ONEOK Earnings Rise as Company Raises 2026 Guidance

ONEOK earnings rose in the third quarter of 2026, and the pipeline operator raised its full-year guidance after stronger volumes and its acquisition of Brazos Midstream’s Permian Midland Basin assets. Quarterly profit included a $336 million one-time noncash tax benefit.

Key Takeaways

• Third-quarter net income attributable to ONEOK rose to $1.35 billion from $939 million a year earlier.
• The company raised its 2026 adjusted EBITDA guidance to a range of $8.5 billion to $8.6 billion.
• The revised outlook includes expected contributions from the completed Brazos acquisition.

ONEOK earnings and the tax benefit

ONEOK reported on October 27 that diluted earnings per share rose to $2.13 in the three months ended September 30, 2026, from $1.49 a year earlier. Net income attributable to the company increased to $1.35 billion from $939 million.

The 2026 figures included a one-time noncash income tax benefit of $336 million, or $0.53 per diluted share, resulting from a reorganization related to ONEOK’s minority equity transaction.

Adjusted EBITDA, a non-GAAP measure, increased 6% to $2.24 billion. ONEOK said results benefited from higher natural gas liquids, refined products and natural gas volumes, as well as increased optimization and marketing activity.

Volumes rise, but segment results vary

Natural gas liquids raw feed throughput rose 6% from a year earlier, including a 16% increase in the Gulf Coast and Permian region. Refined products volumes shipped also rose 6%, while Permian natural gas volumes processed increased 4%.

Despite higher volumes, adjusted EBITDA fell in the natural gas liquids and natural gas gathering and processing segments. ONEOK cited higher operating costs among the factors affecting both businesses. Refined products and crude segment earnings rose, helped by higher liquids blending and crude marketing earnings.

Higher guidance includes Brazos contribution

ONEOK raised its 2026 net income guidance to $4.09 billion–$4.27 billion, with a midpoint of $4.18 billion. Its adjusted EBITDA guidance midpoint is $8.55 billion. The company also raised its expected earnings per diluted share midpoint to $6.30.

The revised guidance reflects year-to-date performance and volumes, as well as approximately $75 million in expected contributions from the completed Brazos acquisition. ONEOK expects approximately $50 million of that amount to be reflected in adjusted EBITDA net of transaction costs.

The company expects approximately $3.5 billion in 2026 capital expenditures, reflecting growth opportunities and spending related to the acquisition. It also said it extinguished nearly $5.5 billion of debt principal in September and completed a $9 billion minority equity investment.

Next milestone

ONEOK management is scheduled to discuss the results on a conference call at 11 a.m. Eastern on October 28, 2026.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.