Summary
ONEOK Inc. reported strong financial performance for the first quarter of 2010, with net income attributable to ONEOK increasing by 26.4% to $154.5 million, or $1.44 per diluted share, compared to $122.3 million, or $1.16 per diluted share, in the prior year's quarter. This growth was driven by an increase in net margin across all operating segments, particularly in the Energy Services segment due to higher storage differentials and marketing margins, as well as contributions from ONEOK Partners from new NGL gathering and transportation projects. Total revenues saw a significant 41% increase, reflecting higher commodity prices and increased volumes. The company also highlighted its proactive approach to capital allocation and financial management. ONEOK Partners completed a successful public offering of common units, raising approximately $322.7 million to repay debt. The company maintained its investment-grade credit ratings and managed its debt-to-capital ratios effectively. Looking ahead, ONEOK anticipates a moderate economic recovery and an improving commodity price environment, with planned capital expenditures focused on growth projects, especially within the ONEOK Partners segment.
Financial Highlights
50 data points| Revenue | $3.78B |
| Cost of Revenue | $3.30B |
| Gross Profit | $615.10M |
| Operating Expenses | $281.20M |
| Operating Income | $337.33M |
| Interest Expense | $76.52M |
| Net Income | $154.54M |
| EPS (Basic) | $0.73 |
| EPS (Diluted) | $0.72 |
| Shares Outstanding (Basic) | 212K |
| Shares Outstanding (Diluted) | 215K |
Key Highlights
- 1Net income attributable to ONEOK increased by 26.4% to $154.5 million, or $1.44 per diluted share, up from $122.3 million, or $1.16 per diluted share, in Q1 2009.
- 2Total revenues rose significantly by 41% to $3.92 billion, driven by higher commodity prices and increased volumes across segments.
- 3The Energy Services segment showed a substantial net margin increase of 90%, largely due to improved storage differentials and marketing margins, partly offset by lower premium-services margins.
- 4ONEOK Partners completed a public offering of common units in February 2010, raising approximately $322.7 million to repay debt.
- 5Capital expenditures decreased by 72% to $68.3 million, primarily due to the completion of major projects within ONEOK Partners in the prior year.
- 6The company maintained its investment-grade credit ratings from Moody's and S&P, and remains in compliance with debt covenants.
- 7ONEOK declared a quarterly dividend of $0.44 per share, a 10% increase from the prior year, while ONEOK Partners increased its quarterly distribution to $1.11 per unit, a 3% increase.