Summary
ONEOK Inc. (OKE) reported its 2008 fiscal year results, demonstrating growth in diluted earnings per share to $2.95, a 6% increase from 2007. This growth was primarily driven by strong performance in the ONEOK Partners segment, benefiting from wider NGL product price differentials, higher commodity prices, and increased NGL gathering and fractionation volumes, along with contributions from recently acquired assets. The company's strategy continues to focus on delivering consistent growth and sustainable earnings across its segments: ONEOK Partners, Distribution, and Energy Services. Despite anticipating a challenging economic environment for 2009 with downward pressure on commodity prices, ONEOK remains strategically positioned. The company is undertaking significant capital projects within ONEOK Partners, aimed at expanding its gathering, processing, and NGL infrastructure, including the Overland Pass Pipeline and Guardian Pipeline extension, though capital expenditures in 2009 are projected to be lower than in 2008. ONEOK's financial health remains solid, supported by substantial operating cash flow and access to credit facilities. The company also managed its capital structure by repurchasing debt and continuing to pay and increase its dividends, reflecting confidence in its ongoing operational performance and future outlook amidst economic uncertainty.
Financial Highlights
51 data points| Revenue | $16.16B |
| Cost of Revenue | $14.22B |
| Gross Profit | $1.94B |
| Operating Expenses | $1.02B |
| Operating Income | $917.00M |
| Interest Expense | $264.17M |
| Net Income | $311.91M |
| EPS (Basic) | $1.50 |
| EPS (Diluted) | $1.48 |
| Shares Outstanding (Basic) | 209K |
| Shares Outstanding (Diluted) | 212K |
Key Highlights
- 1Diluted EPS increased by 6% to $2.95 in 2008, driven by the ONEOK Partners segment's improved performance.
- 2ONEOK Partners completed several key capital projects in 2008, including pipeline extensions and fractionation expansions, supporting its growth strategy.
- 3The company anticipates lower capital expenditures in 2009 ($425 million for ONEOK Partners) compared to 2008 ($1.3 billion for ONEOK Partners), reflecting project completion and a cautious outlook.
- 4ONEOK Inc. increased its ownership in ONEOK Partners to 47.7% through strategic unit purchases and partner contributions.
- 5The company demonstrated a commitment to shareholders by increasing dividends per share by 11% in 2008 and ONEOK Partners increasing unit distributions by 6%.
- 6Despite anticipating a deteriorating economic climate in 2009, ONEOK believes its strong financial position and access to credit will allow it to maintain operations and planned activities.
- 7The company is subject to market and credit risks, particularly due to the volatility of commodity prices and disruptions in capital markets, as noted in its risk factors.