Pipeline Firm ONEOK Posts Higher Fourth-Quarter Profit on Strong Volumes
(Reuters) — Pipeline operator ONEOK reported a 42% jump in fourth-quarter profit on Monday, as it transported higher volumes of natural gas and natural gas liquids.
ONEOK, which has about 50,000-mile long network of pipelines, said its Rocky Mountain region natural gas liquids (NGL) raw feed throughput volumes rose by 20%, compared to last year.
The company said it also saw a 17% rise in natural gas volumes processed.
Pipeline operators have benefited from a sharp rise in U.S. liquefied natural gas (LNG) exports with 8.6 million metric tons leaving the country's terminals in December.
ONEOK forecast 2024 net income in the range of $2.61 billion to $3.01 billion and said the forecast includes a full-year contribution from the refined products and crude segment.
The company moved into transporting refined products and oil last year following its acquisition of rival Magellan Midstream in an $18.8 billion deal.
Tulsa, Oklahoma-based ONEOK expects about $175 million in total realized annual cost and initial commercial synergy impacts in the first year after the Magellan acquisition.
ONEOK reported net income of $688 million, or $1.18 per share, for the three months ended Dec. 31, compared with $485 million, or $1.08 per share, a year earlier.
The company, which is the primary NGL transportation provider for the Williston and Powder River basins and Mid-Continent, said it expects 2024 capital expenditure in the range of $1.75 billion to $1.95 billion.
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