ONEOK (OKE) Q4 2024 earnings summary

Executive summary

• Reported higher fourth quarter and full-year 2024 earnings, driven by strategic acquisitions, volume growth, and execution of synergies from 2023 acquisitions, with a resilient, fee-based model.

• Achieved 11 consecutive years of adjusted EBITDA growth, with 2024 adjusted EBITDA at $6.8 billion and 2025 guidance midpoint at $8.225 billion, reflecting >16% annual growth rate since 2013.

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

• Increased quarterly dividend by 4% to $1.03 per share (annualized $4.12) and repurchased 1.675 million shares for $171.7 million.

• Company has transformed through regional diversification, expanded product offerings, and increased operational scale.

Financial highlights

• Q4 2024 net income attributable to ONEOK: $923 million ($1.57/share); full year: $3 billion ($5.17/share).

• Q4 2024 Adjusted EBITDA: ~$2.2 billion; full year: $6.78 billion, including $373–$375 million from acquisitions.

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

• Operating income for 2024 was $4.99 billion, up from $4.07 billion in 2023.

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

Outlook and guidance

• 2025 EPS guidance midpoint: $5.37, up 8% year-over-year, excluding one-time items.

• 2025 Adjusted EBITDA guidance: $8.225 billion, up 21% year-over-year, excluding $50 million in transaction costs.

• 2026 outlook: >15% EPS growth and ~10% Adjusted EBITDA growth over 2025 guidance midpoints.

• Growth and maintenance capital expenditures for 2025 guided at $2.8–$3.2 billion combined.

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