highlights
A key operating highlight was a 5% increase in total natural gas volumes processed to 5,490 million cubic feet per day, reflecting continued throughput resilience across the system. Management attributed the quarter’s improvement to volume growth and ongoing operational execution across its integrated asset footprint.
Operational momentum was visible in NGL raw feed throughput, which increased 15.4% year over year to 1,493 thousand barrels per day (“MBbl/d”). The company highlighted particularly strong growth in the Gulf Coast/Permian region, reinforcing the value of its market-connected assets and integrated NGL value chain.
Beyond optimization, the Pipeline segment also saw higher firm transportation revenues and improved earnings from unconsolidated affiliates, including Northern Border Pipeline.
Capacity utilization metrics remained supportive, with transportation capacity contracted at 93%, underscoring the fee-based nature of this part of the business.
Cost trends offered some relief. The company noted lower operating costs, including the absence of methane fees in 2026 due to regulatory changes, helping cushion the impact from pricing.
ONEOK’s Financial Highlights
Balance sheet positioning shifted modestly in the quarter. Cash and cash equivalents ended the period at $172 million, up from $78 million at the end of 2025, while short-term borrowings increased as the company funded investment needs and shareholder distributions.
Cash flow reflected the capital intensity of the portfolio. Operating activities generated $934 million during the quarter, while capital expenditures totaled $864 million. Dividends paid were $674 million, and the funding mix included higher net short-term borrowings, consistent with an active approach to managing liquidity while executing on the 2026 investment program.
Capital expenditure in the first quarter was $864 million compared with $629 million at the end of 2025.
OKE Raises 2026 Targets as Outlook Strengthens
Following the quarter, ONEOK increased its full-year 2026 financial guidance. Net income is now expected in a range of $3.21 billion to $3.79 billion, resulting in a diluted earnings per common share range of $5.06-$5.99. The company also lifted earnings per diluted share outlook, citing stronger segment performance and broader opportunities across its system. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.65.
Capital allocation priorities remained intact. Total 2026 capital expenditure guidance was maintained at $2.7 billion to $3.2 billion, supporting a slate of organic projects and infrastructure investments.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Oneok has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.