Summary
ONEOK Inc. reported improved financial performance for the six months ended June 30, 2014, compared to the same period in 2013, primarily driven by strategic divestitures and growth in its core midstream infrastructure businesses. The company successfully completed the separation of its natural gas distribution business (ONE Gas) and the wind-down of its energy services business, significantly reshaping its operational focus. Following these divestitures, ONEOK's primary income source is its investment in ONEOK Partners, which operates three key segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. The company experienced revenue growth across its segments, with total revenues increasing by 18% year-over-year for the first six months. Net income attributable to ONEOK also saw a substantial increase of 37%. Capital expenditures remained significant, reflecting ongoing investments in growth projects within ONEOK Partners, although consolidated capital expenditures decreased year-over-year due to the timing of these projects and the completed separation of ONE Gas. ONEOK Inc. also maintained compliance with its debt covenants and demonstrated adequate liquidity.
Financial Highlights
50 data points| Revenue | $3.07B |
| Cost of Revenue | $2.57B |
| Gross Profit | $495.48M |
| Operating Expenses | $244.15M |
| Operating Income | $251.31M |
| Interest Expense | $88.75M |
| Net Income | $61.59M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 209.40M |
| Shares Outstanding (Diluted) | 210.52M |
Key Highlights
- 1Total revenues increased by 18% to $6.23 billion for the six months ended June 30, 2014, compared to $5.29 billion in the prior year period.
- 2Net income attributable to ONEOK rose by 37% to $155.1 million for the six months ended June 30, 2014, compared to $113.4 million in the prior year period.
- 3ONEOK completed the separation of its natural gas distribution business (ONE Gas) on January 31, 2014, and the wind-down of its energy services business on March 31, 2014, reclassifying these as discontinued operations.
- 4The company's primary income source is now its 38.5% ownership interest in ONEOK Partners, which operates in Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments.
- 5Consolidated capital expenditures decreased by 22% to $822.2 million for the six months ended June 30, 2014, reflecting project timing and the ONE Gas separation.
- 6ONEOK Inc. maintained compliance with its debt covenants, with a ratio of indebtedness to Consolidated EBITDA of 1.7 to 1 at June 30, 2014.
- 7ONEOK Partners' Natural Gas Gathering and Processing segment saw significant net margin growth of 32% for the six months ended June 30, 2014, driven by volume growth and new plant operations.