ONEOK (OKE) Q3 Earnings Beat Estimates, Stock Down 2.4%
ONEOK Inc. OKE reported third-quarter 2023 operating earnings per share (EPS) of 99 cents, which beat the Zacks Consensus Estimate of 98 cents by 1.02%. The bottom line also improved 3% from the year-ago quarter’s figure of 96 cents.
Total Revenues
Operating revenues for the quarter totaled $4,189 million, which missed the Zacks Consensus Estimate of $4,959 million by 15.5%. The top line also declined 29.2% from $5,914 million in the prior-year quarter.
This top-line deterioration impacted the price performance of the stock, which has fallen 2.4% since the earnings release on Oct 31.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Highlights of the Release
Adjusted EBITDA came in at $1,001 million, up 11% year over year. In September 2023, ONEOK completed the acquisition of Magellan Midstream Partners. Adjusted EBITDA of $40 million included six days of operations subsequent to the closing of the Magellan acquisition.
Operating income totaled $739 million, up 5.6% from the prior-year quarter’s level of $700 million.
ONEOK incurred interest expenses of $215 million, up 28.7% from $167 million recorded in the year-ago period.
Total natural gas processed was 3,085 Billion British thermal units per day (BBtu/d), up 12.5% year over year. The Zacks Consensus Estimate for the same was pegged at 3,028 BBtu/d.
The company reported natural gas transportation capacity contracted of 7,704 million British thermal units per hour per day (MDth/d), up 5.3% year over year. The Zacks Consensus Estimate for the same was pegged at 7,479 MDth/d.
Financial Highlights
As of Sep 30, 2023, the company had cash and cash equivalents worth $284 million compared with $220 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) totaled $21.5 billion as of Sep 30, 2023, compared with $12.7 billion as of Dec 31, 2022.
Cash provided by operating activities for the first nine months of 2023 amounted to $2.9 billion compared with $1.9 billion in the corresponding period of 2022.
2023 Guidance
ONEOK provided financial guidance on a consolidated basis, including the acquisition of Magellan Midstream Partners.
The company anticipates consolidated 2023 net income in the band of $2,550-$2,650 million. It expects adjusted EBITDA in the range of $5,050-$5,150 million.
Zacks Rank
ONEOK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Devon Energy DVN reported third-quarter 2023 earnings of $1.65 per share, which beat the Zacks Consensus Estimate of $1.56 by 5.8%.
Devon’s long-term (three- to five-year) earnings growth rate is 51.35%. It delivered an average earnings surprise of 1.6% in the last four quarters.
Murphy Oil Corporation MUR delivered third-quarter 2023 adjusted net earnings of $1.59 per share, which beat the Zacks Consensus Estimate of $1.34 by 18.7%.
The Zacks Consensus Estimate for 2023 EPS is pinned at $5.01. It delivered an average earnings surprise of 12.7% in the last four quarters.
TotalEnergies SE TTE reported third-quarter 2023 operating earnings of $2.63 (€2.41) per share, which beat the Zacks Consensus Estimate of $2.5 by 5.2%.
TTE’s long-term earnings growth rate is 9.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $9.72.
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