What is the primary reason for the decrease in net income for the three months ended June 30, 2004, compared to the same period in 2003?

The decrease in net income for the quarter was primarily due to lower operating revenues and higher operating expenses across several segments, including a significant decrease in energy trading revenues.

How did the company's debt levels change during the period?

Long-term debt, excluding current maturities, decreased from $1.88 billion at December 31, 2003, to $1.53 billion at June 30, 2004. Total liabilities also saw a reduction.

What is the outlook for the Gathering and Processing segment versus the Marketing and Trading segment?

The Gathering and Processing segment is expected to see improved performance due to higher natural gas liquids prices and contract amendments. Conversely, the Marketing and Trading segment is expected to generate lower earnings due to decreased price volatility and reduced inter-regional price spreads.

Has the company made any significant acquisitions or divestitures recently?

During the second quarter of 2004, ONEOK sold its investment in natural gas distribution operations in Mexico and certain natural gas transmission and gathering pipelines, recording pre-tax gains on both sales.

OKE 10-Q Quarterly Report Q2 FY2004 — Revenue, Net Income, EPS

Summary

ONEOK Inc. reported its quarterly results for the period ending June 30, 2004. The company saw a decrease in net income compared to the same period in the prior year, with net income of $17.8 million for the three months ended June 30, 2004, down from $22.5 million in 2003. This was largely driven by lower operating revenues and increased operating expenses across several segments. Despite the quarterly dip, the six-month period showed improved net income of $122.9 million compared to $45.0 million in the prior year, primarily due to the sale of discontinued operations in 2003 and a significant gain on the sale of a discontinued component. The company's balance sheet reflects a decrease in total assets from $6.31 billion at the end of 2003 to $6.07 billion at the end of the quarter, with a notable reduction in current liabilities. Management highlighted the positive impact of acquisitions and strategic amendments in the Gathering and Processing segment, while noting expected lower earnings from the Marketing and Trading segment due to reduced market volatility.

Key Highlights

1Net income for the three months ended June 30, 2004, was $17.8 million, a decrease from $22.5 million in the same period of 2003.
2For the six months ended June 30, 2004, net income was $122.9 million, a significant increase from $45.0 million in the prior year, boosted by gains from discontinued operations in 2003.
3Total assets decreased to $6.07 billion as of June 30, 2004, from $6.31 billion as of December 31, 2003.
4Total liabilities decreased to $4.61 billion as of June 30, 2004, from $5.07 billion as of December 31, 2003.
5The Gathering and Processing segment showed strong operating income growth, driven by higher NGL and condensate prices and improved contractual terms.
6The Marketing and Trading segment experienced a decline in operating income due to reduced commodity price volatility and inter-regional price spreads.
7ONEOK announced an increase in its quarterly common stock dividend to $0.23 per share, reflecting confidence in its financial performance.

ONEOK INC /NEW/ Quarterly Report for Q2 Ended Jun 30, 2004

Summary

Key Highlights

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