ONEOK Inc. on Tuesday reported profits of $85.9 million for the second quarter, or 40 cents a share, up 12 percent compared to $76.5 million, or 36 cents a share earned for the same period a year ago.
The company’s master limited partnership, ONEOK Partners LP, reported second quarter earnings of nearly $261.5 million, or 54 cents a unit, up 25 percent compared to net income of $209.8 million, or 44 cents a unit earned in the second quarter of 2015.
The Tulsa-based natural gas company reported adjusted earnings before interest, taxes, depreciation and amortization of $452.7 million, up 17 percent from $385.7 million in the second quarter of 2015. Revenues were $2.133 billion, up from $2.127 billion one year ago.
“ONEOK continues to benefit from natural gas and natural gas liquids volume growth across all three ONEOK Partners business segments year over year,” said Terry K. Spencer, ONEOK’s President and CEO. “The natural gas liquids segment continues to be a key driver of fee-based growth for the partnership, with segment operating income and adjusted EBITDA in the first half of 2016 increasing more than 25 percent compared with the same period last year.”
Spencer said in his statement that ONEOK and ONEOK Partners are well positioned for the remainder of 2016 thanks to a proactive approach on financial decision-making, increased fee-based earnings and continued natural gas and natural gas liquids volume growth.
“The partnership’s natural gas gathering and processing segment also recorded increased volumes in the first half of 2016 and continues to benefit from contract restructuring efforts that began in 2015,” said Spencer. “Our continuing contract restructuring efforts contributed to higher fee-based earnings in the quarter.”
Spencer indicated that the company expects a substantial benefit from ethane recovery in early 2017 since ONEOK has witnessed a variation involving higher ethane recovery within parts of its system during 2016.
ONEOK is a Fortune 500 company with its corporate headquarters located in Tulsa, Oklahoma.