ONEOK Partners, L.P.
), one of the largest publicly traded master limited partnerships
("MLP"), is scheduled to report its third-quarter 2012 financial
results after the market closes on October 30, 2012.
ONEOK Partners reported its second-quarter 2012 earnings per unit
of 69 cents compared with 67 cents in the year-ago quarter. The
year-over-year growth in earnings was primarily driven by
positive natural gas liquids ("NGL") price differentials and
higher NGL volumes gathered and fractionated related to the
recent expansion of Mid-Continent NGL gathering system. However,
quarterly earnings missed the Zacks Consensus Estimate by a
Net revenues during the quarter under review decreased 23.7% to
$2.1 billion from $2.8 billion reported in the year-ago quarter.
The partnership's quarterly top line fell short of the Zacks
Consensus Estimate of $2.8 billion.
Full-year 2012 and 2013 Guidance
ONEOK Partners increased its full-year 2012 net income guidance
to $860.0 million - $910.0 million from its previous guidance
range of $810.0 million - $870.0 million. The partnership's
mid-point 2012 operating income guidance increased to $948.0
million compared with its previous guidance of $910.0 million.
ONEOK Partners revised its 2012 mid-point earnings before
interest, tax, depreciation and amortization ("EBITDA")
projection to $1,289.0 million compared with its earlier guidance
of $1,249.0 million.
ONEOK Partners increased its distributable cash flow ("DCF")
guidance to the band of $975.0 million - $1,025.0 million from
the previous guidance range of $925.0 million - $985.0 million.
For full-year 2012, the partnership's mid-point capital
expenditures will be approximately $2.0 billion, including
approximately $1.9 billion in growth capital and $108.0 million
in maintenance capital.
As far as full-year 2013 financial guidance is concerned, ONEOK
Partners expects its full-year 2013 mid-point operating income to
increase to $1.03 billion from $0.95 billion. The partnership's
full-year 2012 EBITDA is expected to be in the range of $1.36
billion - $1.48 billion versus current 2012 guidance midpoint of
nearly $1.3 billion.
As per the Zacks Consensus Estimate, ONEOK Partners'
third-quarter 2012 earnings per unit came in at 71 cents, lower
than 84 cents reported in the prior-year quarter. Currently, the
Zacks Consensus Estimate for the partnership's earnings ranges
between 61 cents and 77 cents per unit.
For full-year 2012, the Zacks Consensus Estimate stands at $2.98
per unit, lower than the prior-year earnings of $3.35 per unit.
The current Zacks Consensus Estimate for full-year 2012 ranges
from $2.82 to $3.10 per unit.
Estimate Revisions Trend
For third-quarter 2012, we have observed that none of the
estimates have moved neither in the upward direction nor downward
direction in the last 7 days. Over the last 30 days, 1 estimate
moved upwards whereas 3 estimates moved in the downward
For full-year 2012, none of the estimates have moved upwards or
downwards in the last 7 days. In the last 30 days, one estimate
has moved upwards whereas 4 estimates followed the downward
In the last 7 days, the Zacks Consensus Estimate for
third-quarter 2012 earnings remained unchanged. On the other
hand, the Zacks Consensus Estimate for third-quarter 2012
earnings per unit declined by a penny to 71 cents from 72 cents
in the last 30 days.
The Zacks Consensus Estimate for full-year 2012 earnings remained
unchanged at $2.98 per unit in the last 7 days. In the last 30
days, the Zacks Consensus Estimate for full-year 2012 earnings
per unit declined by a penny to $2.98 from $2.99.
With respect to earnings surprises, ONEOK Partners has topped the
Zacks Consensus Estimate in three quarters out of the last four
quarters. Over the last four quarters, the surprise ranges from
-1.43% to 31.25% with an average of 16.84%.
We know that ONEOK Partners strongly follows internal growth
strategy. As per its full-year 2013 capital investment guidance,
the partnership plans to invest $5.7 - $6.6 billion, including
$2.5 billion in several internal growth projects. ONEOK Partners
expects its future growth to primarily come from the Bakken Shale
and Three Forks in the Mid-Continent region. The partnership
expects these facilities to provide a reliable and cost-effective
means of transportation compared to other alternatives, which
subsequently reduce ONEOK Partners' future cost of operations.
However, we are cautious about possibilities of an increase in
interest expenses due to new debt issuance, chances of volatile
equity and credit markets, uncertain weather condition, and
unpredictable commodity prices, which may significantly impact
ONEOK Partners' forthcoming financial results.
ONEOK Partners, L.P. currently has short-term Zacks #3 Rank (Hold
Tulsa, Oklahoma-based ONEOK Partners, L.P. is one of the largest
publicly traded master limited partnerships and a leader in
gathering, processing, storing and transporting of natural gas in
the U.S. Currently, the partnership has a market capitalization
of $13.28 billion. ONEOK Partners competes with
Plains All American Pipeline, L.P.
ONEOK PARTNERS (OKS): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
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