ONEOK(US:OKE)2025-08-05 20:18Part I. Financial Information Item 1. Financial Statements The company's unaudited consolidated financial statements detail performance for the three and six months ended June 30, 2025, and 2024 Consolidated Statements of Income Consolidated Income Statement Highlights (in Millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $7,887 | $4,894 | $15,930 | $9,675 | | Operating Income | $1,431 | $1,229 | $2,651 | $2,293 | | Net Income Attributable to ONEOK | $841 | $780 | $1,477 | $1,419 | | Diluted EPS | $1.34 | $1.33 | $2.38 | $2.42 | Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in Millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $3,896 | $4,238 | | Total Assets | $64,524 | $64,069 | | Total Current Liabilities | $6,646 | $4,719 | | Total Liabilities | $42,620 | $41,936 | | Total Equity | $21,904 | $22,133 | Consolidated Statements of Cash Flows Consolidated Cash Flow Highlights (Six Months Ended June 30, in Millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $2,429 | $2,026 | | Cash used in investing activities | $(1,508) | $(1,334) | | Cash used in financing activities | $(1,557) | $(994) | | Change in cash and cash equivalents | $(636) | $(302) | | Cash and cash equivalents at end of period | $97 | $36 | Notes to Consolidated Financial Statements - Completed the Delaware Basin JV Acquisition on May 28, 2025, for $927 million, making it a wholly owned subsidiary26 - Acquired EnLink on January 31, 2025, for $4.0 billion in common stock, making it a wholly owned subsidiary28 - Entered into $700 million of Treasury locks in Q2 2025 to hedge interest rates on future debt43 - Amended its credit agreement in February 2025, increasing the revolving credit facility to $3.5 billion and extending the term to February 203049 Management's Discussion and Analysis of Financial Condition and Results of Operations Management analyzes financial results, recent acquisitions, liquidity, and capital resources, highlighting increased earnings driven by strategic growth Recent Developments - ONEOK completed the acquisitions of the remaining interest in Delaware Basin JV and the entirety of EnLink, making both wholly owned subsidiaries9394 - Announced joint ventures with MPLX for a new LPG export terminal and pipeline, with an expected ONEOK investment of approximately $1.0 billion95 - Completed the BridgeTex Additional Interest Acquisition for approximately $270 million, increasing ownership to 60%96 - The company expects approximately 90% of its 2025 consolidated earnings to be fee-based, reducing commodity price exposure99 Financial Results and Operating Information Consolidated Financial Performance (in Millions) | Metric | Q2 2025 | Q2 2024 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Income | $1,431 | $1,229 | $202 | $2,651 | $2,293 | $358 | | Net Income | $853 | $780 | $73 | $1,544 | $1,419 | $125 | | Adjusted EBITDA | $1,981 | $1,624 | $357 | $3,756 | $3,065 | $691 | - The increase in operating income for Q2 and YTD 2025 was primarily driven by contributions from the EnLink and Medallion acquisitions111116 Segment Adjusted EBITDA Performance (Q2 2025 vs Q2 2024, in Millions) | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Natural Gas Gathering and Processing | $540 | $371 | $169 | | Natural Gas Liquids | $673 | $635 | $38 | | Natural Gas Pipelines | $188 | $152 | $36 | | Refined Products and Crude | $557 | $467 | $90 | Liquidity and Capital Resources - Primary liquidity sources include operating cash flows, a $3.5 billion credit agreement, a commercial paper program, and a $1.0 billion equity program139140 - Total 2025 capital expenditures are expected to be between $2.8 billion and $3.2 billion, with $1.4 billion spent in the first half155156 - The company maintains investment-grade credit ratings with a stable outlook from Moody's, S&P, and Fitch157 - Paid a quarterly dividend of $1.03 per share, a 4% YoY increase, with operating cash flows exceeding dividends by $1.1 billion YTD160161 Quantitative and Qualitative Disclosures About Market Risk The company's market risk exposure, primarily counterparty credit risk, remains materially unchanged from the 2024 Annual Report - The company reports no material changes in its market risk exposures compared to its 2024 Annual Report182 - A high percentage of revenues in H1 2025 were from investment-grade or secured counterparties: Natural Gas Gathering and Processing (~75%), Natural Gas Pipelines (~80%), and Refined Products and Crude (~85%)177179180 Controls and Procedures Management confirms the effectiveness of disclosure controls and procedures as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period184 - No changes occurred during the quarter that materially affected or are likely to materially affect internal control over financial reporting185 Part II. Other Information Legal Proceedings The company reports environmental proceedings exceeding a $1 million threshold and refers to its Annual Report for other legal matters - The company uses a $1 million threshold for the disclosure of environmental proceedings186 Risk Factors No material changes are reported to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors set forth in the company's Annual Report187 Unregistered Sales of Equity Securities and Use of Proceeds The company reports the unregistered issuance of common stock as partial consideration for the Delaware Basin JV Acquisition - On May 28, 2025, the company issued 4,852,645 shares of common stock as part of the consideration for the Delaware Basin JV Acquisition in an unregistered sale188 Exhibits A list of exhibits filed with the Quarterly Report on Form 10-Q is provided