ONEOK Announces 26% Year-Over-Year Increase in
Third Quarter 2021 Net Income and Earnings Per Share
Nov. 2, 2021
Page 1
ONEOK, Inc. and Subsidiaries | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
(Unaudited) | 2021 | 2020 | 2021 | 2020 | ||||
(Thousands of dollars, except per share amounts) | ||||||||
Revenues | ||||||||
Commodity sales | $ | 4,204,792 | $ | 1,852,198 | $ | 10,115,674 | $ | 5,004,375 |
Services | 331,383 | 322,066 | 1,004,144 | 967,290 | ||||
Total revenues | 4,536,175 | 2,174,264 | 11,119,818 | 5,971,665 | ||||
Cost of sales and fuel (exclusive of items shown separately below) | 3,449,127 | 1,265,674 | 7,937,616 | 3,483,060 | ||||
Operations and maintenance | 225,364 | 173,548 | 644,841 | 538,782 | ||||
Depreciation and amortization | 154,542 | 153,245 | 468,583 | 426,014 | ||||
Impairment charges | - | - | - | 604,024 | ||||
General taxes | 39,753 | 31,381 | 126,132 | 97,651 | ||||
Gain on sale of assets | (470) | (17) | (1,446) | (560) | ||||
Operating income | 667,859 | 550,433 | 1,944,092 | 822,694 | ||||
Equity in net earnings from investments | 28,573 | 38,046 | 87,613 | 108,001 | ||||
Impairment of equity investments | - | - | - | (37,730) | ||||
Allowance for equity funds used during construction | 247 | 3,084 | 1,485 | 22,347 | ||||
Other income | 6,662 | 8,175 | 13,882 | 42,343 | ||||
Other expense | (5,375) | (4,496) | (18,110) | (22,620) | ||||
Interest expense (net of capitalized interest of $6,083, $13,821, | (184,049) | (176,371) | (554,529) | (535,955) | ||||
$16,621, and $61,439,respectively) | ||||||||
Income before income taxes | 513,917 | 418,871 | 1,474,433 | 399,080 | ||||
Income taxes | (121,899) | (106,555) | (354,100) | (94,300) | ||||
Net income | 392,018 | 312,316 | 1,120,333 | 304,780 | ||||
Less: Preferred stock dividends | 275 | 275 | 825 | 825 | ||||
Net income available to common shareholders | $ | 391,743 | $ | 312,041 | $ | 1,119,508 | $ | 303,955 |
Basic earnings per common share | $ | 0.88 | $ | 0.70 | $ | 2.51 | $ | 0.71 |
Diluted earnings per common share | $ | 0.88 | $ | 0.70 | $ | 2.50 | $ | 0.71 |
Average shares (thousands) | 446,634 | 446,288 | ||||||
Basic | 445,103 | 426,369 | ||||||
Diluted | 447,635 | 445,510 | 447,117 | 426,997 | ||||
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ONEOK Announces 26% Year-Over-Year Increase in
Third Quarter 2021 Net Income and Earnings Per Share
Nov. 2, 2021
Page 2
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
September 30, | December 31, | |||
(Unaudited) | 2021 | 2020 | ||
Assets | (Thousands of dollars) | |||
Current assets | ||||
Cash and cash equivalents | $ | 224,337 | $ | 524,496 |
Accounts receivable, net | 1,497,549 | 829,796 | ||
Materials and supplies | 147,800 | 143,178 | ||
NGLs and natural gas in storage | 628,110 | 227,810 | ||
Commodity imbalances | 22,396 | 11,959 | ||
Other current assets | 146,669 | 132,536 | ||
Total current assets | 2,666,861 | 1,869,775 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 23,580,308 | 23,072,935 | ||
Accumulated depreciation and amortization | 4,358,361 | 3,918,007 | ||
Net property, plant and equipment | 19,221,947 | 19,154,928 | ||
Investments and other assets | ||||
Investments in unconsolidated affiliates | 797,233 | 805,032 | ||
Goodwill and net intangible assets | 765,902 | 773,723 | ||
Other assets | 420,388 | 475,296 | ||
Total investments and other assets | 1,983,523 | 2,054,051 | ||
Total assets | $ | 23,872,331 | $ | 23,078,754 |
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ONEOK Announces 26% Year-Over-Year Increase in
Third Quarter 2021 Net Income and Earnings Per Share
Nov. 2, 2021
Page 3
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS (Continued)
September 30, | December 31, | |||
(Unaudited) | 2021 | 2020 | ||
Liabilities and equity | (Thousands of dollars) | |||
Current liabilities | ||||
Current maturities of long-term debt | $ | 536,107 | $ | 7,650 |
Accounts payable | 1,442,984 | 719,302 | ||
Commodity imbalances | 316,270 | 186,372 | ||
Accrued taxes | 121,228 | 89,428 | ||
Accrued interest | 140,689 | 245,153 | ||
Operating lease liability | 14,378 | 13,610 | ||
Other current liabilities | 231,214 | 83,032 | ||
Total current liabilities | 2,802,870 | 1,344,547 | ||
Long-term debt, excluding current maturities | 13,640,467 | 14,228,421 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 981,823 | 669,697 | ||
Operating lease liability | 78,497 | 87,610 | ||
Other deferred credits | 527,799 | 706,081 | ||
Total deferred credits and other liabilities | 1,588,119 | 1,463,388 | ||
Commitments and contingencies | ||||
Equity | ||||
ONEOK shareholders' equity: | ||||
Preferred stock, $0.01 par value: | ||||
authorized and issued 20,000 shares at September 30, 2021, and at December 31, | - | - | ||
2020 | ||||
Common stock, $0.01 par value: | ||||
authorized 1,200,000,000 shares; issued 474,916,234 shares and | ||||
outstanding 445,933,921 shares at September 30, 2021; issued 474,916,234 shares | 4,749 | 4,749 | ||
and outstanding 444,872,383 shares at December 31, 2020 | ||||
Paid-in capital | 7,235,255 | 7,353,396 | ||
Accumulated other comprehensive loss | (661,836) | (551,449) | ||
Retained earnings | - | - | ||
Treasury stock, at cost: 28,982,313 shares at September 30, 2021, and 30,043,851 | (737,293) | (764,298) | ||
shares at December 31, 2020 | ||||
Total equity | 5,840,875 | 6,042,398 | ||
Total liabilities and equity | $ | 23,872,331 | $ | 23,078,754 |
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ONEOK Announces 26% Year-Over-Year Increase in
Third Quarter 2021 Net Income and Earnings Per Share
Nov. 2, 2021
Page 4
ONEOK, Inc. and Subsidiaries | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | Nine Months Ended | |||
September 30, | ||||
(Unaudited) | 2021 | 2020 | ||
(Thousands of dollars) | ||||
Operating activities | ||||
Net income | $ | 1,120,333 | $ | 304,780 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 468,583 | 426,014 | ||
Impairment charges | - | 641,754 | ||
Equity in net earnings from investments | (87,613) | (108,001) | ||
Distributions received from unconsolidated affiliates | 88,389 | 109,595 | ||
Deferred income tax expense | 344,808 | 93,174 | ||
Other, net | 57,479 | (17,599) | ||
Changes in assets and liabilities: | ||||
Accounts receivable | (687,031) | 111,629 | ||
NGLs and natural gas in storage | (400,300) | 4,349 | ||
Accounts payable | 756,072 | (198,809) | ||
Risk-management assets and liabilities | (254,163) | (136,543) | ||
Other assets and liabilities | 84,605 | (127,215) | ||
Cash provided by operating activities | 1,491,162 | 1,103,128 | ||
Investing activities | ||||
Capital expenditures (less allowance for equity funds used during construction) | (490,329) | (1,924,003) | ||
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 19,188 | 22,280 | ||
Other, net | (4,286) | (80,148) | ||
Cash used in investing activities | (475,427) | (1,981,871) | ||
Financing activities | ||||
Dividends paid | (1,250,204) | (1,189,575) | ||
Repayment of short-term borrowings, net | - | (220,000) | ||
Issuance of long-term debt, net of discounts | - | 3,244,777 | ||
Repayment of long-term debt | (68,787) | (1,433,480) | ||
Issuance of common stock | 21,871 | 959,653 | ||
Other | (18,774) | (56,461) | ||
Cash provided by (used in) financing activities | (1,315,894) | 1,304,914 | ||
Change in cash and cash equivalents | (300,159) | 426,171 | ||
Cash and cash equivalents at beginning of period | 524,496 | 20,958 | ||
Cash and cash equivalents at end of period | $ | 224,337 | $ | 447,129 |
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ONEOK Announces 26% Year-Over-Year Increase in
Third Quarter 2021 Net Income and Earnings Per Share
Nov. 2, 2021
Page 5
ONEOK, Inc. and Subsidiaries | ||||||||
INFORMATION AT A GLANCE | Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | |||||||
(Unaudited) | 2021 | 2020 | 2021 | 2020 | ||||
(Millions of dollars, except as noted) | ||||||||
Natural Gas Liquids | ||||||||
Operating costs, excluding noncash compensation adjustments | $ | 122.4 | $ | 97.0 | $ | 359.5 | $ | 290.6 |
Depreciation and amortization | $ | 75.0 | $ | 71.5 | $ | 223.7 | $ | 198.4 |
Equity in net earnings from investments | $ | 5.4 | $ | 8.0 | $ | 14.1 | $ | 31.1 |
Adjusted EBITDA | $ | 532.2 | $ | 451.2 | $ | 1,448.1 | $ | 1,199.8 |
Raw feed throughput (MBbl/d) (a) | 1,275 | 1,162 | 1,174 | 1,088 | ||||
Average Conway-to-Mont Belvieu OPIS price differential - | $ | - | $ | (0.01) | ||||
ethane in ethane/propane mix ($/gallon) | $ | 0.03 | $ | 0.01 | ||||
Capital expenditures | $ | 53.8 | $ | 298.9 | $ | 225.8 | $ | 1,504.9 |
(a) - Represents physical raw feed volumes on which ONEOK | ||||||||
charges a fee for transportation and/or fractionation services. | ||||||||
Natural Gas Gathering and Processing | ||||||||
Operating costs, excluding noncash compensation adjustments | $ | 91.3 | $ | 67.4 | $ | 254.0 | $ | 229.8 |
Depreciation and amortization | $ | 63.8 | $ | 66.5 | $ | 198.1 | $ | 180.6 |
Equity in net earnings (loss) from investments | $ | 0.5 | $ | - | $ | 2.7 | $ | (1.4) |
Adjusted EBITDA | $ | 229.7 | $ | 183.1 | $ | 663.6 | $ | 431.5 |
Natural gas gathered (BBtu/d) (a) | 2,757 | 2,514 | 2,693 | 2,503 | ||||
Natural gas processed (BBtu/d) (a) (b) | 2,549 | 2,345 | 2,471 | 2,327 | ||||
Average fee rate ($/MMBtu) (a) | $ | 1.02 | $ | 0.94 | $ | 1.04 | $ | 0.84 |
Capital expenditures | $ | 80.8 | $ | 63.0 | $ | 177.4 | $ | 362.8 |
- - Includes volumes for consolidated entities only.
- - Includes volumes ONEOK processed at company-owned and third-party facilities.
Natural Gas Pipelines | ||||||||
Operating costs, excluding noncash compensation adjustments | $ | 39.2 | $ | 33.4 | $ | 115.4 | $ | 99.0 |
Depreciation and amortization | $ | 14.8 | $ | 14.2 | $ | 43.8 | $ | 43.9 |
Equity in net earnings from investments | $ | 22.7 | $ | 30.1 | $ | 70.9 | $ | 78.3 |
Adjusted EBITDA | $ | 102.7 | $ | 109.8 | $ | 423.6 | $ | 332.2 |
Natural gas transportation capacity contracted (MDth/d) (a) | 7,335 | 7,349 | 7,353 | 7,485 | ||||
Transportation capacity contracted (a) | 94 % | 94 % | 94 % | 96 % | ||||
Capital expenditures | $ | 24.6 | $ | 13.0 | $ | 73.5 | $ | 40.5 |
(a) - Includes volumes for consolidated entities only. |
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Oneok Inc. published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 20:21:11 UTC.