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ONEOK's (OKE) Earnings Beat Estimates in Q3, Revenues Miss
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ONEOK Inc (OKE - Free Report) posted third-quarter 2020 operating earnings of 70 cents per share, beating the Zacks Consensus Estimate of 59 cents by 18.6%. However, the bottom line declined 5.4% on a year-over-year basis.
With economic activities reviving, E&P companies started ramping up their production volumes. This, in turn, led to improving volumes in ONEOK’s pipeline, thereby aiding its results.
Revenue Results
Total revenues of $2,174.3 million missed the Zacks Consensus Estimate of $2,560 million by 15.1%. Also, the top line dipped 3.9% from $2,263.2 million in the prior-year quarter.
The company spent $1,265.7 million on cost of sales and fuel, down 10.5% from the year-ago quarter’s level.
In the third quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $747 million, up 15% year over year.
The company incurred interest expenses of $176.4 million, up 36.1% from $129.6 million in the prior-year quarter.
The company’s operating income of $550.4 million in the third quarter was up 14.2% from $482.2 million in the prior-year quarter.
Financial Highlights
As of Sep 30, ONEOK had cash and cash equivalents worth $447.1 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,249.3 million as of Sep 30, 2020, upfrom $12,479.7 million as of Dec 31, 2019.
The company’s cash provided by operating activities at the end of the first nine months of 2020 was $1,103.1 million, down from $1,326.8 million at the end of the first nine months of 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $1,924 million at the end of the first nine months of 2020, down from $2,739.3 million in the same period of 2019.
Guidance
ONEOK projects 2020 net income and adjusted EBITDA in the range of $500-$900 million and $2,600-$3,000 million, respectively.
ONE Gas Inc. (OGS - Free Report) is slated to release third-quarter 2020 earnings on Nov 2. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 36 cents.
Sempra Energy (SRE - Free Report) is slated to release third-quarter 2020 earnings on Nov 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.47.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Nov 11. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 52 cents.
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ONEOK's (OKE) Earnings Beat Estimates in Q3, Revenues Miss
ONEOK Inc (OKE - Free Report) posted third-quarter 2020 operating earnings of 70 cents per share, beating the Zacks Consensus Estimate of 59 cents by 18.6%. However, the bottom line declined 5.4% on a year-over-year basis.
With economic activities reviving, E&P companies started ramping up their production volumes. This, in turn, led to improving volumes in ONEOK’s pipeline, thereby aiding its results.
Revenue Results
Total revenues of $2,174.3 million missed the Zacks Consensus Estimate of $2,560 million by 15.1%. Also, the top line dipped 3.9% from $2,263.2 million in the prior-year quarter.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
Highlights of the Release
The company spent $1,265.7 million on cost of sales and fuel, down 10.5% from the year-ago quarter’s level.
In the third quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $747 million, up 15% year over year.
The company incurred interest expenses of $176.4 million, up 36.1% from $129.6 million in the prior-year quarter.
The company’s operating income of $550.4 million in the third quarter was up 14.2% from $482.2 million in the prior-year quarter.
Financial Highlights
As of Sep 30, ONEOK had cash and cash equivalents worth $447.1 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,249.3 million as of Sep 30, 2020, upfrom $12,479.7 million as of Dec 31, 2019.
The company’s cash provided by operating activities at the end of the first nine months of 2020 was $1,103.1 million, down from $1,326.8 million at the end of the first nine months of 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $1,924 million at the end of the first nine months of 2020, down from $2,739.3 million in the same period of 2019.
Guidance
ONEOK projects 2020 net income and adjusted EBITDA in the range of $500-$900 million and $2,600-$3,000 million, respectively.
Zacks Rank
ONEOK carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ONE Gas Inc. (OGS - Free Report) is slated to release third-quarter 2020 earnings on Nov 2. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 36 cents.
Sempra Energy (SRE - Free Report) is slated to release third-quarter 2020 earnings on Nov 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.47.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Nov 11. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 52 cents.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>