Investors Focus on Earnings News: ONEOK, Inc. (NYSE:OKE)

ONEOK, Inc. (NYSE:OKE) stock dipped -0.95% and closed at 57.47 on Monday. The stock opened the session at $58.32 and touched its highest price point at $58.34. Its recent trading capacity is 3330261 shares versus to its average trading volume of 3142026 shares. The company’s stock’s lowest price point for the session stood at $56.76.OKE traded as low as $ 47.14 in the past 52 weeks, and shares hit its peak level to $61.36.

ONEOK, Inc. (NYSE:OKE) reported higher fourth-quarter and full-year 2017 operating income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), compared with the same periods in 2016. Results primarily benefited from natural gas and natural gas liquids (NGL) volume growth in the Williston and Permian basins and STACK and SCOOP areas, and higher average fee rates in the natural gas gathering and processing segment.

SUMMARY

Fourth-quarter 2017 operating income and adjusted EBITDA increased 21 and 16 percent, respectively, compared with the fourth quarter 2016;

Full-year 2017 operating income and adjusted EBITDA each increased 7 percent compared with 2016;

Fourth-quarter 2017 net income attributable to ONEOK totaled $63.0 million, or 16 cents per diluted share, which includes one-time noncash charges of $141.3 million, or 36 cents per diluted share, related to the Tax Cuts and Jobs Act;

Fourth-quarter and full-year 2017 dividend coverage ratios were 1.28 and 1.34, respectively;

The natural gas gathering and processing segment’s average fee rate was 86 cents per Million British thermal units (MMBtu) for the full-year 2017, compared with 76 cents per MMBtu in  2016; and

Fourth-quarter 2017 natural gas volumes processed increased 20 percent and NGL volumes gathered increased 17 percent, compared with 2016.

“Producer activity and production results increased across ONEOK’s operating footprint in 2017, driving volume growth and adjusted EBITDA increases compared with 2016,” said Terry K. Spencer, ONEOK president and chief executive officer. “We continue to see production growth, largely driven by improved producer drilling economics and higher rig efficiencies.

“ONEOK is investing in our systems to grow with our customers and address their needs for additional capacity,” Spencer added. “We’ve announced approximately $4.2 billion of organic capital-growth projects with attractive returns since June 2017 that will be highly accretive, complement our existing assets and provide essential services in high-producing regions.”

FOURTH-QUARTER AND FULL-YEAR 2017 FINANCIAL PERFORMANCE

ONEOK’s operating income increased 21 percent in the fourth quarter 2017 and 7 percent for the full-year 2017, compared with the same periods in 2016. Adjusted EBITDA increased 16 percent in the fourth quarter 2017 and 7 percent for the full-year 2017, compared with the same periods in 2016. Higher 2017 results were driven primarily by natural gas and natural gas liquids volume growth in ONEOK’s natural gas gathering and processing and natural gas liquids segments, offset partially by higher operating costs associated with the growth of ONEOK’s operations and routine maintenance projects.

FINANCIAL HIGHLIGHTS:

Paying in February 2018 a quarterly dividend of 77 cents per share, or $3.08 per share on an annualized basis, an increase of 25 percent compared with the same period in 2017;

Completing equity issuances through ONEOK’s “at-the-market” equity program in the fourth quarter 2017 generating net proceeds of $384 million and completing a public common stock offering in January 2018 resulting in total combined net proceeds of approximately $1.6 billion, which were used to fund recently announced capital-growth projects and repay outstanding indebtedness. ONEOK does not expect to issue additional equity in 2018 and well into 2019;

Repaying in January 2018 the remaining $500 million of the $1.0 billion term loan agreement due 2019 and short-term borrowings; and

Having $2.5 billion of borrowing capacity available under its $2.5 billion credit agreement following the January 2018 equity offering.

ONEOK, Inc. (NYSE:OKE) stock was up in the 5 days activity 0.98%. The one month performance of stock was low -5.13%. NYSE:OKE shares are above 13.62% for the quarter and driving an 8.11% rally over the course of the past year and is now up 7.52% since this point in 2018.   Right now OKE beta is 1.25. NYSE:OKE is 6.83% upward its 200-day moving average. On a similar note, the stock is 1.98% above its 50-day moving average. The average volatility for the week and month was at 2.53% 2.69% respectively.”

 

About the Author

Kyle Webster
Kyle Webster
Kyle Webster is a self taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Kyle is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Research News category for our site. He can be reached via Email Contact -  kyle@mostvolatilestocks.com.

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