10-Q · April 29, 2026
ONEOK reported strong first-quarter 2026 results, with revenue reaching $9.62 billion, a significant increase of 20% compared to $8.04 billion in Q1 2025. However, diluted EPS was $1.23, which fell short of the $1.31…
Earnings analysis · 10-Q
OKE earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
ONEOK delivered strong Q2 growth, with revenue up 52.8% year over year to $12.049 billion, operating income up $162 million to $1.593 billion, and diluted EPS up to $1.53 from $1.34. Growth was led by Natural Gas…
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ONEOK delivered strong Q2 growth, with revenue up 52.8% year over year to $12.049 billion, operating income up $162 million to $1.593 billion, and diluted EPS up to $1.53 from $1.34. Growth was led by Natural Gas Pipelines and Refined Products & Crude, while cash generation improved materially in the first half. The principal offset is margin compression: calculated gross margin fell 8.7 percentage points year over year to 23.3%, reflecting the largely offsetting increase in commodity sales and fuel costs, while the balance sheet carries a $1.9 billion working-capital deficit and increased short-term financing use.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.53
What stood out
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Revenue and EPS rose sharply
Q2 revenue increased $4.162 billion year over year to $12.049 billion, while diluted EPS rose $0.19 to $1.53 and net income increased $114 million to $967 million. Sequentially, revenue rose from an implied $9.618 billion in Q1 to $12.049 billion in Q2, and EPS increased from an implied $1.22 to $1.53.
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Pipeline EBITDA was the principal growth driver
Adjusted EBITDA increased $140 million year over year to $2.121 billion. Natural Gas Pipelines was the largest contributor, with segment adjusted EBITDA up $109 million to $297 million, driven by $77 million of higher optimization and marketing activity and $19 million of higher transportation services.
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Refined-products earnings and volumes advanced
Refined Products & Crude adjusted EBITDA increased $70 million to $627 million, supported by $79 million of higher transportation and storage earnings and $48 million of higher crude marketing earnings. Refined-products volumes shipped rose to 1,629 MBbl/d from 1,503 MBbl/d.
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First-half cash generation strengthened
Operating cash flow for the first six months increased $558 million year over year to $2.987 billion. Less $1.477 billion of six-month capital expenditures, implied first-half free cash flow was $1.510 billion, and operating cash flow exceeded dividends paid by $1.6 billion.
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Fee-based profile supports dividend growth
Fee-based earnings are expected to comprise approximately 90% of 2026 consolidated earnings. The quarterly dividend was $1.07 per share, up 4% year over year, or $4.28 per share annualized.
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Large growth-project pipeline remains funded
Management expects $2.7 billion-$3.2 billion of 2026 capital expenditures, including the $700 million Texas City Logistics export terminal and the $350 million Eiger Express Pipeline investment, each expected to be completed in 2028.
What to watch
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Margins compressed despite revenue growth
Revenue growth was largely commodity-sales pass-through: commodity sales rose $4.088 billion to $10.814 billion while cost of sales and fuel rose $3.882 billion to $9.242 billion. As a result, calculated gross margin declined to 23.3% from 32.0% and operating margin fell to 13.2% from 18.1% year over year.
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NGL earnings declined amid higher costs
Natural Gas Liquids adjusted EBITDA declined $14 million year over year to $659 million, as operating costs increased $18 million and transportation and storage earnings decreased $6 million. Management also cited $11 million from fewer product-price differentials captured within exchange services.
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Risk factors unchanged; funding needs remain material
The filing states there were no material changes to Item 1A risk factors, but liquidity remains a key watchpoint: working capital was a $1.9 billion deficit at June 30, commercial paper outstanding was $899 million, and $600 million was drawn on the $1.2 billion term loan. The remaining term-loan capacity was fully drawn in July 2026.
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Powder Springs impairment and affiliate losses
The company recorded a $60 million noncash impairment on its 50% Powder Springs investment in Q1 2026. In the Refined Products & Crude segment, adjusted EBITDA from unconsolidated affiliates declined $23 million in the first half, primarily due to Powder Springs losses.
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Capital-program and commodity-volatility exposure
The $2.7 billion-$3.2 billion 2026 capital-spending plan requires substantial execution and financing. Six-month capital expenditures were already $1.477 billion, and the company cited geopolitical conditions in the Middle East as contributing to commodity-price volatility during the first half.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. It maintains expected 2026 capital expenditures of $2.7 billion-$3.2 billion; management expects approximately 90% of 2026 consolidated earnings to be fee-based.
Earlier filings 4
10-K · February 24, 2026
ONEOK completed the EnLink acquisition (issued 41 million shares with a fair value of $4.0 billion) and reported strong top-line growth in 2025 (Q4 revenue $9.07 billion; Q4 diluted EPS $1.55). The company remains…
10-Q · August 6, 2024
ONEOK reported Q2 2024 revenue of $4,894 million and diluted EPS of $1.33, with operating income of $1,229 million (25.1% operating margin). Year-over-year profitability and equity earnings strengthened materially,…
10-K · February 27, 2024
ONEOK completed the Magellan acquisition on September 25, 2023 (total consideration $14.1 billion) and materially diversified its asset base into refined products and crude while retaining a primarily fee-based…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.