ONEOK Announces Higher Full-Year 2025 Earnings: Net Income up 11%, Adjusted EBITDA up 18%

Core Insights - ONEOK reported a strong performance in 2025 with double-digit earnings growth driven by increased volumes and synergies from acquisitions [2][4][15] - The company provided financial guidance for 2026, projecting continued growth in net income and adjusted EBITDA across various segments [18][19] Financial Performance - Fourth-quarter 2025 net income was $978 million, with a diluted earnings per share of $1.55, while full-year net income reached $3.39 billion, resulting in $5.42 per diluted share [5][8] - Adjusted EBITDA for 2025 was $8.02 billion, an 18% increase from 2024, with significant contributions from the Rocky Mountain region [4][15] - The company achieved $475 million in cumulative acquisition-related synergies by the end of 2025 [12] 2026 Financial Guidance - ONEOK's 2026 guidance includes a net income range of $3.19 billion to $3.71 billion and adjusted EBITDA between $7.9 billion and $8.3 billion [16][18] - Capital expenditures for 2026 are expected to be between $2.7 billion and $3.2 billion, focusing on key projects such as the Medford fractionator rebuild and natural gas processing projects in the Permian Basin [21][22] Segment Performance - The Natural Gas Liquids segment reported adjusted EBITDA of $2.779 billion for 2025, reflecting increased optimization and marketing earnings [24] - The Refined Products and Crude segment achieved adjusted EBITDA of $2.177 billion, benefiting from higher demand and capital expenditures [25] - The Natural Gas Gathering and Processing segment saw adjusted EBITDA of $2.138 billion, driven by higher volumes in the Rocky Mountain and Gulf Coast regions [26] Operational Highlights - Approximately 90% of ONEOK's earnings in 2025 were fee-based, providing stability amid market fluctuations [14][23] - The company repurchased $62 million of common stock and extinguished nearly $3.1 billion of long-term debt in 2025 [14][15]