01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
ONEOK, Inc. reported a strong first quarter for 2026, demonstrating significant revenue growth driven by increased commodity sales and services.
The company's net income and diluted Earnings Per Share (EPS) saw a notable increase compared to the prior year, reflecting improved operational performance across its segments, particularly in Natural Gas Pipelines and Natural Gas Liquids. This growth was supported by higher optimization and marketing activities, increased volumes, and strategic capital project execution. The company also maintained a healthy Adjusted EBITDA, underscoring its operational efficiency and profitability.
ONEOK continues to invest in strategic capital projects to expand its infrastructure, with significant expenditures noted in the Natural Gas Gathering and Processing and Natural Gas Liquids segments. The company's financial position remains robust, supported by strong operating cash flows and adequate liquidity.
The company also highlighted its commitment to returning capital to shareholders through consistent dividend payments, which were increased year-over-year. Despite market volatility and geopolitical factors influencing commodity prices, ONEOK's predominantly fee-based revenue model and diverse asset base position it favorably for continued performance.
02—Key points
Key Highlights
- Total revenues increased by approximately 19.6% to $9.618 billion for the three months ended March 31, 2026, compared to $8.043 billion in the same period of 2025, driven by a significant rise in commodity sales.
- Net income attributable to ONEOK shareholders grew by 21.7% to $774 million, resulting in a diluted EPS of $1.23, up from $1.04 in the prior year's quarter.
- Adjusted EBITDA, a key profitability metric, increased by 12.5% to $1.997 billion, reflecting improved operational performance across segments.
- Capital expenditures increased by 37.5% to $864 million, primarily due to investments in large capital projects across various segments, indicating a commitment to future growth.
- The company declared and paid a quarterly dividend of $1.07 per share, a 4% increase year-over-year, demonstrating a commitment to shareholder returns.
- A non-cash impairment charge of $60 million was recognized related to the investment in Powder Springs, impacting net income but not cash flows from operations.
- ONEOK's financial liquidity remains strong, with access to a $3.5 Billion Credit Agreement, a commercial paper program, and a $1.2 Billion Term Loan Agreement.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, ONEOK Inc kept $0.08.
- Revenue$9.62B100.0%
- Cost of revenue−$7.05B73.3%
- Gross profit$2.56B26.7%
- Operating costs−$1.14B11.8%
- Operating income$1.43B14.8%
- Interest, other & tax−$654.0M6.8%
- Net income$774.0M8.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $9.62B$8.04B | +19.6% |
| Cost of Revenue | $7.05B$5.66B | +24.7% |
| Gross Profit | $2.56B$2.39B | +7.4% |
| Operating Income | $1.43B$1.22B | +17.0% |
| Net Income | $774.00M$636.00M | +21.7% |
| EPS (Basic) | $1.23$1.04 | +18.3% |
| EPS (Diluted) | $1.23$1.04 | +18.3% |
| Shares Outstanding (Basic) | 630.70M611.40M | +3.2% |
| Shares Outstanding (Diluted) | 631.60M612.50M | +3.1% |
05—Questions
Frequently Asked Questions
What are the key drivers behind ONEOK's revenue growth in the first quarter of 2026?
ONEOK's revenue growth was primarily driven by an increase in commodity sales, which rose significantly compared to the prior year. This was complemented by higher volumes processed and transported across its various segments, alongside increased optimization and marketing activities.
How has ONEOK's profitability changed compared to the previous year?
Profitability has improved year-over-year. Net income attributable to ONEOK increased by 21.7% to $774 million, and diluted EPS rose to $1.23 from $1.04. Adjusted EBITDA also saw a healthy increase of 12.5% to $1.997 billion, indicating strong operational performance and effective cost management.
What is the significance of the impairment charge recognized in the quarter?
ONEOK recorded a non-cash impairment charge of $60 million related to its 50% investment in Powder Springs within the Refined Products and Crude segment. While this reduces reported net income, it does not impact cash flow from operations. This charge reflects an assessment of the investment's recoverable value.
How is ONEOK managing its capital expenditures and liquidity?
The company is actively investing in its future growth with capital expenditures increasing to $864 million for strategic projects. ONEOK maintains strong liquidity through its $3.5 Billion Credit Agreement, commercial paper program, and a recently established $1.2 Billion Term Loan Agreement, ensuring sufficient resources for operations, dividends, and capital investments.
06—Continue