The board of directors of
ONEOK Partners L.P.
) has increased the quarterly cash distribution rate by 0.7%
sequentially and 12.6% year over year to 71.5 cents per
unit. The new distribution rate will be effective from
first-quarter 2013 and is scheduled to be paid on May 15, 2013 to
the unitholders of record as of Apr 30, 2013.
Previously, ONEOK Partners' had increased its cash distribution
in Jan 2013. Quarterly distribution payout climbed 3.6% to 71
cents per unit. The partnership values its owners and has been
trying to boost their income by hiking the cash distribution
almost every year since 1998. Since Apr 2006, the partnership's
cash distribution has increased 79%.
It is evident from ONEOK Partners' cash distribution history that
the partnership is always on the lookout for maximizing its
unitholder's wealth. In Feb 2013, the partnership expressed its
intention to raise its total distribution by 8-12%, on average,
between 2012 and 2015 and maintain a minimum annual coverage
ratio of 1.0-1.05 times. In 2013, ONEOK Partners intends to
increase its cash distribution by 0.5 cents per unit quarterly,
subject to the required approvals.
ONEOK Partners' cash flow from operating activities was $0.95
billion in 2012 and cash balance was $0.54 billion as of Dec 31,
2012. A strong financial position allows the partnership to meet
its anticipated cash requirements for the future growth projects.
In order to continue with its ventures, ONEOK Partners recently
completed three important projects - Bakken natural gas liquids
(NGL) pipeline, Stateline II plant and an ethane header pipeline.
All the three projects are part of the partnership's $4.7-$5.3
billion growth program through 2015. These initiatives would add
to ONEOK Partners' profitability in the long run, which will
subsequently enable it to provide higher returns to the
Though ONEOK Partners has a strong financial position and several
prospective growth projects, we are primarily concerned about
volatile commodity prices and over-dependence on weather
patterns. These negatives can challenge its future performance.
ONEOK Partners currently has a Zacks Rank #3 (Hold). Other stocks
from the industry that are presently performing better include
Atlas Pipeline Partners L.P.
Delek Logistics Partners LP
NuStar Energy L.P.
). All the stocks carry a Zacks Rank #2 (Buy).
ATLAS PIPLN PTR (APL): Free Stock Analysis
DELEK LOGISTICS (DKL): Free Stock Analysis
NUSTAR ENERGY (NS): Free Stock Analysis
ONEOK PARTNERS (OKS): Free Stock Analysis
To read this article on Zacks.com click here.