What was the primary driver of the increase in net revenues during the first quarter of 2002?

The increase in net revenues was primarily driven by the company's successful execution of its storage arbitrage strategy and a recovery of approximately $14.0 million related to its Enron claim. These factors helped offset lower commodity prices and warmer weather which impacted overall operating revenues.

How has ONEOK's liquidity position changed compared to the end of 2001?

ONEOK's liquidity has significantly improved. Cash and cash equivalents increased substantially from $28.2 million at December 31, 2001, to $150.7 million at March 31, 2002. This indicates a stronger cash position to manage operations and potential short-term needs.

Are there any significant legal or regulatory matters that could impact ONEOK's financial performance?

Yes, ONEOK is involved in several legal proceedings, most notably those related to the terminated proposed acquisition of Southwest Gas Corporation. These lawsuits include claims from Southern Union Company and Southwest Gas Corporation itself. Additionally, regulatory matters with the Oklahoma Corporation Commission regarding gas procurement practices are ongoing. While the company believes the ultimate resolution of these matters will not have a material adverse effect, they represent potential risks and uncertainties.

How has the adoption of Statement 142 (Goodwill and Other Intangible Assets) affected the reported earnings?

The company adopted Statement 142 on January 1, 2002, which discontinued the amortization of goodwill. For the first quarter of 2002, there was no goodwill amortization. If Statement 142 had been applied to the prior year period (Q1 2001), pro forma adjusted net income would have been slightly higher ($65.5 million vs. $64.9 million reported), and pro forma adjusted EPS would have been $0.55, compared to the reported $0.54.

OKE 10-Q Quarterly Report Q1 FY2002 — Revenue, Net Income, EPS

Summary

ONEOK Inc. reported strong performance for the first quarter of 2002, with Net Income available for Common Stock increasing to $63.3 million, or $0.61 per diluted share, up from $55.6 million, or $0.54 per diluted share, in the prior year period. This growth was driven by improved net revenues, which rose to $307.6 million from $290.9 million year-over-year. The company benefited from its storage arbitrage strategy and a recovery related to its Enron claim, which offset lower commodity prices and warmer weather impacting revenue. The company's balance sheet shows robust liquidity, with cash and cash equivalents significantly increasing to $150.7 million from $28.2 million at the end of 2001. Total assets decreased to $5.5 billion from $5.9 billion, reflecting a reduction in assets from price risk management activities and gas in storage, offset by growth in property, plant, and equipment. Total liabilities also decreased, improving the debt-to-equity ratio. Despite ongoing legal proceedings related to the terminated Southwest Gas acquisition and regulatory matters, ONEOK appears to be managing its financial condition effectively, supported by strong operating cash flows.

Key Highlights

1Net income available for common stock increased by approximately 14% to $63.3 million in Q1 2002 compared to $55.6 million in Q1 2001.
2Earnings per diluted share rose to $0.61 in Q1 2002 from $0.54 in Q1 2001.
3Net revenues increased by approximately 5.7% to $307.6 million in Q1 2002 from $290.9 million in Q1 2001, driven by storage arbitrage and an Enron claim recovery.
4Cash and cash equivalents saw a significant increase, reaching $150.7 million as of March 31, 2002, up from $28.2 million at December 31, 2001.
5Total assets decreased to $5.53 billion from $5.88 billion, primarily due to a reduction in price risk management assets.
6Total liabilities decreased to $4.20 billion from $4.61 billion, indicating improved financial leverage.
7The company is actively managing market risk through derivative instruments and has a robust risk oversight framework in place.

ONEOK INC /NEW/ Quarterly Report for Q1 Ended Mar 31, 2002

Summary

Key Highlights

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