How much is ONEOK's dividend and when is it paid?

The board declared a quarterly dividend of $0.99 per share, a 3.7% increase, for an annualized rate of $3.96. It is payable February 14, 2024, to shareholders of record at the close of business on January 30, 2024.

How large is the new share repurchase program and how long will it run?

The board authorized up to $2.0 billion of share repurchases. Management expects it to be largely utilized over the next four years. The program ends upon completion of the $2.0 billion (within plus or minus 10 percent for final settlement) or on January 1, 2029, whichever occurs first.

How will ONEOK fund dividends and buybacks?

The company targets combined dividends and share repurchases at roughly 75% to 85% of forecasted cash flow from operations after capital expenditures over the next four years. The filing does not give dollar forecasts, so the actual capacity depends on future cash flow. Capital growth projects, debt reduction, and buybacks are all listed as uses of cash.

What is ONEOK's expected dividend growth going forward?

For future dividend increases, ONEOK expects to target annual dividend growth between 3% and 4%. The buyback is positioned to complement that dividend growth as a key pillar of shareholder return.

What is ONEOK's leverage target and balance sheet position?

ONEOK remains committed to a target debt-to-EBITDA ratio of approximately 3.5 times. It repurchased about $300 million of face value of its notes at a discount to par in Q4 2023 and finished 2023 with roughly $340 million of cash on hand.

OKE 8-K: Regulation FD — Jan 18, 2024

01—Abstract

Summary

Summary of the 8-K filed January 18, 2024. Cited figures are marked; the original filing is the authoritative source.

ONEOK, Inc. (NYSE: OKE) announced on January 17, 2024 that its board raised the quarterly common dividend 3.7% to $0.99^a per share, an annualized rate of $3.96, payable February 14, 2024 to holders of record on January 30, 2024.

The company also authorized a new $2.0 billion^b share repurchase program, which management expects to be largely utilized over the next four years. Shares may be bought in open-market or privately negotiated transactions, and the program runs until the $2.0 billion is completed (plus or minus 10 percent for final settlement) or January 1, 2029, whichever comes first. Management framed the dividend and buyback together as a capital return framework targeting roughly 75% to 85% of forecasted cash flow from operations after capital expenditures over the next four years.

Future dividend growth is targeted at 3% to 4% annually. Capital growth opportunities remain the highest capital allocation priority, with debt reduction and buybacks also available uses of cash. ONEOK also repurchased about $300 million^c of face value of its notes at a discount to par in Q4 2023 and ended 2023 with roughly $340 million of cash, and it remains committed to a target debt-to-EBITDA ratio of about 3.5 times.

For investors, the filing signals a shift toward a more explicit shareholder return program, with a meaningful buyback added to the dividend. The dividend increase is modest, and the four-year buyback pace and the 75%^d to 85% payout target depend on forecasted cash flow, which the filing does not quantify. The release also includes standard forward-looking statement cautions.

02—Key points

Key Highlights

Quarterly common dividend raised 3.7% to $0.99 per share, an annualized $3.96 per share, payable February 14, 2024 to holders of record January 30, 2024.
New $2.0 billion share repurchase program authorized, effective immediately, with completion targeted largely over the next four years.
Repurchases may be made in open-market or privately negotiated transactions at management's discretion, and the program expires on the earlier of completion or January 1, 2029.
Future annual dividend growth targeted at 3% to 4%.
Combined dividends and buybacks are targeted at approximately 75% to 85% of forecasted cash flow from operations after capital expenditures over the next four years.
Approximately $300 million of face value of notes repurchased at a discount to par in Q4 2023; year-end 2023 cash on hand of approximately $340 million.
Management reaffirmed a target debt-to-EBITDA ratio of approximately 3.5 times and stated that capital growth opportunities remain the top capital allocation priority.

03—Questions

Frequently Asked Questions

How much is ONEOK's dividend and when is it paid?
The board declared a quarterly dividend of $0.99 per share, a 3.7% increase, for an annualized rate of $3.96. It is payable February 14, 2024, to shareholders of record at the close of business on January 30, 2024.
How large is the new share repurchase program and how long will it run?
The board authorized up to $2.0 billion of share repurchases. Management expects it to be largely utilized over the next four years. The program ends upon completion of the $2.0 billion (within plus or minus 10 percent for final settlement) or on January 1, 2029, whichever occurs first.
How will ONEOK fund dividends and buybacks?
The company targets combined dividends and share repurchases at roughly 75% to 85% of forecasted cash flow from operations after capital expenditures over the next four years. The filing does not give dollar forecasts, so the actual capacity depends on future cash flow. Capital growth projects, debt reduction, and buybacks are all listed as uses of cash.
What is ONEOK's expected dividend growth going forward?
For future dividend increases, ONEOK expects to target annual dividend growth between 3% and 4%. The buyback is positioned to complement that dividend growth as a key pillar of shareholder return.
What is ONEOK's leverage target and balance sheet position?
ONEOK remains committed to a target debt-to-EBITDA ratio of approximately 3.5 times. It repurchased about $300 million of face value of its notes at a discount to par in Q4 2023 and finished 2023 with roughly $340 million of cash on hand.

04—Continue

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