ONEOK Q2 Earnings & Sales Surpass Estimates on Record NGL Volumes

OKE’s Total Revenues

Operating revenues for the quarter totaled $12.05 billion, which beat the Zacks Consensus Estimate of $10.66 billion by 13.03%. The top line improved 52.8% from $7.89 billion in the prior-year quarter.

ONEOK’s Profitability and Cost Trends

Adjusted EBITDA was $2.12 billion, up 7.1% year over year.

Operating income totaled $1.59 billion, up 11.3% from the prior-year level of $1.43 billion.

Operations and maintenance expenses increased to $715 million from $618 million, reflecting larger operating footprint and project-related spending.

ONEOK incurred interest expenses of $434 million, down 0.91% from $438 million recorded in the year-ago period.

ONEOK's NGL Volumes Set a Record

Natural Gas Liquids adjusted EBITDA slipped 2.1% year over year to $659 million. Higher operating costs and lower transportation and storage volumes more than offset gains from optimization and marketing and exchange services.

NGL raw feed throughput rose 6.7% year over year to 1,630 thousand barrels per day.Raw feed throughput increased across the system. Gulf Coast/Permian volumes rose 15.2% year over year to 605 MBbl/d. Rocky Mountain volumes increased to 478 MBbl/d, while Mid-Continent throughput reached 547 MBbl/d.

The Medford fractionator expansion remains a key capacity project. Phase I, adding 100,000 barrels per day, is expected to be completed in the fourth quarter of 2026. Phase II, providing another 110,000 barrels per day, is scheduled for completion in the first quarter of 2027.

OKE's Refined Products and Crude Strength

Refined Products and Crude adjusted EBITDA increased 12.6% year over year to $627 million. The improvement reflected higher refined products volumes and rates, along with stronger crude marketing earnings. Higher employee-related costs, property taxes and outside-service expenses partly offset these gains.

Refined products volumes shipped rose 8.4% to 1,629 MBbl/d. Gasoline volumes reached 943 MBbl/d, distillates totaled 577 MBbl/d and aviation and other volumes were 109 MBbl/d. The average refined products tariff rate increased to 5.5 cents per gallon from 5.3 cents.

Crude oil volumes declined slightly year over year to 1,766 MBbl/d. ONEOK mechanically completed its Greater Denver refined products pipeline expansion in early August, increasing capacity by 35,000 barrels per day.

ONEOK's Gas Businesses Show Mixed Trends

Natural Gas Gathering and Processing adjusted EBITDA edged up 1.1% year over year to $546 million. Higher production volumes and improved realized condensate prices were partly offset by higher operating costs and weaker realized NGL pricing.

Natural gas processed increased 2.4% to 5,707 million cubic feet per day. Volumes benefited from increased production across all operating regions.

Natural Gas Pipelines adjusted EBITDA jumped 58.0% to $297 million. Favorable price differentials between the Waha Hub and Katy, TX, markets, higher firm transportation revenues and stronger contributions from Northern Border Pipeline and Matterhorn Express Pipeline supported the increase.

Transportation capacity contracted rose to 7,735 thousand dekatherms per day from 7,206 thousand a year ago. Contracted capacity represented 92% of available capacity compared with 90% in the prior-year quarter.

OKE's Cash Flow and Balance Sheet

Cash and cash equivalents amounted to $161 million as of June 30, 2026, compared with $78 million at the end of 2025.

As of June 30, 2026, short-term borrowings increased to $1.50 billion from $820 million as of Dec. 31, 2025.

As of June 30, 2026, long-term debt (excluding current maturities) totaled $30.77 billion compared with $30.76 billion as of Dec. 31, 2025.

Cash provided by operating activities totaled $2.99 billion for the first six months of 2026, up from $2.43 billion a year earlier. Capital expenditures totaled $1.48 billion, while dividends paid amounted to $1.35 billion.

ONEOK Raises 2026 Guidance

ONEOK increased its 2026 net income guidance to $3.41-$3.79 billion, resulting in earnings per common share range of $5.38-$5.99. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.56.  

Adjusted EBITDA is projected to be in the range of $8.20-$8.50 billion in 2026.

The company kept its 2026 capital expenditure guidance unchanged at $2.70-$3.20 billion. Management cited continued segment strength, strategic opportunities across the system and a constructive market environment.

OKE’s Zacks Rank

ONEOK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Delek Logistics Partners, LP DKL is scheduled to release second-quarter results on Aug. 5, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.12 per share, which indicates a year-over-year increase of 34.94%.

DKL’s long-term earnings growth rate is 22.24%. The Zacks Consensus Estimate for second-quarter sales is pegged at $253.94 million, which calls for a year-over-year rise of 3.08%.

Targa Resources TRGP is slated to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.71 per share, which indicates a year-over-year decrease of 5.57%.

TRGP’s long-term earnings growth rate is 18.18%. The Zacks Consensus Estimate for second-quarter sales is pinned at $4.95 billion, which suggests a year-over-year increase of 16.26%.

Plains All American Pipeline PAA is slated to report second-quarter results on Aug. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which indicates a year-over-year increase of 11.11%.

PAA’s long-term earnings growth rate is 1.63%. The Zacks Consensus Estimate for second-quarter sales is pegged at $14.87 billion, which suggests a year-over-year increase of 39.74%.

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