Summary
ONEOK Inc. (OKE) filed an amendment to its 2009 10-K report, detailing its diversified energy operations. The company operates through three primary segments: ONEOK Partners, Distribution, and Energy Services. ONEOK Partners is a significant master limited partnership focused on natural gas and natural gas liquids (NGL) gathering, processing, storage, and transportation. The Distribution segment serves as a regulated public utility, distributing natural gas to over two million customers across Oklahoma, Kansas, and Texas. The Energy Services segment provides premium natural gas marketing and risk management services. The company's strategy emphasizes consistent growth and sustainable earnings through strategic acquisitions, growth projects within ONEOK Partners, and operational efficiencies in its Distribution segment. In 2009, ONEOK Partners completed several capital projects, including pipeline expansions and plant expansions, funded partly by public offerings of common units. The company managed its balance sheet to maintain strong credit ratings, aiming for investment-grade levels. Key financial highlights indicate a decrease in diluted earnings per share from continuing operations in 2009 compared to 2008, primarily due to lower commodity prices and increased operating expenses in the ONEOK Partners segment, partially offset by improved margins in the Energy Services and Distribution segments.
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
- 1ONEOK operates through three main segments: ONEOK Partners (midstream natural gas and NGLs), Distribution (regulated natural gas utility), and Energy Services (natural gas marketing and risk management).
- 2ONEOK Partners made significant capital investments in 2009, completing several pipeline and processing plant expansions, including the Guardian Pipeline expansion and the Arbuckle Natural Gas Liquids Pipeline.
- 3The company's strategy aims for consistent growth and sustainable earnings, focusing on increasing distributable cash flow at ONEOK Partners and growing the rate base in its Distribution segment.
- 4ONEOK Partners successfully accessed capital markets with public offerings of common units in July 2009 and February 2010, raising significant proceeds to repay debt and fund operations.
- 5Despite lower commodity prices impacting ONEOK Partners' margins in 2009, the company saw improved net margins in its Energy Services and Distribution segments due to various factors like increased transportation margins and capital-recovery mechanisms.
- 6ONEOK managed its capital structure with a focus on maintaining investment-grade credit ratings, with ONEOK Partners also maintaining similar ratings.
- 7The company's financial performance in 2009 showed a decrease in diluted earnings per share from continuing operations compared to 2008, primarily due to lower commodity prices and increased operating costs in ONEOK Partners.