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ONEOK's (OKE) Earnings and Revenues Beat Estimates in Q4

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ONEOK Inc (OKE - Free Report) posted fourth-quarter 2019 operating earnings of 77 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 2.7%. The figure also increased 10% on a year-over-year basis.

In 2019, the company delivered earnings of $3.07 per share compared with $2.78 reported in 2018. The upside can be attributed to growth in natural gas liquids (NGL) and natural gas volume, higher average fee rates in the natural gas liquids and natural gas gathering and processing segments as well as increased transportation services in the natural gas pipelines segment.

Total Revenues

Total revenues were $2.66 billion, which beat the Zacks Consensus Estimate of $2.42 billion by 9.7%. The figure declined 15% from $3.14 billion in the prior-year quarter.

In 2019, the company delivered revenues of $10.16 billion, down from $12.59 billion in 2018.

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

The company spent $1.79 billion on cost of sales and fuel, down 22.7% from the year-ago quarter’s tally.

In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $660.5 million, up 5.6% year over year.

The company incurred interest expenses of $129.3 million, up 9.1% from $118.5 million in the prior-year quarter. Operating income was $487.3 million in the fourth quarter, up from $471.8 million in the prior-year quarter.

Elk Creek Pipeline and the Demicks Lake I and II plants projects were completed in 2019.

Financial Highlights

As of Dec 31, 2019, ONEOK had cash and cash equivalents of $21 million compared with $12 million as of Dec 31, 2018.

Long-term debt (excluding current maturities) was $12,479.7 million as of Dec 31, 2019, up from $8,873.3 million as of Dec 31, 2018.

The company’s cash flow from operating activities at the end of Dec 31, 2019 was $1,946.8 million, down from $2,186.7 million at the end of Dec 31, 2018.

Capital expenditures (less allowance for equity funds used during construction) amounted to $3,848.3 million, up from $2,141.5 million in the year-ago period.

Guidance

For 2020, ONEOK projects net income in the range of $1,355-$1,605 million. Also, the company expects 2020 adjusted EBITDA in the range of $2,250-$2,730 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 Releases

National Fuel Gas Company (NFG - Free Report) posted first-quarter fiscal 2020 operating earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 95 cents by 6.3%.

Atmos Energy Corporation (ATO - Free Report) posted first-quarter fiscal 2020 earnings of $1.47 per share, which lagged the Zacks Consensus Estimate of $1.49 by 1.3%.

Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2019 adjusted earnings of 63 cents per unit, which topped the Zacks Consensus Estimate of 49 cents by 28.6%

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