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ONEOK (OKE) Misses Q4 Earnings, Beats Revenue Estimates

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ONEOK Inc. (OKE - Free Report) reported fourth-quarter 2016 operating earnings of 43 cents per share, missing the Zacks Consensus Estimate of 47 cents by 8.5%.

Full-year 2016 operating earnings came in at $1.67 per share, missing the Zacks Consensus Estimate of $1.73 by 3.5%.Yearly earnings, however, increased 40.3% from the 2015 tally of $1.19.

 

 

Total Revenue

ONEOK’s total revenue of $2,654.5 million exceeded the Zacks Consensus Estimate of $2,508 million by 5.8%. Revenues also jumped 37.5% from $1,931 million in the prior-year quarter.

Full-year 2016 revenues came in at $8,921 million, exceeding the Zacks Consensus Estimate of $8,420 million by nearly 6%. Yearly revenues also improved 14.9% year over year.

Quarterly Highlights

In the quarter under review, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $469, up 5% year over year.

In the fourth quarter, the company spent $2,021.5 million on cost of sales and fuel, up 51.6%.

Operating income came in at $329.6 million in the fourth quarter, up 36.2%.

The company incurred interest expenses of $114.2 million, up 3.2%.

ONEOK, Inc. Price, Consensus and EPS Surprise

 

ONEOK, Inc. Price, Consensus and EPS Surprise | ONEOK, Inc. Quote

Financial Condition

As of Dec 31, 2016, ONEOK had cash and cash equivalents of $248.9 million, compared with $97.6 million as of Dec 31, 2015.

Long-term debt (excluding current maturities) was $7,920 million as of Dec 31, 2016, down from the 2015-end level of $8,323.6 million.

In 2016, the company’s cash flow from operating activities was $1,351.6 million, up from nearly $1,007 million in the year-ago period.

Capital expenditure in 2016 was $624.6 million, down from $1,188.3 million a year ago.

Peer Releases

Atmos Energy Corporation (ATO - Free Report) reported fourth-quarter 2016 operating earnings of $1.08 per share, beating the Zacks Consensus Estimate of $1.03 by 4.9%.

UGI Corporation (UGI - Free Report) reported fourth-quarter 2016 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 75 cents by 21.2%.

WGL Holdings, Inc. reported fourth-quarter 2016 operating earnings of $1.24 per share, missing the Zacks Consensus Estimate of $1.27 by 2.4%.

Zacks Rank

ONEOK currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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