Summary
ONEOK Inc.'s 2013 10-K filing details significant strategic shifts, primarily the separation of its natural gas distribution business into a new entity, ONE Gas, Inc., completed in January 2014. This move, along with the wind-down of its Energy Services segment, is designed to streamline operations and allow ONEOK to focus on its substantial ownership stake in ONEOK Partners. The company's future financial performance will largely be driven by distributions from ONEOK Partners, a significant player in natural gas gathering, processing, and NGL infrastructure. The report highlights ONEOK Partners' extensive capital investment program, aimed at expanding its midstream infrastructure to meet growing production from resource plays. Investors should note the company's commitment to increasing dividends, supported by expected growth in ONEOK Partners' cash flows. Key financial metrics show an increase in revenues and capital expenditures, driven by ONEOK Partners' growth projects, though net income attributable to ONEOK saw a decrease primarily due to charges associated with the Energy Services wind-down.
Financial Highlights
54 data points| Revenue | $11.87B |
| Cost of Revenue | $10.22B |
| Gross Profit | $1.65B |
| Operating Expenses | $780.93M |
| Operating Income | $880.62M |
| Interest Expense | $270.65M |
| Net Income | $266.53M |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.27 |
| Shares Outstanding (Basic) | 206.04M |
| Shares Outstanding (Diluted) | 209.69M |
Key Highlights
- 1ONEOK completed the separation of its Natural Gas Distribution business into a new publicly traded company, ONE Gas, Inc., in January 2014, receiving approximately $1.13 billion in cash.
- 2The company announced an accelerated wind-down of its Energy Services segment, expected to be substantially completed by March 31, 2014, recording non-cash charges in 2013.
- 3ONEOK Partners, in which ONEOK holds a 41.2% ownership interest, is undertaking a significant capital expenditure program of $6.0 billion to $6.4 billion for growth projects.
- 4The company's dividend per share increased by 17% in 2013 compared to 2012, reflecting a strategy to maximize dividend payouts.
- 5ONEOK Partners' revenues increased by 17% in 2013, driven by higher volumes from completed capital projects, although net margin saw a slight increase due to lower optimization and marketing margins and ethane rejection.
- 6The company's credit facilities were amended; ONEOK's facility was reduced to $300 million, while ONEOK Partners' facility was increased to $1.7 billion, both with extended maturities.