01—Abstract
Summary
Summary of the 8-K filed February 23, 2026. Cited figures are marked; the original filing is the authoritative source.
ONEOK (OKE) reported fourth-quarter and full-year 2025 results that showed strong growth, driven mainly by the EnLink and Medallion acquisitions.
Full-year net income attributable to ONEOK rose 12% to $3.39 billiona, or $5.42 per diluted share, and adjusted EBITDA rose 18% to $8.02 billion ($8.085 billion excluding $65 million of transaction costs). Fourth-quarter results were flatter: net income was $978 million ($1.55 per diluted share, versus $1.57 a year earlier, which included a 2024 nonstrategic divestiture gain), and adjusted EBITDA was $2.145 billion, down 1% from $2.174 billion. Management cited $475 million of cumulative acquisition synergies through year-end 2025, roughly 90% fee-based earnings, and a 3.8x annualized run-rate net debt-to-EBITDA ratio.
The company also raised its quarterly dividend 4% to $1.07b per share. For 2026, ONEOK guided to net income of $3.19 billion to $3.71 billion (midpoint $3.45 billion), diluted EPS of $5.04 to $5.87 (midpoint $5.45), and adjusted EBITDA of $7.9 billion to $8.3 billion (midpoint $8.1 billion). Against 2025 actuals, the midpoint implies only about 1% adjusted EBITDA growth, and EPS growth of roughly 1%, because the 2025 base already includes a full year of acquired earnings and management expects a moderation in producer activity at a WTI assumption of $55 to $60 per barrel.
Total 2026 capital expenditures are guided to $2.7 billion to $3.2 billionc, roughly flat with 2025's $3.15 billion. Growth is expected from full-year acquisition contributions, Permian and Mid-Continent processing projects, the Denver-area refined products expansion, and about $150 million of incremental synergies.
For investors, the key question is whether the post-acquisition integration and project completions (such as the Eiger Express expansion to 3.7 Bcf/d) can turn into sustained earnings growth beyond 2026 as acquisition-driven comparisons fade. Leverage, dividend growth, and the pace of synergy capture will be the main indicators to watch.
02—Key points
Key Highlights
- FY2025 net income attributable to ONEOK rose 12% to $3.39 billion, or $5.42 per diluted share; EPS grew 11% excluding the 2024 nonstrategic divestiture gain.
- FY2025 adjusted EBITDA rose 18% to $8.02 billion, driven mainly by the EnLink and Medallion acquisitions, higher Rocky Mountain NGL volumes, and higher natural gas processing volumes.
- Q4 2025 adjusted EBITDA was $2.145 billion, down about 1% from $2.174 billion a year earlier; Q4 diluted EPS was $1.55 versus $1.57, as the prior-year period included a $237 million divestiture gain.
- 2026 guidance midpoints: net income $3.45 billion, diluted EPS $5.45, and adjusted EBITDA $8.1 billion, implying only modest growth over 2025 actuals.
- 2026 total capital expenditures are guided to $2.7 billion to $3.2 billion, roughly flat with 2025's $3.15 billion, including Permian processing, the Medford fractionator rebuild, and Texas City export infrastructure.
- Balance sheet and capital returns: quarterly dividend raised 4% to $1.07 per share ($4.28 annualized); about $2.8 billion of long-term debt extinguished on a net basis in 2025; annualized run-rate net debt-to-EBITDA of 3.8x at year-end.
- Approximately 90% fee-based earnings in 2025, with $475 million of cumulative acquisition synergies achieved and about $150 million of additional synergies included in 2026 guidance.
03—Questions
Frequently Asked Questions
Why did adjusted EBITDA grow 18% in 2025 while 2026 guidance implies only about 1% growth?
The 2025 results include only part of the year's contribution from the EnLink and Medallion acquisitions, and the 2026 guidance reflects a full year of those assets. Growth in 2026 must therefore come from volume growth, completed projects, and synergies, which management says will be partly offset by lower producer activity at a WTI assumption of $55 to $60 per barrel. The guidance midpoint of $8.1 billion compares with $8.02 billion in 2025 reported and $8.085 billion excluding transaction costs.
How did the fourth quarter compare with the prior year?
Q4 2025 net income was $978 million versus $1,000 million, and diluted EPS was $1.55 versus $1.57. Adjusted EBITDA was $2.145 billion versus $2.174 billion. The prior-year quarter included a $237 million pretax gain from nonstrategic asset divestitures, so underlying Q4 growth was stronger than the reported figures suggest. Segment results were mixed: NGLs and Natural Gas Gathering and Processing increased, while Natural Gas Pipelines fell sharply due to the 2024 interstate pipeline divestiture and Refined Products and Crude declined on lower BridgeTex deferred revenue recognition.
Is the dividend safe, and how is leverage trending?
ONEOK increased its quarterly dividend 4% in January 2026 to $1.07 per share, and 2025 dividends paid totaled $2.58 billion. Year-end annualized run-rate net debt-to-EBITDA was 3.8x excluding transaction costs, and the company extinguished nearly $3.1 billion of long-term debt in 2025. Operating cash flow of $5.6 billion in 2025 covered capital expenditures of $3.15 billion and dividends of $2.58 billion, though the company also used short-term borrowings of $820 million and acquisition and joint venture spending in 2025. Coverage in 2026 will depend on realizing guided EBITDA and the planned capital program.
What are the main drivers of ONEOK's 2026 outlook by segment?
Guided 2026 segment adjusted EBITDA midpoints are: Natural Gas Liquids $2.845 billion, Refined Products and Crude $2.225 billion, Natural Gas Gathering and Processing $2.16 billion, Natural Gas Pipelines $845 million, and Other $25 million. Key drivers include a full year of the Easton NGL integration and Elk Creek and West Texas NGL pipeline expansions, a partial-year benefit from the Denver-area refined products expansion, and completed Permian processing projects. Natural Gas Pipelines is about 95% contracted, and roughly 90% of earnings are fee-based across most segments.
04—Continue