Higher Fourth-quarter 2023 Results, Compared with Fourth Quarter 2022:
Net income of $688 million, resulting in $1.18 per diluted share. < Beat my forecast of $1.11 EPS.
Adjusted EBITDA of more than $1.5 billion.
20% increase in Rocky Mountain region NGL raw feed throughput volumes.
17% increase in Gulf Coast/Permian region NGL raw feed throughput volumes.
17% increase in natural gas volumes processed.
15% increase in wells connected in the Rocky Mountain region.
ONEOK Inc. (OKE) Q4 Results - Feb 26
ONEOK Inc. (OKE) Q4 Results - Feb 26
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: ONEOK Inc. (OKE) Q4 Results - Feb 26
2024 Earnings Guidance:
Net income midpoint of $2.8 billion.
Adjusted EBITDA midpoint of $6.1 billion.
Approximately $1.75 billion to $1.95 billion in total capital expenditures.
"Record volumes, strong financial performance and the closing of the Magellan acquisition solidified 2023 as a year of significant growth and transformation," said Pierce H. Norton II, ONEOK president and chief executive officer. "With volume momentum across our operations, a full-year earnings contribution from the refined products and crude segment, and the realization of acquisition-related synergies, we've guided to double-digit adjusted EBITDA growth in 2024.
"Our confidence in ONEOK's underlying business fundamentals and future performance support our commitment to maximize investor value through disciplined capital-growth opportunities, maintaining a strong balance sheet, dividend growth and share repurchases," added Norton. "With our larger scale and more diversified operations, we're even better positioned to support our customers, provide essential energy services and create value for our stakeholders."
HIGHLIGHTS:
In January 2024, ONEOK increased its quarterly dividend 3.7% to 99 cents per share, or $3.96 per share on an annualized basis.
In January 2024, ONEOK authorized a $2 billion share repurchase program and targets it to be largely utilized over the next four years.
In 2023, ONEOK extinguished $1.3 billion of long-term debt.
Capital-growth projects:
ONEOK approved the Elk Creek Pipeline expansion to 435,000 barrels per day (bpd), which will increase natural gas liquids (NGL) capacity out of the Rocky Mountain region to 575,000 bpd. The expansion is expected to cost approximately $355 million and be completed in the first quarter 2025.
In February, the Federal Energy Regulatory Commission (FERC) approved the Saguaro Connector Pipeline's Presidential Permit. ONEOK expects a final investment decision on the pipeline by mid-year 2024.
2023 Environmental, Social and Governance (ESG) highlights:
ONEOK received an MSCI ESG Rating of AAA.
ONEOK qualified for inclusion in the Dow Jones Sustainability North American Index, part of the Dow Jones Sustainability Indices (DJSI), which recognizes global sustainability leaders.
ONEOK's ESG Risk Rating, as assessed by Morningstar Sustainalytics, was in the top 20% of the refiners and pipelines industry.
As of Dec. 31, 2023:
3.46 times fourth-quarter 2023 annualized run-rate net debt-to-EBITDA ratio (excluding transaction costs).
No borrowings outstanding under ONEOK's $2.5 billion credit agreement.
$338 million of cash and cash equivalents.
Net income midpoint of $2.8 billion.
Adjusted EBITDA midpoint of $6.1 billion.
Approximately $1.75 billion to $1.95 billion in total capital expenditures.
"Record volumes, strong financial performance and the closing of the Magellan acquisition solidified 2023 as a year of significant growth and transformation," said Pierce H. Norton II, ONEOK president and chief executive officer. "With volume momentum across our operations, a full-year earnings contribution from the refined products and crude segment, and the realization of acquisition-related synergies, we've guided to double-digit adjusted EBITDA growth in 2024.
"Our confidence in ONEOK's underlying business fundamentals and future performance support our commitment to maximize investor value through disciplined capital-growth opportunities, maintaining a strong balance sheet, dividend growth and share repurchases," added Norton. "With our larger scale and more diversified operations, we're even better positioned to support our customers, provide essential energy services and create value for our stakeholders."
HIGHLIGHTS:
In January 2024, ONEOK increased its quarterly dividend 3.7% to 99 cents per share, or $3.96 per share on an annualized basis.
In January 2024, ONEOK authorized a $2 billion share repurchase program and targets it to be largely utilized over the next four years.
In 2023, ONEOK extinguished $1.3 billion of long-term debt.
Capital-growth projects:
ONEOK approved the Elk Creek Pipeline expansion to 435,000 barrels per day (bpd), which will increase natural gas liquids (NGL) capacity out of the Rocky Mountain region to 575,000 bpd. The expansion is expected to cost approximately $355 million and be completed in the first quarter 2025.
In February, the Federal Energy Regulatory Commission (FERC) approved the Saguaro Connector Pipeline's Presidential Permit. ONEOK expects a final investment decision on the pipeline by mid-year 2024.
2023 Environmental, Social and Governance (ESG) highlights:
ONEOK received an MSCI ESG Rating of AAA.
ONEOK qualified for inclusion in the Dow Jones Sustainability North American Index, part of the Dow Jones Sustainability Indices (DJSI), which recognizes global sustainability leaders.
ONEOK's ESG Risk Rating, as assessed by Morningstar Sustainalytics, was in the top 20% of the refiners and pipelines industry.
As of Dec. 31, 2023:
3.46 times fourth-quarter 2023 annualized run-rate net debt-to-EBITDA ratio (excluding transaction costs).
No borrowings outstanding under ONEOK's $2.5 billion credit agreement.
$338 million of cash and cash equivalents.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group