#United States #ONEOK #EnLink #Tulsa, Oklahoma #NGL

ONEOK Reports Solid Financials for Q1 2025

In a recent announcement, ONEOK, Inc. has revealed higher earnings for the first quarter of 2025, showcasing the company's strength and resilience in the energy sector. The company's net income reached $691 million, which includes contributions from noncontrolling interests, while the income attributable to ONEOK stood at $636 million or $1.04 per diluted share. These results are a clear indication of the company's solid performance as it moves into the fiscal year.

Key Financial Highlights

The financial enhancements compared to Q1 2024 have been notable:

• - Net Income: $691 million vs. $639 million from the previous year.
• - Diluted Earnings: Increased slightly to $1.04 from $1.09 year-over-year.
• - Adjusted EBITDA: A remarkable rise to $1.78 billion from $1.44 billion in Q1 2024, largely attributable to increased throughput volumes in their Rocky Mountain region and synergies from strategic acquisitions made in the past year.

The president and CEO of ONEOK, Pierce H. Norton II, lauded the accomplishments of the team, stating, "ONEOK's solid first quarter results highlight the strength of our integrated system, disciplined growth strategy, and dedicated employees. Higher year-over-year volumes in the Rocky Mountain region, along with contributions from recent strategic acquisitions and growth initiatives, drove performance during the quarter."

In particular, the Rocky Mountain region saw a 15% increase in natural gas liquids (NGL) raw feed throughput, alongside a 7% increase in natural gas processed. This aligns with the company’s mission to bolster energy supply amidst growing demand.

Strategic Moves and Future Outlook

ONEOK's strategic focus has been on completing acquisitions and enhancing their operational capacity. As of January 31, 2025, the company finalized the acquisition of EnLink Midstream, positioned to significantly augment their operational scale and market footprint.

Additionally, the company has announced joint ventures aimed at constructing a 400,000-barrel per day liquefied petroleum gas (LPG) export terminal in Texas City, Texas, highlighting their commitment to expanding infrastructure. Norton expressed optimism, saying they expect continued execution on acquisition-related synergies and the completion of growth projects to drive shareholder value throughout 2025.

Operational Performance by Segment

Natural Gas Liquids Segment

The adjusted EBITDA for this segment saw a rise to $635 million from $588 million the previous year. The growth is attributed to an increase from EnLink's contributions and higher volumes transported through the Overland Pass Pipeline.

Refined Products and Crude Segment

Adjustments in operating and capital expenditures are also noteworthy. Here, the adjusted EBITDA rose to $471 million from $381 million, driven by improved operations and the company’s increased ownership interest, resulting in enhanced earnings.

Natural Gas Gathering and Processing Segment

This segment exhibited remarkable growth, with adjusted EBITDA surging to $491 million from just $306 million in Q1 2024. The volume increase is primarily driven by greater production, demonstrating effective management even amidst external pressures faced in the energy market.

Financial Position and Shareholder Return

In April, ONEOK declared a quarterly dividend of $1.03 per share, underscoring its commitment to returning value to shareholders. The solid cash position of $141 million, with no borrowings outstanding under its credit agreement, positions the firm well for additional investments and operations moving forward.

The success of ONEOK’s first quarter results reflects not only its strategic foresight but also the dedication of its workforce in navigating the complexities of the energy sector. With bullish projections for the remainder of the year, stakeholders remain optimistic about ONEOK's trajectory in 2025 and beyond.