Higher natural gas prices led ONEOK to large increases in its fourth quarter and full-year 2021 earnings according to a company release on Monday.
The company had $3.3 billion in adjusted EBITDA for the year.
The full-year earnings were up 24% from full-year 2020. The company’s fourth quarter adjusted EBITDA was $846.6 million, a 14% increase over the fourth quarter of the previous year.
“ONEOK’s strong fourth quarter and full-year 2021 performance resulted in another year of earnings growth driven by higher volumes on our system,” said Pierce H. Norton II, ONEOK president and chief executive officer.
Net income for 2021 was $1.5 billion or $3.35 per diluted share while the company said it had a 21% increase in Rocky Mountain region natural gas volumes processed and more than 320 wells connected in the region.
It also managed a total debt reduction of more than $600 million during 2021.
“This performance provides momentum into 2022 where we expect volume growth across our operations from increased producer activity and strengthening demand for natural gas and NGLs,” added Norton.
Amounts for the year ended Dec. 31, 2021, include a noncash tax impact of $19.4 million, or 4 cents per diluted share, related to previously recognized gains on certain benefit plan investments. Amounts for the year ended Dec. 31, 2020, include benefits of $22.3 million, or 4 cents per diluted share after-tax, related to net gains on open market repurchases of debt and $11.2 million, or 2 cents per diluted share after-tax, related to the mark-to-market of ONEOK’s share-based compensation plan, and noncash charges of $644.9 million, or $1.15 per diluted share after-tax, related primarily to impairments in the natural gas gathering and processing segment.
The company said its full year 2021 earnings were affected by the February Winter Storm Uri. It reported a $98.3 million increase in marketing due to wider location and commodity price differentials, increased activities during the story and higher optimization volumes.
They were offset by a $46.2 million decrease in exchange services related to the storm due primarily to decreased volumes across ONEOK’s operations and higher electricity costs.
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