ONEOK (OKE) Q4 2024 earnings summary

Executive summary

• Achieved higher fourth quarter and full-year 2024 earnings, driven by strategic acquisitions, volume growth, and execution of synergies, with 11 consecutive years of adjusted EBITDA growth and a diversified, fee-based business model.

• Completed transformative acquisitions, including EnLink, Medallion, Magellan, and Easton Energy, expanding business lines and regional presence.

• Expanded integrated operations in refined products, crude oil, and gathering, especially in the Permian Basin and Louisiana, and completed major projects such as pipeline expansions and a new LPG export JV.

• Increased quarterly dividend by 4% to $1.03 per share ($4.12 annualized) and repurchased 1.675 million shares for $172 million in 2024.

• Maintained strong balance sheet with a 3.6x leverage ratio and focus on organic growth, innovation, and customer service.

Financial highlights

• Q4 2024 net income attributable to shareholders: $923 million ($1.57/share); full year: $3 billion ($5.17/share); Q4 adjusted EBITDA: $2.17 billion; full year: $6.78 billion.

• 2024 results included $373–$375 million adjusted EBITDA and $73 million transaction costs from EnLink and Medallion acquisitions.

• Returned nearly $2.5 billion to shareholders in 2024 via dividends and share repurchases.

• 2025 guidance: net income $3.21–$3.69 billion, adjusted EBITDA $8.0–$8.45 billion, EPS $4.97–$5.77.

• Capital expenditures totaled $2.02 billion in 2024.

Outlook and guidance

• 2025 EPS guidance midpoint: $5.37, up 8% from 2024, with adjusted EBITDA guidance midpoint at $8.225 billion, up 21% from 2024, excluding one-time items.

• 2025 guidance includes $250 million incremental synergies from recent acquisitions and capex guidance of $2.8–$3.2 billion.

• 2026 outlook projects over 15% EPS growth and nearly 10% adjusted EBITDA growth over 2025 guidance midpoints.

• Strategic investments, including a new LPG export terminal JV, are expected to support long-term growth.

• Amended and restated credit agreement, increasing capacity to $3.5 billion and extending expiration to February 2030.