Yahoo Finance ONEOK Inc. Reports Q1 2024 Earnings: Misses EPS Estimates but Raises Full-Year Guidance
Net Income: Reported at $639 million, falling short of the estimated $667.97 million.
Earnings Per Share (EPS): Achieved $1.09 per diluted share, below the estimated $1.15.
Revenue: Total revenues reached $4.781 billion, surpassing the estimated $6.151 billion.
Adjusted EBITDA: Recorded at $1.44 billion for the quarter.
Capital Expenditures: Maintained guidance at $1.75 billion to $1.95 billion for the full year 2024.
Dividend: Declared a quarterly dividend of $0.99 per share, indicating an annualized rate of $3.96.
Guidance Update: Increased 2024 net income guidance to a range of $2.73 billion to $3.03 billion and adjusted EBITDA guidance to $6.025 billion to $6.325 billion.
On April 30, 2024, ONEOK Inc (NYSE:OKE) disclosed its first-quarter financial results through an 8-K filing. The company, a key player in the natural gas and natural gas liquids (NGL) sectors, reported a net income of $639 million, translating to earnings of $1.09 per diluted share, which fell short of the analyst estimates of $1.15 per share. Despite this, ONEOK raised its financial guidance for 2024, reflecting confidence in its operational capabilities and market conditions.
Company Overview
ONEOK operates extensively in the natural gas gathering, processing, storage, and transportation sectors, as well as in NGL transportation and fractionation. The company has significant assets across the midcontinent, Permian, and Rocky Mountain regions, positioning it strategically within the energy infrastructure landscape.
Financial and Operational Highlights
The first quarter of 2024 saw ONEOK achieving an adjusted EBITDA of $1.44 billion. The period was marked by a 12% increase in Rocky Mountain region NGL raw feed throughput volumes and a 4% rise in overall natural gas volumes processed. This growth in volume significantly contributed to the company's financial performance, despite facing higher operating costs due to planned asset maintenance and increased property insurance premiums.
ONEOK's net income guidance for 2024 has been adjusted upwards by $70 million to a midpoint of $2.88 billion, with earnings per diluted share also seeing an increase to a midpoint of $4.92. Adjusted EBITDA expectations were raised by $75 million to a midpoint of $6.175 billion. These adjustments reflect not only the favorable industry fundamentals but also the company's ongoing confidence in its operational synergies and strategic initiatives.
Strategic Developments and Capital Management
During the quarter, ONEOK highlighted several strategic actions, including a $2 billion share repurchase program and the acquisition of an additional 10% interest in the Saddlehorn Pipeline, increasing its ownership to 40%. The company also completed the expansion of its refined products pipeline to El Paso, Texas, which is expected to enhance its market reach and operational efficiency.
Challenges and Forward-Looking Statements
Despite the positive adjustments to its financial guidance, ONEOK's results were impacted by higher operating costs and a significant decrease in adjusted EBITDA in the Natural Gas Liquids segment, primarily due to a $748 million decrease related to the Medford incident from the previous year. The company continues to focus on integrating the Magellan assets and maximizing value for stakeholders, indicating a strategic approach to growth and stability.
ONEOK's management remains committed to navigating the operational and market challenges while capitalizing on growth opportunities. The increased financial guidance and strategic investments underscore the company's resilience and proactive management in a dynamic energy market.
Conclusion
As ONEOK moves forward in 2024, the company's strategic initiatives and upwardly revised financial outlook reflect a robust business model capable of adapting to industry dynamics and capitalizing on growth opportunities. Investors and stakeholders may look forward to the potential benefits from the company's operational strategies and market positioning in the evolving energy landscape.
For detailed financial figures and future updates, ONEOK encourages visiting their website and accessing the investor relations section.
Explore the complete 8-K earnings release (here) from ONEOK Inc for further details.
This article first appeared on GuruFocus.
