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OKE's Q3 earnings jumped 43% to $2.13 per share, beating estimates by 45.89%, while revenues surged 44.3%.
Higher volumes and stronger marketing drove gains, lifting ONEOK's adjusted EBITDA 5.6% to $2.24 billion.
OKE raised its 2026 adjusted EBITDA outlook to $8.50-$8.60 billion and net income to $4.09-$4.27 billion.
ONEOK, Inc. (OKE - Free Report) reported third-quarter 2026 earnings of $2.13 per share, which beat the Zacks Consensus Estimate of $1.46 by 45.89%. The bottom line increased 43% from the year-ago quarter's figure of $1.49.
The results benefited from higher natural gas liquids (NGLs), refined products and natural gas volumes, alongside stronger optimization and marketing activity. Earnings also included a one-time noncash income tax benefit.
OKE's Total Revenues Rise Year Over Year
Operating revenues for the third quarter totaled $12.46 billion, which beat the Zacks Consensus Estimate of $11.77 billion by 5.81%. The top line improved 44.3% from $8.63 billion in the prior-year quarter.
Commodity sales increased 50.9% year over year to $11.19 billion from $7.42 billion. Services and other revenues rose 3.9% to $1.27 billion from $1.22 billion in the year-ago quarter.
Adjusted EBITDA increased 5.6% year over year to $2.24 billion.
Operating income totaled $1.57 billion, up 0.6% from the prior-year level of $1.56 billion.
Operations and maintenance expenses increased 20% to $767 million from $639 million.
Interest expenses declined 7.8% to $415 million from $450 million.
OKE's NGL Business Sees Higher Throughput
Natural Gas Liquids adjusted EBITDA slipped 2.1% year over year to $659 million. Higher operating costs and lower transportation and storage volumes more than offset gains from optimization and marketing and exchange services.
Gulf Coast/Permian raw feed throughput increased 15.9% year over year to 657 thousand barrels per day (MBbl/d/), while Mid-Continent volumes rose 3.7% to 533 MBbl/d. However, Rocky Mountain throughput declined 4.5% to 471 MBbl/d. Total NGL raw feed throughput increased 5.5% year over year to 1,661 MBbl/d.
The Medford fractionator expansion remains on track, with its 100,000-barrel-per-day first phase expected to be completed in the fourth quarter of 2026 and the second phase scheduled for the first quarter of 2027.
ONEOK's Refined Products and Crude Business Grows
Refined Products and Crude adjusted EBITDA increased 17.7% year over year to $685 million, driven by stronger liquids blending and crude marketing earnings, favorable margin-sharing arrangements and higher refined products volumes.
Refined products volumes shipped rose 5.8% year over year to 1,615 MBbl/d. Gasoline volumes increased 10% to 948 MBbl/d, while distillate volumes rose 2% to 563 MBbl/d. However, crude oil volumes declined 6.6% to 1,693 MBbl/d.
OKE's Natural Gas Businesses Report Mixed Results
Natural Gas Gathering and Processing adjusted EBITDA edged down 0.5% year over year to $563 million. Higher operating costs offset gains from increased production volumes and improved realized condensate and natural gas prices.
Natural gas processed increased 0.2% year over year to 5,866 million cubic feet per day (MMcf/d), while Permian volumes rose 3.9% to 1,614 MMcf/d, supported by increased production.
Natural Gas Pipelines adjusted EBITDA climbed 15.5% to $231 million. Favorable Waha-to-Katy price differentials, higher firm transportation revenues and stronger contributions from pipeline affiliates supported the improvement.
Contracted transportation capacity increased to 7,780 thousand dekatherms per day from 7,246 thousand a year earlier. Contracted capacity represented 92% of available capacity compared with 90% previously.
OKE's Cash Flow and Balance Sheet
Cash and cash equivalents totaled $186 million as of Sept. 30, 2026 compared with $78 million at the end of 2025.
Long-term debt, excluding current maturities, declined to $26.94 billion from $30.76 billion.
Cash provided by operating activities totaled $4.37 billion during the first nine months of 2026, up 7.7% year over year. Capital expenditures reached $2.41 billion, while dividends paid amounted to $2.02 billion.
ONEOK Raises 2026 Guidance
ONEOK raised its 2026 net income guidance to $4.09-$4.27 billion and increased its adjusted EBITDA outlook to $8.50-$8.60 billion.
The company’s earnings per share (EPS) are projected at $6.15-$6.45. The Zacks Consensus Estimate for 2026 EPS is pegged at $5.69.
OKE expects approximately $3.50 billion in capital expenditures for 2026, reflecting additional growth opportunities and spending associated with the Brazos Permian Midland acquisition.
Energy Transfer (ET - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 41 cents, which indicates a year-over-year increase of 46.43%.
ET’s long-term (three to five years) earnings growth rate is 16.64%. The Zacks Consensus Estimate for third-quarter sales is pegged at $35.60 billion, which indicates a year-over-year rise of 78.41%.
Plains All American Pipeline (PAA - Free Report) is slated to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which indicates a year-over-year increase of 2.56%.
PAA’s long-term earnings growth rate is 1.63%. The Zacks Consensus Estimate for third-quarter sales is pegged at $16.41 billion, which suggests a year-over-year increase of 41.71%.
Delek Logistics Partners, LP (DKL - Free Report) is scheduled to release third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, which indicates a year-over-year increase of 62.35%.
DKL's dividend yield is 7.98%. The Zacks Consensus Estimate for third-quarter sales is pegged at $356.57 million, which calls for a year-over-year rise of 36.47%.
View the Zacks #1 Rank List
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OKE Q3 Earnings Surpass Estimates on Higher Volumes & Marketing Gains
Key Takeaways
ONEOK, Inc. (OKE - Free Report) reported third-quarter 2026 earnings of $2.13 per share, which beat the Zacks Consensus Estimate of $1.46 by 45.89%. The bottom line increased 43% from the year-ago quarter's figure of $1.49.
The results benefited from higher natural gas liquids (NGLs), refined products and natural gas volumes, alongside stronger optimization and marketing activity. Earnings also included a one-time noncash income tax benefit.
OKE's Total Revenues Rise Year Over Year
Operating revenues for the third quarter totaled $12.46 billion, which beat the Zacks Consensus Estimate of $11.77 billion by 5.81%. The top line improved 44.3% from $8.63 billion in the prior-year quarter.
Commodity sales increased 50.9% year over year to $11.19 billion from $7.42 billion. Services and other revenues rose 3.9% to $1.27 billion from $1.22 billion in the year-ago quarter.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
ONEOK's Profitability and Cost Trends
Adjusted EBITDA increased 5.6% year over year to $2.24 billion.
Operating income totaled $1.57 billion, up 0.6% from the prior-year level of $1.56 billion.
Operations and maintenance expenses increased 20% to $767 million from $639 million.
Interest expenses declined 7.8% to $415 million from $450 million.
OKE's NGL Business Sees Higher Throughput
Natural Gas Liquids adjusted EBITDA slipped 2.1% year over year to $659 million. Higher operating costs and lower transportation and storage volumes more than offset gains from optimization and marketing and exchange services.
Gulf Coast/Permian raw feed throughput increased 15.9% year over year to 657 thousand barrels per day (MBbl/d/), while Mid-Continent volumes rose 3.7% to 533 MBbl/d. However, Rocky Mountain throughput declined 4.5% to 471 MBbl/d. Total NGL raw feed throughput increased 5.5% year over year to 1,661 MBbl/d.
The Medford fractionator expansion remains on track, with its 100,000-barrel-per-day first phase expected to be completed in the fourth quarter of 2026 and the second phase scheduled for the first quarter of 2027.
ONEOK's Refined Products and Crude Business Grows
Refined Products and Crude adjusted EBITDA increased 17.7% year over year to $685 million, driven by stronger liquids blending and crude marketing earnings, favorable margin-sharing arrangements and higher refined products volumes.
Refined products volumes shipped rose 5.8% year over year to 1,615 MBbl/d. Gasoline volumes increased 10% to 948 MBbl/d, while distillate volumes rose 2% to 563 MBbl/d. However, crude oil volumes declined 6.6% to 1,693 MBbl/d.
OKE's Natural Gas Businesses Report Mixed Results
Natural Gas Gathering and Processing adjusted EBITDA edged down 0.5% year over year to $563 million. Higher operating costs offset gains from increased production volumes and improved realized condensate and natural gas prices.
Natural gas processed increased 0.2% year over year to 5,866 million cubic feet per day (MMcf/d), while Permian volumes rose 3.9% to 1,614 MMcf/d, supported by increased production.
Natural Gas Pipelines adjusted EBITDA climbed 15.5% to $231 million. Favorable Waha-to-Katy price differentials, higher firm transportation revenues and stronger contributions from pipeline affiliates supported the improvement.
Contracted transportation capacity increased to 7,780 thousand dekatherms per day from 7,246 thousand a year earlier. Contracted capacity represented 92% of available capacity compared with 90% previously.
OKE's Cash Flow and Balance Sheet
Cash and cash equivalents totaled $186 million as of Sept. 30, 2026 compared with $78 million at the end of 2025.
Long-term debt, excluding current maturities, declined to $26.94 billion from $30.76 billion.
Cash provided by operating activities totaled $4.37 billion during the first nine months of 2026, up 7.7% year over year. Capital expenditures reached $2.41 billion, while dividends paid amounted to $2.02 billion.
ONEOK Raises 2026 Guidance
ONEOK raised its 2026 net income guidance to $4.09-$4.27 billion and increased its adjusted EBITDA outlook to $8.50-$8.60 billion.
The company’s earnings per share (EPS) are projected at $6.15-$6.45. The Zacks Consensus Estimate for 2026 EPS is pegged at $5.69.
OKE expects approximately $3.50 billion in capital expenditures for 2026, reflecting additional growth opportunities and spending associated with the Brazos Permian Midland acquisition.
OKE’s 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.
Upcoming Releases
Energy Transfer (ET - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 41 cents, which indicates a year-over-year increase of 46.43%.
ET’s long-term (three to five years) earnings growth rate is 16.64%. The Zacks Consensus Estimate for third-quarter sales is pegged at $35.60 billion, which indicates a year-over-year rise of 78.41%.
Plains All American Pipeline (PAA - Free Report) is slated to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which indicates a year-over-year increase of 2.56%.
PAA’s long-term earnings growth rate is 1.63%. The Zacks Consensus Estimate for third-quarter sales is pegged at $16.41 billion, which suggests a year-over-year increase of 41.71%.
Delek Logistics Partners, LP (DKL - Free Report) is scheduled to release third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, which indicates a year-over-year increase of 62.35%.
DKL's dividend yield is 7.98%. The Zacks Consensus Estimate for third-quarter sales is pegged at $356.57 million, which calls for a year-over-year rise of 36.47%.