ONEOK, Inc.
CEO : Mr. Pierce H. Norton II
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -7.2% YoY | 16.0% | 27.1% | 2023-02-28 |
Kevin Burdick says,
Strong Volumes and Growth in 2022
- Natural gas gathering and NGL volumes increased despite weather events
- NGL volumes grew 12% YoY, particularly strong in Rocky Mountain region
- 24% increase in well connects compared to 2021
Higher 2023 Guidance
- Higher expected realized commodity prices due to hedges placed at higher price levels compared with 2022
- 7% increase in total NGL volumes and an 11% increase in total natural gas processing volumes compared with 2022
- NGL volume growth to be driven by strong producer levels
Continued Expansion and Opportunities
- Completion of a 125,000 barrel per day MB-5 fractionator in Mont Belvieu early in Q2 2023
- MB-6 expected to be complete in Q1 2025
- Completed construction on the 200 million cubic feet per day Demicks Lake III processing plant this month
- Expect to connect 500 wells in the Williston Basin region in 2023, a nearly 40% increase compared with 2022
- Currently evaluating reactivating previously idled storage facilities in Oklahoma and Texas
Positive Activity and Expectations
- Gas-to-oil ratios to remain strong and continue to trend higher, which can drive volume on our systems
- Expect strong demand for natural gas storage and transportation services in 2023
- Work continues on a project that will expand our storage capabilities in Oklahoma by 4 billion cubic feet
- Filed a presidential permit application to construct and operate new international border crossing facilities at the U.S. and Mexico border with a final investment decision expected in mid-2023
Pierce Norton says,
Strong Q4 and Full Year 2022 Performance
- Met 2022 financial guidance expectations despite weather-related events and a significant operational incident
- Achieved the ninth consecutive year of adjusted EBITDA growth in 2022
2023 Financial and Volume Guidance Expectations
- Higher natural gas processing and NGL volumes and strong fee-based earnings are expected to contribute to higher earnings in 2023
- Focusing on growing the core business and innovating for future opportunities
Key Differentiators for ONEOK’s Business
- Solid and growing base business
- Strong balance sheet and investment-grade credit ratings
- Proven track record of intentional and disciplined growth
- Continued demand for energy products and services
Financial Performance
- Reduced leverage to below 3.5x
- 25 years of dividend stability and growth, with a recent dividend increase
- Nearly 15% ROIC in 2022
Positioned for Growth in 2023
- Enter 2023 from a position of strength driven by solid financial and operational performance
- Confident and optimistic about ONEOK’s future
Q & A sessions,
Commitment to Safety and Environmental Performance
- The company’s focus on safety and environmental performance is a key differentiator for growth.
- The company has made significant progress toward its greenhouse gas emissions reduction target, achieving reductions that equate to approximately 20% of its total 2030 reduction target.
Gas Takeaway Capacity
- The company believes there’s still 300-400 million cubic feet a day of capacity on Northern Border that the basin will continue to price out.
- There has been a 100 million a day roughly project that’s kind of moved south and southwest over to WBI and gets down into a Cheyenne market that the company has signed up for.
- The Northern Border open season on Bison Express is actively involved in, and TC Energy has said they’re working that project and have been pleased with the results so far.
- The company feels good about the egress perspective and is set up well for continued growth in 2023.
NGL System Expansion
- The company has the ability to expand the NGL system by just adding pump stations, which is not a lot of capital and does not take a lot of time relative to some of the other projects.
Basin Overall Perspective
- The company feels very good about the macro environment and does not need to see more rigs show up in the basin to achieve its guidance.
- The rigs that are there today, when also looking at the finishing up some DUCs they’ve got, the company is in really good shape to meet the volume guidance in both the G&P and the liquids segments as they think about the basin.
2023 Guidance and Future Growth
- The company has confidence in its 2023 guidance and expectations for more growth this year.
- The company’s employees’ dedication to meeting customers’ needs while operating assets in a safe, reliable, and environmentally responsible manner continues to drive strong operational growth and financial performance year after year.
- The key differentiators for growth are underscored by the company’s commitment and focus on safety and environmental performance.
No bad stock 