SKU: OKE Category:


ONEOK delivered a mixed set of results for the previous quarter, with revenues above analyst expectations but below-par earnings. In the third quarter of 2023, ONEOK reported a net income of $454 million. The adjusted EBITDA for the same period surpassed $1 billion, marking an 11% year-over-year increase. The refined products and crude segment contributed $40 million of adjusted EBITDA, covering the 6 days post the Magellan acquisition close, including a $9 million mark-to-market gain on commodity derivative positions settling in the fourth quarter of 2023. Moreover, the consolidated financial guidance for 2023, including the impacts of the Magellan acquisition, projects a net income midpoint of $2.6 billion and adjusted EBITDA midpoint of $5.1 billion. This includes earnings from the refined products and crude segment after the acquisition’s close and $175 million in transaction costs. However, there is an anticipated $40 million unfavorable earnings impact in 2023 and an additional $10 million in 2024 related to inventory valuation adjustments. Despite these challenges, the refined products and crude segment are expected to align with increased expectations, showcasing solid fundamentals.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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