ONEOK, Inc. (NYSE:OKE) Surpasses Earnings Estimates

ONEOK, Inc. (NYSE:OKE) stock rose 2.60% (As on August 9, 11:46:06 AM UTC-4, Source: Google Finance) after the company beaten the earnings estimates for the second quarter of FY 22. ONEOK’s second quarter 2022 net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased 21% and 11%, respectively, compared with the second quarter 2021. Results benefited from higher average fee rates and increased volumes in the natural gas liquids segment, higher realized commodity prices in the natural gas gathering and processing segment and increased storage services in the natural gas pipelines segment. Net income for the period also benefited from lower interest expense primarily related to lower debt balances and increased capitalized interest. Second quarter results were impacted by severe weather in the Rocky Mountain region in April 2022, resulting in power outages impacting natural gas and natural gas liquids (NGL) volumes from the region. By the end of May 2022, volumes approached pre-outage levels.

OKE in the second quarter of FY 22 has reported the adjusted earnings per share of 92 cents, beating the analysts’ estimates for the adjusted earnings per share of 84 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $6 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue by 5.81%.

Meanwhile, ONEOK’s 210,000 barrel per day (bpd) Medford, Oklahoma, NGL fractionation facility remains out of service following a fire on July 9, 2022. All personnel are safe and accounted for. ONEOK continues efforts to determine the cause of the event and expects the facility to remain out of service for an extended period of time. As a result of insurance coverage, ONEOK does not currently anticipate that the Medford incident will have a material effect on the company’s financial condition, results of operations or cash flows. However, the timing of insurance proceeds may impact financial results in a given quarter or year. Subject to the terms and conditions of the policies and any applicable sub-limits, ONEOK has property damage and business interruption insurance coverage with a combined per occurrence limit of $2 billion. The property damage deductible is $5 million per occurrence, and the business interruption coverage includes a 45-day waiting period per occurrence. The company’s integrated NGL pipeline, fractionation and storage assets between the Mid-Continent and Gulf Coast, and fractionation and storage arrangements with industry peers, have allowed ONEOK to provide midstream services while the facility is out of service.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.