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ONEOK Inc. OKE is scheduled to release first-quarter 2025 results on April 29, after market close. The company delivered an earnings surprise of 8.3% in the last reported quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors That May Impact OKE's Q1 Results
In January 2025, ONEOK completed its acquisition of EnLink Midstream, LLC. This deal further enhances the company’s integrated midstream business and provides exceptional value to all stakeholders. The strategic acquisition is expected to have resulted in considerable cost savings and synergies, further enhancing OKE’s profitability in the to-be-reported quarter.
The bottom line is expected to have continued to gain from strong fee-based contracts, as more than 90% of its revenues are likely to have been fee-based.
In December 2025, ONEOK completed MB-6, a 125,000-barrel per day (bpd) natural gas liquids (NGL) fractionator in Mont Belvieu, TX, and the full looping of the West Texas NGL Pipeline system. By increasing the company's fractionation capacity to more than 1 million bpd, MB-6 eliminates the need for third-party fractionation and improves ONEOK's capability to meet the expanding demand of the NGL market. The capacity of the West Texas NGL Pipeline system has been increased to 515,000 bpd upon completion of the entire looping. This is likely to have contributed positively to the first-quarter earnings.
The company’s bottom line is also projected to have benefited from wells connected in its Rocky Mountain and Mid-Continent regions in the previous quarters. This should have further increased natural gas gathering and processing volumes.
However, higher depreciation and amortization might have offset some of the positives in the to-be-reported quarter.
Q1 Expectations for OKE
The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, indicating a year-over-year increase of 17.4%. The Zacks Consensus Estimate for revenues is pinned at $7.53 billion, indicating an increase of 57.4% year over year.
The Zacks Consensus Estimate for Raw feed throughput is pinned at 1,369.48 thousand barrels of natural gas liquid per day, up 10.4% year over year. The Zacks Consensus Estimate for Natural gas transportation capacity contracted is pegged at 9,402.4 thousand dekatherms per day, up 16.3% year over year.
What Our Quantitative Model Predicts
Our proven model does not predict an earnings beat for ONEOK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.