01—Abstract
Summary
Summary of the 10-K filed February 25, 2025. Cited figures are marked; the original filing is the authoritative source.
ONEOK, Inc. (OKE) has released its 2024 Annual Report, detailing significant strategic initiatives and operational performance.
The company has completed several transformative acquisitions, notably the full acquisition of EnLink Midstream and the Medallion acquisition, significantly expanding its midstream footprint, particularly in the Permian Basin and Mid-Continent regions. These acquisitions, funded in part by a substantial $7.0 billiona senior unsecured notes offering, are expected to yield significant synergies and enhance ONEOK's integrated value chain. Furthermore, the company continues to execute its strategy of capital allocation, including a 4% increase in its quarterly dividend and ongoing share repurchases, all while maintaining a strong focus on operational safety and environmental responsibility.
The report also highlights ONEOK's commitment to a sustainable business model and maximizing shareholder returns through high-return capital projects and dividend growth. The company's diversified, primarily fee-based business model, with approximately 90%b of consolidated earnings being fee-based in 2024, positions it well to navigate market volatility. Management remains focused on prudent financial strength, an investment-grade credit rating, and a strong balance sheet.
02—Key points
Key Highlights
- Completed the full acquisition of EnLink Midstream, significantly expanding its Permian Basin and Mid-Continent presence.
- Acquired Medallion Midstream, bolstering crude oil and condensate services in West Texas.
- Raised $7.0 billion in senior unsecured notes to fund acquisitions and repay debt.
- Divested three interstate natural gas pipeline systems for $1.2 billion, aligning capital allocation priorities.
- Increased quarterly dividend by 4% to $1.03 per share, signaling confidence in future cash flows.
- Repurchased $172 million of common stock under its $2.0 billion share repurchase program.
- Reported strong ESG ratings, including inclusion in the S&P Global Sustainability Yearbook for the fifth consecutive year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, ONEOK Inc kept $0.14.
- Revenue$21.70B100.0%
- Cost of revenue−$13.31B61.3%
- Gross profit$8.39B38.7%
- Operating costs−$3.40B15.7%
- Operating income$4.99B23.0%
- Interest, other & tax−$1.96B9.0%
- Net income$3.03B14.0%
Where FY2024 revenue went
$21.70B- Cost of revenue: $13.31B, 61% of revenue
- Operating costs: $3.40B, 16% of revenue
- Net income: $3.03B, 14% of revenue
- Interest, other & tax: $1.96B, 9.0% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 25, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $21.70B$17.68B | +22.7% |
| Cost of Revenue | $13.31B$11.93B | +11.6% |
| Gross Profit | $8.39B$5.75B | +45.9% |
| Operating Income | $4.99B$4.07B | +22.5% |
| Net Income | $3.03B$2.66B | +14.1% |
| EPS (Basic) | $5.19$5.49 | −5.5% |
| EPS (Diluted) | $5.17$5.48 | −5.7% |
| Shares Outstanding (Basic) | 584.60M484.30M | +20.7% |
| Shares Outstanding (Diluted) | 586.50M485.40M | +20.8% |
05—Questions
Frequently Asked Questions
What were the major strategic moves made by ONEOK in 2024?
ONEOK made significant strategic moves in 2024, including completing the acquisition of a controlling interest in EnLink Midstream (October 2024) and subsequently acquiring the remaining publicly held units to gain full ownership (January 2025). They also acquired Medallion Midstream (October 2024) and a system of NGL pipelines from Easton Energy (June 2024). Concurrently, ONEOK divested three interstate natural gas pipeline systems (December 2024).
How did the acquisitions impact ONEOK's financial position?
The acquisitions of EnLink and Medallion were funded by a $7.0 billion senior unsecured notes offering. These transactions significantly increased ONEOK's asset base and scale, particularly in the Permian Basin and Mid-Continent regions, and are expected to generate substantial synergies. The company's total assets grew, and goodwill and intangible assets also increased due to purchase price allocations.
What is ONEOK's outlook on dividends and capital returns to shareholders?
ONEOK demonstrated a commitment to shareholder returns by increasing its quarterly dividend by 4% to $1.03 per share. The company also continued its share repurchase program, having repurchased $172 million of its stock under a $2.0 billion authorization as of December 31, 2024. These actions reflect confidence in sustained operating cash flows.
How does ONEOK manage its commodity price exposure?
ONEOK's business model is primarily fee-based, with approximately 90% of consolidated earnings being fee-based in 2024, which reduces direct commodity price volatility. For the remaining exposure, the company utilizes commodity derivative financial instruments and physical-forward contracts to hedge against near-term price fluctuations in natural gas, NGLs, refined products, and crude oil.
06—Continue