) reported fourth-quarter 2013 adjusted earnings per share of 54
cents, missing the Zacks Consensus Estimate by 10%. However,
quarterly earnings increased 1.9% year over year.
CHESAPEAKE UTIL (CPK): Free Stock Analysis
ONE GAS INC (OGS): Free Stock Analysis Report
ONEOK INC (OKE): Free Stock Analysis Report
ONEOK PARTNERS (OKS): Free Stock Analysis
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Excluding an after-tax cost of 8 cents per share as a result of
separation of the natural gas distribution business into a
separate publicly traded entity,
ONE Gas, Inc.
) and a non-cash after-tax charge of 3 cents related to the
accelerated wind down of the Energy Services segment, the company
reported GAAP earnings of 43 cents per share compared with 53
cents per share a year ago.
For 2013, ONEOK Inc.'s adjusted earnings were $1.78 per share,
surpassing the Zacks Consensus Estimate by 2.3%. Annual earnings
increased 4.1% year over year.
On a GAAP basis, the company's annual earnings were $1.27 per
share versus $1.71 per share a year ago. The variance between
GAAP and adjusted earnings was due to 42 cents per share of
non-cash after-tax charges related to the wind down of the energy
services segment and after-tax costs of 9 cents per share for the
ONE Gas separation.
In fourth-quarter 2013, ONEOK Inc. posted revenues of $4.14
billion, beating the Zacks Consensus Estimate by 12.2%. Reported
revenues increased 13.1% year over year.
The company's annual revenues were $14.6 billion, surpassing the
Zacks Consensus Estimate by 2.3%. Revenues surged 15.6% from the
prior-year figure of $12.6 billion.
ONEOK Partners L.P.
) segment reported operating income of $252.9 million, up 9.7%
year over year.
Natural Gas Distribution
's operating income dropped 18.7% year over year to $64.6
segment incurred a quarterly operating loss of $15.9 million
compared with a loss of $10.3 million in the year-ago quarter.
segment also reported a loss of $7 million.
In the quarter under review, ONEOK Inc.'s total operating
expenses jumped 18.6% year over year to $368.6 million primarily
due to higher operations and maintenance expenses, and a rise in
depreciation expenses and general taxes.
Quarterly operating income was $294.6 million, down 1.7% year
The company's interest expenses increased 7.8% year over year to
$90.1 million due to higher long-term debt.
ONEOK Inc.'s cash and cash equivalents as of Dec 31, 2013 were
$149.3 million compared with $583.6 million as of Dec 31, 2012.
As of Dec 31, 2013, long-term debt (excluding current maturities)
was $7,755 million versus $6,515.4 million as of Dec 31, 2012.
For 2013, cash provided by operating activities was $1,294.8
million, higher than $984 million in the year-ago comparable
ONEOK Inc.'s capital expenditure was $2,256.6 million in 2013, up
20.9% year over year primarily due to investment in several
projects at the company's ONEOK Partners and Natural Gas
ONEOK Inc. maintained its 2014 guidance provided on Dec 2, 2013.
Net income and operating income are expected to be $285 million
and $1,160 million, respectively, for the year.
ONEOK Inc. is expected to allocate $560 - $640 million for the
2014 dividend payout. The company plans to increase the 2014
annual dividend by 53% to $2.33 per share, subject to the board's
approval. The company targets average annual dividend increase in
the range of 20% - 25% between 2013 and 2016.
At the Peer
Chesapeake Utilities Corporation
) is slated to release its fourth-quarter 2013 earnings on Mar 7.
The Zacks Consensus Estimate is 97 cents.
Despite ONEOK Inc.'s quarterly earnings miss, reported results
increased year over year primarily due to a rise in natural gas
volumes gathered, processed and sold, and increased natural gas
liquids volumes gathered as a result of the completion of several
ONEOK Inc. is currently streamlining its operations. The company
recently completed the separation of its natural gas distribution
business. The company received a one-time cash payment of $1.13
billion from ONE Gas. ONEOK Inc. intends to utilize the fund to
reduce its debt level, thereby improving future margins.
As for growth projects, the company plans to invest around $2.27
billion in 2014, the majority of which will be under ONEOK
Partners' portfolio. Currently, the partnership is in the middle
of several projects and intends to start a few ventures shortly.
These projects will enable ONEOK Inc. to serve more customers in
ONEOK Inc. currently has a Zacks Rank #3 (Hold).