Summary
ONEOK Inc. reported a significant turnaround in its financial performance for the first quarter of 2021 compared to the same period in 2020. Total revenues surged by approximately 50% to $3.19 billion, driven by a substantial increase in commodity sales, largely attributed to higher prices and volumes. This revenue growth, combined with the absence of large impairment charges seen in the prior year, led to a strong rebound in operating income and net income. The company reported a net income of $386 million, or $0.86 per diluted share, a stark contrast to the net loss of $142 million, or $(0.34) per diluted share, in Q1 2020. The company's diversified business segments, particularly Natural Gas Liquids and Natural Gas Pipelines, demonstrated resilience and growth. ONEOK highlighted that approximately 90% of its consolidated earnings are expected to be fee-based in 2021, reducing direct exposure to commodity price volatility. Despite operational challenges, including the impact of Winter Storm Uri, the company managed to maintain its quarterly dividend and reported strong operating cash flows, providing solid financial footing for the remainder of the year.
Financial Highlights
48 data points| Revenue | $3.19B |
| Cost of Revenue | $2.12B |
| Gross Profit | $1.07B |
| Operating Income | $664.72M |
| Interest Expense | $185.52M |
| Net Income | $385.90M |
| EPS (Basic) | $0.87 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 445.89M |
| Shares Outstanding (Diluted) | 446.88M |
Key Highlights
- 1Total revenues increased significantly by 49.5% year-over-year to $3.19 billion, primarily driven by higher commodity sales volumes and prices.
- 2Net income improved dramatically from a loss of $141.9 million in Q1 2020 to a profit of $386.2 million in Q1 2021.
- 3Diluted Earnings Per Share (EPS) turned positive at $0.86 in Q1 2021, compared to a loss of $(0.34) in Q1 2020.
- 4Adjusted EBITDA increased by 23.7% to $866.4 million, reflecting improved operational performance across segments.
- 5Capital expenditures decreased substantially by 81.4% year-over-year to $176.7 million, reflecting the completion of major growth projects and paused initiatives.
- 6The company maintained its quarterly dividend of $0.935 per share, demonstrating commitment to shareholder returns.
- 7ONEOK reported that approximately 90% of its consolidated earnings are expected to be fee-based in 2021, providing stability against commodity price fluctuations.