ONEOK(US:OKE)2025-04-30 15:00Financial Data and Key Metrics Changes - First quarter 2025 net income attributable to ONEOK totaled $636 million or $1.04 per share [11] - Adjusted EBITDA for the first quarter was $1.78 billion, or $1.81 billion excluding transaction costs, driven by higher NGL and natural gas processing volumes [11][12] - The acquired EnLink and Medallion assets contributed nearly $450 million during the first quarter [12] - The company ended the quarter with no borrowings under its $3.5 billion facility and over $140 million in cash [14] Business Line Data and Key Metrics Changes - NGL volumes increased 4% year over year, with a 15% increase in the Rocky Mountain Region and an 8% increase in the Gulf Coast Permian volume [17] - Refined product volumes were nearly unchanged year over year, with expectations for increased volumes in the coming months due to seasonal demand [20] - Midland crude gathered volumes were up more than 20% year over year, including contributions from EnLink and Medallion systems [21] Market Data and Key Metrics Changes - The company is experiencing increased demand for natural gas due to ongoing negotiations related to power demand for data centers and industrial needs [25] - The Oklahoma natural gas storage expansion project will add an additional four Bcf of working storage capacity, which is 80% committed with third-party contracts [26] Company Strategy and Development Direction - ONEOK is focused on optimizing existing assets and expanding strategically in high-growth areas like the Permian Basin [27] - The company is committed to capital discipline and maintaining a strong balance sheet, with plans to adjust capital expenditures if necessary [15][52] - The integration of acquired assets is expected to provide significant synergies and growth opportunities, with a focus on operational efficiencies and commercial alignment [12][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the evolving macroeconomic environment but believes ONEOK is structured to perform through various cycles [7][10] - The company expects seasonal refined product demand and volume growth from completed capital projects to enhance results in the coming quarters [15] - Management remains confident in the long-term fundamentals of the business, supported by a strong integrated asset base and market understanding [27] Other Important Information - The company is nearing completion of several organic growth projects, including pipeline expansions in West Texas and the Rocky Mountain region [6] - The strategic Texas City LPG export joint venture is expected to provide customers with a fully integrated solution for their products [19] Q&A Session Summary Question: Can you elaborate on the synergies and outlook for 2025 and 2026? - Management highlighted that LNG exports and increasing demand for data centers are key drivers for growth, with synergies not dependent on volume [34][36] Question: How are producer conversations going regarding concessions? - Management indicated constructive conversations with producers, focusing on win-win solutions through bundling strategies [41] Question: How has the potential for tariffs on LPGs impacted commercialization? - Management stated that tariffs have not impacted their LPG export project or contracting approach [44] Question: How flexible can capital expenditure plans be if the macro environment worsens? - Management noted that approximately $1 billion of annual capital can be flexed, with a history of successfully managing capital programs during downturns [50][52] Question: How is the Bakken region trending for the rest of the year? - Management expressed confidence in low single-digit growth in the Bakken, with expectations for improved volumes as winter issues subside [64][66] Question: What is the outlook for NGL volumes and ethane recovery? - Management confirmed that ethane rejection was in line with expectations, with increased recovery anticipated as gas prices stabilize [73][74] Question: Can you clarify the incremental EBITDA from combining the four companies? - Management confirmed that there is an expected additional $1.3 billion of incremental EBITDA realizable by 2027 from synergies and growth projects [78][84]