ONEOK, Inc. (OKE) Bundle
A Brief History of ONEOK, Inc.
ONEOK, Inc. has been a significant player in the energy sector, primarily focused on natural gas and natural gas liquids. As of 2024, the company has undergone substantial transformations, notably through strategic acquisitions and capital investments.
Recent Acquisitions
In 2024, ONEOK completed several major acquisitions, including the EnLink Controlling Interest Acquisition and the Medallion Acquisition. The total purchase price for the EnLink acquisition was approximately $14.1 billion, which included liabilities assumed of $5.1 billion and total identifiable net assets of $9.5 billion.
Financial Performance
For the nine months ended September 30, 2024, ONEOK reported total revenues of $14.2 billion, representing a significant increase compared to the previous year. The net income for the same period reached $2.1 billion, translating to a basic earnings per share (EPS) of $3.61.
| Period | Total Revenues (Millions) | Net Income (Millions) | EPS (Basic) |
|---|---|---|---|
| Q3 2024 | $14,236 | $2,111 | $3.61 |
| Q3 2023 | $12,000 | $1,970 | $4.37 |
Operational Metrics
As of September 30, 2024, ONEOK processed an average of 3,236 BBtu/d of natural gas, an increase from 3,085 BBtu/d in 2023. The average fee rate for natural gas processing was $1.20 per MMBtu, up from $1.17 per MMBtu in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Natural Gas Processed (BBtu/d) | 3,236 | 3,085 |
| Average Fee Rate ($/MMBtu) | $1.20 | $1.17 |
Capital Expenditures
ONEOK's capital expenditures for the nine months ended September 30, 2024, totaled approximately $1.5 billion, up from $992 million in the same period of 2023. The company expects its total capital expenditures for 2024 to range between $1.75 billion and $1.95 billion.
| Year | Capital Expenditures (Millions) |
|---|---|
| 2024 (Projected) | $1,750 - $1,950 |
| 2023 | $992 |
Debt and Financing
As of September 30, 2024, ONEOK maintained a consolidated indebtedness to adjusted EBITDA ratio of 3.7 to 1. The company executed a public offering of $7.0 billion in senior unsecured notes in September 2024, which will be utilized for acquisitions and general corporate purposes.
Dividend Policy
ONEOK has consistently provided dividends, declaring a dividend of $0.99 per share in February, May, and August 2024. The annualized dividend rate reflects a 3.7% increase compared to the previous year.
| Dividends | Amount per Share | Frequency |
|---|---|---|
| 2024 | $0.99 | Quarterly |
| 2023 | $0.955 | Quarterly |
Market Position
ONEOK has solidified its position in the market with substantial growth in processing volumes and strategic acquisitions. The company's ability to adapt to market conditions and its focus on increasing operational efficiency are key to its ongoing success.
A Who Owns ONEOK, Inc. (OKE)
Major Shareholders
As of 2024, the ownership structure of ONEOK, Inc. (OKE) is characterized by a mix of institutional and individual investors. The largest shareholders include:
| Shareholder Type | Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 67,053,956 | 11.14% |
| Institutional Investor | BlackRock, Inc. | 61,369,988 | 10.06% |
| Institutional Investor | State Street Corporation | 50,032,514 | 8.22% |
| Individual Investor | W. D. (Bill) Brown | 2,500,000 | 0.41% |
| Institutional Investor | Invesco Ltd. | 34,587,123 | 5.67% |
| Institutional Investor | Geode Capital Management, LLC | 28,948,215 | 4.76% |
Stock Performance
As of September 30, 2024, ONEOK's stock price is approximately $28.40 per share. The company has a market capitalization of around $17.3 billion, reflecting its position in the energy sector.
Institutional Ownership Breakdown
The institutional ownership of ONEOK, Inc. is significant, accounting for approximately 70% of total shares outstanding. The following table provides a breakdown of institutional holdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 67,053,956 | 11.14% |
| BlackRock, Inc. | 61,369,988 | 10.06% |
| State Street Corporation | 50,032,514 | 8.22% |
| Invesco Ltd. | 34,587,123 | 5.67% |
| Geode Capital Management, LLC | 28,948,215 | 4.76% |
| Other Institutions | Various | Approximately 30% |
Recent Transactions
In August 2024, ONEOK announced the acquisition of approximately 43% of the outstanding units of EnLink Midstream as part of its strategic expansion efforts. This acquisition is expected to enhance ONEOK's operational capabilities in the midstream sector.
Dividends and Financial Performance
ONEOK has maintained a consistent dividend policy with a quarterly dividend of $0.99 per share, reflecting its commitment to returning value to shareholders. The financial performance for the nine months ending September 30, 2024, shows a net income of $2.112 billion, with total revenues of $14.698 billion for the same period.
Conclusion on Ownership Structure
ONEOK's ownership structure is heavily influenced by institutional investors, with significant stakes held by major asset management firms. The company's strategic acquisitions and consistent dividend payments position it favorably within the energy sector.
ONEOK, Inc. (OKE) Mission Statement
Company Overview
ONEOK, Inc. is a leading midstream service provider in the United States, specializing in the transportation, storage, and distribution of natural gas and natural gas liquids (NGLs). The company's mission is to deliver energy safely and responsibly while providing a sustainable future for its stakeholders.
Mission Statement
As of 2024, ONEOK, Inc. articulates its mission as follows: "To be a premier provider of natural gas and NGL services while maintaining a commitment to the safety of our employees, the environment, and the communities we serve." This statement emphasizes their dedication to operational excellence, environmental stewardship, and community engagement.
Core Values
- Safety: Prioritizing the safety and well-being of employees, customers, and the public.
- Integrity: Conducting business with honesty and transparency.
- Respect: Valuing diversity and fostering an inclusive work environment.
- Excellence: Striving for the highest standards in performance and efficiency.
- Community Engagement: Investing in the communities where they operate.
Financial Performance
ONEOK's financial performance is a testament to its operational strategy and mission. The company reported substantial revenue growth in its latest financial statement.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues (millions) | $5,023 | $4,189 | $14,698 | $12,442 |
| Net Income (millions) | $693 | $454 | $2,112 | $1,971 |
| Operating Income (millions) | $1,128 | $739 | $3,421 | $2,973 |
| Earnings Per Share (EPS) | $1.18 | $0.99 | $3.61 | $4.37 |
| Dividends Paid (millions) | $1,734 | $1,283 | — | — |
Operational Highlights
In 2024, ONEOK has continued to expand its infrastructure to support increasing demand for natural gas and NGLs. The company has made significant investments in pipeline systems and processing facilities to enhance its operational capabilities.
Sustainability Initiatives
ONEOK is committed to sustainability, focusing on reducing its carbon footprint and implementing environmentally friendly practices. The company's initiatives include:
- Investing in renewable energy projects.
- Enhancing energy efficiency in operations.
- Engaging in community outreach to promote environmental awareness.
Future Outlook
Looking forward, ONEOK aims to leverage its strategic position in the midstream sector to drive growth. The company plans to continue investing in infrastructure projects and expanding its service offerings.
How ONEOK, Inc. (OKE) Works
Overview of Operations
ONEOK, Inc. is a diversified energy company focused on the natural gas and natural gas liquids (NGL) sector. It operates through four primary segments: Natural Gas Pipelines, Natural Gas Liquids, and Refined Products and Crude. The company plays a critical role in the transportation, processing, and storage of natural gas and NGLs.
Financial Performance
As of September 30, 2024, ONEOK reported total revenues of $5,023 million for the third quarter, compared to $4,189 million for the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $14,698 million, up from $12,442 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $5,023 million | $4,189 million | $14,698 million | $12,442 million |
| Operating Income | $1,128 million | $739 million | $3,421 million | $2,973 million |
| Net Income | $693 million | $454 million | $2,112 million | $1,971 million |
| Diluted EPS | $1.18 | $0.99 | $3.60 | $4.36 |
Capital Expenditures
ONEOK's capital expenditures increased significantly in 2024. The company expects total capital expenditures, excluding AFUDC and capitalized interest, to be between $1.75 billion and $1.95 billion for the year. For the nine months ended September 30, 2024, capital expenditures amounted to $1,459 million, compared to $992 million in the same period of 2023.
Debt and Financing
As of September 30, 2024, ONEOK had total long-term debt of $26,880 million, excluding current maturities, and a current liability of $1,257 million related to long-term debt. In September 2024, the company completed a public offering of $7.0 billion in senior unsecured notes.
| Debt Issuances | Amount | Maturity | Interest Rate |
|---|---|---|---|
| Senior Notes | $1.25 billion | 2027 | 4.25% |
| Senior Notes | $600 million | 2029 | 4.4% |
| Senior Notes | $1.25 billion | 2031 | 4.75% |
| Senior Notes | $1.6 billion | 2034 | 5.05% |
| Senior Notes | $1.5 billion | 2054 | 5.7% |
| Senior Notes | $800 million | 2064 | 5.85% |
Liquidity and Cash Management
ONEOK had cash and cash equivalents of $6,464 million as of September 30, 2024. The company maintains a $2.5 billion credit agreement, with no borrowings outstanding as of the same date. The working capital deficit stood at $681 million, primarily due to current maturities of long-term debt.
Dividend Policy
In 2024, ONEOK declared and paid a common stock dividend of $0.99 per share in February, May, and August, reflecting a 3.7% increase compared to the same quarter in the previous year. The annualized dividend stands at $3.96 per share.
Market Conditions and Strategic Projects
ONEOK's earnings in 2024 were bolstered by higher NGL and natural gas processing volumes, particularly in the Rocky Mountain region. The company is undertaking several capital projects, including:
| Project | Cost (in millions) | Expected Completion |
|---|---|---|
| MB-6 fractionator | $550 | Year-End 2024 |
| West Texas NGL pipeline expansion | $520 | Year-End 2024 |
| Elk Creek pipeline expansion | $355 | Q1 2025 |
| Medford fractionator | $385 | 2026-2027 |
Credit Ratings
As of October 21, 2024, ONEOK's credit ratings from major agencies are as follows:
| Rating Agency | Long-Term Rating | Short-Term Rating | Outlook |
|---|---|---|---|
| Moody’s | Baa2 | Prime-2 | Stable |
| S&P | BBB | A-2 | Stable |
| Fitch | BBB | F2 | Stable |
How ONEOK, Inc. (OKE) Makes Money
Revenue Streams
ONEOK generates revenue primarily through two main segments: Commodity Sales and Services. The financial figures for the nine months ended September 30, 2024, are as follows:
| Revenue Source | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Commodity Sales | $12,005 | $11,287 |
| Services | $2,693 | $1,155 |
| Total Revenues | $14,698 | $12,442 |
Operating Income
For the nine months ended September 30, 2024, ONEOK reported an operating income of $3,421 million, compared to $2,973 million in the same period of 2023. The breakdown of costs associated with generating this income includes:
| Cost Type | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Cost of Sales and Fuel | $8,815 | $8,628 |
| Operations and Maintenance | $1,481 | $833 |
| Depreciation and Amortization | $790 | $509 |
| General Taxes | $239 | $148 |
| Total Operating Expenses | $11,325 | $10,118 |
Net Income
ONEOK's net income for the nine months ended September 30, 2024, was $2,112 million, compared to $1,971 million in 2023. The net income available to common shareholders was $2,111 million in 2024, up from $1,970 million in 2023. The basic and diluted earnings per share (EPS) figures are:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| 2024 | $3.61 | $3.60 |
| 2023 | $4.37 | $4.36 |
Cash Flows
For the nine months ended September 30, 2024, ONEOK reported cash flows from operations of $3,277 million, compared to $2,913 million in 2023. The cash provided by operating activities is a key component of the company's liquidity and ability to fund dividends and capital expenditures.
Capital Expenditures
ONEOK expects total capital expenditures, excluding AFUDC and capitalized interest, of $1.75 to $1.95 billion in 2024. This investment supports ongoing operations and future growth initiatives.
Debt and Equity Financing
As of September 30, 2024, ONEOK had a total debt of $28,137 million, which includes $26,880 million in long-term debt. The company's credit ratings as of October 21, 2024, are as follows:
| Rating Agency | Long-Term Rating | Short-Term Rating | Outlook |
|---|---|---|---|
| Moody's | Baa2 | Prime-2 | Stable |
| S&P | BBB | A-2 | Stable |
| Fitch | BBB | F2 | Stable |
Dividends
ONEOK has maintained a consistent dividend policy, with dividends paid on common stock amounting to $0.99 per share in February, May, and August 2024. This represents an increase of 3.7% compared to the same quarter in the previous year. The total dividends paid in 2024 amounted to:
| Dividend Type | Amount (Millions) |
|---|---|
| Common Stock Dividends | $579 |
| Preferred Stock Dividends | $0.3 |
Summary of Financial Performance
ONEOK's financial performance demonstrates robust growth in revenue and net income, driven by strong demand for its services and effective cost management. The company's strategic investments in infrastructure and expansion projects are expected to further enhance its profitability and market position.
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Article updated on 8 Nov 2024
Resources:
- ONEOK, Inc. (OKE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ONEOK, Inc. (OKE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ONEOK, Inc. (OKE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.