ONEOK’s second quarter earnings report showed the Tulsa company had a $134.3 million net income resulting in 32 cents per diluted share. The company stated that its adjusted EBITDA was $533.9 million while operating income totaled $355.7 million.
Company leaders said based on the second quarter results as well as “crude oil pipeline takeaway” in the Williston Basin, they expect net income and adjusted earnings for the rest of 2020 to “be at the low end of the ranges provided on April 28, 2020.”
Total capital expenditures for the second half of 2020 are expected to range from approximately $300 million to $400 million.
“Second quarter results were interrupted by the pandemic’s effect on worldwide crude oil demand, the resulting extensive oil and associated natural gas production curtailments by producers across our operations and low commodity prices,” said Terry K. Spencer, ONEOK president and chief executive officer.
“The trends we are seeing in all of our operating areas are improving,” added Spencer. “Volumes on our systems are sharply increasing as our customers bring production back online with improvements in commodity prices, which is positive for our business in the second half of the year.”
Results were driven primarily by lower natural gas liquids (NGL) and natural gas volumes due to production curtailments, lower realized commodity prices in the natural gas gathering and processing segment and lower earnings from optimization and marketing in the natural gas liquids segment, compared with the second quarter 2019.
Results benefited from lower rail transportation costs due to the completion of ONEOK’s Elk Creek Pipeline and higher Permian Basin average fee rates in the natural gas liquids segment, and higher transportation services in the natural gas pipelines segment, compared with the second quarter 2019.