Net Income: First quarter 2024 net income totaled $639 million.
Earnings Per Share: Reported at $1.09 per share for Q1 2024.
Adjusted EBITDA: For the period, adjusted EBITDA reached $1.44 billion.
Volume Increase: First quarter NGL volumes increased by 12% year-over-year in the Rocky Mountain region.
Operating Costs: Higher consolidated operating costs were observed due to planned maintenance, insurance premiums, and operational growth.
Future Guidance
Net Income Midpoint Increase: Raised to $2.88 billion for the full year 2024.
Adjusted EBITDA Midpoint: Increased by $75 million to $6.175 billion for 2024.
Corporate Cost Allocation: First quarter included refined products and crude segment being allocated its full share, impacting operating costs.
Capital Expenditures: Guidance for 2024 remains unchanged at $1.75 billion to $1.95 billion.
Synergy Expectations: Confidence in meeting or exceeding the midpoint of $175 million in cost and commercial synergies in 2024, with additional annual synergies expected to meet or exceed $125 million in 2025.
Trends, Market Conditions, Sentiment
Volume Trends: Rebound in volumes across systems, especially notable in the Rocky Mountain region and refined product volumes.
Industrial Fundamentals: Favorable industrial fundamentals across systems contributing to volume growth and significant momentum into 2025.
Commercial and Cost Synergies: Continuing confidence in the realization of meaningful commercial and cost synergies, particularly post-acquisition integration efforts.
Natural Gas Demand: Projected increase due to power generation for AI-driven data centers, with ONEOK positioned to play a meaningful role.
Refined Products and Crude Segment: Consistent performance and healthy business fundamentals observed with increased volumes compared to previous quarters.
Notable Quotes
Pierce Norton: “Solid results during the first quarter were supported by higher year-over-year volumes in the Rocky Mountain region.”
Walter Hulse: “We increased our 2024 net income midpoint to $2.88 billion and increased our adjusted EBITDA midpoint by $75 million to $6.175 billion.”
Sheridan Swords: “First quarter NGL volumes increased 12% in the Rocky Mountain region year-over-year, including the effect of the mid-January winter weather.”
Pierce Norton on Future Demand: “One potential significant source of future natural gas demand is expected to increase in power generation required to serve AI-driven data centers.”
Walter Hulse on Capital Allocation: “We remain focused on delivering long-term value for our stakeholders through a balanced combination of high-return capital projects, dividend growth, debt reduction, and share repurchases.”
