ONEOK Inc. Q3 2024 Earnings Report

TL;DR

ONEOK Q3 revenue $5.7B. Natural gas giant's performance detailed.

AI Summary

ONEOK Inc. reported its third-quarter 2024 results, with total operating revenues for the three months ended September 30, 2024, reaching $5.7 billion. This filing covers the period from January 1, 2024, to September 30, 2024, detailing the company's financial performance and operational segments in the natural gas transmission and distribution sector.

Why It Matters

This report provides insight into ONEOK's financial health and operational performance, which can influence investor decisions and the broader energy market.

Risk Assessment

Risk Level: medium — The company operates in the volatile natural gas sector, subject to commodity price fluctuations and regulatory changes.

Key Numbers

• $5.7B — Total Operating Revenues (For the three months ended September 30, 2024)
• 2024-09-30 — Period End Date (The end of the reporting period for this 10-Q filing)
• 2024-10-30 — Filing Date (The date this 10-Q filing was submitted to the SEC)

Key Players & Entities

• ONEOK Inc. (company) — Filer of the 10-Q report
• 100 WEST 5TH ST (company) — Business and mailing address of ONEOK Inc.
• TULSA (company) — City of ONEOK Inc.'s business and mailing address
• OK (company) — State of ONEOK Inc.'s business and mailing address
• 74103 (company) — ZIP code of ONEOK Inc.'s business and mailing address
• 9185887000 (company) — Business phone number of ONEOK Inc.

FAQ

Key Financial Figures

• $0.01 — registered Common stock, par value of $0.01 OKE New York Stock Exchange Indicate
• $2.5 Billion — rterly Report are defined as follows: $2.5 Billion Credit Agreement ONEOK's $2.5 billion a
• $2.5 billion — $2.5 Billion Credit Agreement ONEOK's $2.5 billion amended and restated revolving credit a
• $120 million — Guardian's senior unsecured three-year $120 million term loan agreement dated June 2022 GW
• $60 million — nt Viking's senior unsecured three-year $60 million term loan agreement dated March 2023 X

Filing Documents

• oke-20240930.htm (10-Q) — 2075KB
• okeq32024exhibit221.htm (EX-22.1) — 20KB
• okeq32024exhibit311.htm (EX-31.1) — 8KB
• okeq32024exhibit312.htm (EX-31.2) — 8KB
• okeq32024exhibit321.htm (EX-32.1) — 4KB
• okeq32024exhibit322.htm (EX-32.2) — 4KB
• oke-20240930_g1.jpg (GRAPHIC) — 13KB
• 0001039684-24-000342.txt ( ) — 9147KB
• oke-20240930.xsd (EX-101.SCH) — 50KB
• oke-20240930_cal.xml (EX-101.CAL) — 77KB
• oke-20240930_def.xml (EX-101.DEF) — 263KB
• oke-20240930_lab.xml (EX-101.LAB) — 533KB
• oke-20240930_pre.xml (EX-101.PRE) — 393KB
• oke-20240930_htm.xml (XML) — 1767KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Consolidated Statements of Income - Three and Ni ne Months Ended Sept . 30, 2024 and 2023 6 Consolidated Statements of Comprehensive Income - Three and Nine Months Ended Sept . 30, 2024 and 2023 6 Consolidated Balance Sheets - Sept . 30, 2024, and Dec . 31 , 2023 7 Consolidated Statements of Cash Flows - Nine Months Ended Sept . 3 0, 2024 and 2023 9 Consolidated Statements of Changes in Equity - Three and Nine Months Ended Sept . 30, 2024 and 2023 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 A. Summary of Signif icant Accounting Policies 12 B. Acquisitions 12 C. Medford Incident 15 D. Fair Value Measurements 15 E . Risk-M anagement and Hedging Activities Using Derivati ves 16 F. Debt 18 G. Equity 19 H . Earnings Per Share 19 I . Unconsolidated Affiliates 20 J. Commitments and Contingencies 20 K. Revenues 21 L. Segments 22 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41 Part II. Other Information 41 Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3. Defaults Upon Senior Securities 42 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 43 Signature 45 As used in this Quarterly Report, references to "we," "our" or "us" refer to ONEOK, Inc., an Oklahoma corporation, and its predecessors and subsidiaries, unless the context indicates otherwise. The statements in this Quarterly Report that are not historical information, including statements concerning plans and objectives of management for future operations, economic performance or related assumptions, are forward-looking statements. Forward-looking statements may include words such as "anticipates," "believes," "continues," "could," "estimates," "expect," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "target," "will," "would" and other words and terms of similar meaning. Although we believe that our expectations regarding future events are based on reasonable assumptions, we can give no assurance that such expectations or assumptions will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements are described under Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations "Forward-Looking Statements," and Part II, Item 1A, "Risk Factors," in this Quarterly Report and under Part I, Item 1A, "Risk Factors," in our Annual Report. 3 Table of Contents INFORMATION AVAILABLE ON OUR WEBSITE We make available, free of charge, on our website (www.oneok.com) copies of our Annual Reports, Quarterly Reports, Current Reports on Form 8-K, amendments to those reports filed or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act and reports of holdings of our securities filed by our officers and directors und

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ONEOK, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Nine Months Ended Sept. 30, Sept. 30, ( Unaudited ) 2024 2023 2024 2023 ( Millions of dollars, except per share amounts ) Revenues Commodity sales $ 4,083 $ 3,760 $ 12,005 $ 11,287 Services 940 429 2,693 1,155 Total revenues (Note K) 5,023 4,189 14,698 12,442 Cost of sales and fuel (exclusive of items shown separately below) 3,027 2,799 8,815 8,628 Operations and maintenance 512 308 1,481 833 Depreciation and amortization 274 177 790 509 General taxes 70 44 239 148 Transaction costs (Note B) 10 123 17 133 Other operating (income) expense, net (Note C) 2 ( 1 ) ( 65 ) ( 782 ) Operating income 1,128 739 3,421 2,973 Equity in net earnings from investments (Note I) 92 49 256 132 Other income, net 17 22 28 43 Interest expense (net of capitalized interest of $ 19 , $ 8 , $ 47 and $ 32 , respectively) ( 325 ) ( 215 ) ( 923 ) ( 561 ) Income before income taxes 912 595 2,782 2,587 Income taxes ( 219 ) ( 141 ) ( 670 ) ( 616 ) Net income 693 454 2,112 1,971 Less: Preferred stock dividends 1 1 1 1 Net income available to common shareholders $ 692 $ 453 $ 2,111 $ 1,970 Basic EPS (Note H) $ 1.18 $ 0.99 $ 3.61 $ 4.37 Diluted EPS (Note H) $ 1.18 $ 0.99 $ 3.60 $ 4.36 Average shares (millions) Basic 584.8 457.3 584.5 451.2 Diluted 586.7 458.2 586.1 452.1 See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended Nine Months Ended Sept. 30, Sept. 30, ( Unaudited ) 2024 2023 2024 2023 (Millions of dollars) Net income $ 693 $ 454 $ 2,112 $ 1,971 Other comprehensive income (loss), net of tax Change in fair value of derivatives, net of tax of $( 10 ), $( 3 ), $ 9 and $( 25 ), respectively 35 12 ( 29 ) 86 Derivative amounts reclassified to net income, net of tax of $( 2 ), $ 4 , $ 1 and $ 14 , respectively 4 ( 7 ) ( 4 ) ( 44 ) Changes in benefit plan ob

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our accompanying unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC. These statements have been prepared in accordance with GAAP and reflect all adjustments that, in our opinion, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The 2023 year-end Consolidated Balance Sheet data was derived from our audited Consolidated Financial Statements but does not include all disclosures required by GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements in our Annual Report. Goodwill Impairment Review - We assess our goodwill for impairment at least annually as of July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. At July 1, 2024, we assessed qualitative factors to determine whether it was more likely than not that the fair value of each of our reporting units with goodwill was less than its carrying amount. After assessing qualitative factors (including macroeconomic conditions, industry and market considerations, costs and overall financial performance), we determined that it was more likely than not that the fair value of the Natural Gas Pipelines, Natural Gas Liquids and Refined Products and Crude reporting units were not less than their respective carrying value, that no further testing was necessary and that goodwill was not considered impaired. Recently Issued Accounting Standards Update - Changes to GAAP are established by the FASB in the form of ASUs to the FASB Accounting Standards Codification. We consider the applicability and impact of all ASUs. Except as discussed below, there have been no new accounting pronouncements that have become effective or have been issued that

View Full Filing

View this 10-Q filing on SEC EDGAR