ONEOK Q1 Earnings Lag Estimates, Revenues Increase Year Over Year

Core Insights - ONEOK Inc. reported first-quarter 2025 operating earnings per share (EPS) of $1.04, missing the Zacks Consensus Estimate of $1.23 by 15.4% and declining 4.6% from the previous year's figure of $1.09 [1] - Total revenues for the quarter reached $8.04 billion, exceeding the Zacks Consensus Estimate of $7 billion by 14.9% and improving 68.2% from $4.78 billion in the prior-year quarter [1] Financial Performance - Adjusted EBITDA for the quarter was $1.78 billion, reflecting a year-over-year increase of 23.2% [2] - Operating income totaled $1.22 billion, up 14.7% from the prior-year level of $1.06 billion [2] - Interest expenses amounted to $442 million, a significant increase of 47.3% from $300 million in the year-ago period [2] - The total natural gas processed was 5,250 million cubic feet per day (MMcf/d), marking a 140.1% increase year over year [2] Capacity and Debt - Natural gas transportation capacity contracted was 4,663 million British thermal units per hour per day (MDth/d), which increased by 4% year over year [3] - As of March 31, 2025, cash and cash equivalents were $141 million, down from $733 million as of December 31, 2024 [4] - Long-term debt (excluding current maturities) totaled $29.78 billion, a decrease from $31.02 billion as of December 31, 2024 [4] - Cash provided by operating activities for the first three months of 2025 was $904 million, compared to $596 million in the same period of 2024 [4] 2025 Guidance - ONEOK anticipates consolidated 2025 net income in the range of $3.21-$3.69 billion and expects adjusted EBITDA between $8-$8.45 billion [5] - Interest expenses, net of capitalized interest, are projected to be in the range of $1.77-$1.73 billion [5] - Diluted EPS is expected to be between $4.97-$5.77 per share, with the Zacks Consensus Estimate for earnings at $5.35 per share, lower than the midpoint of the company's guidance [5] Zacks Rank - ONEOK currently holds a Zacks Rank 3 (Hold) [6]