Tulsa’s ONEOK Inc. on Tuesday reported profits of $83.4 million for the first quarter, or 40 cents a share in the first quarter, up roughly 37 percent compared to $60.8 million, or 29 cents a share earned for the same period a year ago.
Tulsa pipeline company, ONEOK Partners LP, which owns one of the top natural gas liquids systems in the nation, reported first quarter earnings of nearly $254 million, or 52 cents a unit, up 74 percent compared to net income of $145.6 million, or 21 cents a unit earned in the first quarter of 2015.
The Tulsa-based natural gas company reported adjusted earnings before interest, taxes, depreciation and amortization of $442 million, up from $320 million in the year-ago quarter. Revenues were $1.77 billion, down from $1.8 billion one year ago.
“ONEOK’s and ONEOK Partners’ proactive approach to reducing capital spending and operating costs, growing fee-based earnings and prudent financial decision-making continue to create value for investors,” said Terry K. Spencer, President and CEO.
The partnership reported adjusted earnings before interest, taxes, depreciation and amortization of $445 million, up from $324 million one year ago. Revenues were $1.28 billion, down from $1.44 billion in the year-ago period.
“ONEOK Partners reported solid first-quarter financial results, as we continue to build on the progress made throughout 2015 despite very challenging industry conditions,” said Spencer.
Spencer said in his statement that ONEOK’s first-quarter financial results benefited from ONEOK Partners’ uniquely positioned, integrated network of natural gas and NGL assets.
During the first quarter, 2016 distributions declared from the partnership to ONEOK increased nearly 17 percent year over year, Spencer said. The increase was driven by ONEOK’s increased ownership in ONEOK Partners.
“The partnership’s natural gas gathering and processing segment’s volume growth continued in the first quarter, due primarily to completed growth projects in the Williston Basin, which also drove increased NGL volumes from the region, and the natural gas pipelines segment continues to deliver consistent fee-based earnings,” said Spencer.
“In addition, we anticipate significant ethane recovery to begin in early 2017, as demand for exports increases and new petrochemical facilities begin to come online near market hubs where the partnership is well-positioned to serve this growing demand without additional infrastructure or capital investments required, he said.”
ONEOK is a Fortune 500 company with its corporate headquarters located in Tulsa, Oklahoma.