Oneok 2025 Q2 Earnings Surpasses Expectations as Net Income Surges 9.4%

ONEOK (OKE) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The results beat expectations with strong net income growth and affirmed 2025 financial guidance, reflecting the company’s strategic acquisitions and operational efficiency.

Revenue
Total revenue surged 61.2% to $7.89 billion in 2025 Q2, compared to $4.89 billion in the same period last year. Liquids commodity sales accounted for the largest portion at $6.03 billion, followed by commodity sales at $6.73 billion and residue natural gas sales at $694 million. Additional revenue streams included services and other at $1.16 billion, exchange services and natural gas gathering and processing at $383 million, and transportation and storage at $741 million, with other revenue contributing $37 million.

Earnings/Net Income
ONEOK’s earnings per share (EPS) rose slightly to $1.34 in 2025 Q2 from $1.33 in 2024 Q2, a 0.8% increase. Net income soared to $853 million, up 9.4% from $780 million a year earlier, highlighting enhanced profitability driven by strategic acquisitions and strong operational leverage.

Price Action
Following the earnings report, the stock price of ONEOK dropped 4.18% during the latest trading day, tumbled 9.31% during the most recent full trading week, and declined 7.84% month-to-date, reflecting mixed market sentiment.

Post-Earnings Price Action Review
A strategy of buying OKE when its earnings beat expectations and selling after 30 days delivered strong results. The strategy achieved a 78.68% return, significantly outperforming the benchmark, which had a 0.00% return. The strategy's Sharpe ratio of 0.81 indicates good risk-adjusted returns, and the maximum drawdown of 0.00% suggests low risk.

CEO Commentary
Pierce H. Norton II, ONEOK President and CEO, emphasized the company’s higher second-quarter performance driven by its integrated business model and sustained energy service demand. He highlighted strategic acquisitions delivering tangible benefits through synergies and organic growth, noting focused investments in high-return projects as a driver of operating leverage and incremental growth in key regions like the Permian Basin. Norton concluded that ONEOK’s strong balance sheet, stable customer base, and diversified earnings position the company well for long-term stakeholder value.

Guidance
ONEOK affirmed its 2025 financial guidance ranges, reporting second-quarter 2025 net income of $853 million and adjusted EBITDA of $1.98 billion. The company expects continued performance benefits from the EnLink and Medallion acquisitions, with second-quarter 2025 adjusted EBITDA including $21 million in transaction costs related to EnLink. ONEOK has repaid $600 million of senior notes and remains positioned to deliver long-term value through its high-return investments and strategic market presence.

Additional News
ONEOK made several notable moves in the three weeks following its earnings report. In May 2025, the company acquired the remaining 49.9% interest in Delaware G&P LLC, expanding its presence in the Delaware Basin. Also in May, ONEOK repurchased $169 million of senior notes for $133 million, including accrued and unpaid interest. In June, the company repaid the remaining $422 million of 4.15% senior notes at maturity. In July, ONEOK acquired an additional 30% interest in BridgeTex Pipeline Company, LLC, resulting in a 60% ownership stake. Additionally, the company declared a quarterly dividend of $1.03 per share, or $4.12 annually, reinforcing its commitment to shareholder returns. Sustainability milestones included receiving an MSCI ESG Rating of AAA in May and being included in the FTSE4Good Index in June.