Based on its third quarter results, ONEOK, Inc. announced it expects a more than 10% increase in its 2023 net income and adjusted earnings compared with the 2022 guidance midpoints.
What’s behind it? The company’s 2023 outlook is driven by expected continued strength in fee-based earnings and rates, stable to growing producer activity providing higher natural gas and natural gas liquids (NGL) volumes, and favorable commodity prices, net of hedging.
The company reported a 10% increase in net income to $431.8 million or a 96 cent per diluted share. There was also a 4% increase in its adjusted EBITDA totaling $902.4 million.
In its operations, ONEOK reported a 175 increase in the Rocky Mountain region NGL raw feed throughput volumes, a 9% increase in Rocky Mountain region natural gas volumes processed; and a 32% increase in natural gas gathering and processing segment adjusted EBITDA.
“Year-over-year earnings and volume growth highlights strong demand in the market for our products and services, continuing to provide growth opportunities for our business ahead,” said Pierce H. Norton II, ONEOK president and chief executive officer.
“Our more than 10% earnings growth outlook in 2023 is driven by an expectation for increased volumes, higher earnings from fee-based services in all three of our business segments and continued demand for the essential products and services ONEOK provides.
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