ONEOK (OKE) Q4 Earnings Beat Estimates, Revenues Miss
ONEOK Inc. OKE recorded fourth-quarter 2022 operating earnings per share (EPS) of $1.08, which surpassed the Zacks Consensus Estimate of $1.02 by 5.9%. The bottom line improved 27.1% from the year-ago quarter’s figure of 85 cents.
For full-year 2022, OKE reported earnings of $3.84 per share, up 14.6% from $3.35 in 2021.
The year-over-year improvement was due to increased producer activity across ONEOK’s operations, higher realized commodity prices, higher average fee rates, and higher natural gas storage and transportation services.
Total Revenues
Operating revenues for fourth-quarter were $5,032 million, which missed the Zacks Consensus Estimate of $5,608 million by 10.3%. The top line declined 7.2% from $5,420.5 million in the prior-year quarter.
Total revenues came in at $22.4 billion for 2022, up 35.8% from $16.5 billion in 2021.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Highlights of the Release
In the fourth quarter, OKE’s adjusted EBITDA was $967.4 million, up 14.3% year over year.
ONEOK’s operating income came in at $756.8 million in the fourth quarter, up 16% from the prior-year quarter’s $652.2 million.
ONEOK incurred interest expenses worth $166.2 million, down 6.8% from the prior-year quarter’s $178.4 million.
Financial Highlights
As of Dec 31, 2022, ONEOK had cash and cash equivalents worth $220.2 million compared with $146.4 million as of Dec 31, 2021.
The long-term debt (excluding current maturities) was $12,695.8 million as of Dec 31, 2022, down from $12,747.6 million as of Dec 31, 2021.
ONEOK’s cash provided by operating activities for 2022 was $2,905.5 million compared with $2,546.3 million in 2021.
Capital expenditures (including maintenance) totaled $1,202.1 million in 2022, up from $696.9 million in 2021.
Guidance
ONEOK expects 2023 EPS in the range of $5.03-$5.69. The Zacks Consensus Estimate for the same is pegged at $4.72 per share.
ONEOK anticipates 2023 net income and adjusted EBITDA in the range of $2,260-$2,560 million and $4,425-$4,725 million, respectively.
ONEOK’s Natural Gas Liquids, Gathering and Processing, and Pipelines segments expect adjusted EBITDA in the range of $2,795-$2,985 million, $1,180-$1,260 million, and $450-$480 million, respectively.
ONEOK’s Natural Gas Processed segment expects 2023 volume in the range of 2,040-2,340 million cubic feet per day (MMcf/d).
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.
Recent Releases
Enterprise Product Partners, LP EPD reported fourth-quarter 2022 adjusted earnings of 65 cents per unit, beating the Zacks Consensus Estimate of 60 cents by 8.3%.
EPD delivered an average earnings surprise of 7.15% in the last four quarters.
NuStar Energy, LP NS reported fourth-quarter 2022 adjusted earnings of 34 cents per unit, beating the Zacks Consensus Estimate of 27 cents by 25.9%.
The Zacks Consensus Estimate for NS’s 2023 earnings per unit (EPU) is 96 cents, implying a 4.35% increase year over year.
Crestwood Equity Partners, LP CEQP reported fourth-quarter 2022 adjusted earnings of 26 cents per unit, beating the Zacks Consensus Estimate of 20 cents by 30%.
The Zacks Consensus Estimate for CEQP’s 2023 EPU is $1.31, implying a 551.7% increase year over year.
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