Summary
ONEOK, Inc. (OKE) filed an 8-K on November 29, 2006, to disclose an upward revision to its 2006 earnings per share (EPS) guidance and to provide preliminary 2007 EPS guidance. The company now anticipates 2006 diluted EPS to be in the range of $2.60 to $2.70. This updated guidance includes a significant one-time gain of $52 million, or $0.28 per share, stemming from ONEOK's share in ONEOK Partners, L.P.'s sale of a 20% interest in Northern Border Pipeline.
Key Highlights
- 1ONEOK raised its 2006 diluted EPS guidance to a range of $2.60 - $2.70.
- 2The 2006 guidance includes a $52 million (0.28 per share) one-time gain from the sale of a 20% interest in Northern Border Pipeline by ONEOK Partners, L.P.
- 3Preliminary 2007 diluted EPS guidance is set between $2.35 - $2.75.
- 4The 2007 guidance is based on current commodity price estimates (NYMEX for natural gas and crude oil, OPIS for NGLs).
- 5ONEOK expects to provide updated 2007 guidance throughout the year.
- 6This filing serves as a Regulation FD disclosure.
Frequently Asked Questions
The increase in 2006 earnings guidance is primarily due to a one-time gain of $52 million, or $0.28 per diluted share, recognized from ONEOK's portion of ONEOK Partners, L.P.'s sale of a 20% interest in Northern Border Pipeline.
ONEOK has provided preliminary guidance for 2007 diluted earnings per share in the range of $2.35 to $2.75. This guidance is subject to change and will be updated throughout the year.
The preliminary 2007 guidance is based on current market price estimates for natural gas and crude oil from the New York Mercantile Exchange (NYMEX), and for natural gas liquids (NGLs) from Oil Price Information Service (OPIS).
No, the 2006 guidance includes a significant one-time gain of $0.28 per diluted share related to an asset sale by ONEOK Partners. Investors should consider the impact of this non-recurring item when evaluating the company's operational performance.