ONEOK, Inc. OKE delivered a mixed quarter relative to expectations, with earnings coming in ahead of the Zacks Consensus Estimate while revenues fell slightly short. The company posted operating earnings of $1.30 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $1.26 by 3.2%.
On a reported basis, first-quarter net income rose 12.3% year over year to $776 million, while diluted earnings per share increased 18.3% to $1.23 from $1.04 in the year-ago quarter.
OKE’s Total Revenues
Revenues totaled $9.62 billion, missing the consensus mark of $9.68 billion by 0.6%. Total revenues were up 19.6% year over year from $8.04 billion.
ONEOK, Inc. Price, Consensus and EPS Surprise
ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote
OKE’s Operational Highlights
A key operating highlight was a 5% increase in total natural gas volumes processed to 5,490 million cubic feet per day, reflecting continued throughput resilience across the system. Management attributed the quarter’s improvement to volume growth and ongoing operational execution across its integrated asset footprint.
Operational momentum was visible in NGL raw feed throughput, which increased 15.4% year over year to 1,493 thousand barrels per day (“MBbl/d”). The company highlighted particularly strong growth in the Gulf Coast/Permian region, reinforcing the value of its market-connected assets and integrated NGL value chain.
Beyond optimization, the Pipeline segment also saw higher firm transportation revenues and improved earnings from unconsolidated affiliates, including Northern Border Pipeline.
Capacity utilization metrics remained supportive, with transportation capacity contracted at 93%, underscoring the fee-based nature of this part of the business.
Cost trends offered some relief. The company noted lower operating costs, including the absence of methane fees in 2026 due to regulatory changes, helping cushion the impact from pricing.
ONEOK’s Financial Highlights
Balance sheet positioning shifted modestly in the quarter. Cash and cash equivalents ended the period at $172 million, up from $78 million at the end of 2025, while short-term borrowings increased as the company funded investment needs and shareholder distributions.
Cash flow reflected the capital intensity of the portfolio. Operating activities generated $934 million during the quarter, while capital expenditures totaled $864 million. Dividends paid were $674 million, and the funding mix included higher net short-term borrowings, consistent with an active approach to managing liquidity while executing on the 2026 investment program.
Capital expenditure in the first quarter was $864 million compared with $629 million at the end of 2025.
OKE Raises 2026 Targets as Outlook Strengthens
Following the quarter, ONEOK increased its full-year 2026 financial guidance. Net income is now expected in a range of $3.21 billion to $3.79 billion, resulting in a diluted earnings per common share range of $5.06-$5.99. The company also lifted earnings per diluted share outlook, citing stronger segment performance and broader opportunities across its system. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.65.
Capital allocation priorities remained intact. Total 2026 capital expenditure guidance was maintained at $2.7 billion to $3.2 billion, supporting a slate of organic projects and infrastructure investments.
OKE’s Zacks Rank
ONEOK currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Talen Energy Corporation TLN is scheduled to report first-quarter results on May 5. The Zacks Consensus Estimate for earnings is pegged at $4.35 per share, which indicates a year-over-year increase of 430.49%.
The same for 2026 sales is pinned at $4.3 billion, which implies year-over-year growth of 66.71%.
Sempra Energy SRE is scheduled to report first-quarter results on May 7. The Zacks Consensus Estimate for earnings is pegged at $1.48 per share, which indicates a year-over-year decrease of 2.78%.
The same for 2026 sales is pinned at $4.14 billion, which implies a year-over-year increase of 8.93%.
TC Energy Corporation TRP is scheduled to report first-quarter results on May 1. The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, which indicates a year-over-year increase of 6.06%.
The same for 2026 sales is pinned at $11.62 billion, which implies year-over-year growth of 6.54%.
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This article originally published on Zacks Investment Research (zacks.com).