Did ONEOK's first-quarter 2025 earnings grow compared with a year earlier?

Adjusted EBITDA grew about 23% to $1.78 billion from $1.44 billion, but net income attributable to ONEOK was roughly flat at $636 million versus $639 million. Diluted earnings per share fell to $1.04 from $1.09, as higher depreciation, interest expense, and a larger share count offset the operating gains.

What drove the increase in adjusted EBITDA?

The largest driver was the inclusion of a full quarter of EnLink and Medallion results following the EnLink acquisition closing on January 31, 2025. Segment results show EnLink added about $64 million to NGL, $213 million to Natural Gas Gathering and Processing, and $80 million to Natural Gas Pipelines, while Rocky Mountain volumes also improved.

Did ONEOK change its 2025 financial guidance?

No. ONEOK affirmed its full-year 2025 financial guidance, indicating management still expects results in line with prior expectations despite the first-quarter costs and higher financing expenses. The release does not restate the specific guidance figures.

How is ONEOK's leverage and liquidity position after the acquisition?

Debt increased substantially, with current maturities of $2.06 billion and short-term borrowings of $200 million, while long-term debt was about $29.8 billion. Cash dropped to $141 million, though ONEOK had no borrowings outstanding under its $3.5 billion credit agreement as of March 31, 2025.

Is the dividend safe, and what about share buybacks?

ONEOK declared a quarterly dividend of $1.03 per share, or $4.12 annualized. Dividends paid totaled $643 million in the quarter, which exceeded operating cash flow after capital spending. Buybacks have been modest, with 190,000 shares repurchased in March 2025 for $17.4 million and $189 million cumulative under the $2 billion program since January 2024.

OKE 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.

ONEOK (NYSE: OKE) reported higher first-quarter 2025 results, with net income attributable to ONEOK of $636 million^a, or $1.04 per diluted share, versus $639 million, or $1.09 per diluted share, in the prior-year quarter.

Adjusted EBITDA rose about 23% to $1.78 billion^b from $1.44 billion. The company also affirmed its full-year 2025 financial guidance. The quarter's first full period of contribution from the EnLink Midstream and Medallion acquisitions drove most of the growth, alongside higher Rocky Mountain region NGL and natural gas volumes.

Per-share earnings were roughly flat despite the higher EBITDA because of substantially higher depreciation, interest expense, and the dilutive effect of roughly 40 million additional shares issued in connection with the EnLink deal. The quarter carried meaningful one-time costs, including $42 million^c of transaction costs (about 5 cents per diluted share after tax), mostly tied to the EnLink acquisition, which closed January 31, 2025. Interest expense climbed to $442 million from $300 million, and depreciation and amortization nearly doubled to $380 million.

Operating cash flow of $904 million^d exceeded the $696 million of combined investing and dividend outflows only partially, since dividends paid of $643 million plus $629 million of capital expenditures absorbed most of the cash generated, and cash fell to $141 million from $733 million at year-end. Total debt, including current maturities and short-term borrowings, rose to roughly $32.0 billion, reflecting acquisition financing. Shareholders' equity attributable to ONEOK increased sharply to $21.4 billion from $17.0 billion, largely because of the equity issued to fund the EnLink transaction, while noncontrolling interests fell from $5.1 billion to $756 million.

Investors will be watching the pace of EnLink and Medallion synergy realization, the completion of organic growth projects, the planned Texas City LPG export terminal joint venture, and whether leverage declines as the company integrates recent acquisitions. The company declared a quarterly dividend of $1.03 per share ($4.12 annualized) and continued share repurchases under its $2 billion program, though repurchases to date have been modest.

02—Key points

Key Highlights

Net income attributable to ONEOK was $636 million ($1.04 per diluted share), essentially flat versus $639 million ($1.09 per share) a year earlier, with the per-share decline reflecting a larger share count after the EnLink acquisition.
Adjusted EBITDA increased about 23% year over year to $1.78 billion, driven mainly by a full quarter of EnLink and Medallion contributions and higher Rocky Mountain NGL raw feed throughput (+15%) and natural gas processed volumes (+7%).
Acquisition-related costs weighed on results: $42 million of transaction costs (about $0.05 per diluted share after tax), largely tied to the EnLink deal that closed January 31, 2025.
Interest expense rose to $442 million from $300 million and depreciation and amortization nearly doubled to $380 million, reflecting the debt financing and asset base added through acquisitions.
Balance sheet shifted significantly: cash declined to $141 million from $733 million, current maturities of long-term debt rose to $2.06 billion, and ONEOK shareholders' equity grew to $21.4 billion, largely from equity issued in the EnLink transaction.
Management affirmed full-year 2025 guidance and declared a quarterly dividend of $1.03 per share ($4.12 annualized), while the company repaid $250 million of 3.2% senior notes at maturity.
Growth initiatives include a joint venture to build a 400,000-bpd LPG export terminal in Texas City, Texas, and a related pipeline connecting the Mont Belvieu storage facility to the terminal.

03—Questions

Frequently Asked Questions

Did ONEOK's first-quarter 2025 earnings grow compared with a year earlier?
Adjusted EBITDA grew about 23% to $1.78 billion from $1.44 billion, but net income attributable to ONEOK was roughly flat at $636 million versus $639 million. Diluted earnings per share fell to $1.04 from $1.09, as higher depreciation, interest expense, and a larger share count offset the operating gains.
What drove the increase in adjusted EBITDA?
The largest driver was the inclusion of a full quarter of EnLink and Medallion results following the EnLink acquisition closing on January 31, 2025. Segment results show EnLink added about $64 million to NGL, $213 million to Natural Gas Gathering and Processing, and $80 million to Natural Gas Pipelines, while Rocky Mountain volumes also improved.
Did ONEOK change its 2025 financial guidance?
No. ONEOK affirmed its full-year 2025 financial guidance, indicating management still expects results in line with prior expectations despite the first-quarter costs and higher financing expenses. The release does not restate the specific guidance figures.
How is ONEOK's leverage and liquidity position after the acquisition?
Debt increased substantially, with current maturities of $2.06 billion and short-term borrowings of $200 million, while long-term debt was about $29.8 billion. Cash dropped to $141 million, though ONEOK had no borrowings outstanding under its $3.5 billion credit agreement as of March 31, 2025.
Is the dividend safe, and what about share buybacks?
ONEOK declared a quarterly dividend of $1.03 per share, or $4.12 annualized. Dividends paid totaled $643 million in the quarter, which exceeded operating cash flow after capital spending. Buybacks have been modest, with 190,000 shares repurchased in March 2025 for $17.4 million and $189 million cumulative under the $2 billion program since January 2024.

04—Continue

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