Financial Performance - Net income for 3Q 2025 was $940 million, a 10% increase[12,14] - Adjusted EBITDA for 3Q 2025 was $2.12 billion, a 7% increase[13,14] - Adjusted EBITDA guidance for 2025 is in the range of $8 billion to $8.45 billion[20] Segment Performance - Natural Gas Liquids adjusted EBITDA was $748 million in 3Q 2025[13] - Natural Gas Gathering and Processing adjusted EBITDA was $566 million in 3Q 2025[13] - Refined Products and Crude adjusted EBITDA was $582 million in 3Q 2025[13] - Natural Gas Pipelines adjusted EBITDA was $200 million in 3Q 2025[13] Volume Growth - Gulf Coast/Permian region NGL volumes increased by 8% in 3Q 2025[14,33] - Rocky Mountain region NGL volumes increased by 5% in 3Q 2025[14,33] - Total natural gas volumes processed increased by 5% in 3Q 2025[14] Throughput Volumes - Total NGL raw feed throughput volumes increased from 1,527,000 bpd in 2Q 2025 to 1,574,000 bpd in 3Q 2025[28] - Total refined products volume shipped increased from 1,503,000 bpd in 2Q 2025 to 1,526,000 bpd in 3Q 2025[34] - Crude oil volume shipped increased from 1,782,000 bpd in 2Q 2025 to 1,813,000 bpd in 3Q 2025[34]

Core Viewpoint - The stock market rally has made it challenging to find attractively priced stocks, with the S&P 500 up 18% over the past year and nearly 80% over the last three years, leading to a high valuation of over 20 times forward earnings [1] Company Overview - ONEOK (NYSE: OKE) has seen its shares decline over 40% from their 52-week high, resulting in a dividend yield of around 6%, presenting a potential investment opportunity [2] - Despite the stock price drop, ONEOK generated nearly $3.8 billion in adjusted EBITDA in the first half of the year, reflecting a 22.5% increase year-over-year, driven by acquisitions [4] Growth Performance - ONEOK has achieved 11 consecutive years of adjusted EBITDA growth at a compound annual rate of 16%, with organic projects contributing to growth initially and acquisitions, including the 2023 deal for Magellan, driving more recent growth [5] - The stock price had previously increased over 80% due to acquisition-driven growth but has since retraced most of those gains, now showing less than 20% growth over the past three years [6] Future Growth Catalysts - The market currently undervalues ONEOK, pricing it as if future growth will be minimal, despite having two visible catalysts for earnings growth and additional upside potential [7] - The company is expected to continue growing its high-yielding dividend, supported by its ongoing growth initiatives [8]

Core Insights - Oneok Inc. reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.46 per share, and up from $1.18 per share a year ago, representing an earnings surprise of +2.05% [1][2] - The company posted revenues of $8.63 billion for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 14.08%, compared to $5.02 billion in the same quarter last year [2] - Oneok shares have declined approximately 31% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.56, with projected revenues of $11.07 billion, and for the current fiscal year, the EPS estimate is $5.41 on revenues of $37.05 billion [7] - The estimate revisions trend for Oneok was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - Oneok operates within the Zacks Oil and Gas - Production Pipeline - MLB industry, which is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Oneok's stock performance [5]

Financial Performance - Third quarter 2025 net income reached $940 million, or $1.49 per diluted share, compared to $693 million, or $1.18 per diluted share in the same quarter of 2024[6][7]. - Adjusted EBITDA for the third quarter 2025 was $2.12 billion, up from $1.545 billion in the third quarter of 2024, reflecting a significant increase driven by acquisitions and higher processing volumes[6][12]. - ONEOK reported total revenues of $8.634 billion for Q3 2025, a significant increase from $5.023 billion in Q3 2024, representing a year-over-year growth of approximately 72.5%[40]. - The company's net income for Q3 2025 was $940 million, compared to $693 million in Q3 2024, reflecting a growth of about 35.7%[40]. - ONEOK's operating income for Q3 2025 was $1.558 billion, compared to $1.128 billion in Q3 2024, reflecting a growth of about 38.1%[40]. - ONEOK reported a net income of $2,484 million for the nine months ended September 30, 2025, compared to $2,112 million for the same period in 2024, representing a 17.6% increase[44]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $5,875 million, up from $4,610 million in 2024, reflecting a 27.4% growth[47]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $4,053 million, compared to $3,277 million in 2024, a 23.6% increase[44]. Capital Expenditures and Investments - ONEOK's capital expenditures for the third quarter 2025 totaled $804 million, compared to $468 million in the same quarter of 2024[7]. - Capital expenditures for the nine months ended September 30, 2025, were $524 million, down from $785 million in 2024, indicating a 33.3% decrease[46]. - The company announced plans to construct the Bighorn natural gas processing plant, with a capacity of 300 MMcf/d, expected to be completed by mid-2027[10]. - ONEOK entered into a joint venture to build the Eiger Express Pipeline, a 450-mile natural gas pipeline from the Permian Basin to Katy, Texas[10]. Shareholder Returns - The company declared a quarterly dividend of $1.03 per share, or $4.12 per share annualized, reflecting a commitment to returning value to shareholders[15]. - In the third quarter of 2025, ONEOK repurchased $119 million of senior notes for an aggregate repurchase price of $96 million[15]. Liquidity and Financial Position - As of September 30, 2025, ONEOK had approximately $1.2 billion in cash and cash equivalents, with no borrowings outstanding under its credit agreement or commercial paper program[10]. - Total current liabilities increased to $5,735 million as of September 30, 2025, from $4,719 million at the end of 2024, marking a 21.5% rise[43]. - ONEOK's total equity as of September 30, 2025, was $22,157 million, slightly up from $22,133 million at the end of 2024[43]. - The company’s long-term debt, excluding current maturities, stood at $31,986 million as of September 30, 2025, compared to $31,018 million at the end of 2024, reflecting a 3.1% increase[43]. Operational Highlights - The Rocky Mountain region saw a 17% increase in NGL raw feed throughput volumes, while the Mid-Continent region experienced a 6% increase[6]. - Natural gas processed increased to 5,852 MMcf/d for the three months ended September 30, 2025, compared to 2,410 MMcf/d in 2024, a significant increase[46]. - ONEOK's refined products volume shipped was 1,526 MBbl/d for the three months ended September 30, 2025, down from 1,580 MBbl/d in 2024, a decrease of 3.4%[46]. - The company continues to focus on expanding its energy infrastructure and services to meet growing domestic and international energy demands[31]. Guidance and Future Outlook - The company affirmed its full-year 2025 net income and adjusted EBITDA guidance ranges, indicating confidence in ongoing performance[3]. - Adjusted EBITDA guidance for 2025 has been affirmed, indicating strong financial performance expectations moving forward[36]. - The company affirmed its 2025 net income and adjusted EBITDA guidance ranges, indicating confidence in future performance[44].

Core Insights - ONEOK, Inc. reported higher third quarter 2025 results, driven by acquisitions and increased natural gas liquids and processing volumes [2][10] - The company affirmed its full-year 2025 net income and adjusted EBITDA guidance ranges [1][2] Financial Performance - Third quarter 2025 net income was $940 million, up from $693 million in the same quarter of 2024, resulting in diluted earnings per share of $1.49 [5][8] - Adjusted EBITDA for the third quarter 2025 was $2.12 billion, compared to $1.55 billion in the third quarter of 2024 [5][7] - Operating income increased to $1.56 billion from $1.13 billion year-over-year [5] Segment Performance - Natural Gas Liquids Segment adjusted EBITDA rose to $748 million in Q3 2025 from $624 million in Q3 2024, driven by contributions from EnLink and increased optimization and marketing [11] - Refined Products and Crude Segment adjusted EBITDA increased to $582 million in Q3 2025 from $441 million in Q3 2024, primarily due to contributions from Medallion and EnLink [12] - Natural Gas Gathering and Processing Segment adjusted EBITDA reached $566 million in Q3 2025, up from $318 million in Q3 2024 [14] Growth Initiatives - ONEOK announced plans for the Bighorn natural gas processing plant, with a capacity of 300 million cubic feet per day, expected to be completed by mid-2027 [9] - The company entered a joint venture for the Eiger Express Pipeline, a 450-mile natural gas pipeline from the Permian Basin to Katy, Texas [9] Capital Management - ONEOK completed a $3 billion senior notes offering and repaid $387 million of senior notes at maturity [9] - The company increased its commercial paper program size to $3.5 billion from $2.5 billion [9] - A quarterly dividend of $1.03 per share was declared, annualizing to $4.12 per share [9]

Core Viewpoint - ONEOK Inc. is expected to report significant increases in earnings per share (EPS) and revenue for Q3 2025, driven by strategic acquisitions and operational efficiencies [1][6]. Financial Performance - The estimated EPS for Q3 2025 is $1.45, reflecting a 22.9% increase year-over-year [2][3]. - Projected revenue for the quarter is approximately $9.42 billion, representing an 87.5% increase compared to the same quarter last year [3]. Strategic Moves - ONEOK expanded its ownership in the BridgeTex Pipeline Company by acquiring an additional 30% in July 2025, increasing its total ownership to 60% [2]. - This acquisition is expected to enhance cost efficiencies and profitability for the company [6]. Analyst Sentiment - Over the past 30 days, there has been a 1% upward revision in the consensus EPS estimate, indicating a positive reassessment by analysts [4][6]. Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 13.91, a price-to-sales ratio of about 1.55, and an enterprise value to sales ratio of around 2.70 [5]. - The debt-to-equity ratio stands at approximately 1.49, indicating the company's financial leverage [5].

Core Viewpoint - ONEOK Inc. (OKE) is set to release its third-quarter 2025 results on October 28, with expectations of strong performance driven by strategic acquisitions and increased natural gas processing volumes [1][5]. Factors Impacting Q3 Performance - In July 2025, ONEOK acquired an additional 30% stake in BridgeTex Pipeline Company, LLC, raising its ownership to 60%, which is expected to enhance cost efficiencies and profitability [2]. - The company is anticipated to benefit from strong fee-based contracts, with over 90% of revenues generated from such contracts [2]. - Increased well completions in the Rocky Mountain and Mid-Continent regions are likely to have boosted natural gas gathering and processing volumes [3]. - Sustained demand growth for refined products is expected due to the peak summer travel season, with mid-single digit rate increases following July tariff adjustments likely to enhance revenues [4]. Q3 Expectations - The Zacks Consensus Estimate for earnings is $1.45 per share, reflecting a year-over-year increase of 22.9% [5]. - Revenue estimates are set at $9.42 billion, indicating an 87.5% year-over-year jump [5]. - Raw feed throughput is expected to reach 1,542.23 thousand barrels of natural gas liquid per day, up 16.5% year over year [5]. - Natural gas processing volumes are estimated at 5,690.49 million cubic feet of gas per day, a 2.1% increase from the previous quarter [6]. Earnings Prediction Insights - The Earnings ESP for ONEOK is +0.47%, but the current Zacks Rank is 4 (Sell), indicating uncertainty regarding an earnings beat [7][8].

Core Insights - Analysts project Oneok Inc. (OKE) will report quarterly earnings of $1.45 per share, reflecting a 22.9% year-over-year increase, with revenues expected to reach $9.42 billion, an 87.5% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 1% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Natural Gas Gathering and Processing' at $1.32 billion, a 45.6% increase year-over-year [5]. - 'Revenues- Natural Gas Pipelines' are projected to reach $285.30 million, reflecting a 66.8% year-over-year increase [5]. - 'Revenues- Refined Products & Crude' are expected to be $1.85 billion, indicating a 92% increase year-over-year [5]. - 'Revenues- Natural Gas Liquids' are forecasted to be $2.84 billion, showing a decrease of 22.7% from the prior-year quarter [6]. Production and EBITDA Estimates - 'Raw feed throughput - Natural Gas Liquids' is expected to reach 1,542.23 thousand barrels of oil per day, up from 1,324.00 thousand barrels of oil per day a year ago [6]. - 'Adjusted EBITDA- Natural Gas Liquids' is projected at $769.06 million, compared to $624.00 million in the same quarter last year [7]. - 'Adjusted EBITDA- Natural Gas Pipelines' is expected to be $181.14 million, up from $166.00 million in the same quarter of the previous year [7]. - 'Adjusted EBITDA- Natural Gas Gathering and Processing' is estimated at $568.09 million, compared to $318.00 million in the same quarter last year [8]. Stock Performance - Oneok shares have decreased by 5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.3% [8].

Group 1 - The article discusses the ongoing interest in high-quality defensive stocks amid the AI craze, indicating a strategic shift towards midstream investments [1] - The author has extensive experience in finance, particularly in the oilfield and real estate sectors, which enhances the credibility of the insights provided [1] - The focus on equity research and analysis of public companies is emphasized, highlighting the author's role in providing valuable insights for investment decisions [1] Group 2 - The article does not contain any specific stock recommendations or positions held by the author, maintaining an objective stance [2] - There is a clear disclaimer regarding the lack of compensation for the article, reinforcing the independence of the analysis presented [2] - The article also clarifies that past performance does not guarantee future results, which is a standard caution in investment discussions [3]

Group 1 - The article discusses the ongoing interest in high-quality defensive stocks amid the AI craze, indicating a strategic shift towards midstream investments [1] - The author has extensive experience in finance, particularly in the oilfield and real estate sectors, which enhances their ability to conduct due diligence and M&A transactions [1] - The author has recently focused on equity research, providing services for a Dubai-based family office with over $20 million in assets under management, showcasing a commitment to informed investment decisions [1] Group 2 - The article does not provide any specific stock recommendations or investment advice, emphasizing the importance of individual investor suitability [2][3] - There is a clear disclaimer regarding the lack of any current stock positions in the companies mentioned, although there is a potential for future investment in OKE [2]