ONEOK Inc., Tulsa, Okla., has increased its full-year 2023 net income guidance on higher second-quarter 2023 results.
The company expects 2023 net income of $2.39-2.59 billion, up from $2.26-2.56 billion, excluding the impact of the pending merger with Magellan Midstream Partners and future merger-related costs, to be comparable with the original guidance provided on Feb. 27, 2023, the company said in an earnings release Aug. 7.
In second-quarter 2023 compared with second-quarter 2022, ONEOK had a 13% increase in net income to $468 million, a 26% increase in Gulf Coast/Permian region NGL raw feed throughput volumes to 465,000 b/d, a 14% increase in Rocky Mountain region NGL raw feed throughput volumes to 374,000 b/d, and a 17% increase in natural gas volumes processed (OGJ Online, Aug. 9, 2022).
ONEOK expects total capital expenditures, including growth and maintenance capital, of about $1.575 billion in 2023. The increase in expected capital expenditures in 2023 reflects the impact of strong producer activity and includes purchases of long-lead time components for capital-growth projects, initial activities for the expansion of Elk Creek pipeline to 400,000 b/d, and activities to fully loop West Texas NGL Pipeline, which will more than double ONEOK's NGL capacity out of the Permian basin, the company said.