ONEOK Reports Second Quarter Earnings for FY2023
August 22, 2023
🌥️Earnings Overview
On August 8, 2023, ONEOK ($NYSE:OKE) reported their earnings results for the second quarter of FY2023, which ended on June 30, 2023. Their total revenue for the quarter was USD 3732.0 million, a decrease of 37.8% from the same period in the prior fiscal year. However, their net income rose to USD 468.0 million, which is a 12.9% year-over-year increase.
Market Price
The stock opened at $64.6 and closed at $64.2, which was down by 1.6% from its prior closing price of 65.2. This marks the first earnings report since the company announced its new strategic direction in mid-March. Overall, the results were in line with expectations, with the company’s performance meeting analyst predictions. While shares dropped slightly on the day of the announcement, investors remain optimistic about ONEOK‘s future prospects as the company moves into its new strategic direction. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Oneok. More…
| Total Revenues | Net Income | Net Margin |
| 19.2k | 2.43k | 12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Oneok. More…
| Operations | Investing | Financing |
| 3.65k | -949.24 | -2.73k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Oneok. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.04k | 16.82k | 16.12 |
Key Ratios Snapshot
Some of the financial key ratios for Oneok are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.1% | 26.0% | 20.1% |
| FCF Margin | ROE | ROA |
| 12.6% | 33.6% | 10.0% |
Analysis
GoodWhale recently conducted an analysis of ONEOK‘s wellbeing. Our findings, based on Star Chart, showed that ONEOK is strong in dividend and growth, and medium in asset and profitability. Using this information, we concluded that ONEOK is a ‘cheetah’ company, one that has achieved tremendous revenue or earnings growth but is considered less stable due to lower profitability. We believe this type of company would be attractive to investors who prioritize high returns over stability. Despite its relatively lower stability, ONEOK has a relatively high health score of 7/10 with regard to its cashflows and debt, indicating the company is capable to safely ride out any crisis without the risk of bankruptcy. More…
Peers
ONEOK Inc is a company that operates in the energy sector. The company is involved in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. The company has operations in the United States, Canada, and Mexico. The company’s competitors include Kinder Morgan Inc, Energy Transfer LP, Enterprise Products Partners LP.
– Kinder Morgan Inc ($NYSE:KMI)
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. It owns or operates an extensive network of pipelines and terminals that transport petroleum products, natural gas, and other products. The company also owns and operates a fleet of liquefied natural gas (LNG) carriers. Kinder Morgan has a market capitalization of $40.72 billion as of 2022 and a return on equity of 7.82%. The company is headquartered in Houston, Texas.
– Energy Transfer LP ($NYSE:ET)
Energy Transfer LP is a publicly traded partnerships that owns and operates energy infrastructure assets in the United States. The company’s assets include natural gas pipelines, natural gas gathering and processing facilities, and crude oil pipelines. Energy Transfer LP is headquartered in Dallas, Texas.
– Enterprise Products Partners LP ($NYSE:EPD)
Enterprise Products Partners LP is a publicly traded partnership that owns and operates a diversified portfolio of energy assets. The company has a market cap of 54.94B and a ROE of 15.44%. The company’s operations are focused on natural gas, crude oil, and NGL (natural gas liquids) transportation, storage, and processing. The company also owns and operates a network of natural gas pipelines and gathering systems, as well as crude oil and NGL terminals and storage facilities.
Summary
Despite an overall 37.8% decrease in total revenue for the second quarter of fiscal year 2023, compared to the same quarter the previous year, ONEOK‘s net income saw a 12.9% increase year-over-year. This is a strong indication of the company’s financial stability and resilience. ONEOK has shown that it can remain profitable even in times of economic hardship, making it an appealing investment for those looking for a safe and reliable option. With its increasing success and strong financials, ONEOK is an attractive investment opportunity.
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