ONEOK Reports Impressive Q4 and Full-Year 2024 Financial Results, Highlighting Growth

ONEOK Reports Impressive Q4 and Full-Year 2024 Financial Results

ONEOK, Inc. (NYSE: OKE) has released its financial results for the fourth quarter and the full fiscal year of 2024, showcasing a significant improvement compared to the prior year. This positive momentum is attributed to strategic acquisitions, increased throughput, and enhanced fee-based earnings.

Key Financial Highlights

In the fourth quarter of 2024, ONEOK reported net income, including noncontrolling interests, amounting to $1 billion. When excluding noncontrolling interests, this figure stood at $923 million, translating to $1.57 per diluted share. For the entire year of 2024, the net income including noncontrolling interests was $3.1 billion, with an earnings per diluted share of $5.17.

The company also reported an adjusted EBITDA of $2.17 billion for the fourth quarter and $6.78 billion for the full year, marking substantial rises from 2023 levels. The Rocky Mountain region showed a notable 3% increase in natural gas liquid (NGL) raw feed throughput volumes and a 4% hike in crude oil volumes shipped. Furthermore, total connected wells surged by 11% during the same period.

Strategic Acquisitions Push Growth

ONEOK's robust performance is attributed to multiple strategic acquisitions that have expanded its operational footprint and capabilities. According to Pierce H. Norton II, the company's President and CEO, the last two years have seen ONEOK transform into an even more diversified midstream infrastructure player. This shift has allowed the company to pursue an disciplined growth strategy, positioning it well for future opportunities.

Recent projects include the announcement of a liquefied petroleum gas (LPG) export terminal joint venture, which is expected to enhance ONEOK's capacity and service offerings further. The terminal will boast a capacity of 400,000 barrels per day and will be situated in Texas City, Texas.

Additionally, ONEOK successfully completed the construction of the MB-6 NGL fractionator in Mont Belvieu, Texas, with a capacity of 125,000 bpd. The firm also increased the capacity of its West Texas NGL Pipeline system to 515,000 bpd and is set to enhance it further to 740,000 bpd by mid-2025, reflecting the ongoing investment in infrastructure.

Shareholder Value and Future Plan

ONEOK is committed to returning value to its shareholders, illustrated by a 4% increase in its quarterly dividend to $1.03 per share, which amounts to an annualized rate of $4.12. As of mid-February 2025, the company had repurchased 1.675 million shares under its $2 billion share repurchase program.

The company also reported a reduction in carbon emissions, achieving approximately 1.7 million metric tons or 77% towards its 2030 reduction target. The management emphasized its continuous improvement in environmental, social, and governance (ESG) factors, achieving an MSCI ESG Rating of AAA and a promising position in the top 20% of the industry.

Looking Ahead

As ONEOK looks forward, the firm continues to emphasize its strategic growth initiatives. The performance in 2024 underscores the strength in its operational strategy, driven by strategic decisions and robust market positioning. The company expects to maintain this trajectory, with ongoing investments and expansions in its services contributing to sustained growth.

ONEOK is dedicated to providing energy products and services that support an advancing world. Through its expansive pipeline network, the company plays a critical role in meeting the energy demands both domestically and internationally while enhancing its infrastructure to secure future growth. With a clear focus on innovation and operational efficiency, ONEOK is poised for continued success in the coming years.

For those keen on tracking ONEOK's ongoing journey, the company is scheduled to host a conference call to discuss these results in further detail on February 25, 2025. Interested parties can join the call or listen to a recording available on the ONEOK website.

As ONEOK continues to build an energy future that is both sustainable and efficient, stakeholders will be watching closely to see how the company navigates its growth strategies and potentially lucrative opportunities.