ONEOK Inc. Beats Q3 Earnings Estimates, Revenues Miss

Zacks

ONEOK Inc. OKE reported third-quarter 2015 adjusted earnings of 41 cents per share, beating the Zacks Consensus Estimate of 39 cents by 5.1%.

The company's GAAP earnings in the third quarter were 39 cents compared to 31 cents in the year-ago quarter.

Total Revenues

ONEOK’s total revenues of $1,899 million fell short of the Zacks Consensus Estimate of $2,460 million by 22.8%. Revenues tumbled 39.1% year over year mainly due to a decline in commodity sales.

Quarterly Highlights

In the third quarter, ONEOK Inc. spent nearly $1,361 million on cost of sales and fuel, down 47.3% from the prior-year level.

The company’s total operating expenses in the quarter were $252.5 million compared with $247.1 million a year ago. The 2.14% year-over-year rise was attributable to higher depreciation and amortization expenses.

Operating income came in at $284.9 million in the third quarter, down 2.2% year over year.

In the quarter, the company incurred $106.9 million as interest expenses, up 24.2% year over year.

Financial Condition

As of Sep 30, 2015, ONEOK had cash and cash equivalents of $38.4 million compared with $172.8 million as of Dec 31, 2014. The company’s long-term debt (excluding current maturities) was $7,774 million as of Sep 30, 2015 compared with $7,150.1 million as of Dec 31, 2014.

In the first nine months of 2015, the company’s cash flow from operating activities was $695.1 million, down 20.2% from $871 million in the year-ago period. Capital expenditures were $930.3 million, down 22.7% from $1,204.4 million in the prior-year period.

Guidance

The company reaffirmed its cash flow available for dividends guidance of $570–$650 million and free cash flow guidance of $90–$120 million for 2015.

Upcoming Peer Releases

The Laclede Group, Inc. LG is scheduled to report third-quarter results on Nov 24, 2015. The Zacks Consensus Estimate is at a loss of 35 cents.

National Fuel Gas Company NFG plans to report third-quarter results on Nov 05, 2015. The Zacks Consensus Estimate is pegged at 42 cents.

New Jersey Resources Corp. NJR is slated to report third-quarter results on Nov 24, 2015. The Zacks Consensus Estimate stands at a loss of 8 cents.

Zacks Rank

ONEOK Inc. currently has a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research

Be the first to comment

Leave a Reply