ONEOK’s Q3 Profit Surges 53% on Rocky Mountain NGL Demand; Annual Forecast Narrowed
(Reuters) — Pipeline operator ONEOK reported a 52.6% rise in third-quarter profit on Tuesday, helped by higher demand in the Rocky Mountain region as it transported higher volumes of natural gas and natural gas liquids.
The company reported a 7% growth in the Rocky Mountain region natural gas liquids (NGL) raw feed throughput volumes and a 5% increase in natural gas volumes processed in the region.
NGLs such as ethane and propane are used as feedstock by the petrochemicals industry.
ONEOK's NGL unit adjusted core profit rose 1.3% to $624 million during the reported quarter, while the core profit in the natural gas pipelines segment rose by 22.1%.
In June, ONEOK completed its acquisition of an NGLs pipeline system from Easton Energy, helping expand its NGL asset portfolio. The company also expanded its refined products pipeline to the Greater Denver area in July.
Its quarterly core profit from the refined products and crude segment was at $441 million.
The company's asset expansion continued in the third quarter, with the acquisition of midstream assets in the Permian and Mid-Continent basins.
The pipeline operator also narrowed its current-year profit forecast to be between $2.87 billion and $3.02 billion from its previous expectation of $2.73 billion to $3.03 billion.
The Tulsa, Oklahoma-based company reported net income of $693 million, or $1.18 per share, for the three months ended Sept. 30, compared with $454 million, or 99 cents per share, a year earlier.
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