Summary
ONEOK Inc.'s third quarter 2007 report (filed November 2, 2007) for the period ending September 30, 2007, indicates a decrease in diluted earnings per share from continuing operations to $0.13 compared to $0.21 in the prior year. This was primarily driven by lower operating income, particularly within the Energy Services segment due to reduced transportation and storage margins, despite some offset from financial trading gains. The Distribution segment saw improved performance due to new rate schedules. The company highlighted significant strategic activities, including ONEOK Partners' acquisition of a natural gas liquids pipeline system for approximately $300 million, financed by a $600 million debt issuance. This acquisition, along with ongoing capital projects within ONEOK Partners, contributed to a substantial increase in capital expenditures. Dividends per share saw an increase, signaling confidence in future performance.
Key Highlights
- 1Diluted EPS from continuing operations decreased to $0.13 from $0.21 year-over-year for the third quarter.
- 2Total revenues for the quarter were $2,809,997,000, a slight increase from $2,644,835,000 in Q3 2006.
- 3Operating income declined to $102.8 million from $119.6 million due to lower margins in the Energy Services segment.
- 4ONEOK Partners acquired a natural gas liquids pipeline system for $300 million, financed by a $600 million debt issuance.
- 5Capital expenditures increased significantly, driven by ONEOK Partners' growth projects.
- 6The company declared a quarterly dividend of $0.36 per share, an increase of approximately 13% year-over-year.
- 7Total assets grew to $10.92 billion as of September 30, 2007, up from $10.39 billion at December 31, 2006.