ONEOK(OKE) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $693 million, with diluted earnings per share of $1.18, and adjusted EBITDA of $1.55 billion[3] - ONEOK increased 2024 consolidated net income guidance midpoint to $2.995 billion, with adjusted EBITDA midpoint of $6.625 billion[4] - Stand-alone net income guidance for 2024 increased by $65 million to a midpoint of $2.945 billion, and adjusted EBITDA increased by $100 million to a midpoint of $6.275 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 $57 million in transportation services and $13 million from unconsolidated affiliates, offset by an $11 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 $4,189 million in Q3 2023[41] - Net income for Q3 2024 rose to $693 million, up 52.6% from $454 million in Q3 2023[41] - Basic earnings per share increased to $1.18 in Q3 2024 from $0.99 in Q3 2023[41] - Adjusted EBITDA for Q3 2024 was $1.545 billion, compared to $1.015 billion in Q3 2023[50] - ONEOK updated its 2024 financial guidance, projecting Adjusted EBITDA between $6.525 billion and $6.725 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 $247 million[16] - Refined Products and Crude segment adjusted EBITDA for Q3 2024 was $441 million, with capital expenditures of $45 million[19] - Natural Gas Liquids segment reported Adjusted EBITDA of $624 million for Q3 2024, compared to $616 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 $41 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 $385 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 $44,266 million at Dec. 31, 2023[43] - Cash and cash equivalents surged to $6,464 million at the end of Q3 2024, compared to $284 million at the end of Q3 2023[47] - Long-term debt increased to $26,880 million as of Sept. 30, 2024, up from $21,183 million at Dec. 31, 2023[44] - Capital expenditures for the first nine months of 2024 totaled $1,459 million, up from $992 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 $2,913 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 $1,237 million as of Sept. 30, 2024, up from $868 million at Dec. 31, 2023[45] - Capital expenditures for the Natural Gas Liquids segment were $247 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]