ONEOK Announces Higher Second Quarter 2021 Earnings
Aug. 3, 2021
Page 1
ONEOK, Inc. and Subsidiaries | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(Unaudited) | 2021 | 2020 | 2021 | 2020 | ||||
(Thousands of dollars, except per share amounts) | ||||||||
Revenues | ||||||||
Commodity sales | $ | 3,074,773 | $ | 1,343,557 | $ | 5,910,882 | $ | 3,152,177 |
Services | 314,191 | 317,172 | 672,761 | 645,224 | ||||
Total revenues | 3,388,964 | 1,660,729 | 6,583,643 | 3,797,401 | ||||
Cost of sales and fuel (exclusive of items shown separately below) | 2,366,979 | 940,458 | 4,488,489 | 2,217,386 | ||||
Operations and maintenance | 212,319 | 190,138 | 419,477 | 365,234 | ||||
Depreciation and amortization | 156,921 | 140,416 | 314,041 | 272,769 | ||||
Impairment charges | - | - | - | 604,024 | ||||
General taxes | 41,940 | 34,326 | 86,379 | 66,270 | ||||
Gain on sale of assets | (707) | (339) | (976) | (543) | ||||
Operating income | 611,512 | 355,730 | 1,276,233 | 272,261 | ||||
Equity in net earnings from investments | 25,720 | 25,328 | 59,040 | 69,955 | ||||
Impairment of equity investments | - | - | - | (37,730) | ||||
Allowance for equity funds used during construction | 426 | 3,854 | 1,238 | 19,263 | ||||
Other income | 7,005 | 17,693 | 7,220 | 34,168 | ||||
Other expense | (7,498) | (6,176) | (12,735) | (18,124) | ||||
Interest expense (net of capitalized interest of $5,443, $16,473, | (184,957) | (218,968) | (370,480) | (359,584) | ||||
$10,538, and $47,618,respectively) | ||||||||
Income (loss) before income taxes | 452,208 | 177,461 | 960,516 | (19,791) | ||||
Income tax (expense) benefit | (110,069) | (43,140) | (232,201) | 12,255 | ||||
Net income (loss) | 342,139 | 134,321 | 728,315 | (7,536) | ||||
Less: Preferred stock dividends | 275 | 275 | 550 | 550 | ||||
Net income (loss) available to common shareholders | $ | 341,864 | $ | 134,046 | $ | 727,765 | $ | (8,086) |
Basic earnings (loss) per common share | $ | 0.77 | $ | 0.32 | $ | 1.63 | $ | (0.02) |
Diluted earnings (loss) per common share | $ | 0.77 | $ | 0.32 | $ | 1.63 | $ | (0.02) |
Average shares (thousands) | 446,337 | 446,116 | ||||||
Basic | 419,722 | 417,002 | ||||||
Diluted | 446,903 | 420,116 | 446,894 | 417,002 | ||||
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ONEOK Announces Higher Second Quarter 2021 Earnings
Aug. 3, 2021
Page 2
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
June 30, | December 31, | |||
(Unaudited) | 2021 | 2020 | ||
Assets | (Thousands of dollars) | |||
Current assets | ||||
Cash and cash equivalents | $ | 374,377 | $ | 524,496 |
Accounts receivable, net | 1,091,982 | 829,796 | ||
Materials and supplies | 144,824 | 143,178 | ||
NGLs and natural gas in storage | 454,760 | 227,810 | ||
Commodity imbalances | 14,873 | 11,959 | ||
Other current assets | 154,807 | 132,536 | ||
Total current assets | 2,235,623 | 1,869,775 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 23,393,034 | 23,072,935 | ||
Accumulated depreciation and amortization | 4,211,515 | 3,918,007 | ||
Net property, plant and equipment | 19,181,519 | 19,154,928 | ||
Investments and other assets | ||||
Investments in unconsolidated affiliates | 800,351 | 805,032 | ||
Goodwill and net intangible assets | 768,509 | 773,723 | ||
Other assets | 451,246 | 475,296 | ||
Total investments and other assets | 2,020,106 | 2,054,051 | ||
Total assets | $ | 23,437,248 | $ | 23,078,754 |
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ONEOK Announces Higher Second Quarter 2021 Earnings
Aug. 3, 2021
Page 3
ONEOK, Inc. and Subsidiaries | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Continued) | ||||
June 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 | 1,052,561 | 719,302 | ||
Commodity imbalances | 244,582 | 186,372 | ||
Accrued taxes | 94,048 | 89,428 | ||
Accrued interest | 244,669 | 245,153 | ||
Operating lease liability | 14,570 | 13,610 | ||
Other current liabilities | 208,064 | 83,032 | ||
Total current liabilities | 2,394,601 | 1,344,547 | ||
Long-term debt, excluding current maturities | 13,637,581 | 14,228,421 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 881,711 | 669,697 | ||
Operating lease liability | 81,707 | 87,610 | ||
Other deferred credits | 531,262 | 706,081 | ||
Total deferred credits and other liabilities | 1,494,680 | 1,463,388 | ||
Commitments and contingencies | ||||
Equity | ||||
ONEOK shareholders' equity: | ||||
Preferred stock, $0.01 par value: | - | - | ||
authorized and issued 20,000 shares at June 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 | ||||
445,817,509 shares at June 30, 2021; issued 474,916,234 shares and outstanding | 4,749 | 4,749 | ||
444,872,383 shares at December 31, 2020 | ||||
Paid-in capital | 7,247,334 | 7,353,396 | ||
Accumulated other comprehensive loss | (601,443) | (551,449) | ||
Retained earnings | - | - | ||
Treasury stock, at cost: 29,098,725 shares at June 30, 2021, and 30,043,851 shares | (740,254) | (764,298) | ||
at December 31, 2020 | ||||
Total equity | 5,910,386 | 6,042,398 | ||
Total liabilities and equity | $ | 23,437,248 | $ | 23,078,754 |
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ONEOK Announces Higher Second Quarter 2021 Earnings
Aug. 3, 2021
Page 4
ONEOK, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWSSix Months Ended
June 30,
(Unaudited) | 2021 | 2020 | ||
(Thousands of dollars) | ||||
Operating activities | ||||
Net income (loss) | $ | 728,315 | $ | (7,536) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 314,041 | 272,769 | ||
Impairment charges | - | 641,754 | ||
Equity in net earnings from investments | (59,040) | (69,955) | ||
Distributions received from unconsolidated affiliates | 58,486 | 71,656 | ||
Deferred income tax expense (benefit) | 226,963 | (13,541) | ||
Other, net | 39,837 | (25,944) | ||
Changes in assets and liabilities: | ||||
Accounts receivable | (268,541) | 220,558 | ||
NGLs and natural gas in storage | (226,950) | 103,043 | ||
Accounts payable | 363,694 | (240,841) | ||
Risk-management assets and liabilities | (158,927) | (139,724) | ||
Other assets and liabilities | 60,105 | (75,821) | ||
Cash provided by operating activities | 1,077,983 | 736,418 | ||
Investing activities | ||||
Capital expenditures (less allowance for equity funds used during construction) | (324,122) | (1,543,961) | ||
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 11,695 | 18,081 | ||
Other, net | (12,138) | (29,006) | ||
Cash used in investing activities | (324,565) | (1,554,886) | ||
Financing activities | ||||
Dividends paid | (833,083) | (773,961) | ||
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) | (1,406,119) | ||
Issuance of common stock | 16,327 | 954,423 | ||
Other | (17,994) | (55,878) | ||
Cash provided by (used in) financing activities | (903,537) | 1,743,242 | ||
Change in cash and cash equivalents | (150,119) | 924,774 | ||
Cash and cash equivalents at beginning of period | 524,496 | 20,958 | ||
Cash and cash equivalents at end of period | $ | 374,377 | $ | 945,732 |
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ONEOK Announces Higher Second Quarter 2021 Earnings
Aug. 3, 2021
Page 5
ONEOK, Inc. and Subsidiaries | ||||||||
INFORMATION AT A GLANCE | Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | |||||||
(Unaudited) | 2021 | 2020 | 2021 | 2020 | ||||
(Millions of dollars, except as noted) | ||||||||
Natural Gas Liquids | $ | 121.1 | $ | 237.1 | ||||
Operating costs, excluding noncash compensation adjustments | $ | 99.2 | $ | 193.6 | ||||
Depreciation and amortization | $ | 74.2 | $ | 69.1 | $ | 148.7 | $ | 126.9 |
Equity in net earnings from investments | $ | 5.1 | $ | 7.8 | $ | 8.7 | $ | 23.1 |
Adjusted EBITDA | $ | 480.3 | $ | 337.6 | $ | 915.9 | $ | 748.6 |
Raw feed throughput (MBbl/d) (a) | 1,209 | 1,010 | 1,123 | 1,050 | ||||
Average Conway-to-Mont Belvieu OPIS price differential - | $ | - | $ | (0.01) | ||||
ethane in ethane/propane mix ($/gallon) | $ | - | $ | 0.01 | ||||
Capital expenditures | $ | 60.0 | $ | 459.8 | $ | 172.0 | $ | 1,206.0 |
(a) - Represents physical raw feed volumes on which ONEOK | ||||||||
charges a fee for transportation and/or fractionation services. | ||||||||
Natural Gas Gathering and Processing | $ | 82.0 | $ | 162.7 | ||||
Operating costs, excluding noncash compensation adjustments | $ | 74.7 | $ | 162.4 | ||||
Depreciation and amortization | $ | 67.3 | $ | 55.4 | $ | 134.3 | $ | 114.2 |
Equity in net earnings from investments | $ | 0.4 | $ | (2.1) | $ | 2.2 | $ | (1.3) |
Adjusted EBITDA | $ | 229.3 | $ | 88.7 | $ | 434.0 | $ | 248.4 |
Natural gas gathered (BBtu/d) (a) | 2,732 | 2,225 | 2,661 | 2,497 | ||||
Natural gas processed (BBtu/d) (a) (b) | 2,481 | 2,067 | 2,431 | 2,317 | ||||
Average fee rate ($/MMBtu) (a) | $ | 1.06 | $ | 0.71 | $ | 1.05 | $ | 0.78 |
Capital expenditures | $ | 56.9 | $ | 118.2 | $ | 96.5 | $ | 299.8 |
- - Includes volumes for consolidated entities only.
- - Includes volumes ONEOK processed at company-owned and third-party facilities.
Natural Gas Pipelines | $ | 36.2 | $ | 76.2 | ||||
Operating costs, excluding noncash compensation adjustments | $ | 30.9 | $ | 65.6 | ||||
Depreciation and amortization | $ | 14.5 | $ | 14.9 | $ | 29.0 | $ | 29.7 |
Equity in net earnings from investments | $ | 20.2 | $ | 19.7 | $ | 48.2 | $ | 48.2 |
Adjusted EBITDA | $ | 94.7 | $ | 109.8 | $ | 320.9 | $ | 222.4 |
Natural gas transportation capacity contracted (MDth/d) (a) | 7,280 | 7,314 | 7,362 | 7,553 | ||||
Transportation capacity contracted (a) | 93 % | 94 % | 94 % | 97 % | ||||
Capital expenditures | $ | 27.8 | $ | 10.9 | $ | 49.0 | $ | 27.5 |
(a) - Includes volumes for consolidated entities only. |
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Oneok Inc. published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 20:22:07 UTC.