What were the primary drivers of ONEOK's earnings growth in the first half of 2008?

Earnings growth was primarily driven by favorable commodity prices, new natural gas liquids (NGL) supply connections, increased fractionation volumes, and the incremental revenues from assets acquired from Kinder Morgan Energy Partners, L.P. within the ONEOK Partners segment. Additionally, the Distribution segment saw increased net margin due to new rate schedules.

How has ONEOK's ownership in ONEOK Partners evolved during this period?

ONEOK increased its ownership in ONEOK Partners during the first half of 2008. This included purchasing 5.4 million common units in a private placement for approximately $303.2 million and participating in ONEOK Partners' public offering of common units. Following these transactions, ONEOK's ownership interest in ONEOK Partners increased to 47.7%.

What are the major capital projects underway, and how are they being financed?

Significant capital projects are underway primarily within the ONEOK Partners segment, including the Bison Pipeline, Woodford Shale Natural Gas Liquids Pipeline Extension, Overland Pass Pipeline Company, Piceance Lateral Pipeline, Arbuckle Natural Gas Liquids Pipeline, Williston Basin Gas Processing Plant Expansion, Fort Union Gas Gathering Expansion, and Guardian Pipeline Expansion and Extension. These projects are financed through a combination of operating cash flows, debt, and equity issuances, including proceeds from ONEOK Partners' common unit offerings.

What is the company's outlook regarding dividends and liquidity?

ONEOK declared an increased quarterly dividend of $0.40 per share, reflecting a positive outlook. The company's liquidity is considered adequate, supported by its commercial paper program and credit agreements, including a new $400 million 364-day credit facility entered into in August 2008. However, the company acknowledges potential impacts from market volatility and credit rating changes.

OKE 10-Q Quarterly Report Q2 FY2008 — Revenue, Net Income, EPS

Summary

ONEOK Inc. reported solid financial performance for the six months ended June 30, 2008, with diluted earnings per share (EPS) increasing to $1.75 from $1.67 in the prior year period. This growth was primarily driven by favorable commodity prices, expanded NGL supply connections, and contributions from recently acquired assets within the ONEOK Partners segment. The company also saw increased net margin in its Distribution segment due to rate schedule implementations. Despite these positive trends, the Energy Services segment experienced a decrease in transportation margins, net of hedging, and storage and marketing margins, impacted by market conditions and unrealized fair value losses. ONEOK Partners continued to be a significant contributor, with substantial capital expenditures on expansion projects like the Bison Pipeline and the Overland Pass Pipeline. The company also increased its ownership interest in ONEOK Partners through private placements and public offerings. Dividends per share saw an increase, reflecting the company's confidence in its performance and future outlook. The company's liquidity remains adequate, supported by its credit facilities and commercial paper programs, although it acknowledges potential impacts from market volatility and credit rating changes.

Financial Highlights

31 data points

Beta

Revenue

$4.17B

0.1% Gross Margin

Net Income

$41.87M

0.0% Net Margin

EPS (Diluted)

$0.20

Cash & Equivalents

$98.74M

Free Cash Flow

-$105.24M

Financial Statements

Beta

Revenue	$4.17B
Cost of Revenue	$3.75B
Gross Profit	$420.83M
Operating Expenses	$247.81M
Operating Income	$173.01M
Interest Expense	-$59.06M
Net Income	$41.87M
EPS (Basic)	$0.20
EPS (Diluted)	$0.20
Shares Outstanding (Basic)	208.68M
Shares Outstanding (Diluted)	212.14M

Key Highlights

1Diluted EPS increased to $1.75 for the first six months of 2008, up from $1.67 in the same period of 2007, reflecting improved profitability.
2Operating income saw a significant increase to $506.1 million for the first six months of 2008, compared to $464.0 million in the prior year.
3The ONEOK Partners segment drove revenue growth, benefiting from higher commodity prices and strategic acquisitions.
4Capital expenditures significantly increased to $640.0 million for the first six months of 2008, primarily for ONEOK Partners' expansion projects.
5The company increased its ownership in ONEOK Partners to 47.7% through strategic acquisitions and unit offerings.
6ONEOK declared an increased quarterly dividend of $0.40 per share, signaling confidence in financial health.
7The company maintains adequate liquidity with strong credit facilities and commercial paper programs, despite market uncertainties.

ONEOK INC /NEW/ Quarterly Report for Q2 Ended Jun 30, 2008

Summary

Financial Highlights

Key Highlights

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