Summary
ONEOK Inc.'s 2010 10-K filing outlines a diversified energy company with three main operating segments: ONEOK Partners, Distribution, and Energy Services. The company emphasizes a strategy focused on consistent growth and sustainable earnings through strategic acquisitions, organic growth projects within ONEOK Partners, operational efficiencies in Distribution, and market optimization in Energy Services. For the year ended December 31, 2009, ONEOK reported a decrease in diluted EPS from continuing operations to $2.87 from $2.95 in 2008, with operating income declining slightly due to lower commodity prices impacting ONEOK Partners, partially offset by improved performance in the Distribution and Energy Services segments. Despite a challenging economic environment, the company managed its balance sheet, with ONEOK Partners successfully issuing equity and debt, which helped in repaying borrowings. The company's outlook for 2010 anticipates a moderate economic recovery and an improving commodity price environment. Significant capital projects were completed in 2009 by ONEOK Partners, enhancing its natural gas liquids infrastructure. The company also highlighted its dividend payouts, which saw an increase for shareholders.
Financial Highlights
52 data points| Revenue | $10.81B |
| Cost of Revenue | $8.81B |
| Gross Profit | $2.00B |
| Operating Expenses | $1.12B |
| Operating Income | $882.87M |
| Interest Expense | $300.82M |
| Net Income | $305.45M |
| EPS (Basic) | $1.45 |
| EPS (Diluted) | $1.44 |
| Shares Outstanding (Basic) | 211K |
| Shares Outstanding (Diluted) | 213K |
Key Highlights
- 1Diversified business model across ONEOK Partners (gathering, processing, NGLs, pipelines), Distribution (natural gas utility services), and Energy Services (marketing, storage, risk management).
- 2ONEOK Partners completed several key capital projects in 2009, including pipeline expansions and processing plant upgrades, enhancing its NGL infrastructure.
- 3Despite a challenging economic climate in 2009, ONEOK demonstrated resilience, with its Distribution segment benefiting from capital-recovery mechanisms and its Energy Services segment showing improved margins.
- 4The company maintained its dividend payments to shareholders and increased its quarterly dividend in early 2010, signaling confidence in its financial stability.
- 5ONEOK Partners successfully accessed capital markets through equity and debt offerings in 2009 and early 2010, strengthening its financial position and allowing for debt reduction.
- 6The company's outlook for 2010 is cautiously optimistic, anticipating a moderate economic recovery and an improving commodity price environment.
- 7Risk factors highlighted include market volatility, capital availability, commodity price fluctuations, and regulatory changes, common to the energy sector.