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Share Name | Share Symbol | Market | Type |
---|---|---|---|
ONEOK Inc | NYSE:OKE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.04 | 0.05% | 80.07 | 80.67 | 79.63 | 80.40 | 1,687,954 | 01:00:00 |
Record Rocky Mountain Region Volumes
Announces 2024 Financial Guidance
TULSA, Okla., Feb. 26, 2024 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher fourth quarter and full-year 2023 results and 2024 financial guidance.
Higher Fourth-quarter 2023 Results, Compared with Fourth Quarter 2022:
Higher Full-year 2023 Results, Compared with Full Year 2022:
2024 Earnings Guidance:
"Record volumes, strong financial performance and the closing of the Magellan acquisition solidified 2023 as a year of significant growth and transformation," said Pierce H. Norton II, ONEOK president and chief executive officer. "With volume momentum across our operations, a full-year earnings contribution from the refined products and crude segment, and the realization of acquisition-related synergies, we've guided to double-digit adjusted EBITDA growth in 2024.
"Our confidence in ONEOK's underlying business fundamentals and future performance support our commitment to maximize investor value through disciplined capital-growth opportunities, maintaining a strong balance sheet, dividend growth and share repurchases," added Norton. "With our larger scale and more diversified operations, we're even better positioned to support our customers, provide essential energy services and create value for our stakeholders."
HIGHLIGHTS:
FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL HIGHLIGHTS
Three Months Ended | Years Ended | ||||||
December 31, | December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(Millions of dollars, except per share amounts) | |||||||
Net income (a) (b) | $ 688 | $ 485 | $ 2,659 | $ 1,722 | |||
Diluted earnings per common share (a) (b) | $ 1.18 | $ 1.08 | $ 5.48 | $ 3.84 | |||
Adjusted EBITDA (c) (d) | $ 1,514 | $ 967 | $ 5,243 | $ 3,620 | |||
Operating income (c) | $ 1,099 | $ 756 | $ 4,072 | $ 2,807 | |||
Operating costs | $ 554 | $ 322 | $ 1,535 | $ 1,149 | |||
Depreciation and amortization | $ 260 | $ 157 | $ 769 | $ 626 | |||
Equity in net earnings from investments | $ 70 | $ 37 | $ 202 | $ 148 | |||
Maintenance capital | $ 139 | $ 69 | $ 277 | $ 228 | |||
Capital expenditures (includes maintenance) | $ 603 | $ 316 | $ 1,595 | $ 1,202 | |||
(a) Amounts for the three months ended Dec. 31, 2023, include pre-tax impacts of $37 million related to net gains on open
(b) Amounts for the year ended Dec. 31, 2023, include a pre-tax benefit of $633 million related to the Medford incident,
(c) Amounts for the three months and year ended Dec. 31, 2023, include $25 million and $158 million, respectively, in
(d) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) is a non-GAAP measure. |
FULL-YEAR 2023 FINANCIAL PERFORMANCE
ONEOK reported full-year 2023 net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) of $2.7 billion and $5.2 billion, respectively.
Higher 2023 results were driven primarily by higher volumes across ONEOK's systems, higher average fee rates, and higher natural gas storage and transportation services. Results included higher operating costs due primarily to higher employee-related costs and higher outside services due to the growth of ONEOK's operations.
Full-year 2023 results included $633 million related to the Medford incident and $158 million of transaction costs.
Additionally, 2023 results included $465 million of adjusted EBITDA in the refined products and crude segment following the closing of the Magellan acquisition on Sept. 25, 2023.
2024 GUIDANCE:
2024 Guidance Range | ||||
(Millions of dollars, except | ||||
ONEOK, Inc. | ||||
Net income | $2,610 | - | $3,010 | |
Diluted earnings per common share | $4.45 | - | $5.14 | |
Adjusted EBITDA (a) | $5,900 | - | $6,300 | |
Growth capital expenditures | $1,390 | - | $1,550 | |
Maintenance capital expenditures | $360 | - | $400 | |
Adjusted EBITDA: | ||||
Natural Gas Liquids | $2,390 | - | $2,550 | |
Refined Products and Crude | $1,645 | - | $1,765 | |
Natural Gas Gathering and Processing | $1,275 | - | $1,355 | |
Natural Gas Pipelines | $565 | - | $595 | |
Other | $25 | - | $35 | |
(a) Adjusted EBITDA is a non-GAAP measure. A reconciliation to the relevant GAAP measure is included in this news release.
| ||||
2024 Guidance Range | ||||
Summary of 2024 Volume Guidance | ||||
Natural Gas Liquids Raw Feed Throughput (MBbl/d) | 1,330 | - | 1,430 | |
Refined Products Volume Shipped (MBbl/d) | 1,500 | - | 1,600 | |
Crude Oil Volume Shipped (MBbl/d) | 700 | - | 850 | |
Natural Gas Processed (MMcf/d) | 2,240 | - | 2,570 | |
2024 Financial Guidance:
ONEOK's 2024 net income and adjusted EBITDA guidance includes higher earnings from all business segments (excluding the Medford insurance settlement in 2023), includes a full-year contribution from the refined products and crude segment and approximately $160 million to $190 million (midpoint of $175 million) of total realized annual cost and initial commercial synergy impacts in the first year post the Magellan acquisition.
ONEOK continues to prioritize synergy opportunities primarily based on three factors: time-to-market, economic value and capital expenditure requirements.
Building off of the opportunities captured in 2024, ONEOK expects additional annual synergies approaching $125 million in 2025 as a result of batching, blending, supply chain synergies and system optimization. Additional commercial synergies are expected in 2026 as necessary capital expenditure projects are completed.
Capital Expenditures:
Total capital expenditures are expected to range between $1.75 billion to $1.95 billion.
Capital expenditure guidance includes the MB-6 NGL fractionator, West Texas NGL pipeline expansion project and the expansion of the Elk Creek NGL pipeline, which will bring total capacity out of the Rocky Mountain region to 575,000 barrels per day. Projects that have not reached a final investment decision are not included in 2024 expectations.
Expected 2024 Performance Drivers:
Natural Gas Liquids
Refined Products and Crude
Natural Gas Gathering and Processing
Natural Gas Pipelines
Returning Value to Investors
Additional guidance information: https://ir.oneok.com/financial-information/financial-reports.
2023 BUSINESS SEGMENT RESULTS:
Natural Gas Liquids Segment
Three Months Ended | Years Ended | ||||||
December 31, | December 31, | ||||||
Natural Gas Liquids Segment | 2023 | 2022 | 2023 | 2022 | |||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ 613 | $ 565 | $ 3,045 | $ 2,095 | |||
Capital expenditures | $ 323 | $ 136 | $ 818 | $ 581 |
The increase in fourth quarter 2023 adjusted EBITDA, compared with the fourth quarter 2022, primarily reflects:
The increase in adjusted EBITDA for the full year 2023, compared with 2022, primarily reflects:
Natural Gas Gathering and Processing Segment
Three Months Ended | Years Ended | ||||||
December 31, | December 31, | ||||||
Natural Gas Gathering and Processing Segment | 2023 | 2022 | 2023 | 2022 | |||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ 323 | $ 266 | $ 1,244 | $ 1,037 | |||
Capital expenditures | $ 140 | $ 124 | $ 448 | $ 445 | |||
The increase in fourth quarter 2023 adjusted EBITDA, compared with the fourth quarter 2022, primarily reflects:
The increase in adjusted EBITDA for full year 2023, compared with 2022, primarily reflects:
Natural Gas Pipelines Segment
Three Months Ended | Years Ended | ||||||
December 31, | December 31, | ||||||
Natural Gas Pipelines Segment | 2023 | 2022 | 2023 | 2022 | |||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ 132 | $ 131 | $ 559 | $ 488 | |||
Capital expenditures | $ 73 | $ 41 | $ 228 | $ 123 |
Fourth quarter 2023 adjusted EBITDA, compared with the fourth quarter 2022, primarily reflects:
The increase in adjusted EBITDA for the full year 2023, compared with 2022, primarily reflects:
Refined Products and Crude Segment
Three Months Ended | Years Ended | ||||||
December 31, | December 31, | ||||||
Refined Products and Crude Segment | 2023 | 2022 | 2023 | 2022 | |||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ 424 | - | $ 465 | - | |||
Capital expenditures | $ 51 | - | $ 52 | - |
Adjusted EBITDA was $465 million for the period Sept. 25, 2023, through Dec. 31, 2023, which includes a $40 million unfavorable inventory value adjustment, related to the closing of the Magellan acquisition.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 27, 2024. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 877-883-0383, entry number 2949750, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for one year. A recording will be available by phone for seven days. The playback call may be accessed at 877-344-7529, access code 2417359.
LINK TO EARNINGS TABLES AND PRESENTATION:
https://ir.oneok.com/financial-information/financial-reports
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), which is a non-GAAP financial metric, used to measure the company's financial performance. Adjusted EBITDA is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, and other noncash items; and includes adjusted EBITDA from the company's unconsolidated affiliates using the same recognition and measurement methods used to record equity in net earnings of unconsolidated affiliates. Adjusted EBITDA from unconsolidated affiliates is calculated consistently with the definition above and excludes items such as interest, taxes, depreciation and other noncash items.
Adjusted EBITDA is useful to investors because it and similar measures are used by many companies in the industry as a measure of financial performance and is commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare the company's financial performance with the performance of other companies within the industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
This non-GAAP financial measure excludes some, but not all, items that affect net income. Additionally, this calculation may not be comparable with similarly titled measures of other companies. A reconciliation of net income to adjusted EBITDA is included in the tables.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.
ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "target," "will," "would," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson 918-561-5325 |
Media Contact: | Brad Borror 918-588-7582 |
View original content:https://www.prnewswire.com/news-releases/oneok-announces-higher-fourth-quarter-and-full-year-2023-earnings-302071594.html
SOURCE ONEOK, Inc.
Copyright 2024 PR Newswire
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