In the second quarter of 2014, ONEOK Inc.'s earnings per share
missed the Zacks Consensus Estimate and decreased year over year,
primarily due to increases in total operating expenses and shares
outstanding. Topline improved year over year thanks to a rise in
commodity sales and improved contribution from service operations.
ONEOK Inc.'s subsidiary ONEOK Partners continues to contribute
significantly to its top line and expected to act as catalyst for
its future growth. Steady cash generating capacity, and strong
project pipeline along with increasing capital spending level will
likely boost the company's future cash inflow. We appreciate the
company's effort towards maximizing shareholders' wealth through
payment of regular dividends. However, stringent regulations and
over-dependence on local distribution companies to supply energy
are matters of concern. Thus, we are maintaining our Neutral
Tulsa, OK-based ONEOK Inc., an energy company, engaged in
natural gas and natural gas liquids (NGL) businesses. The company
offers safe and reliable energy and services to its customers.
ONEOK Inc. is the sole general partner and owner of 41.0% of ONEOK
Partners L.P. (OKS), one of the largest publicly traded master
Previously, ONEOK Inc.'s operations are divided into three
reportable business segments: ONEOK Partners, Natural Gas
Distribution and Energy Services.
On Mar 31, 2014, ONEOK Inc. completed accelerated wind down of
its Energy Services business. In Jun 2013, the company announced
its plan to terminate operations of its energy services
In Jan 2014, ONEOK Inc. separated its Natural Gas Distribution
business (Kansas Gas Service, Oklahoma Natural Gas and Texas Gas
Service) and formed a newly independent entity called ONE Gas, Inc.
In Jul 2013, ONEOK Inc. announced its plan to split its natural gas
ONEOK Partners: The segment engages in gathering and processing
of natural gas and gathering, transporting and fractionating NGL,
primarily in the Mid-Continent and Rocky Mountain regions, which
include the Anadarko Basin of Oklahoma, Fort Worth Basin of Texas,
Hugoton and Central Kansas Uplift Basins of Kansas and the
Williston Basin of Montana and North Dakota and the Powder River
Basin of Wyoming.
Oneok Inc. (OKE): Read the Full Research Report
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
To read this article on Zacks.com click here.