Summary
ONEOK, Inc. (OKE) demonstrated robust earnings growth in 2021, primarily driven by increased producer activity and higher commodity prices across its Natural Gas Gathering and Processing and Natural Gas Liquids segments. The company's integrated midstream assets proved resilient, benefiting from recovering economic conditions post-pandemic. ONEOK anticipates continued volume growth in 2022 due to ongoing producer activity and expanded ethane demand. ONEOK's business model is largely fee-based, with approximately 90% of its 2021 earnings derived from fees, mitigating direct commodity price volatility. The company successfully navigated the challenges of Winter Storm Uri in early 2021, which positively impacted its financial results due to increased demand for services. Looking ahead, ONEOK is focused on strategic growth projects, including plant expansions and new fractionator construction, while maintaining a disciplined capital approach and a commitment to sustainability, evidenced by its target to reduce greenhouse gas emissions by 30% by 2030.
Financial Highlights
53 data points| Revenue | $16.54B |
| Cost of Revenue | $12.26B |
| Gross Profit | $4.28B |
| Operating Income | $2.60B |
| Interest Expense | $733.00M |
| Net Income | $1.50B |
| EPS (Basic) | $3.36 |
| EPS (Diluted) | $3.35 |
| Shares Outstanding (Basic) | 446.40M |
| Shares Outstanding (Diluted) | 447.40M |
Key Highlights
- 1ONEOK reported strong earnings growth in 2021, driven by increased volumes and higher commodity prices, reflecting a recovery in producer activity and economic conditions.
- 2Approximately 90% of ONEOK's 2021 earnings were fee-based, providing a stable revenue stream and reducing exposure to commodity price volatility.
- 3The company successfully managed operational impacts from Winter Storm Uri, with the storm ultimately contributing positively to financial results.
- 4ONEOK is investing in growth projects, including expansions in its Natural Gas Gathering and Processing segment and restarting construction on a new NGL fractionator.
- 5The company is committed to sustainability, setting a target to reduce absolute Scope 1 and Scope 2 GHG emissions by 30% by 2030.
- 6ONEOK maintained its quarterly common stock dividend at $0.935 per share, consistent with the prior year.
- 7The company ended 2021 with a solid liquidity position, with $146.4 million in cash and cash equivalents and no borrowings under its $2.5 billion credit agreement.