#United States #Tulsa #ONEOK #Financial Guidance #growth outlook

ONEOK's Financial Guidance for 2025 and Growth Outlook for 2026

ONEOK, Inc. (NYSE: OKE) has recently laid out its financial expectations for the year 2025 and provided an enticing growth forecast for 2026. This announcement, made from their headquarters in Tulsa, Oklahoma, highlights a robust strategy focused on volume growth, completed projects, and expanded operations responsible for driving these optimistic projections.

2025 Financial Guidance

Key Figures

ONEOK anticipates a net income, factoring in noncontrolling interests, at a midpoint of $3.45 billion, reflecting an 11% year-over-year increase. Excluding noncontrolling interests, the anticipations drop slightly to $3.36 billion, with this increase partly stemming from the recent acquisition of EnLink that closed on January 31, 2025. Additionally, expected earnings per diluted share stand at $5.37, marking an 8% rise year-over-year when accounting for previous transactional costs and divestitures that impacted 2024’s results.

The company also projects an adjusted EBITDA at a midpoint of $8.225 billion, representing an impressive 21% increase relative to last year. ONEOK has earmarked a capital expenditure range of $2.8 billion to $3.2 billion to support growth initiatives.

Strategic Insights

Pierce H. Norton II, the president and CEO of ONEOK, emphasized how this financial guidance results from a disciplined growth strategy aimed at creating value across its models. He expressed enthusiasm about the company's position within the midstream value chain, expecting to witness continued volume increases across systems depending on recent expansions and the synergistic effects from acquisitions. This is particularly true for areas like the Permian Basin and Gulf Coast region, areas where expansion has been notable.

Looking Forward to 2026

Growth Projections

With an expectation of greater than 15% growth in earnings per share and adjusted EBITDA growth approaching 10%, the outlook for 2026 is promising. This encourages further optimism as volume growth is anticipated from rising production levels, alongside the positive effects brought by previously completed projects. Notably, recent expansions in the Elk Creek and West Texas NGL pipeline will substantially contribute to the increased figures.

ONEOK’s diversified operations across various segments are set to boost revenues, particularly from Natural Gas Liquids, Refined Products, Crude Oil, and Natural Gas Gathering and Processing, which they expect will all show higher earnings due to improved throughput driven by their recent growth projects.

Financial Performance & Future Initiatives

In detail, ONEOK's 2025 projections include significant performance drivers which are fueled by rising NGL raw feed throughput, attributed mainly to escalated production from the Rocky Mountain and Gulf Coast/Permian regions. The company also expects an increase in refined products utilization and higher crude volumes stemming from additional gathering assets.

Additionally, ONEOK plans to revisit its commercial and cost synergies, estimating around $250 million from recent acquisitions. The anticipated operational costs associated with the growth of their infrastructure will be balanced with this added income.

Capital Expenditure Strategy

Key projects for 2025 signal strong investment opportunities, including:

• - Medford fractionator rebuild
• - Expansion of refined products in Denver
• - Relocation of a natural gas processing plant to the Permian Basin
• - Joint ventures at the Texas City export terminal.

Investments aiming to harness increased production and efficient operations serve to solidify ONEOK’s place in the energy sector and fortify its market positioning.

Returning Value to Shareholders

ONEOK also aims for an annual dividend growth rate of between 3% and 4%, indicating a robust commitment to share value appreciation. They target approximately 75% to 85% of forecasted cash flow from operations to be returned to shareholders through a combination of dividends and share repurchases over the next three years.

In summary, ONEOK's comprehensive financial guidance for 2025 coupled with an aggressive growth outlook for 2026 indicates a confident trajectory marked by calculated investments and a responsive growth strategy catered to capitalize on market demands. Their strong indigenous pipeline infrastructure and strategic positioning within the energy market augur well for future performance, communities, and energy security.