Why did ONEOK raise its 2026 guidance?

Management attributed the increase to strong performance across business segments and expanded opportunities across its system, driven in part by a more constructive market environment that began in late first quarter 2026. The release does not quantify the individual drivers of the raise.

Was the first-quarter earnings growth driven by one-time items?

Partly. Winter Storm Fern contributed $19 million to Natural Gas Pipelines and the wide Waha-to-Katy price differential added $70 million, both market-driven and potentially non-recurring. Results were also reduced by a $60 million noncash impairment. Investors should separate recurring volume growth from these commodity- and weather-related gains when assessing run-rate earnings.

Is ONEOK's dividend covered by cash flow?

In the first quarter, cash from operations of $934 million was below the combined total of capital expenditures ($864 million) and dividends paid ($674 million), a shortfall of roughly $604 million. Short-term borrowings increased by $827 million to $1.6 billion, which helped fund the gap. Coverage depends on sustained operating cash flow growth in later quarters.

How is ONEOK's debt position changing?

Total debt rose in the quarter: short-term borrowings increased to $1,647 million from $820 million, and the company announced a $1.2 billion term loan in April 2026. It also redeemed the remaining $491 million of 4.85% senior notes due July 2026. Long-term debt excluding current maturities was roughly flat at $30.8 billion. Investors may want to monitor leverage as short-term borrowings and new term debt are refinanced.

Which business segment performed weakest, and why?

Natural Gas Gathering and Processing was the weakest segment, with adjusted EBITDA down 5% to $467 million. The decline was primarily due to a $64 million drop from lower realized NGL and natural gas prices, net of hedging. This was partly offset by $27 million from higher volumes and a $14 million reduction in operating costs from methane fees that were no longer incurred following regulatory changes.

OKE 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.

ONEOK (NYSE: OKE) reported first-quarter 2026 net income of $776 million^a, up 12% from $691 million a year earlier, or $1.23 per diluted share versus $1.04.

Adjusted EBITDA rose 13% to $2.0 billion^b ($1,997 million vs. $1,775 million). Results were driven by higher NGL raw feed throughput (up 15%), refined products volumes (up 12%), and natural gas processed volumes (up 5%). The Natural Gas Pipelines segment was the standout, with adjusted EBITDA up 60% to $339 million, aided by $70 million of favorable Waha-to-Katy price differentials and $19 million from Winter Storm Fern.

Natural Gas Gathering and Processing was the weak spot, with adjusted EBITDA down 5% to $467 million^c on lower realized NGL and natural gas prices. Quarterly results also absorbed a $60 million noncash impairment on a Refined Products and Crude joint-venture investment, which reduced EPS by about 7 cents. Management raised 2026 guidance, citing a more constructive market environment beginning late in the first quarter.

Net income guidance rose to $3.21 billion to $3.79 billion^d (midpoint $3.5 billion, or $5.53 per diluted share), and adjusted EBITDA guidance rose to $8.0 billion to $8.5 billion (midpoint $8.25 billion). Capital expenditure guidance was unchanged at roughly $2.7 billion to $3.2 billion. Balance sheet activity included short-term borrowings rising to $1.6 billion from $820 million, a $1.2 billion term loan in April, and redemption of $491 million of 4.85% senior notes due July 2026.

The company also declared a quarterly dividend of $1.07 per share ($4.28 annualized). Investors should note that first-quarter operating cash flow of $934 million did not fully cover capital expenditures of $864 million plus dividends of $674 million, so the funding gap was bridged with short-term borrowings.

The quarter's strength was partly tied to market-driven factors such as price differentials and winter weather, which may not recur evenly. Guidance raises rest on the company's view of the second half of the year, so investors may want to watch how volumes and commodity-linked earnings hold up against those assumptions in upcoming quarters.

02—Key points

Key Highlights

Net income rose 12% to $776 million ($1.23 per diluted share vs. $1.04), and adjusted EBITDA rose 13% to $1,997 million, with net income attributable to ONEOK at $774 million.
2026 guidance raised: net income to $3.21B–$3.79B (midpoint $3.5B, or $5.53 per diluted share) and adjusted EBITDA to $8.0B–$8.5B (midpoint $8.25B); capex guidance unchanged at $2.7B–$3.2B.
Natural Gas Pipelines adjusted EBITDA jumped 60% to $339 million, driven by $70 million from favorable Waha-Katy price differentials and $19 million from Winter Storm Fern.
Natural Gas Liquids adjusted EBITDA rose 11% to $706 million on higher Gulf Coast/Permian and Rocky Mountain volumes, partly offset by lower average fee rates.
Natural Gas Gathering and Processing adjusted EBITDA fell 5% to $467 million on a $64 million decline from lower realized NGL and natural gas prices, partly offset by higher volumes.
A $60 million noncash impairment of a Refined Products and Crude joint-venture investment reduced first-quarter EPS by about $0.07.
Financing activity: $1.2 billion term loan (April 2026), redemption of the remaining $491 million 4.85% senior notes due July 2026, and a quarterly dividend of $1.07 per share ($4.28 annualized).

03—Questions

Frequently Asked Questions

Why did ONEOK raise its 2026 guidance?
Management attributed the increase to strong performance across business segments and expanded opportunities across its system, driven in part by a more constructive market environment that began in late first quarter 2026. The release does not quantify the individual drivers of the raise.
Was the first-quarter earnings growth driven by one-time items?
Partly. Winter Storm Fern contributed $19 million to Natural Gas Pipelines and the wide Waha-to-Katy price differential added $70 million, both market-driven and potentially non-recurring. Results were also reduced by a $60 million noncash impairment. Investors should separate recurring volume growth from these commodity- and weather-related gains when assessing run-rate earnings.
Is ONEOK's dividend covered by cash flow?
In the first quarter, cash from operations of $934 million was below the combined total of capital expenditures ($864 million) and dividends paid ($674 million), a shortfall of roughly $604 million. Short-term borrowings increased by $827 million to $1.6 billion, which helped fund the gap. Coverage depends on sustained operating cash flow growth in later quarters.
How is ONEOK's debt position changing?
Total debt rose in the quarter: short-term borrowings increased to $1,647 million from $820 million, and the company announced a $1.2 billion term loan in April 2026. It also redeemed the remaining $491 million of 4.85% senior notes due July 2026. Long-term debt excluding current maturities was roughly flat at $30.8 billion. Investors may want to monitor leverage as short-term borrowings and new term debt are refinanced.
Which business segment performed weakest, and why?
Natural Gas Gathering and Processing was the weakest segment, with adjusted EBITDA down 5% to $467 million. The decline was primarily due to a $64 million drop from lower realized NGL and natural gas prices, net of hedging. This was partly offset by $27 million from higher volumes and a $14 million reduction in operating costs from methane fees that were no longer incurred following regulatory changes.

04—Continue

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