In This Article:
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Net Income: $636 million or $1.04 per share for Q1 2025.
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Adjusted EBITDA: $1.78 billion, or $1.81 billion excluding transaction costs.
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Acquired Assets Contribution: Nearly $450 million from EnLink and Medallion assets in Q1 2025.
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Incremental Synergies: $250 million expected in 2025.
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Cash and Credit Facility: More than $140 million in cash and no borrowings under a $3.5 billion facility.
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NGL Volumes: Increased 4% year over year, with significant growth in the Rocky Mountain and Gulf Coast Permian regions.
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Midland Crude Gathered Volumes: Up more than 20% year over year in Q1 2025.
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Natural Gas Processing Capacity: 1.7 BCF per day added in the Permian Basin.
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Mid-Continent Processing Volumes: Averaging more than 2.4 BCF per day in April.
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Rocky Mountain Processing Volumes: Averaged nearly 1.6 BCF per day in Q1 2025.
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Oklahoma Natural Gas Storage Expansion: Additional 4 BCF of working storage capacity, 80% committed.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ONEOK Inc (NYSE:OKE) reported first-quarter 2025 net income of $636 million, or $1.04 per share, with adjusted EBITDA of $1.78 billion, driven by higher NGL and natural gas processing volumes.
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The company affirmed its 2025 financial guidance and 2026 outlook, indicating confidence in its growth trajectory.
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ONEOK Inc (NYSE:OKE) is nearing completion of several organic growth projects, including the West Texas NGL pipeline expansion and the Elk Creek pipeline expansion, which are expected to boost earnings in the second half of 2025.
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The integration of acquired assets, such as EnLink and Medallion, is progressing well, with $250 million of total incremental synergies expected in 2025.
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The company maintains a strong balance sheet with no borrowings under a $3.5 billion facility and more than $140 million in cash, providing financial flexibility.
Negative Points
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The absence of earnings from divested interstate pipeline assets, sold on December 31, 2024, partially offset the positive financial results.
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ONEOK Inc (NYSE:OKE) operates in a volatile macroeconomic environment, with factors such as commodity prices, producer activity, and inflationary trends posing potential risks.
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First-quarter NGL volumes were impacted by seasonal weather and lower ethane recovery, particularly in the midcontinent region.
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The company faces potential challenges from evolving regulatory developments, which could affect market dynamics.
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Despite strong performance, the company acknowledges that no business is completely immune to market volatility, which could impact future results.