ONEOK Inc., Oklahoma City, Okla., increased net income 21% to $414.4 million in second-quarter 2022 from the same period last year. Adjusted earnings increased 11% for the same period when compared to a year ago.
Results benefited from higher average fee rates and increased volumes in the natural gas liquids segment, higher realized commodity prices in the natural gas gathering and processing segment, and increased storage services in the natural gas pipelines segment, the company said in a release Aug. 8. Net income for the period also benefited from lower interest expense primarily related to lower debt balances and increased capitalized interest.
Second quarter results were impacted by severe weather in the Rocky Mountain region in April 2022, resulting in power outages impacting natural gas and natural gas liquids (NGL) volumes from the region. By the end of May 2022, volumes approached pre-outage levels.
In May, a 25,000 b/d expansion on a portion of ONEOK's West Texas NGL pipeline was completed. In April, a 1.1-bcf expansion of Texas natural gas storage capacity was completed. The company is currently expanding Oklahoma storage capabilities by 4 bcf, expected to be complete in second-quarter 2023.
Construction of the 200-MMcfd Demicks Lake III natural gas processing plant in the Williston basin is expected to be complete in first-quarter 2023.
Construction of the 125,000-b/d MB-5 fractionator in Mont Belvieu, Tex., is expected to be complete early in second-quarter 2023.
The company’s 210,000-b/d Medford, Okla., NGL fractionation plant out of service following a fire July 9, 2022. All personnel are safe and accounted for and ONEOK continues efforts to determine the cause of the event. The plant is expected to remain out of service for an extended period.
The company's integrated NGL pipeline, fractionation, and storage assets between the mid-continent and Gulf Coast, and fractionation and storage arrangements with industry peers, have allowed ONEOK to provide midstream services while the infrastructure is out of service, the company said.