Summary
ONEOK Inc.'s 2013 10-K filing highlights a company actively expanding its midstream infrastructure to capitalize on the growing North American natural gas and NGL production, particularly from shale plays. The company's strategy revolves around its majority-owned subsidiary, ONEOK Partners, L.P., which is undertaking significant capital projects totaling approximately $4.7 billion to $5.3 billion. These investments are focused on enhancing gathering, processing, and NGL transportation and fractionation capacity across key regions like the Mid-Continent and Rocky Mountains. Despite lower commodity prices in 2012, ONEOK benefited from increased volumes and new rates in its Natural Gas Distribution segment. However, the Energy Services segment experienced margin compression due to narrowed price differentials and lower volatility. The company demonstrated a commitment to shareholder returns by increasing dividends per share by 18% in 2012 and is actively managing its balance sheet to maintain strong credit ratings.
Financial Highlights
54 data points| Revenue | $10.18B |
| Cost of Revenue | $8.54B |
| Gross Profit | $1.64B |
| Operating Expenses | $697.06M |
| Operating Income | $953.48M |
| Interest Expense | $237.64M |
| Net Income | $360.62M |
| EPS (Basic) | $1.75 |
| EPS (Diluted) | $1.71 |
| Shares Outstanding (Basic) | 206.14M |
| Shares Outstanding (Diluted) | 210.71M |
Key Highlights
- 1ONEOK Partners is investing heavily ($4.7B - $5.3B) in new capital projects to expand NGL and natural gas midstream infrastructure, driven by increased production from shale plays.
- 2The company reported a 18% increase in dividends paid per share for 2012, indicating a focus on shareholder returns.
- 3Despite lower commodity prices in 2012, ONEOK Partners saw increased volumes from completed projects, boosting its gathering and processing and NGL businesses.
- 4The Natural Gas Distribution segment benefited from new rates across its service territories and improved operating efficiencies, leading to higher operating income.
- 5The Energy Services segment faced margin compression due to narrowed NGL price differentials and lower market volatility, impacting its financial performance.
- 6ONEOK successfully managed its liquidity through operating cash flow, commercial paper, and distributions from ONEOK Partners, with significant debt issuances to support growth projects.
- 7The company maintained investment-grade credit ratings, which are crucial for its access to capital markets and financial flexibility.