ONEOK Earnings Cheat Sheet for the Second Quarter
Results: Net income for the gas utilities company rose to $55.1 million (51 cents per share) vs. $41.7 million (39 cents per share) in the same quarter a year earlier. This marks a rise of 32.1% from the year earlier quarter.
Actual vs. Wall St. Expectations: OKE fell short of the mean analyst estimate of 55 cents per share.
Quoting Management: “We continued to build on our solid first-quarter results and performed well in the second quarter,” said John W. Gibson, ONEOK chairman, president and chief executive officer. “The ONEOK Partners segment turned in an exceptional quarter, increasing operating income by almost 40 percent, with its natural gas liquids business results almost doubling from the same period last year.” “Our distribution segment delivered a solid quarter, while our energy services segment continues to face a challenging market,” Gibson said.
The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 13 cents in the first quarter and by 3 cents in the fourth quarter of the last fiscal year.
Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 15.8% while the figure dropped in the fourth quarter of the last fiscal year.
Competitors to Watch: Oneok Partners LP (NYSE:OKS), Atmos Energy Corporation (NYSE:ATO), Western Gas Partners, LP (NYSE:WES), Targa Resources Corp. (NYSE:TRGP), National Fuel Gas Co. (NYSE:NFG), RGC Resources Inc. (NASDAQ:RGCO), Crosstex Energy, Inc. (NASDAQ:XTXI), UGI Corporation (NYSE:UGI), Chesapeake Utilities Corp. (NYSE:CPK), Chesapeake Energy (NYSE:CHK), and Southwest Gas Corporation (NYSE:SWX).
(Source: Xignite Financials)