ONEOK(US:OKE) ZACKSยท2024-09-04 16:35Core Viewpoint - Oneok Inc. has shown a positive stock performance, gaining approximately 12.1% since its last earnings report, outperforming the S&P 500, but there are concerns about whether this trend will continue leading up to the next earnings release [1] Financial Performance - For Q2 2024, Oneok reported operating earnings per share (EPS) of $1.33, exceeding the Zacks Consensus Estimate of $1.18 by 12.7% and improving 27.9% from $1.04 in the same quarter last year [2] - Total operating revenues were $4.89 billion, missing the Zacks Consensus Estimate of $5.52 billion by 11.3%, but representing a 31.1% increase from $3.73 billion in the prior-year quarter [3] - Adjusted EBITDA reached $1.62 billion, up 65.5% year over year, while operating income was $1.23 billion, a 66.7% increase from $0.74 billion in the previous year [4] Operational Metrics - The total natural gas processed was 3,102 billion British thermal units per day (BBtu/d), reflecting a 6.2% year-over-year increase [4] - Natural gas transportation capacity contracted was 7,991 million British thermal units per hour per day (MDth/d), which increased by 4.4% year over year [5] Financial Position - As of June 30, 2024, cash and cash equivalents were $36 million, down from $338 million as of December 31, 2023 [6] - Long-term debt (excluding current maturities) totaled $20.3 billion, a decrease from $21.2 billion as of December 31, 2023 [6] - Cash provided by operating activities for the first half of 2024 was $2.03 billion, compared to $1.99 billion in the same period of 2023 [6] Future Guidance - Oneok expects its consolidated net income for 2024 to be in the range of $2.73-$3.03 billion and adjusted EBITDA to be between $6.03-$6.33 billion [7] - Interest expense, net of capitalized interest, is anticipated to be in the range of $1.195-$1.165 billion [7] Market Sentiment - Recent estimates for Oneok have trended downward, indicating a potential shift in market sentiment [8] - The company currently holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [10] Industry Comparison - Oneok operates within the Zacks Oil and Gas - Production Pipeline - MLB industry, where competitor Enterprise Products Partners (EPD) has seen a 0.9% gain over the past month [11] - Enterprise Products reported revenues of $13.48 billion for the last quarter, a year-over-year increase of 26.6%, with EPS of $0.64 compared to $0.57 a year ago [11]