Tulsa-based ONEOK, Inc. announced higher fourth-quarter and full-year 2017 operating income and adjusted earnings this week compared to 2016.
The company said its fourth quarter net income was $63 million or 16 cents per diluted share. And that includes one-time noncash charges of $141.3 million or 36 cents a diluted share because of the new Tax Cuts and Jobs Act.
Full-year 2017 operating income and adjusted earnings were up 7 percent over 2016. The company’s operating income was up 21 percent in the fourth quarter while the adjusted earnings for the quarter increased 16 percent.
ONEOK leaders said the higher 2017 results were driven primarily by natural gas and natural gas liquids volume growth in the company’s natural gas gathering and processing and natural gas liquids segments, offset partially by higher operating costs connected to the growth of ONEOK’s operations and routine maintenance projects.
In the fourth quarter of 2017, ONEOK saw a $51.7 million increase in exchange services because of increased supply in the STACK and SCOOP areas and the Williston Basin in North Dakota from recently connected natural gas processing plants as well as increased ethane recover in the STACK and SCOOP areas.
For the full year of 2017, there was a $66 million increase due to natural gas volume growth in the Williston Basin and the STACK and SCOOP areas. It was offset partially because of the natural production declines and the impact of severe winter weather n the first quarter of 2017.
ONEOK’s capital-growth expenditures for 2018 are expected to range from $1,950 million to $2,300 million compared with the previously announced range of about $1,530 million.
Already this year, ONEOK has repaired the remaining $500 million of the $1 billion term loan agreement that was due 2019. It still has $2.5 billion of borrowing capacity available under its credit agreement.