ONEOK Profit Rises on Strong Rocky Mountain Region Volumes
(Reuters) — U.S. pipeline operator ONEOK reported a rise in second-quarter profit on Monday, as it moved more natural gas and liquids from the Rocky Mountain region.
The company said its natural gas liquids (NGL) raw feed throughput volumes rose by 12% and natural gas processing volumes increased 10% in the Rocky Mountain region.
RELATED: ONEOK to Build 230-Mile Refined Products Pipeline from Kansas to Denver
The gains in volumes helped it offset lower NGL and natural gas prices. U.S. natural gas prices have plunged about 26% this year as mild weather and high storage levels have weakened prices for the commodity.
ONEOK's NGL unit adjusted core profit rose 19.1% to $635 million during the reported quarter while natural gas gathering and processing segment core profit rose by 18.5%.
NGLs, such as ethane and propane, are used as feedstock by the petrochemicals industry.
ONEOK, which has access to about half of entire U.S. refining capacity, said its total refined product volume shipments rose by 8.9% to 1.54 million barrels per day, sequentially.
"Looking ahead to the remainder of the year, we expect favorable market fundamentals, strong performance across our operations and additional opportunities ahead," said CEO Pierce Norton II.
The Tulsa, Oklahoma-based company reported net income of $780 million, or $1.33 per share, for the three months ended June 30, compared with $468 million, or $1.04 per share, a year earlier.
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