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ONEOK (OKE) Q1 Earnings Beat Estimates, Revenues Miss

ONEOK Inc. OKE reported first-quarter 2023 operating earnings per share (EPS) of $2.34, which beat the Zacks Consensus Estimate of $2.07 by 13.04%. The bottom line also improved 169% from the year-ago quarter’s figure of 87 cents.

The year-over-year improvement was due to higher natural gas liquid and natural gas volumes, higher average fee and natural gas storage rates.

Total Revenues

Operating revenues for the quarter were $4,521 million, which missed the Zacks Consensus Estimate of $5,127 million by 11.8%. The top line also declined 16.9% from $5,445 million in the prior-year quarter.

 

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 $1,717 million, up 98.7% year over year.

Operating income totaled $1,497 million, up 126% from the prior-year quarter’s $662 million.

ONEOK incurred interest expenses of $166 million, down 3.5% from $172 million recorded in the year-ago period.

Financial Highlights

As of Mar 31, 2023, the company had cash and cash equivalents worth $680 million compared with $220 million as of Dec 31, 2022.

Long-term debt (excluding current maturities) was $12,728 million as of Mar 31, 2023, compared with $12,696 million as of Dec 31, 2022.

Cash provided by operating activities for the three months ended Mar 31, 2023, was $1,221 million compared with $463 million in the corresponding period of 2022.

2023 Guidance

ONEOK reaffirmed its EPS guidance in the range of $5.03-$5.69. The Zacks Consensus Estimate for the same is pegged at $4.96.

The company anticipates net income and adjusted EBITDA in the range of $2,260-$2,560 million and $4,425-$4,725 million, respectively.

ONEOK anticipates adjusted EBITDA for Natural Gas Liquids, Gathering and Processing, and Pipelines segments to be in the range of $2,795-$2,985 million, $1,180-$1,260 million, and $450-$480 million, respectively.

Processed volume for the Natural Gas Gathering and Processing segment is expected in the range of 2,040-2,340 million cubic feet per day.

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.

Upcoming Releases

PBF Energy PBF is slated to report first-quarter results on May 5, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.38 per share, implying a year-over-year increase of 580%.

The consensus estimate for 2023 EPS stands at $10.87. PBF delivered an average earnings surprise of 24.9% in the last four quarters.

Permian Resources Corporation PR is slated to report first-quarter results on May 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 39 cents per share, implying a year-over-year increase of 5.41%.

The consensus mark for 2023 EPS stands at $1.93, indicating a year-over-year improvement of 29.53%. PR delivered an average earnings surprise of 6.1% in the last four quarters.

Canadian Solar Inc. CSIQ is scheduled to report first-quarter results on May 18, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at $48 cents per share, indicating a year-over-year increase of 242.9%.

The same for 2023 EPS stands at $5.3, implying a year-over-year improvement of 54.1%. CSIQ delivered an average earnings surprise of 164.3% in the last four quarters.

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