01—Abstract
Summary
Summary of the 8-K filed August 3, 2026. Cited figures are marked; the original filing is the authoritative source.
ONEOK (OKE) reported higher second-quarter 2026 results on August 3, 2026, with net income up 13% to $967 milliona ($1.53 per diluted share) and adjusted EBITDA up 7% to $2.12 billion versus the prior-year quarter.
Growth was led by record NGL raw feed throughput (up 7%, including a 15% increase in the Gulf Coast/Permian region), an 8% increase in refined products volumes shipped, and stronger optimization and marketing activity, particularly favorable Waha-to-Katy price differentials in Natural Gas Pipelines. Segment results were mixed: Natural Gas Pipelines and Refined Products and Crude improved sharply, while NGL adjusted EBITDA slipped 2% and Natural Gas Gathering and Processing was roughly flat for the quarter. Management raised 2026 guidance for the second time this year, moving the midpoints to $3.6 billionb of net income, $5.68 of diluted EPS and $8.35 billion of adjusted EBITDA (ranges of $3.41–$3.79 billion and $8.2–$8.5 billion).
Capital expenditure guidance was held at $2.7c–$3.2 billion. The company declared a quarterly dividend of $1.07 per share ($4.28 annualized), and the Greater Denver refined products pipeline expansion reached mechanical completion in early August 2026. Balance-sheet and cash-flow data show total debt of roughly $33 billion at June 30, 2026 (including $1.5 billion of short-term borrowings), operating cash flow of $2.99 billion for the first six months, and dividends paid of $1.35 billion, which exceeded operating cash flow after capital spending.
The results also include a $60 milliond noncash impairment of a Refined Products and Crude joint-venture investment in the first half. Investors should note that the first-half increase in net income partly reflects commodity marketing gains that can be volatile.
02—Key points
Key Highlights
- Q2 2026 net income rose 13% to $967 million; diluted EPS of $1.53 versus $1.34 a year earlier.
- Q2 2026 adjusted EBITDA rose 7% to $2.12 billion; first-half adjusted EBITDA rose about 10% to $4.12 billion.
- Record NGL raw feed throughput of 1,630 MBbl/d in Q2 (up 7%), with the Gulf Coast/Permian region up 15%.
- Natural Gas Pipelines adjusted EBITDA rose 58% to $297 million, driven by Waha-to-Katy price differentials and higher firm transportation revenue.
- 2026 guidance raised for the second time this year: net income midpoint $3.6 billion, diluted EPS midpoint $5.68, adjusted EBITDA midpoint $8.35 billion; capex guidance unchanged at $2.7–$3.2 billion.
- Quarterly dividend of $1.07 per share ($4.28 annualized) declared in July 2026.
- First-half results include a $60 million noncash impairment of a Refined Products and Crude joint-venture investment.
03—Questions
Frequently Asked Questions
Why did ONEOK raise its 2026 guidance?
Management attributed the increase to continued strong segment performance, higher volumes across its system (including record NGL volumes), strategic growth opportunities and a constructive market environment. The adjusted EBITDA guidance range moved to $8.2–$8.5 billion from the prior range.
Which segments drove the quarter's results?
Natural Gas Pipelines (up $109 million in adjusted EBITDA) and Refined Products and Crude (up $70 million) led growth, aided by favorable Waha-to-Katy price differentials, higher refined products transportation revenue and crude marketing earnings. Natural Gas Liquids was down $14 million, mainly on higher operating costs, and Natural Gas Gathering and Processing was up $6 million.
Is the dividend covered by cash flow?
In the first six months of 2026, operating cash flow was $2.99 billion and dividends paid were $1.35 billion, so dividends were covered by operating cash flow. However, after $1.48 billion of capital expenditures and $353 million of contributions to unconsolidated affiliates, free cash flow was insufficient to cover dividends, and the gap was financed with short-term borrowings and a $600 million term loan.
What is the outlook for the rest of 2026?
Management said several strategic growth projects are nearing completion and that these investments, along with strong market fundamentals, build momentum into the second half of 2026. The Greater Denver refined products pipeline expansion reached mechanical completion in early August 2026. Investors should still monitor commodity price volatility and the effect of optimization and marketing gains, which can fluctuate from period to period.
04—Continue