Increased earnings reported by ONEOK Inc.

 

ONEOK Inc. reported improved earnings in the fourth quarter 2020 and for the year.

The company saw an 11% increase in operating income to nearly $539 million while it had 12% growth in adjusted EBITDA of $742 million.

ONEOK reported full-year 2020 net income of $612.8 million, which includes noncash impairment charges of $644.9 million. The impairment charges related primarily to goodwill and long-lived assets in the natural gas gathering and processing segment during the first quarter of 2020.

Full-year 2020 adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased 6%, compared with the full year 2019.

And company leaders expect even stronger earnings in 2021.

“We expect volume and earnings growth in 2021 to be supported by increasing producer activity and new capacity from completed projects,” said Terry K. Spencer, ONEOK president and chief executive officer.

He said the company saw higher results because of increased natural gas liquids volumes in the Rocky Mountain region and the Permian Basin as well as lower rail transportation and pipeline costs. Plus, there were higher transportation services in the natural gas pipelines segment compared with 2019.

Click here for ONEOK press release