ONEOK (OKE) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $780 million ($1.33 per share), up 67% year-over-year, driven by record Rocky Mountain region volumes, higher NGL and natural gas processing, and Magellan acquisition contributions.

• Completed acquisition of ~450 miles of NGL pipelines from Easton Energy, enhancing Gulf Coast connectivity and accelerating synergies post-Magellan acquisition.

• Announced expansion of refined products pipeline to Denver, increasing system capacity by 35,000 bpd and supporting sustainable fuels growth.

• Published 16th Corporate Sustainability Report, maintained MSCI AAA ESG rating, and received workplace recognition.

• Affirmed full-year 2024 financial guidance, citing confidence from long-term commitments, integrated asset value, and favorable market fundamentals.

Financial highlights

• Q2 2024 net income was $780 million ($1.33 per share), up from $468 million in Q2 2023; adjusted EBITDA reached $1.624 billion, up from $981 million year-over-year.

• Segment Q2 2024 adjusted EBITDA: NGLs $635M, Gathering & Processing $371M, Refined Products & Crude $467M, Natural Gas Pipelines $152M.

• Q2 2024 total revenues were $4.89 billion, up $1.16 billion year-over-year.

• Dividend declared at $0.99 per share for Q2 2024, annualized at $3.96 per share.

• Capital expenditures for the first half of 2024 were $991 million, up from $594 million in 2023, driven by major NGL and pipeline projects.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance midpoint affirmed at $6.175 billion, high end at $6.325 billion, with 2024 diluted EPS guidance range of $4.66–$5.17.

• 2024 earnings expected to be over 85% fee-based, reducing commodity price exposure.

• Major growth projects (MB-6 Fractionator, West Texas NGL Pipeline, Elk Creek Pipeline expansion, Denver pipeline) expected to complete by late 2024 or 1Q 2025.

• Plan to connect 530–600 wells in Rocky Mountain region and 60–70 in Mid-Continent for 2024.

• Share repurchase program targets $2.0 billion over four years; no shares repurchased as of July 29, 2024.