ONEOK Inc. (OKE, Financial) filed Quarterly Report for the period ended 2010-05-26.
Oneok Inc. has a market cap of $5.04 billion; its shares were traded at around $47.4 with a P/E ratio of 15.2 and P/S ratio of 0.5. The dividend yield of Oneok Inc. stocks is 3.8%. Oneok Inc. had an annual average earning growth of 4.3% over the past 10 years.OKE is in the portfolios of David Dreman of Dreman Value Management, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Garden Creek plant and related projects - ONEOK Partners plans to construct a new 100 MMcf/d natural gas processing facility, the Garden Creek plant, in eastern McKenzie County, North Dakota. The plant and related expansions are estimated to cost between $150 million and $210 million and will double ONEOK Partners natural gas processing capacity in the Williston Basin. These projects are expected to be completed in the fourth quarter of 2011. In addition, ONEOK Partners will invest an additional $200 million to $205 million during 2010 and 2011 for new well connections, expansions and upgrades to its existing natural gas gathering infrastructure in the Bakken Shale.
Bakken Pipeline and related projects - In July 2010, ONEOK Partners announced plans to build a 525- to 615-mile NGL pipeline that will transport unfractionated NGLs from the Bakken Shale in the Williston Basin in North Dakota to the Overland Pass Pipeline. The Bakken Pipeline will initially transport up to 60 MBbl/d of unfractionated NGL production from ONEOK Partners natural gas gathering and processing assets in the Bakken Shale and from third-party natural gas processing plants south through western North Dakota and eastern Montana to Wyoming, where it will connect to the Overland Pass Pipeline near Cheyenne, Wyoming. The volumes will then be delivered to ONEOK Partners existing NGL infrastructure in the Mid-Continent. Additional pump facilities could increase the new pipeline s capacity to 110 MBbl/d. Supply commitments for the Bakken Pipeline will be anchored by NGL production from ONEOK Partners natural gas processing plants and from third-party processors, which are in various stages of negotiation. Following receipt of all necessary permits, construction of the 12-inch diameter pipeline is expected to begin in the second quarter of 2012 and is currently expected to be completed during the first half of 2013. Project costs for the new pipeline are estimated to be $450 million to $550 million.
Operating Results - Diluted earnings per share of common stock (EPS) was $0.39 for the three months ended June 30, 2010 and 2009, respectively. For the six-month period, EPS increased to $1.82 from $1.55 for the same period last year. Operating income for the three months ended June 30, 2010, increased to $178.7 million from $154.8 million for the same period last year. For the six months ended June 30, 2010, operating income increased to $516.0 million from $447.8 million for the same period last year. The increase in operating income is due primarily to the following:
ONEOK Partners Equity Issuance - In February 2010, ONEOK Partners completed an underwritten public offering of 5,500,900 common units, including the partial exercise by the underwriters of their over-allotment option, at a public offering price of $60.75 per common unit, generating net proceeds of approximately $322.7 million. In conjunction with the offering, ONEOK Partners GP contributed $6.8 million in order to maintain its 2 percent general partner interest. ONEOK Partners used the proceeds from the sale of common units and the general partner contribution to repay borrowings under the ONEOK Partners Credit Agreement and for general partnership purposes. We currently hold a 42.8 percent aggregate equity interest in ONEOK Partners.
Dividends/Distributions - We declared a quarterly dividend of $0.46 per share ($1.84 per share on an annualized basis) in July 2010, an increase of 10 percent from the $0.42 per share declared in July 2009. ONEOK Partners declared a cash distribution of $1.12 per unit ($4.48 per unit on an annualized basis) in July 2010, an increase of approximately 4 percent from the $1.08 per unit declared in July 2009.
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Oneok Inc. has a market cap of $5.04 billion; its shares were traded at around $47.4 with a P/E ratio of 15.2 and P/S ratio of 0.5. The dividend yield of Oneok Inc. stocks is 3.8%. Oneok Inc. had an annual average earning growth of 4.3% over the past 10 years.OKE is in the portfolios of David Dreman of Dreman Value Management, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Growth Projects - In April 2010, ONEOK Partners announced that it will invest approximately $405 million to $470 million for projects in the Bakken Shale in the Williston Basin in North Dakota and in the Woodford Shale in Oklahoma, which will enable ONEOK Partners to meet the rapidly growing needs of producers in these areas.Garden Creek plant and related projects - ONEOK Partners plans to construct a new 100 MMcf/d natural gas processing facility, the Garden Creek plant, in eastern McKenzie County, North Dakota. The plant and related expansions are estimated to cost between $150 million and $210 million and will double ONEOK Partners natural gas processing capacity in the Williston Basin. These projects are expected to be completed in the fourth quarter of 2011. In addition, ONEOK Partners will invest an additional $200 million to $205 million during 2010 and 2011 for new well connections, expansions and upgrades to its existing natural gas gathering infrastructure in the Bakken Shale.
Bakken Pipeline and related projects - In July 2010, ONEOK Partners announced plans to build a 525- to 615-mile NGL pipeline that will transport unfractionated NGLs from the Bakken Shale in the Williston Basin in North Dakota to the Overland Pass Pipeline. The Bakken Pipeline will initially transport up to 60 MBbl/d of unfractionated NGL production from ONEOK Partners natural gas gathering and processing assets in the Bakken Shale and from third-party natural gas processing plants south through western North Dakota and eastern Montana to Wyoming, where it will connect to the Overland Pass Pipeline near Cheyenne, Wyoming. The volumes will then be delivered to ONEOK Partners existing NGL infrastructure in the Mid-Continent. Additional pump facilities could increase the new pipeline s capacity to 110 MBbl/d. Supply commitments for the Bakken Pipeline will be anchored by NGL production from ONEOK Partners natural gas processing plants and from third-party processors, which are in various stages of negotiation. Following receipt of all necessary permits, construction of the 12-inch diameter pipeline is expected to begin in the second quarter of 2012 and is currently expected to be completed during the first half of 2013. Project costs for the new pipeline are estimated to be $450 million to $550 million.
Operating Results - Diluted earnings per share of common stock (EPS) was $0.39 for the three months ended June 30, 2010 and 2009, respectively. For the six-month period, EPS increased to $1.82 from $1.55 for the same period last year. Operating income for the three months ended June 30, 2010, increased to $178.7 million from $154.8 million for the same period last year. For the six months ended June 30, 2010, operating income increased to $516.0 million from $447.8 million for the same period last year. The increase in operating income is due primarily to the following:
ONEOK Partners Equity Issuance - In February 2010, ONEOK Partners completed an underwritten public offering of 5,500,900 common units, including the partial exercise by the underwriters of their over-allotment option, at a public offering price of $60.75 per common unit, generating net proceeds of approximately $322.7 million. In conjunction with the offering, ONEOK Partners GP contributed $6.8 million in order to maintain its 2 percent general partner interest. ONEOK Partners used the proceeds from the sale of common units and the general partner contribution to repay borrowings under the ONEOK Partners Credit Agreement and for general partnership purposes. We currently hold a 42.8 percent aggregate equity interest in ONEOK Partners.
Dividends/Distributions - We declared a quarterly dividend of $0.46 per share ($1.84 per share on an annualized basis) in July 2010, an increase of 10 percent from the $0.42 per share declared in July 2009. ONEOK Partners declared a cash distribution of $1.12 per unit ($4.48 per unit on an annualized basis) in July 2010, an increase of approximately 4 percent from the $1.08 per unit declared in July 2009.
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