ONEOK Reports 68% Revenue Increase to $8.04 Billion in Q1 2025

ONEOK, Inc. reported significant financial results for the first quarter of 2025, with total revenues reaching $8.04 billion, a substantial increase of 68% compared to $4.78 billion in the same period of 2024. The company's net income for the quarter was $691 million, translating to earnings per share (EPS) of $1.04, down from $1.09 in the previous year. The increase in revenue was primarily driven by higher commodity sales, which rose to $6.91 billion from $3.93 billion, and an increase in service revenues, which grew to $1.13 billion from $853 million.

The financial performance reflects a notable increase in operating income, which rose by $156 million to $1.22 billion, attributed largely to the contributions from the EnLink and Medallion acquisitions. The company also reported an adjusted EBITDA of $1.78 billion, up from $1.44 billion in the prior year. However, the increase in interest expenses, which rose to $442 million from $300 million, was a significant factor impacting net income. The company’s capital expenditures also increased to $629 million from $512 million, reflecting ongoing investments in growth and infrastructure.

Strategically, ONEOK completed the EnLink Acquisition on January 31, 2025, which involved the exchange of EnLink's publicly held common units for ONEOK common stock, resulting in the issuance of 41 million shares valued at approximately $4 billion. This acquisition is expected to enhance ONEOK's operational capabilities and market position. Additionally, the company announced joint ventures with MPLX to construct a liquefied petroleum gas export terminal and a new pipeline, with a total expected investment of around $1 billion.

Operationally, ONEOK's natural gas processed volumes increased significantly, reaching 5,250 MMcf/d, driven by the EnLink acquisition and higher production in the Rocky Mountain region. The company also reported an increase in its customer base and engagement metrics, indicating a positive trend in market demand. As of March 31, 2025, ONEOK had a working capital deficit of $2.1 billion, primarily due to current maturities of long-term debt, but management does not anticipate this will adversely affect cash flows or operations.

Looking ahead, ONEOK expects its consolidated earnings to be approximately 90% fee-based in 2025, supported by long-term contracts with investment-grade counterparties. The company is closely monitoring market conditions, including commodity price fluctuations and potential impacts from new tariffs, but remains optimistic about its growth trajectory and operational stability. The board of directors has also authorized a share repurchase program of up to $2 billion, reflecting confidence in the company's financial health and future prospects.