We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ONEOK's (OKE) Earnings and Revenues Miss Estimates in Q4
Read MoreHide Full Article
ONEOK Inc (OKE - Free Report) posted fourth-quarter 2020 operating earnings of 69 cents per share, missing the Zacks Consensus Estimate of 74 cents by 6.8%. Also, the bottom line declined 10.4% on a year-over-year basis.
Revenue Results
Total revenues of $2,570.6 million missed the Zacks Consensus Estimate of $2,909 million by 11.6%. Also, the top line dipped 3.5% from $2,663.6 million in the prior-year quarter due to fall in commodity sales, slightly offset by a rise in services revenues.
The company spent $1,627.1 million on cost of sales and fuel, down 9.2% from the year-ago quarter’s level.
In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $742 million, up 12% year over year.
The company incurred interest expenses worth $176.9 million, up 36.9% from the prior-year quarter.
Its operating income of $538.7 million in the fourth quarter was up 11% from the prior-year quarter.
Financial Highlights
As of Dec 31, ONEOK had cash and cash equivalents worth $524.5 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,228.4 million as of Dec 31, 2020, up from $12,479.7 million as of Dec 31, 2019.
The company’s cash provided by operating activities in 2020 was $1,899.1 million, down from $1,946.8 million in 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $2,195.4 million in 2020, down from $3,848.3 million in 2019.
Guidance
Natural Gas Liquids Raw Feed Throughput is expected to be 1,105-1,225 MBbl/d. The company anticipates Natural Gas Gathered and Natural Gas Processed to be 1,850-2,110 MMcf/d and 1,750-2,000 MMcf/d, respectively.
ONEOK projects 2021 net income and adjusted EBITDA in the range of $1,075-$1,375 million and $2,900-$3,200 million, respectively. Also, it expects earnings per share in the range of $2.40-$3.08. Growth capital expenditures are likely to be $335-$465 million in 2021.
Sempra Energy (SRE - Free Report) is slated to release fourth-quarter 2020 earnings on Feb 25. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.55.
CenterPoint Energy, Inc. (CNP - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 23 cents.
American Water Works Company, Inc. (AWK - Free Report) will post fourth-quarter 2020 earnings on Feb 25, 2021. The Zacks Consensus Estimate is pegged at 80 cents per share.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
ONEOK's (OKE) Earnings and Revenues Miss Estimates in Q4
ONEOK Inc (OKE - Free Report) posted fourth-quarter 2020 operating earnings of 69 cents per share, missing the Zacks Consensus Estimate of 74 cents by 6.8%. Also, the bottom line declined 10.4% on a year-over-year basis.
Revenue Results
Total revenues of $2,570.6 million missed the Zacks Consensus Estimate of $2,909 million by 11.6%. Also, the top line dipped 3.5% from $2,663.6 million in the prior-year quarter due to fall in commodity sales, slightly offset by a rise in services revenues.
ONEOK, Inc. Price and EPS Surprise
ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote
Highlights of the Release
The company spent $1,627.1 million on cost of sales and fuel, down 9.2% from the year-ago quarter’s level.
In the fourth quarter, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $742 million, up 12% year over year.
The company incurred interest expenses worth $176.9 million, up 36.9% from the prior-year quarter.
Its operating income of $538.7 million in the fourth quarter was up 11% from the prior-year quarter.
Financial Highlights
As of Dec 31, ONEOK had cash and cash equivalents worth $524.5 million compared with $21 million as of Dec 31, 2019.
Long-term debt (excluding current maturities) was $14,228.4 million as of Dec 31, 2020, up from $12,479.7 million as of Dec 31, 2019.
The company’s cash provided by operating activities in 2020 was $1,899.1 million, down from $1,946.8 million in 2019.
Capital expenditures (less allowance for equity funds used during construction) amounted to $2,195.4 million in 2020, down from $3,848.3 million in 2019.
Guidance
Natural Gas Liquids Raw Feed Throughput is expected to be 1,105-1,225 MBbl/d. The company anticipates Natural Gas Gathered and Natural Gas Processed to be 1,850-2,110 MMcf/d and 1,750-2,000 MMcf/d, respectively.
ONEOK projects 2021 net income and adjusted EBITDA in the range of $1,075-$1,375 million and $2,900-$3,200 million, respectively. Also, it expects earnings per share in the range of $2.40-$3.08. Growth capital expenditures are likely to be $335-$465 million in 2021.
Zacks Rank
ONEOK carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Sempra Energy (SRE - Free Report) is slated to release fourth-quarter 2020 earnings on Feb 25. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.55.
CenterPoint Energy, Inc. (CNP - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 23 cents.
American Water Works Company, Inc. (AWK - Free Report) will post fourth-quarter 2020 earnings on Feb 25, 2021. The Zacks Consensus Estimate is pegged at 80 cents per share.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>