Midstream operator ONEOK beats Q3 profit estimates

Reuters
Oct 29
Midstream operator ONEOK beats Q3 profit estimates

Overview

  • ONEOK Q3 net income rises to $940 mln, adjusted EBITDA beats analyst expectations

  • Adjusted EPS for Q3 beats consensus, driven by acquisition integration and volume growth

  • Company repurchased 611,237 shares for $45 mln under $2 bln share buyback program

Outlook

  • ONEOK affirms 2025 net income and adjusted EBITDA guidance ranges

  • In August company announced plans to construct Bighorn plant, enhancing future capacity

Result Drivers

  • VOLUME GROWTH - 17% increase in Rocky Mountain region NGL raw feed throughput and 6% increase in Mid-Continent region NGL raw feed throughput contributed to results

  • ACQUISITION INTEGRATION - EnLink and Medallion acquisitions positively impacted adjusted EBITDA across segments

  • SYNERGY CAPTURE - Synergy capture ahead of expectations, contributing to financial performance

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

Beat

$1.49

$1.44 (14 Analysts)

Q3 Net Income

$940 mln

Q3 Adjusted EBITDA

Beat

$2.11 bln

$2.10 bln (17 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas transportation services peer group is "buy"

  • Wall Street's median 12-month price target for ONEOK Inc is $90.00, about 23% above its October 27 closing price of $69.29

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn6nrgRKa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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