Earnings improved for ONEOK in 2019 and the last quarter

ONE reported higher results both for the last quarter of the year and for all of 2019. And earnings continue to improve in 2020.

ONEOK’s net income increased 9% in the fourth quarter 2019 and 11% for the full year 2019, compared with the same periods in 2018. Adjusted EBITDA went up 5% reaching more than $2.5 billion.

“2019 was another successful year for ONEOK with volume growth driving strong results across our business segments,” said Terry K. Spencer, ONEOK president and chief executive officer. “With the completions of the Elk Creek Pipeline and the Demicks Lake I and II plants, we continue to demonstrate our ongoing commitment to expanding our existing infrastructure to help our producer customers reduce natural gas flaring in the Williston Basin.

Spencer expects the recently completed projects to drive “significant” adjusted EBITDA growth of 25% this year and possibly 20% growth next year.

” This growth program is providing needed pipeline, processing and fractionation services to our customers from the Williston  and Permian to theTexas Gulf Coast, growing our fee-based earnings for years to come,” added Spencer.

Higher Full-year 2019 Results, Compared With The Full Year 2018:

  • 11% increase in net income to $1,278.6 million, resulting in $3.07 per diluted share.
  • 5% increase in adjusted EBITDA to $2,580.2 million.
  • 1.38 times dividend coverage ratio.
  • 7% increase in NGL raw feed throughput volumes.
  • 7% increase in natural gas volumes processed.
  • 98% natural gas transportation capacity contracted.

Higher 2020 Earnings Guidance, Compared With Full-year 2019 Results:

  • 16% increase of net income midpoint to $1.480 billion.
  • 25% increase of adjusted EBITDA midpoint to $3.225 billion.
  • 32% decrease of growth capital midpoint to $2.490 billion.


Higher 2019 results were driven primarily by natural gas liquids (NGL) and natural gas volume growth, higher average fee rates in the natural gas liquids and natural gas gathering and processing segments and increased transportation services in the natural gas pipelines segment, compared with the full year 2018.

Results were offset partially by lower earnings from optimization and marketing due to wider location price differentials in 2018 in the natural gas liquids segment, higher employee-related costs associated with the growth of ONEOK’s operations and higher third-party transportation and fractionation costs in the natural gas liquids segment. Higher depreciation expense due to completed growth projects, narrower product price differentials in the natural gas liquids segment and lower realized NGL and natural gas prices in the natural gas gathering and processing segment also impacted 2019 results.

Source: ONEOK release