Earnings were strong for ONEOK in 1Q of 2019

ONEOK reported a 27 percent increase in first quarter 2019 net income to $337.2 million.

The Tulsa-based company said it resulted in an 81-cent distribution per diluted share.

In announcing the results this week, the company said it also saw a 12 percent increase in adjusted EBITDA reaching $637.5 million.

its first-quarter operating income totaled $468.7 million compared to $419.7 million a year earlier. Operating costs for the 2019 first quarter were $240.8 million, up from the $210.3 million in the first quarter of 2018.

“Our capital-growth program remains on track and on budget, with our largest projects slated for completion beginning early in the third quarter of 2019 through the first quarter of 2020,” said Terry K. Spencer, ONEOK president and chief executive officer.

“Over the coming months, we expect to add critical NGL takeaway, fractionation and natural gas processing capacity for our customers where they need it most, providing ONEOK with substantial long-term earnings and flow growth,” he added.

The company said its improved net income and adjusted earnings were driven primarily by NGL and natural gas volume growth in the Williston Basin as well as NGL volume growth in the STACK and SCOOP areas and the Permian Basin.

Highlights for the quarter including announcement of a $100 million, 75-mile natural gas liquids pipeline lateral connecting the northern portion of the Bakken NGL pipeline with a third-party natural gas processing plant in Williams County, North Dakota.

ONEOK saw a 10 percent increase in adjusted earnings for the quarter in the Natural Gas Liquids Segment. Earnings totaled $377.6 million compared to $342.1 million a year earlier.

The Natural Gas Gathering and Processing Segment saw a 17 percent increase in adjusted earnings. It totaled $152.2 million, better than the $130.6 million reported in the first quarter of 2018.

Adjusted earnings in the company’s Natural Gas Pipelines Segment grew 17 percent, going from $93.6 million in the first quarter of 2018 to $106.6 million this year.