Higher earnings reported in 4Q by ONEOK

Higher fourth quarter earnings were reported by ONEOK. It also said the 2023 results also increased.

In a release on Monday, the company cited net income of $688 million or $1.18 per share in the fourth quarter along with adjusted EBITDA of more than $1.5 billion. At the same time, ONEOK saw a 20% increase in its Rocky Mountain region NGL raw feed throughput volumes and a 17% gain in processed natural gas volumes. It also saw a 15% increase in wells connected in the Rocky Mountain region.

Net income for all of 2023 totaled $2.7 billion or $5.48 a share and adjusted EBITDA of more than $5.2 billion. During the year, ONEOK also managed to extinguish $1.3 billion of long-term debt.

“Record volumes, strong financial performance and the closing of the Magellan acquisition solidified 2023 as a year of significant growth and transformation,” said Pierce H. Norton II, ONEOK president and chief executive officer.

“With volume momentum across our operations, a full-year earnings contribution from the refined products and crude segment, and the realization of acquisition-related synergies, we’ve guided to double-digit adjusted EBITDA growth in 2024.

ONEOK also has capital-growth projects planned in the coming year.

• Capital-growth projects:
  • ONEOK approved the Elk Creek Pipeline expansion to 435,000 barrels per day (bpd), which will increase natural gas liquids (NGL) capacity out of the Rocky Mountain region to 575,000 bpd. The expansion is expected to cost approximately $355 million and be completed in the first quarter 2025.
  • In February, the Federal Energy Regulatory Commission (FERC) approved the Saguaro Connector Pipeline’s Presidential Permit. ONEOK expects a final investment decision on the pipeline by mid-year 2024.

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