Summary
ONEOK Inc.'s 2007 annual report highlights a year of strategic growth and operational expansion, particularly through its majority-owned subsidiary, ONEOK Partners, L.P. (OKS). The company reported an increase in diluted earnings per share from continuing operations to $2.79 in 2007, up from $2.68 in 2006. This growth was driven by rate schedule implementations in the Distribution segment and improved natural gas liquids (NGL) operations within ONEOK Partners, benefiting from new supply connections and favorable product price spreads. Significant capital projects were undertaken by ONEOK Partners, including the acquisition of a major NGL pipeline system from Kinder Morgan for approximately $300 million, and ongoing development of the Overland Pass Pipeline. These strategic moves underscore ONEOK's focus on expanding its midstream infrastructure and enhancing its NGL gathering, processing, and transportation capabilities. The company also demonstrated a commitment to shareholder returns, increasing its quarterly dividend by approximately 12% for 2008. ONEOK Partners also increased its cash distribution to unitholders. While facing market risks common to the energy sector, including commodity price volatility and competition, ONEOK's diversified business segments and strategic investments position it for continued development and value creation.
Financial Highlights
32 data points| Revenue | $13.48B |
| Cost of Revenue | $11.67B |
| Gross Profit | $1.81B |
| Operating Expenses | $989.47M |
| Operating Income | $822.54M |
| Interest Expense | $256.32M |
| Net Income | $304.92M |
| EPS (Basic) | $1.42 |
| EPS (Diluted) | $1.40 |
| Shares Outstanding (Basic) | 214.69M |
| Shares Outstanding (Diluted) | 218.60M |
Key Highlights
- 1ONEOK reported an increase in diluted EPS from continuing operations to $2.79 in 2007, compared to $2.68 in 2006.
- 2ONEOK Partners, L.P. (OKS) completed a significant acquisition of an NGL and refined products pipeline system from Kinder Morgan for approximately $300 million.
- 3ONEOK Partners announced and continued construction on major NGL pipeline projects, including the Overland Pass Pipeline and the Arbuckle Pipeline, enhancing its midstream infrastructure.
- 4The company increased its quarterly dividend by approximately 12% for 2008, signaling confidence in its financial performance and commitment to shareholder returns.
- 5The Distribution segment saw improved results due to new rate schedules implemented in Kansas and Texas, alongside a return to normal weather patterns.
- 6ONEOK's Energy Services segment experienced lower transportation margins, partially offsetting the overall growth in other segments.
- 7The company maintained strong credit ratings and liquidity, with ONEOK Partners accessing significant debt financing to support its capital expansion.