On February 24, 2025, ONEOK Inc (OKE, Financial) released its 8-K filing announcing higher fourth-quarter and full-year 2024 earnings. The diversified midstream service provider, specializing in natural gas and natural gas liquids, reported significant growth driven by strategic acquisitions and increased volumes.
ONEOK Inc (OKE, Financial) is a diversified midstream service provider specializing in natural gas gathering, processing, storage, and transportation, as well as natural gas liquids transportation and fractionation. The company also operates a refined product and crude oil segment, connecting producers, refiners, and consumers across the midcontinent, Permian, and Rocky Mountain regions.
ONEOK Inc (OKE, Financial) reported a net income of $1.0 billion for the fourth quarter of 2024, with net income attributable to ONEOK at $923 million, translating to $1.57 per diluted share. This exceeded the analyst estimate of $1.53 per share. The company's adjusted EBITDA for the quarter was $2.17 billion, reflecting a robust performance compared to the previous year.
For the full year 2024, ONEOK's net income reached $3.1 billion, with net income attributable to ONEOK at $3.0 billion, or $5.17 per diluted share, surpassing the annual estimate of $5.10 per share. The adjusted EBITDA for the year was $6.78 billion, driven by strategic acquisitions and increased volumes in key regions.
ONEOK's financial achievements were bolstered by several strategic initiatives, including the completion of key projects and acquisitions. The company completed the acquisition of EnLink Midstream and Medallion Midstream, enhancing its asset base and geographic diversification. Additionally, ONEOK announced joint ventures for a new LPG export terminal and pipeline, further positioning the company for growth.
ONEOK’s strong performance in 2024 was driven by contributions from multiple strategic acquisitions, volume growth, and fee-based earnings," said Pierce H. Norton II, ONEOK president and chief executive officer.
ONEOK's total revenues for the fourth quarter of 2024 were $7.0 billion, compared to $5.2 billion in the same period of 2023. The company's operating income increased to $1.57 billion from $1.10 billion in the previous year. Key metrics such as the net debt-to-EBITDA ratio stood at 3.6 times, indicating a strong financial position.
| Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Net Income (Millions) | $1,000 | $688 | $3,112 | $2,659 |
| Diluted EPS | $1.57 | $1.18 | $5.17 | $5.48 |
| Adjusted EBITDA (Millions) | $2,174 | $1,514 | $6,784 | $5,243 |
ONEOK's performance in 2024 underscores the effectiveness of its strategic acquisitions and organic growth initiatives. The company's ability to exceed earnings estimates highlights its strong operational execution and financial management. However, challenges such as increased operating costs and market volatility remain potential hurdles.
Overall, ONEOK's strategic investments and expanded asset base provide a solid platform for future growth, positioning the company to continue delivering value to shareholders in the competitive oil and gas industry.
Explore the complete 8-K earnings release (here) from ONEOK Inc for further details.
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