ONEOK (OKE) Q1 Earnings & Revenues Fall Shy of Estimates
ONEOK Inc. OKE reported first-quarter 2024 operating earnings per share (EPS) of $1.09, which missed the Zacks Consensus Estimate of $1.13 by 3.5%. The bottom line also declined 53.4% from the year-ago quarter’s figure of $2.34.
Total Revenues
Operating revenues for the quarter totaled $4.78 billion, which missed the Zacks Consensus Estimate of $5.84 billion by 18.2%. However, the top line improved 5.8% from $4.52 billion 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 $1.44 billion, down 16.8% year over year.
Operating income totaled $1.06 billion, down 28.9% from the prior-year quarter’s level of $1.5 billion.
ONEOK incurred interest expenses of $300 million, up 80.7% from $166 million recorded in the year-ago period.
Total natural gas processed was 2,894 billion British thermal units per day (BBtu/d), up 3.6% year over year.
The company's reported natural gas transportation capacity contracted of 8,086 million British thermal units per hour per day (MDth/d) increased 5.1% year over year.
Financial Highlights
As of Mar 31, 2024, the company had cash and cash equivalents worth $65 million compared with $338 million as of Dec 31, 2023.
Long-term debt (excluding current maturities) totaled $20.4 billion as of Mar 31, 2024, which compared with $21.1 billion as of Dec 31, 2023.
Cash provided by operating activities for the first three months of 2024 amounted to $596 million compared with $1.2 billion in the corresponding period of 2023.
2024 Guidance
ONEOK increased its consolidated 2024 net income in the band of $2.73-$3.03 billion from the previous range of $2.6-$3 billion. It now expects adjusted EBITDA in the range of $6.03-$ 6.33 billion compared with the previous range of $5.9-$6.3 billion.
Total capital expenditures are expected between $1.75 billion and $1.95 billion.
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
Murphy Oil Corporation MUR is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 85 cents per share.
The Zacks Consensus Estimate for first-quarter sales is pinned at $730.24 million. The company delivered an average earnings surprise of 10% in the last four quarters.
Occidental Petroleum OXY is scheduled to report first-quarter results on May 7, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at 58 cents per share.
The Zacks Consensus Estimate for first-quarter sales is pinned at $6.7 billion. The company delivered an average earnings surprise of 3.4% in the last four quarters.
Energy Transfer ET is slated to report first-quarter results on May 8, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at 36 cents per unit.
The Zacks Consensus Estimate for first-quarter sales is pinned at $23.84 billion, implying a year-over-year increase of 25.5%.
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