Summary
ONEOK Inc. reported a strong first quarter in 2018, with net income attributable to ONEOK increasing significantly to $264.5 million, or $0.64 per diluted share, compared to $87.4 million, or $0.41 per diluted share, in the prior year's period. This substantial growth was driven by robust performance across its Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments, benefiting from increased producer activity and infrastructure utilization in key basins like the Williston and STACK/SCOOP areas. The company also highlighted significant progress on its extensive growth projects, with approximately $4.2 billion in announced capital-growth projects supported by long-term, primarily fee-based contracts. These projects are designed to expand capacity and enhance infrastructure to meet growing demand for natural gas and NGLs. ONEOK's strong operational performance and strategic investments position it well for continued growth and shareholder value creation, further supported by a 25% increase in its quarterly dividend and a substantial equity issuance that has secured financing needs through well into 2019.
Financial Highlights
51 data points| Revenue | $3.10B |
| Cost of Revenue | $2.37B |
| Gross Profit | $734.05M |
| Operating Income | $419.70M |
| Interest Expense | $115.72M |
| Net Income | $264.51M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.64 |
| Shares Outstanding (Basic) | 409.68M |
| Shares Outstanding (Diluted) | 412.17M |
Key Highlights
- 1Net income attributable to ONEOK more than tripled to $264.5 million for the three months ended March 31, 2018, from $87.4 million in the same period last year, with diluted EPS rising to $0.64 from $0.41.
- 2Total revenues increased by 13% to $3.1 billion, driven by higher commodity sales and fee-based services across all operating segments.
- 3Adjusted EBITDA saw a significant increase of 24% to $570.3 million, reflecting strong operational performance and volume growth.
- 4The company announced approximately $4.2 billion in new capital-growth projects, primarily focused on expanding NGL infrastructure and natural gas processing capacity, supported by long-term contracts.
- 5ONEOK declared a quarterly dividend of $0.795 per share, representing a 25% increase year-over-year, underscoring confidence in its financial outlook.
- 6The company successfully completed a $1.2 billion equity offering in January 2018, which has secured its equity financing needs through 2019 and was used for capital expenditures and debt reduction.