OKE

It has been about a month since the last earnings report for Energy Transfer LP (ET). Shares have added about 5.9% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Energy Transfer LP due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Energy Transfer LP before we dive into how investors and analysts have reacted as of late. Energy Transfer Q2 Earnings Beat Estimates on NGL Growth, View UpEnergy Transfer LP reported second-quarter 2026 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 39 cents by 51.28%. The bottom line increased 84.4% from 32 cents a year ago. Revenues of $34.33 billion surpassed the consensus estimate of $31.09 billion by 10.42% and climbed 78.4% year over year. Record NGL transportation and export volumes, along with stronger crude oil and midstream activity, supported the quarter. NGL and refined products transportation and services revenues increased 29.9% to $7.72 billion. Segment adjusted EBITDA rose 26.6% to $1.31 billion, reflecting stronger marketing, terminal, transportation, storage and fractionation margins.NGL transportation volumes climbed 13% to a record 2.64 million barrels per day. Terminal volumes rose to 1.86 million barrels per day. Fractionation volumes increased 3% to 1.19 million barrels per day. Higher Permian volumes and stronger exports aided throughput.Midstream revenues declined 10% to $2.82 billion, but segment adjusted EBITDA increased 15.1% to $884 million. Gathered volumes rose 4% to a record 22.14 million BBtu per day, helped by higher dry-gas gathering and increased Permian processing activity.Crude oil transportation and services revenues surged 92.3% to $11.05 billion. Segment adjusted EBITDA grew 13.9% to $834 million. Transportation volumes increased 4% to a record 7.34 million barrels per day, supported by higher activity across the Texas, Permian and Bakken systems.Intrastate transportation and storage revenues fell 36% to $596 million, while segment adjusted EBITDA increased 32.7% to $377 million. Wider basis differentials and early volumes from the Hugh Brinson Pipeline more than offset lower transported volumes and higher expenses.Interstate transportation and storage revenues rose 3.2% to $609 million, and segment adjusted EBITDA gained 2.3% to $481 million. Higher parking, storage and liquids revenues offset lower utilization on the Trunkline, Gulf Run and Mississippi River systems. Revenues from the investment in the Sunoco LP segment increased 164.5% to $14.26 billion. The segment adjusted EBITDA more than doubled to $982 million, primarily reflecting recent acquisitions and higher contributions from unconsolidated affiliates.The investment in USA Compression Partners generated revenues of $342 million, up 36.8%. The segment adjusted EBITDA advanced 30.2% to $194 million, driven by the J-W Power acquisition and growth in USAC's legacy operations. Total costs and expenses were $30.76 billion, up 81.7% year over year, mainly due to a sharp increase in the cost of products sold. Operating expenses, depreciation, depletion and amortization, and selling, general and administrative expenses also increased.Operating income rose 54.8% to $3.57 billion. Interest expense, net of capitalized interest, increased 8% to $934 million. Net income attributable to partners advanced 79.5% to $2.09 billion. Adjusted EBITDA increased 31% to $5.07 billion. Distributable cash flow attributable to partners, as adjusted, rose 32% to $2.59 billion. Second-quarter growth capital expenditures were $1.10 billion, while maintenance capital expenditures were $307 million.Current assets totaled $23.11 billion at June 30, 2026, compared with $18.23 billion at the end of 2025. Long-term debt, less current maturities, was $68.39 billion. The revolving credit facility had $3.76 billion of available borrowing capacity. Energy Transfer now expects 2026 adjusted EBITDA of $18.8-$19.1 billion, up from the prior range of $18.2-$18.6 billion. The partnership projects growth capital spending of $5.6-$5.9 billion.The Hugh Brinson Pipeline entered commercial service and is expected to reach full Phase I capacity of 1.5 Bcf per day by Sept. 1, 2026. ET also completed upgrades adding more than 90,000 barrels per day of capacity to the Lone Star Express pipeline and placed the Mustang Draw I processing plant into service. Since the earnings release, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 12.93% due to these changes. At this time, Energy Transfer LP has a great Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Energy Transfer LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Energy Transfer LP belongs to the Zacks Oil and Gas - Production Pipeline - MLB industry. Another stock from the same industry, Oneok Inc. (OKE), has gained 10.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Oneok reported revenues of $12.05 billion in the last reported quarter, representing a year-over-year change of +52.8%. EPS of $1.53 for the same period compares with $1.34 a year ago. For the current quarter, Oneok is expected to post earnings of $1.49 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed +2.4% over the last 30 days. Oneok has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energy Transfer LP (ET) : Free Stock Analysis Report ONEOK, Inc. (OKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Oneok Inc. (OKE). Shares have added about 9.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. ONEOK Q2 Earnings & Sales Surpass Estimates on Record NGL VolumesONEOK Inc. reported second-quarter 2026 operating earnings per share (EPS) of $1.53, which beat the Zacks Consensus Estimate of $1.39 by 10.07%. The bottom line increased 14.2% from the year-ago quarter’s figure of $1.34.The results benefited from record natural gas liquids raw feed throughput, higher natural gas processing and refined products volumes, and increased optimization and marketing activity. Operating revenues for the second quarter totaled $12.05 billion, which beat the Zacks Consensus Estimate of $10.66 billion by 13.03%. The top line improved 52.8% from $7.89 billion in the prior-year quarter. Adjusted EBITDA was $2.12 billion, up 7.1% year over year.Operating income totaled $1.59 billion, up 11.3% from the prior-year level of $1.43 billion.Operations and maintenance expenses increased to $715 million from $618 million, reflecting a larger operating footprint and project-related spending.ONEOK incurred interest expenses of $434 million, down 0.91% from $438 million recorded in the year-ago period. Natural Gas Liquids adjusted EBITDA slipped 2.1% year over year to $659 million. Higher operating costs and lower transportation and storage volumes more than offset gains from optimization, marketing and exchange services.NGL raw feed throughput rose 6.7% year over year to 1,630 thousand barrels per day. Raw feed throughput increased across the system. Gulf Coast/Permian volumes rose 15.2% year over year to 605 MBbl/d. Rocky Mountain volumes increased to 478 MBbl/d, while Mid-Continent throughput reached 547 MBbl/d.The Medford fractionator expansion remains a key capacity project. Phase I, adding 100,000 barrels per day, is expected to be completed in the fourth quarter of 2026. Phase II, providing another 110,000 barrels per day, is scheduled for completion in the first quarter of 2027. Refined Products and Crude adjusted EBITDA increased 12.6% year over year to $627 million. The improvement reflected higher refined products volumes and rates, along with stronger crude marketing earnings. Higher employee-related costs, property taxes and outside-service expenses partly offset these gains.Refined products volumes shipped rose 8.4% to 1,629 MBbl/d. Gasoline volumes reached 943 MBbl/d, distillates totaled 577 MBbl/d and aviation and other volumes were 109 MBbl/d. The average refined products tariff rate increased to 5.5 cents per gallon from 5.3 cents.Crude oil volumes declined slightly year over year to 1,766 MBbl/d. ONEOK mechanically completed its Greater Denver refined products pipeline expansion in early August, increasing capacity by 35,000 barrels per day. Natural Gas Gathering and Processing adjusted EBITDA edged up 1.1% year over year to $546 million. Higher production volumes and improved realized condensate prices were partly offset by higher operating costs and weaker realized NGL pricing.Natural gas processed increased 2.4% to 5,707 million cubic feet per day. Volumes benefited from increased production across all operating regions.Natural Gas Pipelines' adjusted EBITDA jumped 58.0% to $297 million. Favorable price differentials between the Waha Hub and Katy, TX, markets, higher firm transportation revenues and stronger contributions from Northern Border Pipeline and Matterhorn Express Pipeline supported the increase.Transportation capacity contracted rose to 7,735 thousand dekatherms per day from 7,206 thousand a year ago. Contracted capacity represented 92% of available capacity compared with 90% in the prior-year quarter. Cash and cash equivalents amounted to $161 million as of June 30, 2026, compared with $78 million at the end of 2025.As of June 30, 2026, short-term borrowings increased to $1.50 billion from $820 million as of Dec. 31, 2025.As of June 30, 2026, long-term debt (excluding current maturities) totaled $30.77 billion compared with $30.76 billion as of Dec. 31, 2025.Cash provided by operating activities totaled $2.99 billion for the first six months of 2026, up from $2.43 billion a year earlier. Capital expenditures totaled $1.48 billion, while dividends paid amounted to $1.35 billion. ONEOK increased its 2026 net income guidance to $3.41-$3.79 billion, resulting in an earnings per common share range of $5.38-$5.99. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.56.  Adjusted EBITDA is projected to be in the range of $8.20-$8.50 billion in 2026. The company kept its 2026 capital expenditure guidance unchanged at $2.70-$3.20 billion. Management cited continued segment strength, strategic opportunities across the system and a constructive market environment. It turns out, fresh estimates have trended upward during the past month. At this time, Oneok has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Oneok has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Oneok is part of the Zacks Oil and Gas - Production Pipeline - MLB industry. Over the past month, Enterprise Products Partners (EPD), a stock from the same industry, has gained 3%. The company reported its results for the quarter ended June 2026 more than a month ago. Enterprise Products reported revenues of $18.27 billion in the last reported quarter, representing a year-over-year change of +60.8%. EPS of $0.84 for the same period compares with $0.66 a year ago. Enterprise Products is expected to post earnings of $0.75 per share for the current quarter, representing a year-over-year change of +23%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.7%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Enterprise Products. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ONEOK, Inc. (OKE) : Free Stock Analysis Report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 11 a.m. ET Vice President, Investor Relations - Megan Patterson President and Chief Executive Officer - Pierce Norton Chief Financial Officer - Walt Hulse Chief Operating Officer - Randy Lentz Chief Commercial Officer - Sheridan Swords Operator: Good morning, and welcome to ONEOK's Second Quarter 2026 Earnings Call. As a reminder, this call is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Megan Patterson, Vice President, Investor Relations. Megan, please go ahead. Megan Patterson: Thank you, Jess. Welcome to ONEOK's Second Quarter 2026 Earnings Call. We issued our earnings release and presentation after the markets closed yesterday, and those materials are available on our website. After our prepared remarks, management will be available to take your questions. Statements made during this call that might include ONEOK's expectations or predictions should be considered forward-looking statements and are covered by the safe harbor provision of the Securities Acts of 1933 and 1934. Actual results could differ materially from those projected in forward-looking statements. For a discussion of factors that could cause actual results to differ, please refer to our SEC filings. With that, I'll turn the call over to Pierce Norton, President and Chief Executive Officer. Pierce Norton: Thank you, Megan. Good morning, everyone, and thank you for joining us today. Joining me on the call are Walt Hulse, our Chief Financial Officer; Randy Lentz, our Chief Operating Officer; and Sheridan Swords, our Chief Commercial Officer. Yesterday, we reported second quarter earnings and raised our 2026 financial guidance for the second time this year, reflecting strong year-to-date performance and continued momentum heading into the back half of the year. Our second quarter results were driven by record NGL throughput volumes, strong refined products demand and continued volume growth across our systems. The quarter highlighted the positioning of our asset footprint, the value of our integrated platform and the outstanding execution of our employees. The broader energy backdrop remains constructive, but the more important point for ONEOK is that we are converting that backdrop into visible growth. Our footprint connects key supply basins with domestic and international demand across natural gas, natural gas liquids, crude oil and refined products. The connectivity across our business segments gives us multiple ways to grow earnings, optimize existing assets and allocate capital toward opportunities with attractive returns. Importantly, these opportunities are not confined to a single commodity or region. Our integrated system enables us to create value across multiple demand drivers, a differentiator for ONEOK. Our confidence is reflected in our long-term outlook. We continue to target mid- to high single-digit adjusted EBITDA growth over the next 5 to 7 years, supported by 3 factors that are increasingly visible. Recently completed and soon-to-be completed projects drive structural growth spanning Permian Basin processing capacity, Powder River processing capacity, Mid-Continent fractionation capacity, refined products expansions, and natural gas transportation and storage capacity, and LPG exports. Operating leverage available across our assets, requiring little to no capital investment and allowing us to be flexible to customers' needs and timing. And finally, a growing pipeline of high-return organic projects, bolt-on acquisitions and commercial optimization are creating additional investment opportunities across our system, where commercial discussions are improving our confidence in timing, scale and returns. Our long-term strategy remains grounded in the same principles that have gotten us to where we are today, operational excellence, financial discipline and a value-driven approach to capital allocation. With that, I'll turn it over to Walt for a financial update. Walt? Walter Hulse: Thank you, Pierce. As Pierce mentioned, our second quarter performance and strengthening outlook across our business supported a second increase to our 2026 financial expectations. We now expect a 2026 net income midpoint of $3.6 billion, a diluted earnings per share midpoint of $5.68 and an adjusted EBITDA midpoint of $8.35 billion. This represents net income and adjusted EBITDA increases of $150 million and $250 million, respectively, compared with our original guidance provided in February. At the segment level, Natural Gas Pipelines, and Refined Products and Crude continue to perform toward the upper end of the adjusted EBITDA ranges provided in our original guidance. Natural gas liquids, and gathering and processing remain well positioned through the balance of the year. Across the portfolio, organic volume growth, EBITDA from recently completed projects and attractive hedging and commercial opportunities are providing momentum in the second half of the year and into 2027. Our 2026 capital expenditure guidance remains unchanged at $2.7 billion to $3.2 billion. We expect capital spending to accelerate through the second half of the year as several major projects move towards completion, bringing us towards the upper end of our CapEx guidance range. Turning to the second quarter results. ONEOK reported net income of $965 million (sic) [ $967 million ] or $1.53 per diluted share, a 13% increase year-over-year. Adjusted EBITDA totaled $2.12 billion, up 7%, driven by volume growth and strong segment level performance. We continue to expect earnings to largely follow the normal seasonal cadence of our business as we move through the remainder of 2026, with the tailwinds I suggest -- I just mentioned supporting second half results. Our overall financial position remains strong and continues to provide the flexibility to invest in the business, return capital to our shareholders and pursue opportunities that create long-term value. As additional guidance on the application of the One Big Beautiful Bill and the Inflation Reduction Act has become available, we've continued to evaluate the impact of the tax legislation, particularly as it relates to acquisitions and bonus depreciation. Based on our latest analysis, we now expect approximately $2.6 billion of cumulative cash tax benefits compared with the approximately $1.5 billion we previously discussed. These additional benefits, combined with our existing tax attributes are expected to defer meaningful cash tax payments until 2031, extending our cash tax runway by approximately 2 years and further enhancing future free cash flow generation. Higher earnings and improved free cash flow also support continued progress towards our long-term leverage target of 3.5x debt to EBITDA. I'll now turn it over to Randy for an operational and large capital projects update. Randy Lentz: Thank you, Walt. Our teams continue to execute at a high level throughout the second quarter while maintaining focus on safety, reliability and customer service. Performance across the system remains strong, supported by increasing customer activity, improving asset utilization and contributions from recently completed projects. As volumes grow across our footprint, we're seeing the benefits of the connectivity and scale of our assets. We continue to advance the project portfolio. And as of August 1, our Denver area refined products expansion was placed in service. This project adds 35,000 barrels per day of capacity into one of the fastest-growing markets in our footprint and provides a new direct jet fuel connection to Denver International Airport. In the Permian Basin, we continue to expand processing capacity to support growing producer activity. Following our recently relocated 150 million cubic feet per day plant in the Midland Basin, we remain on track to complete 110 million cubic feet per day of Delaware Basin plant expansion projects during the third quarter. Additionally, based on production outlooks in the basin, we've increased the capacity of our Bighorn plant to 400 million cubic feet per day from an initial capacity of 300 million cubic feet per day. Bighorn remains on schedule for completion in mid-2027. Upon completion of our Permian processing -- upon completion, our Permian processing capacity will increase to nearly 2.4 billion cubic feet per day. In addition, along with our initial 60 million cubic feet per day Cutter plant in the Powder River Basin, which was previously announced, we've begun construction on another 120 million cubic feet per day Cutter 2 plant, which we expect to be online in the first quarter of 2028. And finally, Phase 1 of our Medford fractionation project remains on track for completion during the fourth quarter. Medford Phase 1 will add 100,000 barrels per day of Mid-Continent fractionation capacity with Phase 2 expected to be completed in the first quarter of 2027. Looking ahead, the projects entering service over the next several quarters are expected to add visible earnings, increase system utilization and support our long-term growth outlook. With that, I'll turn the call over to Sheridan for a commercial update. Sheridan Swords: Thank you, Randy. Commercial activity remained strong during the quarter, supported by favorable fundamentals across all 4 of our business segments. We delivered solid volume growth across our integrated system, driven by increased customer activity, healthy domestic and international demand, and continued production growth in key producing basins. Starting with the natural gas liquids segment, raw feed throughput volumes increased 7% year-over-year with growth across all regions. Utilization continued to increase across the system, supported by Permian region led plants. In the Rocky Mountain region, NGL volumes increased year-over-year, even taking into account a contract roll effective at the beginning of the quarter, which was previously discussed and assumed in guidance. This was more than offset by growth across the region and continued strength in ethane recovery. Higher NGL pricing and export demand continue to support ethane recovery across all regions, and we expect these dynamics to remain favorable into the third quarter. Global NGL demand remains strong, supported by growing petrochemical demand and continued interest in securing long-term access to reliable U.S. supply. We're pleased to announce that we've reached our targeted contracting threshold of 80% for our 200,000 barrels per day of LPG export capacity, which is currently under construction as part of our export dock joint venture. The capacity is supported by high-quality counterparties and customer interest remains robust, including discussions that extend beyond the initial contracted period and into the next decade. This underscores both the growing demand for U.S.-sourced LPGs and the value of the terminal's advantaged locations. Turning to the Refined Product and Crude segment, demand fundamentals remained positive during the quarter. Year-over-year refined products volumes shipped increased 8%, supported by gasoline and diesel demand, high refinery utilization and refinery maintenance dynamics. Blended volumes were also strong during the quarter, driven by increased system throughput. Higher gasoline volumes allow us to blend more product and further optimize operations across our network. While our hedge position limited our ability to fully capture the benefit of wider spring blending spreads, we have secured additional fall hedges at higher prices and extended new hedges into spring 2027, improving visibility into future blending margins. The location and flexibility of our refined product system and our ability to clear barrels in a dynamic market remains significant competitive advantages. As refinery utilization remained high and product flows continue to evolve, our unique bidirectional connectivity between the Mid-Continent and Gulf Coast allow us to efficiently connect supply with the strongest demand markets, including an increasing pull for U.S. refined products and exports along the Gulf Coast. Demand for our marine export services also remained robust. At our Seabrook crude export joint venture, throughput increased approximately 20% compared with the first quarter, including record oil -- crude oil loadings in May. The facility remains highly contracted and under take-or-pay agreements for the foreseeable future. Midland crude gathering volumes increased 10% compared with the first quarter, reflecting continued strength in this higher-margin business. Rigs have steadily increased on our Midland crude gathering position throughout the quarter, and we currently have more than 30 rigs operating on our acreage. In addition, strong Houston-area refining and export demand drove outperformance on our long-haul crude oil pipelines. Moving to the Natural Gas Gathering and Processing segment, volumes increased across all regions compared with both the second quarter of last year and the first quarter of this year. Producer activity remains healthy across our footprint, and development plans continue to track largely in line with expectations communicated throughout the year. We maintain good visibility to the remainder of '26 and into '27. In the Permian Basin, our recently added Midland capacity expansion positions us well to support increased development activity in the Barnett formation, while our planned projects in the Delaware Basin provide additional capacity to support anticipated growth into 2027 and beyond. We currently have 11 rigs on our acreage in the Mid-Continent and 13 in the Rocky Mountain region, up 2 rigs in the Rockies compared with last quarter. Both areas experienced a seasonal pickup in activity during the second quarter, driven by higher well completions. I'll close with our Natural Gas Pipelines segment, where continued transportation demand and favorable market conditions drove another strong quarter. Waha Hub to Katy location price differentials continue to benefit this segment during the second quarter. We expect lower earnings in the second half of the year as Permian takeaway capacity enters service and differentials narrow, consistent with our full year outlook and guidance assumptions. Looking forward, power generation, LNG exports and industrial development continue to support increasing natural gas demand across our footprint. We continue to advance commercial discussions supporting multi large-scale data center developments. While these projects have not yet reached FID, continued commercial project reinforces our confidence in the scale and durability of the opportunity. From a power generation perspective, we were recently awarded a supply agreement for 1 gigawatt of power plant demand, further expanding our participation in a growing source of natural gas demand. Supporting electric generation has long been a core part of our business. Our intrastate natural gas pipeline system is already directly connected with numerous power plants across our footprint and is well positioned to serve future demand growth. Pierce, that concludes my remarks. Pierce Norton: Thank you, Sheridan, Randy and Walt. As we step back, it's clear that demand fundamentals remain strong and the long-term outlook for U.S. energy infrastructure remains compelling. And as we look across our business, the message is straightforward. We raised guidance for the second time this year, extended our cash tax runway, advanced key projects and strengthened visibility into earnings growth and free cash flow through 2027. Our integrated multi-molecule platform positions us to capture opportunities across commodities, regions and demand drivers while maintaining financial and disciplined flexibility. And most importantly, none of this would be possible without the dedication of our employees and their commitment to safe, reliable and disciplined execution. With that, operator, we're ready to take questions. Operator: [Operator Instructions] Our first question comes from Spiro Dounis with Citi. Spiro Dounis: I want to start on the growth strategy from here. Pierce, I think you had talked about aspiring to grow mid- to high single digits over the next few years and curious just to get more color on that front. Specifically, how much of that growth can be underwritten by filling up the white space that you mentioned on the current system versus building out new infrastructure. You mentioned a growing backlog of projects coming. So how should we think about maybe the timing of when those projects could come to market? And maybe which verticals you see probably getting the most attention? Pierce Norton: Spiro, I'd start out by saying that it's not one thing that's driving this conclusion for us. We actually have a multi- reinforcing growth drivers. Our assets are positioned in these premier growth basins in the U.S. and especially in our export markets. And the growth across our footprint is actually underpinned by basically 5 things, not just filling the white space that you mentioned. It's the continued strong Permian, Mid-Continent and Powder River growth and the associated natural gas liquids. It's the stable Bakken growth through improved well productivity. It's the rising U.S. LPG export market, and there's a shift definitely in the global crude oil demand to a more reliable and a more resilient supply. And then you've got your LNG exports that's driving the natural gas increase across the United States that's driven by that growing 30 Bcf a day or over 30 Bcf a day LNG export and your domestic natural gas-fired generation and industrial demand. So these facts all give us the confidence that we have to that high single-digit EBITDA growth over the next 5 to 7 years. So it's not just one thing, it's a multitude of things, and it's across all 5 of our business segments. Spiro Dounis: Got it. Second question, maybe for you, Sheridan, just zeroing in here on the NGL segment. Looking for more color on the dynamics around the quarter. Volumes were really strong, as you pointed out, but margins may be a little bit softer overall. Can you talk about some of the dynamics that were driving that this quarter and how you're thinking about margins going to the back half of the year? Should they stay at these levels? Do you think there's a reason to think we could see expansion? Sheridan Swords: Yes. As we talk about the margins, we did see a little bit of reduction in the margin -- overall margin on certain parts of our system. And this was really driven by increased ethane we saw versus how much the increase in C3+ we had. That happened in all 3 of the segments, Permian, Mid-Continent and the Bakken, where especially discretionary ethane out of the Bakken comes at a much lower rate than what the C3+ at full rate is getting out of the Bakken. And like I said, we did see both increase in C3+ in the Bakken, but we also saw a greater increase in ethane. And that also became apparent in the Mid-Continent, where we had a large increase in ethane in the Mid-Continent. And those rates are tiered rates that we've had for a period of time where we charge a higher T&F rate for the C3+ than we charge for the ethane even at full rates. And so as that more ethane comes on, it can have a little bit of effect on our overall margins that we have in there. But we are seeing a lot of increased volume across our system. And one area I'd kind of note is the Permian on volume where we've seen here in the last month or 2, a strong increase in our volumes, substantial increase in our volumes. And really look at it was kind of tied to the Waha to Katy spread. As that spread came in and Waha became positive, we saw a lot more volume than we had anticipated behind our NGL system come on in that area. So we've seen July has been a great month and August is following suit on good uptick in volume on our NGL system. Operator: We'll go next to Jean Ann Salisbury with Bank of America. Jean Ann Salisbury: There's been some talk from some E&Ps year-to-date around reducing their midstream costs. In that context, can you update us on the duration of your NGL T&F contracts out of the Bakken? Sheridan Swords: Yes. Our rates out of the Bakken are still extended for a period of time. We really don't have anything of material coming up until late this decade, and most of the stuff is into next decade. So we feel very good about our NGL rates out of the Bakken at this time. Jean Ann Salisbury: And refined product prices in PADD 4 have continued to rise year-to-date versus PADD 2. I believe you've said before that your Denver pipeline is mostly long-term contracted, but is there a meaningful exposure to the spread at these price levels? Sheridan Swords: No, the 35,000 is signed up by firm take-or-pay contracts. Obviously, there may be a little opportunity that always our operating team finds a way to squeeze a little bit of volume out there that we may be able to get -- be able to enjoy a little bit on a spread that happens there, but it's under -- majority, almost all of it is under long-term contracts -- long-term firm contracts. Operator: We'll go next to Jeremy Tonet with JPMorgan. Robert Kad: This is Robert Kad on for Jeremy. There's potential for additional egress out of the Bakken. I was curious if you could speak to your outlook for the ethane recovery at this point, maybe ONEOK's positioning against that backdrop? Sheridan Swords: Yes. I mean our egress for NGLs out of the Bakken is strong. We still have -- we're running up around sometimes up to 500,000 barrels a day, which gives us plenty of more capacity to be able to move in there. And we can flex on the ethane if we want to. So we don't really see NGL egress out of the Bakken being an issue in our forward plan. Robert Kad: Got it. And as a follow-up, I want to dive deeper on the Mid-Continent. It looks like decent producer activity within the region. There might be a contract roll next year, but curious if you could dive a little bit deeper into your outlook for the balance of '26 into '27? Sheridan Swords: Yes. We have -- continue to have contracts that roll in the Mid-Continent in different areas, and some of them were put on at higher time where margins were higher. So there will be a little bit of -- could be some of these contracts coming back to more of what we see the market is at this time. But typically, any time we're dealing with customers on that, there's a give and take in areas that we work with. And so there is value shifted back and forth between different basins as we've talked about as we bundle rates with our large contractors. But most of our contracts in the Mid-Continent still have some term on them for a period of time, nothing is coming up here in the next month or 2 or even into next year. Pierce Norton: This is Pierce. The only thing I'd add to that is the fact that any sort of contractual movement, we've already factored that into our guidance number. So that's fully baked in at the market rates. Operator: We'll go next to Praneeth Satish with Wells Fargo. Praneeth Satish: I guess just turning to the Permian. So obviously, you're seeing good growth there, strong demand. When we think about West Texas LPG specifically, how much remaining uncontracted capacity do you have on the system? And how much more room do you have there to support the growth that you're seeing in the Permian? And then maybe just sticking on Permian NGLs. If I remember correctly, with some of the legacy EnLink volumes, they're moving on relatively higher cost NGL transportation paths. And so as those contracts roll over, to what extent can those be migrated to West Texas LPG? And what's kind of the time frame for that? Sheridan Swords: What I would say on your first question is we've come out and said that with the expansion, the mainline expansion of West Texas, NGL pipeline, it's up -- we have capacity up to 740,000 barrels a day. So with that and what we're seeing today, we still have plenty of capacity to meet the demand that we have coming on both from our processing plant expansions and the growth that we're seeing from third-party plants that are coming on as well as well as the opportunity to grow our processing even further than we have announced into the future. So we think we got a very good position there, a lot of operating leverage, as you would say, that we could move additional NGLs on that system. So we don't see having to expand that for a period of time. And what was your second part of the question? Praneeth Satish: The second one was on the legacy EnLink volumes and recontracting and bringing some of that on to West Texas LPG? Sheridan Swords: Yes. As I said, there's a little over 50,000 barrels a day that we control that was previously contracted under EnLink on another third-party pipeline. And those contracts will start rolling off here starting a little bit later '26 and '27, '28, and all that volume will come directly over to our NGL pipeline when they roll off. Praneeth Satish: Okay. Great. And then maybe going back to, I think it was Jeremy's question, but I think you kind of took it as NGL egress. But I think his question and mine is there is a few proposed gas takeaway projects being proposed in the Bakken and it seems like at least one of them may move forward, sizable projects. So I guess the question is if gas egress improves in the Bakken, how does that impact your outlook for basin growth, BTU levels and really ethane recovery? And could you see more upside from potential more production growth kind of offsetting maybe some downside from lower ethane recovery? Just how do you think about that? Sheridan Swords: Yes. I think a little bit -- going any time the producers get a little bit better netbacks than anything else, that helps them to increase their production or have more incentive to increase their production. In terms of our ethane -- discretionary ethane that we have coming out of the Bakken, really, it's based on a lot of what's coming out of Canada and what's held back out of Canada is still the incremental barrel -- incremental Mcf to come on the system. So we still think they will on the ethane side will be a nice spread for us to enjoy on the discretionary side as we continue to go forward into the future. Operator: We'll go next to John Mackay with Goldman Sachs. John Mackay: I want to go back to some of the questions around the longer-term growth outlook. Pierce, I appreciate the kind of different drivers you called out there. Just curious if you could touch a little bit more on kind of the incremental growth spending, kind of where projects could fit in there? And what do you think a kind of run rate growth CapEx budget could be like to support that outlook? Pierce Norton: So I appreciate the question. I'm going to throw that question to Walt for the capital spending update there. Walter Hulse: Well, as we've been talking about, we have a pretty nice backlog that is building. We've got quite a bit being completed here in '26 and '27, all of which will then bring on that EBITDA going forward. The backlog that we have is more in the midsized projects. We don't have any $1 billion plus right now on the horizon. So that should moderate our CapEx from the current levels down into that $2 billion, $2.5 billion kind of run rate going forward. Of course, our commercial team is always out there looking for great opportunities. And to the extent we find them, we'll clearly jump on them. But I think that with that $2.5 billion run rate, call it, you're going to see some very significant free cash flow still coming to the bottom line. John Mackay: I appreciate that. And maybe just a follow-up for me. You've talked a couple of times in recent calls around some of these gas laterals to feed BTM or kind of broader power gen. Could you just talk a little bit about kind of what the commercialization process has been like so far? And then maybe tying it into your last comment right there, that kind of run rate level of growth CapEx, how much of that could be going towards this vertical? Sheridan Swords: I'll take the first part on AI data centers and power gen. Obviously, in my prepared remarks, we talked about that we have secured a 1 gigawatt power gen supply contract that will be the supplier of natural gas into that system. It's a really nice project. It's not a high capital. I mean, it's over $100 million of capital we'll have to spend at a very nice return at firm demand. We also are in late stages of discussions with a couple of other opportunities to be able to supply AI data centers. No doubt the commercialization has taken a little bit longer than what we had anticipated on some of these projects. But I think we're seeing that across the board where it just takes a little bit longer time to get them across the finish line. But we're feeling really good about our position, especially where they're at. We have a strong competitive position, and that's why we've been able to advance these discussions as far as we have. Walter Hulse: And then on the capital, I would just say that those types of projects are really what I was talking about. They're kind of singles and doubles. They're in that $100 million to maybe $400 million, $500 million top end. So fit really nicely into our capital budget going forward. And then clearly, in Randy's remarks, he went through a list of other projects that we've got underway, all of which are very attractive and maybe doubles and triples there, a little bit bigger. Operator: We'll go next to Theresa Chen with Barclays. Theresa Chen: Given the growing global focus on energy security, reliable supply, you noted increasing commercial traction for the LPG export facility. How do you see the opportunity set for exports broadly evolving from here, both in terms of the LPG export project as well as brownfield expansion opportunities and/or recontracting upside on your existing liquids export infrastructure? Sheridan Swords: Well, I mean, obviously, we are very satisfied, very excited about reaching our threshold on the LPG export dock. And as I mentioned in my comments, we actually have starting conversations with potential offtakers that want to start looking at when these contracts roll off into the next decade and securing that going forward. We have seen since the war that there's been a lot of additional new entrants wanting to talk about the security of U.S. supply for both LPG and crude oil. We talked about our Seabrook export dock is 100% contracted into the foreseeable future under firm take-or-pay contracts. So we are seeing growth across liquids demand. One thing we don't mention very often is our refined products export capacity. We are seeing good volume growth on that, good pulls on that, very strong, which is pulling obviously volume throughout our whole system down there to go forward. So we see that opportunity to continue to grow, whether or not it go forward anymore, as I said, on the LPG side, we kind of want to get this up and going and show our customers that we can operate this at the level and reliability that we promised them going forward. But we continue to look and see if there's something else out there and continue to engage with customers and continue to go forward. But there's definitely a resurgence of people wanting the security of U.S. energy supply. Pierce Norton: Theresa, this is Pierce. Some of that upside could be in that extra 20% in our producing community, wanting that full wellhead-to-water pull. So that's one of the other reasons that we left that position open, not only just for operational reasons, like Sheridan said, but looking at potential upside for us in the future with that grounding of that 80% was important for us. Theresa Chen: With the Denver refined products pipeline expansion now in service and incremental commentary from the downstream community about moving additional volumes from PADD 4 into PADD 5 over time. How is your view of PADD 4 regional supply and demand balance has evolved for the Denver area and beyond? And as PADD 4 becomes tighter, what opportunities does this create across your infrastructure footprint that Mid-Con to Rockies movement? And how are you thinking about potential for further expansion on that Denver pipeline system beyond the jet fuel movement? Sheridan Swords: Yes. We're excited about how getting this pipeline up and operating. It's been -- we've been working on for some period of time. Operation has done a great job to get it on, on time. As we've noted, we brought that on, we laid a 16-inch pipeline that has upwards of possibly 200,000 barrels a day of capacity. We're only running 35,000 barrels a day on that. We've seen for a period of time that PADD 4 could need more volume going forward, and that could be supplied by this pipeline. There's been some talk of some projects getting into the Salt Lake City that we feel we will play a part in those and be able to -- that we can get the capacity there the cheapest and the quickest as we have set that pipeline up for expansions going forward. So getting this pipeline was very critical to us to show that and be able to show everybody that we can expand it and be able to supply that growing demand in PADD 4. Operator: We will go next to Keith Stanley with Wolfe Research. Keith Stanley: First, I wanted to clarify on the mid- to high single-digit EBITDA growth. So Walt, it sounds like you're saying that's tied to $2 billion to $2.5 billion a year of CapEx. Any color you can give on what that assumes for volume growth and if that includes or does not include any bolt-on M&A of any kind? Walter Hulse: Well, it's really a combination of future CapEx and then, "Spiro" filling the white space, we've got plenty of operating leverage across our businesses. So as we are able to do brownfield expansions off of that, we'll continue to grab opportunities at really attractive capital. But coming back to some of the drivers on that here in the short term, and we think going forward, Sheridan mentioned the world looking for diversity of supply. We've seen very significant volume growth on our refined products going to the Gulf Coast. And that can be really meaningful for us because it's pulling tariff across the system. We've got rigs up in every one of our basins and visibility to more coming. Commodities were well hedged here in '26, so we didn't really get a big benefit from this pop here in '26. We'll enjoy it on the incremental supply that we get above what we had hedged, but we're going to really see that benefit as we roll into '27. And then one that we found really interesting, while we did benefit from the Waha to Katy spread, as that narrowed down, we really have seen a nice pickup in NGLs from volume that was shut in behind our system and mostly on the third-party plants. So with this constructive backdrop here, we're confident in the new guidance. If the momentum holds, we might even be updating you in Q3. Keith Stanley: Great. Second one on ethane recovery. Is there any way to quantify how much incremental ethane recovery you saw with the market dynamics in Q2 and I guess, the Bakken and the Mid-Con. It just seems like a pretty meaningful boost to volumes based on the change in rate. Sheridan Swords: Yes. I would say we saw a significant increase in ethane recovery in the Mid-Con. That's probably one of the biggest one at full rates, which has been good. There was still up in the Bakken because of the difference in rate that you have between a full rate for C3+ versus the discretionary ethane that we bring on. A little bit of volume can affect that by -- I think it was down $0.01 or so. It can affect that with those rates that we have there. So we saw good ethane recovery in the Bakken and then obviously, in the Permian, we also saw a little bit more of ethane coming on the Permian. Actually, the growth in the Permian was much more weighted to the C3+ side. Operator: We'll go next to Sunil Sibal with Seaport Global Securities. Sunil Sibal: I think in your prepared remarks, you talked about upsizing some of the projects that you had previously announced. So I was curious, is that a result of more customers coming in or just your existing customers kind of increasing their demand for the processing capacity? Randy Lentz: Yes, this is Randy. We've got a little bit of both. I mean we have existing customers that are really performing. And as Walt mentioned, too, I think the Waha spread there narrowing has helped a lot. We're seeing that increase. But we're also seeing our commercial people doing a really good job of doing additional deals and interest from existing customers to increase that. So it's a little bit of both. Sunil Sibal: Okay. And then with the mid- to single-digit EBITDA growth that you guys outlined for the foreseeable future, I was curious how does that translate into the EPS growth rate? Obviously, it seems like your capital spend is going to be fairly capped at least from the organic growth projects. So I was curious if you could clarify that. Walter Hulse: Yes. We would think that our EPS growth rate should exceed that EBITDA growth rate, especially as we move into more free cash flow and potentially take the opportunity to buy in some shares. So we're very constructive on the EPS growth rate. Operator: We'll go next to Manav Gupta with UBS. Manav Gupta: Could we get a little bit of an update on your Permian processing plants that are set to come online in near future? Sheridan Swords: Yes. So in the processing plants coming online in the near future in the Permian, we have here in the third quarter, as Randy outlined in his comments, we have 110 million a day coming on in the third quarter. That will be in the Delaware. And we -- they're going to fill up pretty quickly. That 110 million a day is going to fill pretty quickly. We have good line of sight on volume growth in that area. The Shadowfax plant in the Midland is already up and going, and we'll be filling it as well quickly. Then, we have the Bronco plant that will be also out in the Delaware, which will be into '27. We will have that later into '27. That will be filling as well. And that's the one that Randy had mentioned that we originally FID-ed at 300 million a day due to what we're seeing with producer activity and commitments we have on our system. We've already upsized that. It was a very cheap upsized to 400 million a day. So that's making that project look even better out there. Manav Gupta: Perfect. I just want to go back quickly to the '26 guide. Help us understand what could drive further guidance revisions that you kind of hinted to and what could put you towards the top end of that guide of $8.5 billion? Walter Hulse: I think that we're seeing a nice pickup in producer activity. Clearly, we've got a constructive market in the refined product side with a healthy spread on our upgrades there with ROBOB to butane spread. And the fact that we're seeing rigs across the board coming in, really nice strength in our crude gathering business with rigs coming in there. So it's really across the system, we're seeing our customers wanting to take advantage of these slightly higher prices and positioning themselves for growth through '26, but really strongly into '27. Sheridan Swords: One thing I may add to that a little bit is that -- one thing I may add a little bit to that is we came in pretty hedged in '26 on refined products. But with this increased volume we're seeing across our system, that is allowing us to hedge even more or allowing us to blend even more, and that was not hedged at the lower prices. So we're able -- on this incremental volume, we're able to capture that at a higher rate going forward and if that volume continues into the later half of this year, the strong volume that we think could possibly happen, that's another thing that gives some tailwinds. Operator: We'll go next to Julien Dumoulin-Smith with Jefferies. Unknown Analyst: This is [ Alex Omer ] on for Julian. Just a quick question and maybe just a point of clarification. How much would you say, if any, of the mid- to high single digit is predicated on those bolt-on acquisitions that you guys talked about? And then also just where are you seeing the best opportunities for bolt-on M&A across your footprint? Pierce Norton: So this is Pierce. I would say that the majority of those -- of that growth is the organic. It's everything that I mentioned. It's about continuing to optimize our systems. It's continuing to take advantage of synergies, continuing to, again, "Spiro" fill that white space with very little capital. That's the majority of it. As it relates to the M&A, my message there is the same that it's always been, which is we're going to be intentional and disciplined about what it is that we're doing. And we're always looking to expand and extend our footprint in any of our basins. So wherever those opportunities present themselves, we're going to be looking at those. Unknown Analyst: Got it. That's super helpful. And then just quickly on -- for that mid- to high single digit, what is the implied sort of Bakken volume growth underpinning that? Is it sort of similar to what you guys talked about at the beginning of the year, low single-digit kind of growth? Sheridan Swords: Yes. That's right. We're staying with it. Operator: We'll go next to Gabe Daoud with Truist Securities. Gabe Daoud: I wanted to go back to the volume side. You had mentioned in the Permian seeing some incremental gas show up as the spread, Katy, Waha spread significantly improved. Just curious, have you quantified that number? I'm just trying to think through how you guys, at least maybe in the Permian, could land at the high end of your volume guide of 1.7 Bcf. Sheridan Swords: Yes. What I'd say is that we've seen the -- probably the largest on our NGL coming from third-party plants. Obviously, we've seen some on the G&P. We need to see if that continues to go forward. But it has been substantial. It has -- at times, it's approached as much as 100,000 barrels. Gabe Daoud: Got it. On the NGL side. Okay. Great. That's helpful. And then I guess just as a follow-up, the mid single-digit EBITDA growth number that you guys are highlighting. If we were to just assume rigs on your system today were to carry through to '27, does that get you there on the growth side from a volume standpoint? Or is there also like the expectation that rigs continue to be added as we progress through '26 for '27? Sheridan Swords: I'd say in some areas, there is a little bit of addition because we've talked to producers about adding more rigs on there. I mean, we know for sure there'll be another rig added into the Bakken. It's an area that we know going in there. But it's -- it's either off of what the rig count we have today or talking to producers what is coming in the future. Pierce Norton: Only thing I'd add to that is we tend to be excited on the rig count as it relates to gas. I know that's associated gas with -- so that's some areas of dedication. But we're seeing significant activity on our dedicated oil gathering dedications. So that's the reason we started including that in our prepared remarks because I think it's meaningful. Gabe Daoud: Yes. No, that's helpful. We've seen that in the data 2 rigs up quite a bit on what would be tagged as ONEOK gathering. So yes, that's great to see and that's great color. I appreciate that. Operator: We'll take our final question from Jason Gabelman with TD Cowen. Jason Gabelman: I wanted to go back to the Permian and ask about your processing growth. It seems like some of your competitors are sanctioning plants in -- beyond 2027 and 2028 and 2029. How do you feel about your processing growth or plant growth potential beyond 2027, given things like needing to lock in some equipment and labor? Do you need to kind of FID projects now to make sure they come online to support continued growth beyond 2027? Randy Lentz: Yes. This is Randy. So as I mentioned, we upsized Bighorn. And we had predicted that we would probably need to do that. And so we were able to take advantage of that at a pretty low capital increase. We've also gotten ahead of buying long lead equipment that you're referring to. We already have another plant that effectively we've secured. So we'll be able to put that out into the Permian and deploy that as needed. With the growth that we're seeing from existing customers and the plans they have, we're always staying ahead of that to make sure we can perform, and that's what we've done. So we feel like we've got a good handle on that. Operator: That concludes our question-and-answer session. I would now like to turn the call back over to Megan Patterson for closing remarks. Megan Patterson: Thank you, Jess. Our quiet period for the third quarter starts when we close our books in early October and extends until we release earnings in late October. We'll provide details for that conference call at a later date. Our IR team will be available throughout the day for any follow-ups. Thank you for joining us, and have a great day. Operator: Thank you. That concludes today's call. You may now disconnect your lines at this time, and have a wonderful day. Before you buy stock in Oneok, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oneok wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Oneok. The Motley Fool has a disclosure policy. ONEOK (OKE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Earlier this week, ONEOK, Inc. reported second-quarter 2026 results showing revenue of US$12.05 billion and net income of US$966 million, alongside higher earnings per share and an increased full-year 2026 net income and EPS guidance range. The company also filed for a US$1.00 billion at-the-market common stock offering, adding a new financing lever as it funds ongoing infrastructure growth and execution of its raised outlook. We’ll now explore how ONEOK’s upgraded 2026 earnings guidance reshapes the existing investment narrative and what it may mean for investors. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. To own ONEOK today, you need to be comfortable with a midstream model that leans on growing volumes, stable fees and heavy capital spending on new pipes and plants. The key short term catalyst is execution on these expansion projects and the higher 2026 earnings guidance, while the biggest risk remains balance sheet strain and integration risk from recent acquisitions and new builds. The fresh US$1.00 billion at the market equity program modestly shifts that balance by adding flexibility but also potential dilution. The most relevant recent development here is the raised 2026 net income guidance to US$3.41 billion to US$3.79 billion, with an EPS midpoint of US$5.68. This upgrade sits alongside strong second quarter results and supports the case that current projects and throughput trends are feeding into higher earnings expectations, even as investors weigh how the at the market equity issuance might interact with those same catalysts. Yet even with higher guidance, investors should be aware that acquisition related leverage and integration risk could still... Read the full narrative on ONEOK (it's free!) ONEOK's narrative projects $38.5 billion revenue and $4.3 billion earnings by 2029. Uncover how ONEOK's forecasts yield a $95.48 fair value, a 10% upside to its current price. Some of the most optimistic analysts were already modeling revenues near US$53.2 billion and earnings around US$5.1 billion by 2029, so you can see how the latest guidance increase might strengthen their view that volumes and margins could surprise to the upside, even as others remain more cautious about long term fossil fuel demand and contract renewal risk. Explore 8 other fair value estimates on ONEOK - why the stock might be worth just $87.00! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your ONEOK research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free ONEOK research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ONEOK's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Find 49 companies with promising cash flow potential yet trading below their fair value. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OKE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

ONEOK, Inc. OKE used its second-quarter 2026 call to raise expectations again and reinforce a path to mid- to high-single-digit adjusted EBITDA growth over five to seven years. Management tied that outlook to project start-ups, higher utilization and commercial wins, while acknowledging softer NGL margins, narrower second-half pipeline differentials and slower data-center commercialization. Chief financial officer Walter Hulse set 2026 midpoints of $3.6 billion for net income, $5.68 for diluted earnings per share and $8.35 billion for adjusted EBITDA. The EBITDA midpoint is $250 million above February’s original guidance. ONEOK reported EPS of $1.53 per share, which beat the Zacks Consensus Estimate of $1.39. Revenues of $12.05 billion topped the $10.66 billion consensus mark. ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote Hulse said Natural Gas Pipelines and Refined Products and Crude were tracking toward the upper end of their original ranges. Capital spending remains $2.7-$3.2 billion, with expenditures moving toward the upper end. Chief operating officer Randy Lentz said the Denver refined-products expansion entered service Aug. 1, adding 35,000 barrels per day and a direct jet-fuel link to Denver International Airport. In the Permian, Lentz kept 110 million cubic feet per day of Delaware Basin expansions on schedule for the third quarter. The Bighorn plant was upsized to 400 million cubic feet per day for mid-2027. Lentz also kept Medford Phase 1 on track for the fourth quarter, with Phase 2 due in the first quarter of 2027. Cutter 2, a 120 million-cubic-feet-per-day Powder River plant, is scheduled for the first quarter of 2028. Chief commercial officer Sheridan Swords said NGL raw-feed throughput rose 7% year over year, refined-products shipments increased 8%, and gathering-and-processing volumes advanced across every region. Swords explained that a heavier mix of lower-rate ethane relative to C3+ products pressured NGL margins. July volumes strengthened as the Waha-to-Katy spread narrowed and additional supply came onto the system. Export visibility improved as ONEOK reached its 80% contracting threshold for 200,000 barrels per day of LPG export capacity. Swords also said Seabrook crude-export throughput rose 20% from the first quarter. Hulse raised expected cumulative cash-tax benefits to about $2.6 billion from $1.5 billion. He said the benefits should defer meaningful cash taxes until 2031, extending the runway by two years. Asked by a Goldman Sachs analyst about growth spending, Hulse said annual capital investment should moderate toward $2 billion-$2.5 billion after the 2026 and 2027 completion cycle. He described the backlog as mid-sized rather than dependent on projects exceeding $1 billion. Hulse also expects earnings-per-share growth to exceed EBITDA growth, with free cash flow supporting potential share repurchases. A Citi analyst pressed management on the long-term growth target. President and chief executive officer Pierce Norton pointed to Permian, Mid-Continent and Powder River growth, Bakken productivity, LPG exports, LNG demand and gas-fired generation. A Wells Fargo analyst asked about Permian NGL capacity. Swords said West Texas LPG can handle up to 740,000 barrels per day, while more than 50,000 barrels per day of legacy EnLink volumes will migrate from late 2026 through 2028. In a follow-up, the Goldman Sachs analyst asked about power and data centers. Swords said ONEOK secured a one-gigawatt gas-supply agreement requiring more than $100 million of capital, while two late-stage data-center discussions were taking longer than expected. Norton emphasized that most targeted growth comes from organic projects, system optimization and unused capacity. Bolt-on acquisitions remain optional rather than required for the outlook. Management’s back-half priorities are project delivery, volume conversion and disciplined capital allocation. It also flagged narrower Waha-to-Katy spreads and NGL product-mix pressure as operating constraints. OKE carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of C, Momentum Score of F and VGM Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The profile combines favorable value with weaker momentum and middle-range growth and composite readings. Style Scores complement the Zacks Rank over the same one- to three-month horizon. The stronger historical combination is a Zacks Rank #1 or Zacks Rank #2 (Buy) with an A or B score. OKE’s current signal is mixed, and its Zacks Rank can change as estimates are revised after the results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ONEOK, Inc. (OKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Enterprise Products Partners L.P.EPD delivered record second-quarter 2026 volumes, earnings and cash flow as global demand pulled more U.S. energy through its system. The central question is whether contracted assets and sanctioned projects can offset the normalization of unusually favorable market differentials. The Zacks Consensus Estimate points to continued growth, with earnings projected at $2.94 per unit in 2026 and $3.20 in 2027. Second-quarter earnings rose 27.3% to 84 cents per unit, topping the Zacks Consensus Estimate by 12%. Revenues increased 60.8% to $18.3 billion and beat the consensus mark by 34.6%. Equivalent pipeline volumes rose 8% to a record 14.7 million barrels per day (MMBbl/d). Adjusted EBITDA reached a record $2.83 billion, while operational distributable cash flow increased 21% to $2.31 billion and covered the quarterly distribution 1.9 times. Marine terminal volumes rose 33% to a record 2.8 MMBbl/d. Management attributed about $200 million of second-quarter results to incremental volumes and margins created by acute global demand for U.S. energy during April and May. That contribution was spread across natural gas liquids, crude oil, petrochemicals and other operations. The breadth matters because Enterprise’s integrated network can capture value through pipelines, storage, fractionation and export terminals rather than relying on one asset. Management said the strong cash differentials seen in April and May had largely normalized. Marine terminal activity also returned to more typical levels in June and July after the initial surge in demand. Future growth therefore depends more heavily on recurring fee income, sustained throughput and new projects. Fee-based activities represented 80% of gross operating margin in the first half of 2026, but the remaining exposure to spreads, differentials and marketing margins can still create earnings volatility. Natural gas liquids gross operating margin increased to $1.55 billion from $1.30 billion. Permian processing inlet volumes rose 14% to 4.3 billion cubic feet per day, while natural gas liquids pipeline volumes reached a record 4.9 MMBbl/d Crude oil gross operating margin advanced to $485 million, natural gas delivered a record $556 million and petrochemical and refined products margin rose to $418 million. Higher volumes, processing margins, transportation fees and marketing activity supported the gains. Enterprise has $6.5 billion of major projects under construction. The Houston Ship Channel liquefied petroleum gas expansion is expected to begin service by year-end 2026, followed by additional processing, fractionation and pipeline projects through early 2029. More than 80% of expected 2027 growth spending of about $3 billion is already committed. Energy Transfer LP ET, with diversified natural gas, natural gas liquids, crude and refined-products infrastructure, is a relevant export-focused peer. ONEOK, Inc. OKE also operates integrated natural gas liquids, gas, refined-products and crude assets, making project execution and contracted volume growth important comparison points. The Zacks Consensus Estimate calls for current-quarter earnings of 72 cents per unit, up 18% from the year-ago period. Current-year earnings are projected to rise 10.5% to $2.94 per unit, followed by an 8.8% increase to $3.20 in 2027. Still, the most recent consensus estimates of 70 cents for the current quarter, $2.88 for 2026 and $3.13 for 2027 sit below the broader consensus marks. The trend supports continued earnings growth through 2027, though the lower recent estimates warrant some caution. Image Source: Zacks Investment Research The operating setup supports measured optimism. The Zacks Consensus Estimate implies 8.8% earnings growth in 2027, but normalized differentials, higher capital intensity and execution risk could limit the pace of improvement. EPD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here. Its Value Score of B is more favorable than its Growth Score of C, Momentum Score of C and VGM Score of C. The combination suggests relatively better value characteristics, while the broader score mix and Hold rank support a balanced stance rather than an aggressive near-term view. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report ONEOK, Inc. (OKE) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in ONEOK, Inc.? Here are five stocks we like better. ONEOK raised its 2026 guidance for the second time this year after second-quarter net income rose 13% year over year to $965 million and adjusted EBITDA increased 7% to $2.12 billion. The company now targets midpoint net income of $3.6 billion and adjusted EBITDA of $8.35 billion. The company is expanding its infrastructure, including refined-products, Permian processing, fractionation and LPG export capacity. Major projects are expected to lift Permian processing capacity to nearly 2.4 billion cubic feet per day and add 100,000 barrels per day of Mid-Continent fractionation capacity. Strong volumes and tax benefits support ONEOK’s outlook: NGL throughput rose 7%, refined-products shipments increased 8%, and cumulative cash-tax benefits are now estimated at $2.6 billion, helping defer meaningful cash-tax payments until 2031. 3 Companies to Watch as Natural Gas Stocks Make a Comeback ONEOK (NYSE:OKE) raised its 2026 financial guidance for the second time this year after reporting higher second-quarter earnings, citing record natural gas liquids throughput, strong refined-products demand and volume growth across its operations. President and Chief Executive Officer Pierce Norton said the company’s results reflected both a constructive energy-market backdrop and the benefits of its integrated asset network, which connects supply basins with domestic and international markets for natural gas, NGLs, crude oil and refined products. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Build Stability and Income With 3 Overlooked Dividend Leaders “The quarter highlighted the positioning of our asset footprint, the value of our integrated platform, and the outstanding execution of our employees,” Norton said. ONEOK reported second-quarter net income of $965 million, or $1.53 per diluted share, up 13% from a year earlier. Adjusted EBITDA totaled $2.12 billion, an increase of 7% year over year, Chief Financial Officer Walt Hulse said. → 3 Drone Stocks That Should Soar After the Summer Slump 5 Stocks With Above-Market Yields Just Raised Payments Further The company now expects 2026 net income at a midpoint of $3.6 billion, diluted earnings per share at a midpoint of $5.68, and adjusted EBITDA at a midpoint of $8.35 billion. Compared with ONEOK’s original guidance issued in February, the updated outlook represents increases of $150 million for net income and $250 million for adjusted EBITDA. Hulse said the Natural Gas Pipelines and refined products and crude businesses were performing toward the upper end of their original adjusted EBITDA guidance ranges. Natural Gas Liquids and gathering and processing businesses also remained positioned well for the balance of the year. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Capital-expenditure guidance was unchanged at $2.7 billion to $3.2 billion for 2026. However, the company expects spending to accelerate during the second half as several large projects approach completion, putting capital spending closer to the upper end of that range. ONEOK also increased its estimate of cumulative cash-tax benefits from tax legislation. Hulse said the company now expects about $2.6 billion in cumulative cash-tax benefits, compared with a prior estimate of approximately $1.5 billion. Combined with existing tax attributes, those benefits are expected to defer meaningful cash-tax payments until 2031, extending the company’s cash-tax runway by about two years. Chief Operating Officer Randy Lentz said the company placed its Denver-area refined-products expansion into service on Aug. 1. The project adds 35,000 barrels per day of capacity and provides a direct jet-fuel connection to Denver International Airport. The Denver expansion is supported largely by long-term, firm take-or-pay contracts, according to Chief Commercial Officer Sheridan Swords. While the system’s new 16-inch pipeline could have capacity of up to 200,000 barrels per day, the initial project is operating at 35,000 barrels per day. In the Permian Basin, ONEOK expects to complete 110 million cubic feet per day of Delaware Basin processing-plant expansions during the third quarter. It also increased the planned capacity of its Bighorn Plant to 400 million cubic feet per day from the originally planned 300 million cubic feet per day. Bighorn remains scheduled for completion in mid-2027. Once those projects are completed, ONEOK expects its Permian processing capacity to reach nearly 2.4 billion cubic feet per day. The company also said it has secured equipment for an additional Permian plant that could be deployed as needed. Elsewhere, ONEOK began construction on the 120 million-cubic-foot-per-day Cutter 2 Plant in the Powder River Basin, which is expected to enter service in the first quarter of 2028. The company’s Medford Fractionation Phase I project remains on track for completion in the fourth quarter and is expected to add 100,000 barrels per day of Mid-Continent fractionation capacity. Phase II is expected to be completed in the first quarter of 2027. Swords said raw NGL feed throughput rose 7% year over year across ONEOK’s system. Volumes in the Gulf Coast Permian region increased 15%, aided by production growth and the ramp-up of recently connected third-party plants. He said higher NGL prices and export demand supported ethane recovery across all regions and were expected to remain favorable into the third quarter. Increased ethane volumes, however, weighed somewhat on margins because ethane transportation and fractionation rates are lower than rates for heavier NGL components. ONEOK reached its targeted 80% contracting threshold for the 200,000 barrels per day of LPG export capacity under construction through its export-dock joint venture. Swords said customer interest remained strong, including discussions that extend beyond the initial contract period and into the next decade. In refined products and crude, refined-products shipments increased 8% year over year, supported by gasoline and diesel demand, refinery utilization and refinery-maintenance activity. At the Seabrook crude-export joint venture, throughput rose about 20% from the first quarter and included record crude-oil loadings in May. The facility remains highly contracted under take-or-pay agreements, management said. Midland crude-gathering volumes increased 10% from the first quarter. The company said more than 30 rigs were operating on its Midland acreage, while activity also increased in the Mid-Continent and Rocky Mountain regions. The Natural Gas Pipelines segment benefited during the quarter from Waha-to-Katy price differentials. ONEOK expects lower segment earnings in the second half as Permian takeaway capacity enters service and those differentials narrow, consistent with its full-year guidance assumptions. Norton reiterated ONEOK’s target of mid- to high-single-digit adjusted EBITDA growth over the next five to seven years. He pointed to growth in the Permian, Mid-Continent and Powder River basins; stable Bakken production; LPG exports; crude-oil demand for reliable U.S. supply; and natural-gas demand associated with LNG exports, power generation and industrial development. Management said most of that expected growth is expected to come from organic opportunities, including completed projects, brownfield expansions, commercial optimization and greater utilization of existing assets. Bolt-on acquisitions could supplement the strategy, but Norton said the company would remain disciplined and intentional in pursuing them. Hulse said the company’s capital spending could moderate to a run rate of roughly $2 billion to $2.5 billion after the current project backlog is completed. He said the pipeline of future projects generally consists of midsize investments rather than projects exceeding $1 billion. ONEOK has also secured a natural-gas supply agreement for 1 gigawatt of power-plant demand and is in late-stage discussions on additional potential data-center supply opportunities. Swords said such projects could require more than $100 million of capital investment while offering firm-demand contracts and attractive returns. ONEOK, Inc (NYSE: OKE) is a publicly traded midstream energy company headquartered in Tulsa, Oklahoma. The company owns and operates a portfolio of natural gas and natural gas liquids (NGL) pipelines, processing facilities, fractionators and storage and terminal assets. Its operations are focused on gathering, processing, transporting, fractionating and marketing NGLs and interstate natural gas, providing critical infrastructure that connects hydrocarbon production to refineries, petrochemical plants and other end markets. ONEOK's asset base includes pipeline systems and processing plants that move and condition natural gas, along with infrastructure for the transportation, storage and fractionation of NGLs such as ethane, propane and butane. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ONEOK Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

ONEOK Inc. OKE reported second-quarter 2026 operating earnings per share (EPS) of $1.53, which beat the Zacks Consensus Estimate of $1.39 by 10.07%. The bottom line increased 14.2% from the year-ago quarter’s figure of $1.34.Results benefited from record natural gas liquids raw feed throughput, higher natural gas processing and refined products volumes, and increased optimization and marketing activity. Operating revenues for the quarter totaled $12.05 billion, which beat the Zacks Consensus Estimate of $10.66 billion by 13.03%. The top line improved 52.8% from $7.89 billion in the prior-year quarter. ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote Adjusted EBITDA was $2.12 billion, up 7.1% year over year.Operating income totaled $1.59 billion, up 11.3% from the prior-year level of $1.43 billion.Operations and maintenance expenses increased to $715 million from $618 million, reflecting larger operating footprint and project-related spending.ONEOK incurred interest expenses of $434 million, down 0.91% from $438 million recorded in the year-ago period. Natural Gas Liquids adjusted EBITDA slipped 2.1% year over year to $659 million. Higher operating costs and lower transportation and storage volumes more than offset gains from optimization and marketing and exchange services.NGL raw feed throughput rose 6.7% year over year to 1,630 thousand barrels per day.Raw feed throughput increased across the system. Gulf Coast/Permian volumes rose 15.2% year over year to 605 MBbl/d. Rocky Mountain volumes increased to 478 MBbl/d, while Mid-Continent throughput reached 547 MBbl/d.The Medford fractionator expansion remains a key capacity project. Phase I, adding 100,000 barrels per day, is expected to be completed in the fourth quarter of 2026. Phase II, providing another 110,000 barrels per day, is scheduled for completion in the first quarter of 2027. Refined Products and Crude adjusted EBITDA increased 12.6% year over year to $627 million. The improvement reflected higher refined products volumes and rates, along with stronger crude marketing earnings. Higher employee-related costs, property taxes and outside-service expenses partly offset these gains.Refined products volumes shipped rose 8.4% to 1,629 MBbl/d. Gasoline volumes reached 943 MBbl/d, distillates totaled 577 MBbl/d and aviation and other volumes were 109 MBbl/d. The average refined products tariff rate increased to 5.5 cents per gallon from 5.3 cents.Crude oil volumes declined slightly year over year to 1,766 MBbl/d. ONEOK mechanically completed its Greater Denver refined products pipeline expansion in early August, increasing capacity by 35,000 barrels per day. Natural Gas Gathering and Processing adjusted EBITDA edged up 1.1% year over year to $546 million. Higher production volumes and improved realized condensate prices were partly offset by higher operating costs and weaker realized NGL pricing.Natural gas processed increased 2.4% to 5,707 million cubic feet per day. Volumes benefited from increased production across all operating regions.Natural Gas Pipelines adjusted EBITDA jumped 58.0% to $297 million. Favorable price differentials between the Waha Hub and Katy, TX, markets, higher firm transportation revenues and stronger contributions from Northern Border Pipeline and Matterhorn Express Pipeline supported the increase.Transportation capacity contracted rose to 7,735 thousand dekatherms per day from 7,206 thousand a year ago. Contracted capacity represented 92% of available capacity compared with 90% in the prior-year quarter. Cash and cash equivalents amounted to $161 million as of June 30, 2026, compared with $78 million at the end of 2025.As of June 30, 2026, short-term borrowings increased to $1.50 billion from $820 million as of Dec. 31, 2025.As of June 30, 2026, long-term debt (excluding current maturities) totaled $30.77 billion compared with $30.76 billion as of Dec. 31, 2025.Cash provided by operating activities totaled $2.99 billion for the first six months of 2026, up from $2.43 billion a year earlier. Capital expenditures totaled $1.48 billion, while dividends paid amounted to $1.35 billion. ONEOK increased its 2026 net income guidance to $3.41-$3.79 billion, resulting in earnings per common share range of $5.38-$5.99. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.56.  Adjusted EBITDA is projected to be in the range of $8.20-$8.50 billion in 2026.The company kept its 2026 capital expenditure guidance unchanged at $2.70-$3.20 billion. Management cited continued segment strength, strategic opportunities across the system and a constructive market environment. ONEOK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delek Logistics Partners, LP DKL is scheduled to release second-quarter results on Aug. 5, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.12 per share, which indicates a year-over-year increase of 34.94%.DKL’s long-term earnings growth rate is 22.24%. The Zacks Consensus Estimate for second-quarter sales is pegged at $253.94 million, which calls for a year-over-year rise of 3.08%. Targa Resources TRGP is slated to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.71 per share, which indicates a year-over-year decrease of 5.57%.TRGP’s long-term earnings growth rate is 18.18%. The Zacks Consensus Estimate for second-quarter sales is pinned at $4.95 billion, which suggests a year-over-year increase of 16.26%. Plains All American Pipeline PAA is slated to report second-quarter results on Aug. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which indicates a year-over-year increase of 11.11%.PAA’s long-term earnings growth rate is 1.63%. The Zacks Consensus Estimate for second-quarter sales is pegged at $14.87 billion, which suggests a year-over-year increase of 39.74%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ONEOK, Inc. (OKE) : Free Stock Analysis Report Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL) : Free Stock Analysis Report Targa Resources, Inc. (TRGP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management raised 2026 financial guidance for the second time this year, citing record NGL throughput volumes and strong refined products demand across the integrated platform. Performance attribution is credited to the connectivity of the asset footprint, which allows the company to convert a constructive energy backdrop into visible earnings growth across multiple commodities. The company targets mid- to high single-digit adjusted EBITDA growth over the next 5 to 7 years, supported by structural growth from recently completed projects and significant operating leverage requiring minimal capital. NGL segment growth was driven by a 7% year-over-year increase in raw feed throughput, with strength in the Permian and Rocky Mountain regions more than offsetting specific contract rolls. Refined products outperformance was supported by high refinery utilization and bidirectional connectivity between the Mid-Continent and Gulf Coast, allowing efficient supply-demand matching. Management highlighted the value of 'white space' on existing assets, which provides flexibility to meet customer timing and needs with high-return, low-capital investment. Guidance for 2026 net income was increased to a $3.6 billion midpoint, with adjusted EBITDA raised to $8.35 billion, reflecting momentum expected to carry into 2027. Cash tax benefits are now projected at $2.6 billion, up from $1.5 billion, which is expected to defer meaningful cash tax payments until 2031 and enhance future free cash flow. Capital expenditures are expected to trend toward the upper end of the $2.7 billion to $3.2 billion range as major projects like Medford Phase 1 and Delaware Basin expansions approach completion. The company reached an 80% contracting threshold for its 200,000 barrel per day LPG export capacity, with discussions already extending into the next decade. Natural Gas Pipelines earnings are expected to moderate in the second half of 2026 as new Permian takeaway capacity enters service and price differentials narrow. The Denver area refined products expansion was placed in service on August 1, adding 35,000 barrels per day of capacity and a direct jet fuel connection to Denver International Airport. The Bighorn plant capacity was upsized from 300 million to 400 million cubic feet per day to support accelerating producer activity in the Permian Basin. Management noted that while a hedge position limited the capture of wider spring blending spreads, new hedges have been secured at higher prices through spring 2027. A supply agreement for 1 gigawatt of power plant demand was awarded, reinforcing the company's strategy to capture growing natural gas demand from power generation and data centers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that overall NGL margins saw slight compression due to a higher mix of ethane versus C3+ liquids, particularly in the Bakken where discretionary ethane carries lower rates. A substantial volume uptick was noted in July and August as the Waha-to-Katy spread narrowed, bringing previously shut-in volumes back onto the NGL system. Future growth is expected to be supported by a 'singles and doubles' strategy, focusing on projects in the $100 million to $500 million range rather than $1 billion-plus mega-projects. Annual growth CapEx is projected to moderate to a $2 billion to $2.5 billion run-rate, which management believes will drive significant free cash flow and support EPS growth exceeding EBITDA growth. Commercial discussions for large-scale data centers are advancing, though management acknowledged that reaching Final Investment Decisions (FID) is taking longer than initially anticipated. The company secured a 1 gigawatt power supply contract involving over $100 million in capital at attractive returns, serving as a template for future utility-scale opportunities. NGL transport and fractionation contracts in the Bakken are largely extended through the end of the decade or into the 2030s, mitigating immediate re-contracting risk. Management views potential new gas takeaway projects in the Bakken as a net positive, as improved producer netbacks typically incentivize higher overall basin production.

This article first appeared on GuruFocus. Net Income: Reported net income of $967 million, or $1.53 per diluted share, a 13% increase year over year. Adjusted EBITDA: Totaled $2.12 billion, up 7% year over year. 2026 Guidance (Raised): Net income midpoint of $3.6 billion, diluted EPS midpoint of $5.68, and adjusted EBITDA midpoint of $8.35 billion. Capital Expenditures: 2026 guidance unchanged at $2.7 billion to $3.2 billion. Cash Tax Benefits: Now expects approximately $2.6 billion in cumulative cash tax benefits, extending cash tax deferral until 2031. NGL Throughput Volumes: Increased 7% year over year, with Gulf Coast Permian region up 15%. Refined Products Volumes Shipped: Increased 8% year over year. Seabrook Crude Export Throughput: Increased approximately 20% compared with the first quarter, with record crude oil loadings in May. Midland Crude Gathering Volumes: Increased 10% compared with the first quarter. Warning! GuruFocus has detected 9 Warning Signs with OKE. Is OKE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ONEOK Inc (NYSE:OKE) raised its 2026 financial guidance for the second time this year, with adjusted EBITDA midpoint now at $8.35 billion, reflecting strong year-to-date performance and momentum. Record NGL throughput volumes and strong refined products demand drove a 7% year-over-year increase in adjusted EBITDA to $2.12 billion in Q2 2026. The company secured 80% contracting for its 200,000 barrels per day LPG export capacity, with robust customer interest extending into the next decade. ONEOK Inc (NYSE:OKE) extended its cash tax runway to 2031, with cumulative cash tax benefits now estimated at $2.6 billion, enhancing future free cash flow generation. The Denver area refined products expansion was placed in service, adding 35,000 barrels per day of capacity and a direct jet fuel connection to Denver International Airport. Permian processing capacity is set to increase to nearly 2.4 billion cubic feet per day with the Bighorn plant upsized to 400 million cubic feet per day, supporting producer growth. The company secured a 1-gigawatt power generation supply agreement, expanding its participation in the growing natural gas demand from data centers and power generation. Mid- to high-single-digit adjusted EBITDA growth is targeted over the next five to seven years, supported by a growing pipeline of high-return organic projects and operating leverage. Seabrook crude export joint venture throughput increased approximately 20% quarter-over-quarter, with record crude loadings in May and fully contracted take-or-pay agreements. Midland crude gathering volumes increased 10% quarter-over-quarter, with more than 30 rigs operating on the acreage, reflecting strength in this higher-margin business. NGL margins were slightly softer in Q2 due to increased ethane recovery, which carries lower rates than C3+ volumes, impacting overall segment margins. The company's hedge position limited its ability to fully capture the benefit of wider spring blending spreads in the Refined Products segment. Natural Gas Pipelines segment earnings are expected to decline in the second half of 2026 as Permian takeaway capacity enters service and Waha-to-Katy differentials narrow. Commercialization of data center projects has taken longer than anticipated, with several projects not yet reaching FID, delaying potential revenue contributions. Some Mid-Continent contracts are expected to roll off at lower market rates, potentially impacting future margins in that region. The company's 2026 capital expenditure guidance remains unchanged at $2.7 billion to $3.2 billion, with spending expected to accelerate in the second half of the year. The Bakken contract roll effective at the beginning of the quarter was a headwind, though it was offset by growth in other areas. The company's long-term growth outlook assumes no major M&A, with the majority of growth driven by organic projects and operational optimization. The 1-gigawatt power generation supply agreement requires over $100 million in capital, which may pressure near-term free cash flow. The company's growth is partly dependent on continued producer activity and rig additions, which could be subject to market volatility. Q: How much of the mid- to high-single-digit EBITDA growth is underpinned by filling existing system "white space" versus building new infrastructure, and what is the timing for the growing project backlog?A: CEO Pierce Norton stated the growth is driven by multiple reinforcing factors, not just one. These include continued strong Permian, Mid-Continent, and Powder River growth; stable Bakken growth through improved well productivity; rising US LPG exports; a shift in global crude demand to reliable supply; and LNG exports driving natural gas demand. CFO Walt Hulse added that the project backlog is mostly mid-sized, with no $1 billion-plus projects on the horizon, which should moderate CapEx to a $2 billion to $2.5 billion run rate going forward, generating significant free cash flow. Q: Can you provide more color on the NGL segment's strong volumes but softer margins in Q2, and how should we think about margins in the back half of the year?A: Chief Commercial Officer Sheridan Swords explained that margins were slightly reduced due to a higher mix of ethane recovery versus C3+ volumes across the Permian, Mid-Continent, and Bakken. Since ethane is charged at a lower tiered rate than C3+, the increased ethane volumes diluted overall margins. However, he noted a substantial increase in Permian volumes recently, driven by the narrowing Waha-to-Katy spread, with July being a great month and August following suit. Q: What is the duration of your NGL TNF contracts out of the Bakken, given E&Ps are looking to reduce midstream costs?A: Sheridan Swords confirmed that the rates out of the Bakken are extended for a long period, with nothing material coming up until late this decade, and most contracts extending into the next decade. He expressed confidence in the current NGL rates out of the Bakken. Q: With the Denver refined products expansion now in service, is there meaningful exposure to the PADD IV versus PADD II spread, and what are the expansion opportunities for this system?A: Swords stated that the 35,000 barrels per day of new capacity is fully contracted under firm take-or-pay agreements, with minimal exposure to the spread. However, the 16-inch pipeline has potential capacity of up to 200,000 barrels per day, positioning ONEOK to supply growing PADD IV demand, including potential projects into Salt Lake City, where they can add capacity the cheapest and quickest. Q: How much remaining uncontracted capacity is on the West Texas LPG pipeline, and can legacy EnLink volumes be migrated to it as contracts roll?A: Swords noted the mainline expansion gives capacity up to 740,000 barrels per day, with plenty of room to meet demand from plant expansions and third-party growth. Regarding legacy EnLink volumes, he confirmed that a little over 50,000 barrels per day currently contracted on a third-party pipeline will roll off starting in late 2026 through 2028, and all that volume will move directly to ONEOK's NGL pipeline when contracts expire. Q: If gas egress improves in the Bakken, how does that impact your outlook for basin growth, BTU levels, and ethane recovery?A: Swords explained that improved producer netbacks would incentivize more production. On ethane, the discretionary volumes coming out of the Bakken are largely tied to what is held back in Canada, and he still sees a nice spread on discretionary ethane going forward. The company has ample NGL egress capacity, running up to 500,000 barrels per day, and can flex on ethane as needed. Q: What is the run-rate growth CapEx budget to support the long-term growth outlook, and how much is allocated to power generation/data center verticals?A: CFO Walt Hulse indicated CapEx should moderate to a $2 billion to $2.5 billion run rate as the current backlog is completed. Swords added that ONEOK secured a 1-gigawatt power generation supply contract, a project over $100 million in capital with a very nice return at firm demand, and is in late-stage discussions for other AI data center opportunities. Hulse noted these projects fit nicely into the capital budget as "singles and doubles" in the $100 million to $500 million range. Q: How do you see the opportunity set for exports evolving, both for the LPG export project and brownfield expansions on existing liquids infrastructure?A: Swords expressed excitement about reaching the 80% contracting threshold on the LPG export dock and noted discussions with offtakers for contracts extending into the next decade. He highlighted strong demand for US supply security for both LPG and crude oil, with the Seabrook export dock 100% contracted under take-or-pay agreements. Pierce Norton added that the remaining 20% capacity was intentionally left open for potential upside, including full wellhead-to-water pulls from producers. Q: Does the mid- to high-single-digit EBITDA growth assume any bolt-on M&A, and how does it translate to EPS growth?A: Pierce Norton stated the majority of growth is organic, driven by system optimization, synergies, and filling white space with little capital. On M&A, he reiterated a disciplined and intentional approach. CFO Walt Hulse added that EPS growth should exceed EBITDA growth, especially as the company moves into more free cash flow and potentially buys back shares. Q: Can you quantify the incremental ethane recovery seen in Q2, and how did it impact volumes in the Bakken and Mid-Continent?A: Swords noted a significant increase in ethane recovery in the Mid-Continent, one of the biggest at full rates. In the Bakken, ethane recovery was up, but the lower rate for discretionary ethane versus C3+ impacted overall margins by about $0.01. In the Permian, growth was more weighted to the C3+ side. Q: What drove the upsizing of previously announced projects like the Bighorn plant, and is it from new or existing customers?A: COO Randy Lentz said it was a bit of both. Existing customers are performing well, helped by the narrowing Waha-to-Katy spread, and the commercial team has done a good job securing additional deals and interest from existing customers. The Bighorn plant was upsized from 300 to 400 million cubic feet per day at a very cheap cost, improving the project's returns. QFor the complete transcript of the earnings call, please refer to the full earnings call transcript.