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ONEOK Inc (OKE - Free Report) posted fourth-quarter 2018 operating earnings of 70 cents per share, which missed the Zacks Consensus Estimate of 74 cents by 5.4%. Nevertheless, the figure improved 337.5% on a year-over-year basis.
In 2018, the company delivered earnings of $2.78 per share compared with $1.29 per share in 2017. The upside can be attributed to volume growth across operations.
Total Revenues
Total revenues were $3.14 billion, which beat the Zacks Consensus Estimate of $3.09 billion by 1.6%. The figure declined 17.3% from $3.79 billion in the prior-year quarter.
In 2018, the company delivered revenues of $12.59 billion, up from $12.17 billion in 2017.
The company spent $2.32 billion on cost of sales and fuel, down 24.6% from the year-ago quarter’s tally.
In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $347.4 million, up 12.3% year over year.
The company incurred interest expenses of $118.5 million, down 4.6% from $124.2 million in the prior-year quarter. Operating income was $471.8 million in the fourth quarter, up from $400.5 million in the prior-year quarter.
Recently, ONEOK completed capital-growth project worth approximately $500 million.
Financial Highlights
As of Dec 31, 2018, ONEOK had cash and cash equivalents of $12 million compared with $37.2 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $8,873.3 million as of Dec 31, 2018, up from $8,091.6 million as of Dec 31, 2017.
The company’s cash flow from operating activities at the end of Dec 31, 2018 was $2,186.7 million, up from $1,315.4 million at the end of Dec 31, 2017.
Capital expenditures (less allowance for equity funds used during construction) amounted to $2,141.4 million, up from $567.6 million in the year-ago period.
Guidance
For 2019, ONEOK projects net income in the range of $1,140-$1,400 million. Also, the company expects 2019 adjusted EBITDA in the range of $2,500-$2,700 million.
ONE Gas, Inc. (OGS - Free Report) recorded fourth-quarter 2018 operating earnings of 84 cents per share, lagging the Zacks Consensus Estimate of 85 cents by 1.2%.
MDU Resources Group Inc. (MDU - Free Report) delivered fourth-quarter 2018 operating earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 7.14%
National Fuel Gas Company (NFG - Free Report) delivered first-quarter fiscal 2019 operating earnings of $1.12 per share, beating the Zacks Consensus Estimate of $1.07 by 4.7%.
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ONEOK (OKE) Lags Q4 Earnings, Surpasses Revenue Estimates
ONEOK Inc (OKE - Free Report) posted fourth-quarter 2018 operating earnings of 70 cents per share, which missed the Zacks Consensus Estimate of 74 cents by 5.4%. Nevertheless, the figure improved 337.5% on a year-over-year basis.
In 2018, the company delivered earnings of $2.78 per share compared with $1.29 per share in 2017. The upside can be attributed to volume growth across operations.
Total Revenues
Total revenues were $3.14 billion, which beat the Zacks Consensus Estimate of $3.09 billion by 1.6%. The figure declined 17.3% from $3.79 billion in the prior-year quarter.
In 2018, the company delivered revenues of $12.59 billion, up from $12.17 billion in 2017.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. Price, Consensus and EPS Surprise | ONEOK, Inc. Quote
Quarterly Highlights
The company spent $2.32 billion on cost of sales and fuel, down 24.6% from the year-ago quarter’s tally.
In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $347.4 million, up 12.3% year over year.
The company incurred interest expenses of $118.5 million, down 4.6% from $124.2 million in the prior-year quarter. Operating income was $471.8 million in the fourth quarter, up from $400.5 million in the prior-year quarter.
Recently, ONEOK completed capital-growth project worth approximately $500 million.
Financial Highlights
As of Dec 31, 2018, ONEOK had cash and cash equivalents of $12 million compared with $37.2 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $8,873.3 million as of Dec 31, 2018, up from $8,091.6 million as of Dec 31, 2017.
The company’s cash flow from operating activities at the end of Dec 31, 2018 was $2,186.7 million, up from $1,315.4 million at the end of Dec 31, 2017.
Capital expenditures (less allowance for equity funds used during construction) amounted to $2,141.4 million, up from $567.6 million in the year-ago period.
Guidance
For 2019, ONEOK projects net income in the range of $1,140-$1,400 million. Also, the company expects 2019 adjusted EBITDA in the range of $2,500-$2,700 million.
Zacks Rank
ONEOK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Gas-Distribution Releases
ONE Gas, Inc. (OGS - Free Report) recorded fourth-quarter 2018 operating earnings of 84 cents per share, lagging the Zacks Consensus Estimate of 85 cents by 1.2%.
MDU Resources Group Inc. (MDU - Free Report) delivered fourth-quarter 2018 operating earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 7.14%
National Fuel Gas Company (NFG - Free Report) delivered first-quarter fiscal 2019 operating earnings of $1.12 per share, beating the Zacks Consensus Estimate of $1.07 by 4.7%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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