Tulsa-based ONEOK, Inc. announced its second quarter 2022 financial results showing an increase of 21 percent in net income. The company said its net income for the quarter was $414.4 million or 92 cents a share while adjusted EBITDA was $886.0 million, up 11 percent, according to a company press release.
“ONEOK’s second quarter earnings included strong adjusted EBITDA results despite unseasonable weather in the Rocky Mountain region during the quarter,” said Pierce H. Norton II, ONEOK president and chief executive officer. “Expected strong natural gas and NGL volumes, commodity prices and demand for natural gas transportation and storage services through the remainder of the year support our 2022 financial guidance.”
The company also announced double digit increases in the Rocky Mountain region NGL raw feed throughput volumes; Gulf Coast/Permian Regional NGL raw feed throughput volumes; and natural gas pipelines.
Second quarter results were impacted by severe weather in the Rocky Mountain region in April 2022, resulting in power outages impacting natural gas and NGL volumes from the region. By the end of May 2022, volumes approached pre-outage levels.
ONEOK’s 210,000 barrel per day (bpd) NGL fractionation facility in Medford remains out of service following a fire on July 9, 2022. ONEOK continues efforts to determine the cause of the event and expects the facility to remain out of service for an extended period of time.
As a result of insurance coverage, ONEOK does not currently anticipate that the Medford incident will have a material effect on the company’s financial condition, results of operations or cash flows; however, the timing of insurance proceeds may impact financial results in a given quarter or year.
Subject to the terms and conditions of the policies and any applicable sub-limits, ONEOK has property damage and business interruption insurance coverage with a combined per occurrence limit of $2 billion. The property damage deductible is $5 million per occurrence and the business interruption coverage includes a 45-day waiting period per occurrence.
The company’s integrated NGL pipeline, fractionation and storage assets between the Mid-Continent and Gulf Coast, and fractionation and storage arrangements with industry peers, have allowed ONEOK to provide midstream services while the facility is out of service.
The company also reported its annual Corporate Sustainability Report was released in August 2022.
Click here for the full press release.