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ONEOK to Release Q3 Earnings: Here's What You Need to Know

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ONEOK Inc. (OKE - Free Report) is scheduled to release third-quarter 2024 results on Oct. 29, after market close. The company delivered a negative earnings surprise of 3.5% in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors That May Impact OKE's Q3 Results

The bottom line is expected to have gained from strong fee-based contracts, as more than 90% of its revenues are likely to have been fee-based.

At the end of second-quarter 2024, the company completed its acquisition of a system of natural gas liquids (NGL) pipelines from Easton Energy for nearly $280 million. The strategic acquisition should help the company expand its NGL asset portfolio. This is likely to have bolstered earnings in the to-be-reported quarter.

The company’s bottom line is also projected to have benefited from wells connected in its Rocky Mountain and Mid-Continent regions in the previous quarters. This should have further increased natural gas gathering and processing volumes.

However, higher depreciation and amortization might have offset some positives in the to-be-reported quarter.

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.23 per share, indicating a year-over-year increase of 24.2%. The Zacks Consensus Estimate for revenues is pinned at $5.81 billion, indicating an increase of 38.6% year over year.

The Zacks Consensus Estimate for Raw feed throughput is pinned at 1,387.2 thousand barrels of natural gas liquid per day, down 1.8% year over year. The Zacks Consensus Estimate for Natural gas gathered per day is pegged at 3,286.7 billion British thermal units, up 6.5% year over year.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for ONEOK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -3.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote

Zacks Rank: Currently, ONEOK has a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector, as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Cheniere Energy (LNG - Free Report) is likely to come up with an earnings beat when it announces third-quarter results on Oct. 31, before market open. It has an Earnings ESP of +12.21% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings has increased 2.7% to $1.87 per share in the past 60 days. The company delivered an average earnings surprise of 55.9% in the trailing four quarters.

Energy Transfer (ET - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov. 6, after market close. It has an Earnings ESP of +7.29% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings is pinned at 32 cents per unit. The firm delivered an average earnings surprise of 5.2% in the trailing four quarters.

Plains All American Pipeline (PAA - Free Report) is likely to come up with an earnings beat when it announces third-quarter results on Nov. 8, before market open. It has an Earnings ESP of +7.91% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings is pinned at 31 cents per unit. The firm delivered an average earnings surprise of 13.9% in the trailing four quarters.

 

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