Summary
ONEOK Inc.'s 2019 10-K filing reveals a year of significant growth, driven by the completion of major capital projects and increased volumes across its Natural Gas Gathering and Processing, and Natural Gas Liquids segments. The company's strategy continues to focus on expanding its fee-based earnings, with approximately 90% of consolidated earnings being fee-based in 2019. Significant investments in infrastructure, including NGL pipelines and processing plants, are positioned to capitalize on increasing natural gas and NGL production, particularly in the Rocky Mountain and Permian regions. Financially, ONEOK demonstrated resilience with increased net income and robust operating cash flows. The company managed its debt effectively, undertaking public offerings of senior unsecured notes to fund growth projects and refinance existing debt. While facing some NGL location price differentials impacting optimization activities, ONEOK anticipates narrower differentials in 2020. The company also highlighted its commitment to shareholder returns through a 9% increase in dividends declared per share, underscoring its focus on sustainable earnings growth and shareholder value.
Financial Highlights
52 data points| Revenue | $10.16B |
| Cost of Revenue | $6.79B |
| Gross Profit | $3.38B |
| Operating Income | $1.91B |
| Interest Expense | $491.77M |
| Net Income | $1.28B |
| EPS (Basic) | $3.09 |
| EPS (Diluted) | $3.07 |
| Shares Outstanding (Basic) | 413.56M |
| Shares Outstanding (Diluted) | 415.44M |
Key Highlights
- 1ONEOK generated approximately 90% of its consolidated earnings from fee-based businesses in 2019, indicating a stable and predictable revenue stream.
- 2The company completed several key capital-growth projects in 2019, including NGL pipelines and natural gas processing plants, which are expected to drive future volume growth and earnings.
- 3Volumes increased across the Natural Gas Gathering and Processing and Natural Gas Liquids segments compared to 2018, supported by new infrastructure and improved producer productivity.
- 4Net income increased by approximately 10% to $1.28 billion in 2019 from $1.15 billion in 2018, demonstrating strong operational performance.
- 5ONEOK returned capital to shareholders through a 9% increase in dividends per share, reflecting confidence in future earnings growth.
- 6The company maintained a strong liquidity position, with no outstanding borrowings under its $2.5 Billion Credit Agreement at year-end 2019 and a healthy cash balance.
- 7Strategic investments in the Rocky Mountain, Permian, and Mid-Continent regions position ONEOK to benefit from continued production growth in these key energy basins.