ONEOK's Q3 Revenue Soars 72% on Strategic Acquisitions

TL;DR

**ONEOK's massive acquisition spree is paying off big, making it a strong buy for growth-focused investors.**

AI Summary

ONEOK, Inc. reported robust financial performance for the three and nine months ended September 30, 2025, driven by significant acquisitions. Total revenues surged to $8.634 billion for the three months ended September 30, 2025, up from $5.023 billion in the prior year, representing a 71.9% increase. Net income attributable to ONEOK also saw a substantial rise, reaching $939 million for the quarter, compared to $693 million in the same period of 2024, a 35.5% increase. For the nine-month period, total revenues were $24.564 billion, up from $14.698 billion, and net income attributable to ONEOK was $2.416 billion, an increase from $2.112 billion. Key business changes include the completion of the EnLink Acquisition on January 31, 2025, the Delaware Basin JV Acquisition on May 28, 2025, and the BridgeTex Additional Interest Acquisition on July 22, 2025, which increased ONEOK's ownership in BridgeTex to 60%. These acquisitions significantly expanded ONEOK's asset base and operational scale, contributing to increased commodity sales and services revenue. The company's long-term debt increased to $31.986 billion as of September 30, 2025, from $31.018 billion at December 31, 2024, reflecting financing for these strategic expansions. Despite increased debt, operating income grew to $1.558 billion for the quarter, up from $1.128 billion, indicating strong operational leverage from the new assets.

Why It Matters

ONEOK's aggressive acquisition strategy, including the EnLink and BridgeTex deals, is fundamentally reshaping its market position in the midstream energy sector. This expansion could lead to increased economies of scale and broader geographic reach, potentially enhancing long-term shareholder value. For investors, the significant revenue and net income growth, coupled with increased dividends, signals a strong return on these strategic investments. Employees may see expanded opportunities within a larger, more diversified company. Customers could benefit from a more integrated and efficient pipeline network, while the broader market will observe ONEOK's strengthened competitive stance against rivals like MPLX LP and other midstream players.

Risk Assessment

Risk Level: medium — The company's long-term debt increased to $31.986 billion as of September 30, 2025, from $31.018 billion at December 31, 2024, indicating higher leverage. While acquisitions like EnLink and BridgeTex are driving growth, the substantial increase in debt and transaction costs of $74 million for the nine months ended September 30, 2025, introduce financial risk, especially in a volatile energy market.

Analyst Insight

Investors should consider ONEOK's strong revenue and net income growth driven by strategic acquisitions as a positive indicator. However, they should closely monitor the company's debt levels and integration success of the acquired entities. A 'hold' position is advisable for existing investors, while new investors might consider a small position, watching for further debt reduction or sustained operational efficiencies.

Financial Highlights

revenue

$8.634B

operating Margin

18.0%

total Debt

$31.986B

net Income

$939M

eps

$1.49

cash Position

$1.199B

revenue Growth

+71.9%

Revenue Breakdown

Key Numbers

• $8.634B — Total revenues for Q3 2025 (Increased 71.9% from $5.023 billion in Q3 2024)
• $939M — Net income attributable to ONEOK for Q3 2025 (Increased 35.5% from $693 million in Q3 2024)
• $24.564B — Total revenues for nine months ended Sept 30, 2025 (Increased from $14.698 billion in the prior year period)
• $2.416B — Net income attributable to ONEOK for nine months ended Sept 30, 2025 (Increased from $2.112 billion in the prior year period)
• $1.49 — Basic EPS for Q3 2025 (Increased from $1.18 in Q3 2024)
• $31.986B — Long-term debt as of Sept 30, 2025 (Increased from $31.018 billion at Dec 31, 2024, reflecting acquisition financing)
• $270M — Cash paid for BridgeTex Additional Interest Acquisition (Funded with short-term borrowings on July 22, 2025)
• 60% — ONEOK's ownership interest in BridgeTex (Increased from 30% after the July 22, 2025 acquisition)
• $74M — Transaction costs for nine months ended Sept 30, 2025 (Increased from $17 million in the prior year period due to acquisitions)
• 629,231,557 — Shares of common stock outstanding as of Oct 20, 2025 (Reflects changes due to acquisitions and share repurchases)

Key Players & Entities

• ONEOK, Inc. (company) — Registrant and parent company
• EnLink Midstream, LLC (company) — Acquired entity in the EnLink Acquisition
• BridgeTex Pipeline Company, LLC (company) — Joint venture where ONEOK acquired an additional 30% interest
• Delaware G&P LLC (company) — Joint venture where ONEOK acquired the remaining 49.9% noncontrolling interest
• GIP III Stetson I, L.P. (company) — Seller in the EnLink Controlling Interest Acquisition
• GIP III Stetson II, L.P. (company) — Seller in the EnLink Controlling Interest Acquisition
• New York Stock Exchange (regulator) — Exchange where OKE common stock is registered
• SEC (regulator) — Securities and Exchange Commission
• MPLX LP (company) — Competitor in the midstream sector
• Global Infrastructure Partners (company) — Investment firm involved in EnLink and Medallion acquisitions

FAQ

Risk Factors

• Increased Debt Levels [medium — financial]: Long-term debt rose to $31.986 billion as of September 30, 2025, from $31.018 billion at year-end 2024, primarily to finance significant acquisitions. This increased leverage could impact financial flexibility and increase interest expense.
• Integration of Acquisitions [medium — operational]: The company completed multiple acquisitions in 2025, including EnLink, Delaware Basin JV, and BridgeTex. Successfully integrating these diverse assets and operations is crucial for realizing synergies and achieving projected financial performance.
• Commodity Price Volatility [medium — market]: Revenues are significantly tied to commodity sales. Fluctuations in natural gas, NGLs, and crude oil prices can directly impact revenue and profitability, as seen in the substantial increase in commodity sales revenue from $4.083 billion to $7.416 billion in Q3 2025.
• Environmental and Safety Regulations [low — regulatory]: As an energy infrastructure company, ONEOK is subject to extensive environmental and safety regulations. Non-compliance or changes in regulations could lead to increased costs, operational disruptions, or penalties.
• Transaction Costs [low — financial]: Transaction costs increased significantly to $74 million for the nine months ended September 30, 2025, from $17 million in the prior year, directly attributable to acquisition activities. These costs reduce current period profitability.

Industry Context

ONEOK operates in the midstream energy sector, focusing on natural gas liquids (NGL) and natural gas transportation, storage, and processing. The industry is characterized by significant capital investment, long-term contracts, and sensitivity to commodity prices and production levels. Recent consolidation, driven by companies like ONEOK acquiring assets, aims to enhance scale, efficiency, and market position.

Regulatory Implications

As a major energy infrastructure provider, ONEOK faces stringent regulatory oversight concerning environmental protection, safety standards, and pipeline operations. Changes in federal, state, or local regulations, particularly those related to emissions or infrastructure development, could impose additional compliance costs or operational constraints.

What Investors Should Do

1. Monitor acquisition integration progress
2. Assess debt management strategy
3. Analyze commodity price exposure

Key Dates

• 2025-01-31: Completion of EnLink Acquisition — Significantly expanded ONEOK's asset base and operational scale in the natural gas gathering and processing sector.
• 2025-05-28: Completion of Delaware Basin JV Acquisition — Further expanded presence in a key producing region, enhancing gathering and processing capabilities.
• 2025-07-22: BridgeTex Additional Interest Acquisition — Increased ONEOK's ownership in the BridgeTex pipeline system to 60%, strengthening its NGL transportation network.
• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing substantial revenue and net income growth driven by recent acquisitions.
• 2025-10-20: Shares of common stock outstanding reported — Indicates the total number of shares outstanding as of a recent date, reflecting capital structure changes.

Glossary

Noncontrolling interests

The portion of equity ownership in a subsidiary that is not attributable to the parent company. (The reduction of net income attributable to noncontrolling interests indicates increased ownership or consolidation of acquired entities by ONEOK.)

Equity method of accounting

An accounting method where an investment in another company is initially recorded at cost and then adjusted to recognize the investor's share of the investee's earnings or losses. (ONEOK uses this for its 60% stake in BridgeTex, indicating it has significant influence but not control over the entity.)

Goodwill

An intangible asset that arises when one company acquires another for a price that is higher than the fair market value of its assets and liabilities. (ONEOK assesses goodwill for impairment annually, indicating the significant value attributed to acquired businesses.)

Transaction costs

Costs incurred by a company when engaging in mergers, acquisitions, or other significant business transactions. (These costs increased significantly in 2025 due to acquisitions, impacting reported expenses.)

Capitalized interest

Interest cost incurred during the construction or development of an asset that is added to the cost of the asset rather than expensed immediately. (The amount of capitalized interest ($19M for Q3 2025) reflects ongoing construction projects and impacts reported interest expense.)

Year-Over-Year Comparison

ONEOK has demonstrated significant growth compared to the prior year, with total revenues for Q3 2025 surging by 71.9% to $8.634 billion, largely due to strategic acquisitions. Net income attributable to ONEOK also saw a healthy increase of 35.5% to $939 million. Operating income grew robustly, indicating strong operational leverage from the expanded asset base. While long-term debt has increased to finance these acquisitions, the company's ability to generate higher operating income suggests effective asset deployment.

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
• $3.5 Billion — lving credit agreement, replaced by the $3.5 Billion Credit Agreement $3.5 Billion Credit A
• $3.5 billion — $3.5 Billion Credit Agreement ONEOK's $3.5 billion amended and restated revolving credit a
• $1.4 billion — Link Revolving Credit Facility EnLink's $1.4 billion unsecured credit facility EnLink Unit

Filing Documents

• oke-20250930.htm (10-Q) — 1918KB
• okeq32025exhibit221.htm (EX-22.1) — 26KB
• okeq32025exhibit311.htm (EX-31.1) — 8KB
• okeq32025exhibit312.htm (EX-31.2) — 8KB
• okeq32025exhibit321.htm (EX-32.1) — 4KB
• okeq32025exhibit322.htm (EX-32.2) — 4KB
• oke-20250930_g1.jpg (GRAPHIC) — 13KB
• 0001039684-25-000123.txt ( ) — 8623KB
• oke-20250930.xsd (EX-101.SCH) — 43KB
• oke-20250930_cal.xml (EX-101.CAL) — 59KB
• oke-20250930_def.xml (EX-101.DEF) — 223KB
• oke-20250930_lab.xml (EX-101.LAB) — 551KB
• oke-20250930_pre.xml (EX-101.PRE) — 391KB
• oke-20250930_htm.xml (XML) — 1603KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Consolidated Statements of Income - Three and Nine Months Ended September 30, 2025 and 2024 6 Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2025 and 2024 6 Consolidated Balance Sheets - September 30, 2025, and December 31, 2024 7 Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2025 and 2024 8 Consolidated Statements of Changes in Equity - Three and Nine Months Ended September 30, 2025 and 2024 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 A. Summary of Significant Accounting Policies 11 B. Acquisitions 11 C. Fair Value Measurements 12 D. Risk-Management and Hedging Activities Using Derivatives 14 E. Debt 15 F. Equity 16 G. Variable Interest Entities 17 H. Earnings Per Share 18 I. Unconsolidated Affiliates 19 J. Commitments and Contingencies 19 K. Revenues 20 L. Segments 20 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 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42 Part II. Other Information 42 Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults Upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 44

Signatures

Signatures 46 As used in this Quarterly Report, references to "ONEOK," "we," "our" or "us" refer to ONEOK, Inc., an Oklahoma corporation, and its predecessors and subsidiaries, including Magellan, EnLink and Medallion, 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," "expects," "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 GLOSSARY The abbreviations, acronyms and industry terminology used in this Quarterly Report are defined as follows: $2.5 Billion Credit Agreement ONEOK's $2.5 billion amended and restated revolving credit agreement, replaced by the $3.5 Billion Credit Agreement $3.5 Billion Credit Agreement ONEOK's $3.5 billion amended and restated revolving credit agreement AFUDC Allowance for funds used during construction Annual Report Annual Report on Form 10-K for the year ended December 31, 2024 Ascension Ascension Pipeline Company, LLC, a 50% owned joint v

- 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 September 30, September 30, (Unaudited) 2025 2024 2025 2024 (Millions of dollars, except per share amounts) Revenues Commodity sales $ 7,416 $ 4,083 $ 21,054 $ 12,005 Services and other 1,218 940 3,510 2,693 Total revenues (Note K) 8,634 5,023 24,564 14,698 Cost of sales and fuel (exclusive of items shown separately below) 5,962 3,027 16,977 8,815 Operations and maintenance 639 512 1,912 1,481 Depreciation and amortization 378 274 1,126 790 General taxes 99 70 284 239 Transaction costs (Note B) 10 10 74 17 Other operating expense (income), net ( 12 ) 2 ( 18 ) ( 65 ) Operating income 1,558 1,128 4,209 3,421 Equity in net earnings from investments (Note I) 92 92 281 256 Other income, net 37 17 78 28 Interest expense (net of capitalized interest of $ 19 , $ 19 , $ 41 and $ 47 , respectively) ( 450 ) ( 325 ) ( 1,330 ) ( 923 ) Income before income taxes 1,237 912 3,238 2,782 Income taxes ( 297 ) ( 219 ) ( 754 ) ( 670 ) Net income 940 693 2,484 2,112 Less: Net income attributable to noncontrolling interests 1 — 68 — Net income attributable to ONEOK 939 693 2,416 2,112 Less: Preferred stock dividends — 1 — 1 Net income available to common shareholders $ 939 $ 692 $ 2,416 $ 2,111 Basic EPS (Note H) $ 1.49 $ 1.18 $ 3.88 $ 3.61 Diluted EPS (Note H) $ 1.49 $ 1.18 $ 3.87 $ 3.60 Average shares (millions) Basic 630.6 584.8 623.1 584.5 Diluted 631.5 586.7 624.1 586.1 See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended Nine Months Ended September 30, September 30, ( Unaudited ) 2025 2024 2025 2024 (Millions of dollars) Net income $ 940 $ 693 $ 2,484 $ 2,112 Other comprehensive income (loss), net of tax Change in fair value of derivatives, net of tax of $( 1 ), $( 10 ), $( 7 ) and $ 9 , respectively 3 35 24 ( 29 ) Derivative amou

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 2024 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, 2025, 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 each of our 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 Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not discussed herein or in our Annual Report were assessed and determined to be either not applicable or clarifications

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