US pipeline operator ONEOK posted slightly lower EPS in Q4, weighed down by weaker results in its natural gas transportation business after the 2024 sale of an interstate network. The stock is down over 6% in trading on Wall Street.
For the period ended December 31, EPS came in at $1.55, compared with $1.57 a year earlier. Operating profit at the natural gas pipelines unit fell to $261m from $417m, with the divestment alone representing a negative impact of $264m. The refined products and crude oil segment saw profit slip by about 6% to $567m, against a backdrop of lower Brent prices, whose quarterly average stood at $63.13 a barrel, down 11.3%.
By contrast, the natural gas liquids business rose 4% and the natural gas gathering and processing business increased 10%. For the current financial year, ONEOK expects net profit of between $3.19bn and $3.71bn, with a midpoint below the $3.65bn expected by the market. The group, which operates a 60,000-mile pipeline network (more than 96,000 km), is continuing to diversify through several acquisitions completed over the past two years.
Oneok, Inc. is one of the leading American natural gas distributors. Sales break down by activity as follows:
- gathering, processing and distribution of liquefied natural gas (73.2%);
- gathering and processing of natural gas (15.4%);
- transportation, storage and distribution of refined petroleum products and crude oil (11.4%).
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