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ONEOK(OKE) - 2024 Q3 - Quarterly Results
OKEONEOK(OKE)2024-10-29 20:28

Financial Performance - Net income for Q3 2024 was 693million,withdilutedearningspershareof693 million, with diluted earnings per share of 1.18, and adjusted EBITDA of 1.55billion[3]−ONEOKincreased2024consolidatednetincomeguidancemidpointto1.55 billion[3] - ONEOK increased 2024 consolidated net income guidance midpoint to 2.995 billion, with adjusted EBITDA midpoint of 6.625billion[4]−Stand−alonenetincomeguidancefor2024increasedby6.625 billion[4] - Stand-alone net income guidance for 2024 increased by 65 million to a midpoint of 2.945billion,andadjustedEBITDAincreasedby2.945 billion, and adjusted EBITDA increased by 100 million to a midpoint of 6.275billion[5]−ONEOKreporteda3.5timesannualizedrun−ratenetdebt−to−EBITDAratioasofSept.30,2024[14]−Thirdquarter2024adjustedEBITDAincreasedby6.275 billion[5] - ONEOK reported a 3.5 times annualized run-rate net debt-to-EBITDA ratio as of Sept. 30, 2024[14] - Third quarter 2024 adjusted EBITDA increased by 25 million compared to Q3 2023, driven by higher firm and interruptible rates in transportation services[23] - Nine-month 2024 adjusted EBITDA increased by 57millionintransportationservicesand57 million in transportation services and 13 million from unconsolidated affiliates, offset by an 11millionincreaseinoperatingcosts[24]−ONEOKincreasedits2024financialguidance,reflectingimprovedperformanceintransportationservicesandunconsolidatedaffiliates[23][24]−ONEOKreporteda19.911 million increase in operating costs[24] - ONEOK increased its 2024 financial guidance, reflecting improved performance in transportation services and unconsolidated affiliates[23][24] - ONEOK reported a 19.9% increase in total revenues to 5,023 million for Q3 2024 compared to 4,189millioninQ32023[41]−NetincomeforQ32024roseto4,189 million in Q3 2023[41] - Net income for Q3 2024 rose to 693 million, up 52.6% from 454millioninQ32023[41]−Basicearningspershareincreasedto454 million in Q3 2023[41] - Basic earnings per share increased to 1.18 in Q3 2024 from 0.99inQ32023[41]−AdjustedEBITDAforQ32024was0.99 in Q3 2023[41] - Adjusted EBITDA for Q3 2024 was 1.545 billion, compared to 1.015billioninQ32023[50]−ONEOKupdatedits2024financialguidance,projectingAdjustedEBITDAbetween1.015 billion in Q3 2023[50] - ONEOK updated its 2024 financial guidance, projecting Adjusted EBITDA between 6.525 billion and 6.725billion[54]SegmentPerformance−RockyMountainregionNGLrawfeedthroughputvolumesincreasedby76.725 billion[54] Segment Performance - Rocky Mountain region NGL raw feed throughput volumes increased by 7%, and natural gas volumes processed increased by 5% in Q3 2024[3] - Natural Gas Pipelines segment adjusted EBITDA increased by 22% in Q3 2024[3] - Natural Gas Liquids segment adjusted EBITDA for Q3 2024 was 624 million, with capital expenditures of 247million[16]−RefinedProductsandCrudesegmentadjustedEBITDAforQ32024was247 million[16] - Refined Products and Crude segment adjusted EBITDA for Q3 2024 was 441 million, with capital expenditures of 45million[19]−NaturalGasLiquidssegmentreportedAdjustedEBITDAof45 million[19] - Natural Gas Liquids segment reported Adjusted EBITDA of 624 million for Q3 2024, compared to 616millioninQ32023[49]−RefinedProductsandCrudesegmentshipped1,580MBbl/dofrefinedproductsinQ32024,upfrom1,509MBbl/dintheninemonthsendedSept.30,2024[49]−NaturalGasGatheringandProcessingsegmentprocessed3,236BBtu/dofnaturalgasinQ32024,anincreasefrom3,085BBtu/dinQ32023[49]−NaturalGasPipelinessegmentcontracted97616 million in Q3 2023[49] - Refined Products and Crude segment shipped 1,580 MBbl/d of refined products in Q3 2024, up from 1,509 MBbl/d in the nine months ended Sept. 30, 2024[49] - Natural Gas Gathering and Processing segment processed 3,236 BBtu/d of natural gas in Q3 2024, an increase from 3,085 BBtu/d in Q3 2023[49] - Natural Gas Pipelines segment contracted 97% of its natural gas transportation capacity in Q3 2024, up from 96% in Q3 2023[49] - The Refined Products and Crude segment's Adjusted EBITDA for Q3 2024 was 441 million, compared to 41millioninQ32023[50]AcquisitionsandProjects−ONEOKcompletedtheacquisitionofEnLinkMidstreamforapproximately41 million in Q3 2023[50] Acquisitions and Projects - ONEOK completed the acquisition of EnLink Midstream for approximately 3.3 billion in October 2024[14] - ONEOK announced a project to rebuild its 210,000 bpd fractionator in Medford, Oklahoma, expected to cost 385millionandbecompletedbyQ12027[14]−ONEOKowns43385 million and be completed by Q1 2027[14] - ONEOK owns 43% of EnLink Midstream's outstanding common units as of October 15, 2024[32] - The company expects to close the Medallion acquisition in Q4 2024, which will contribute to future Adjusted EBITDA[55] Financial Position and Capital Expenditures - Total assets grew to 51,050 million as of Sept. 30, 2024, up from 44,266millionatDec.31,2023[43]−Cashandcashequivalentssurgedto44,266 million at Dec. 31, 2023[43] - Cash and cash equivalents surged to 6,464 million at the end of Q3 2024, compared to 284millionattheendofQ32023[47]−Long−termdebtincreasedto284 million at the end of Q3 2023[47] - Long-term debt increased to 26,880 million as of Sept. 30, 2024, up from 21,183millionatDec.31,2023[44]−Capitalexpendituresforthefirstninemonthsof2024totaled21,183 million at Dec. 31, 2023[44] - Capital expenditures for the first nine months of 2024 totaled 1,459 million, up from 992millioninthesameperiodof2023[47]−Cashprovidedbyoperatingactivitiesforthefirstninemonthsof2024was992 million in the same period of 2023[47] - Cash provided by operating activities for the first nine months of 2024 was 3,277 million, compared to 2,913millioninthesameperiodof2023[47]−ONEOKheld2,913 million in the same period of 2023[47] - ONEOK held 5,885 million in cash for acquisitions as of Sept. 30, 2024[43] - The company's retained earnings increased to 1,237millionasofSept.30,2024,upfrom1,237 million as of Sept. 30, 2024, up from 868 million at Dec. 31, 2023[45] - Capital expenditures for the Natural Gas Liquids segment were 247millioninQ32024,upfrom247 million in Q3 2024, up from 189 million in Q3 2023[49] Risks and Forward-Looking Statements - The company faces risks from volatile commodity prices, regulatory changes, and potential cybersecurity attacks[37] - ONEOK's forward-looking statements include potential impacts of acquisitions, such as the EnLink Controlling Interest Acquisition and Medallion Acquisition[38] - The company's financial performance is influenced by factors like demand for natural gas, NGLs, and crude oil, as well as regulatory compliance and reserve performance[37] - ONEOK's ability to pay dividends and maintain internal controls are key considerations for future financial stability[38] Non-GAAP Financial Metrics - Adjusted EBITDA is a non-GAAP financial metric used to measure ONEOK's financial performance, excluding items like interest expense, depreciation, and noncash items[26][27] Operational Overview - ONEOK operates a 50,000-mile pipeline network, transporting natural gas, NGLs, refined products, and crude oil[31]