ONEOK (OKE) Q3 Earnings Miss Estimates, Maintains Guidance

Zacks

ONEOK Inc. OKE reported third-quarter 2017 operating earnings of 43 cents per share, missing the Zacks Consensus Estimate of 45 cents by 4.4%.Further, earnings declined 2.3% year over year.

Total Revenues

ONEOK’s total revenues of $2,906.4 million surpassed the Zacks Consensus Estimate of $2,800 million by 3.8%. Revenues also jumped 23.3% from $2,357.9 million in the prior-year quarter.

Quarterly Highlights

In the quarter under review, ONEOK’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $517.2, up 10.1% year over year.

In the third quarter, the company spent $2,229.4 million on cost of sales and fuel, up 27.3%.

Operating income came in at $351.9 million in the third quarter, up 6.8%.

The company incurred interest expenses of $126.5 million, up 7%.

Financial Condition

As of Sep 30, 2017, ONEOK had cash and cash equivalents of $11.7 million, compared with $248.9 million as of Dec 31, 2016.

Long-term debt (excluding current maturities) was $8,092 million as of Sep 30, 2017, down from the 2016-end level of $7,920 million.

For nine months ended, the company’s cash flow from operating activities was $936 million, up from $922 million in the year-ago period.

For the same period, capital expenditures (less allowance for equity funds used during construction) amounted to $330.4 million, down from $491.5 million in theyear-ago period.

ONEOK, Inc. Price, Consensus and EPS Surprise

Guidance

ONEOK reiterated its 2017 new income guidance in the range of $635-$795 million.

Adjusted EBITDA guidance is anticipated to be in the range of $1.89-$2.06 billion and DCF guidance in the rangeof $1.28-$1.44 billion.

Upcoming Peer Releases

Chesapeake Utilities Corporation CPK is expected to report third-quarter 2017 results on Nov 9. The Zacks Consensus Estimate is pegged at 35 cents per share.

South Jersey Industries, Inc. SJI is expected to report third-quarter 2017 results on Nov 2. The Zacks Consensus Estimate is pegged at a loss of a cent per share.

Spire Inc. SR is expected to report third-quarter 2017 results on Nov 15. The Zacks Consensus Estimate is pegged at a loss of 29 cent per share.

Zacks Rank

ONEOK currently carries a Zacks Rank #4(Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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