ONEOK Surpasses Expectations with Strong Q4 2024 Earnings and Promising 2025 Guidance
One of the largest midstream companies in North America, ONEOK, has exceeded market expectations with its fourth-quarter 2024 earnings release. The company's financial results for the quarter were driven by contributions from strategic acquisitions, volume growth, and continued execution on synergies identified in its refined products and crude oil businesses acquired in 2023.
According to Pierce Norton, President and Chief Executive Officer of ONEOK, the company's strong earnings growth is expected to continue into 2025. In a recent conference call, Norton stated that the company anticipates "strong earnings growth driven by our expanded operations, completed projects, and higher volumes." He also noted that ONEOK expects greater than 15% earnings per share growth and adjusted EBITDA growth approaching 10%, compared with its 2025 guidance midpoints.
ONEOK's success can be attributed to its disciplined growth strategy, which has enabled the company to expand its product and service offerings across multiple regions. Over the past two years, ONEOK has added refined products in crude oil transportation and gathering to its integrated value chain, significantly extending its presence in the Permian Basin and Louisiana. The company's scale and integrated connectivity have further strengthened its resilience and position it for success across various market cycles.
In addition to its organic growth opportunities, ONEOK continues to prioritize innovation, commercial development, and customer service across its operations. Recent projects include an LPG export project joint venture with MPLX, which will provide an integrated NGL wellhead-to-water solution for customers, enhancing the company's product offerings. Examples of unannounced projects in various stages of development include pipeline and facility expansions in key basins, additional natural gas infrastructure driven by continued demand for data centers and LNG, and debottlenecking projects across operations to accommodate growth.
With a presence in over 40 states and Canada, ONEOK has transformed itself into a leading midstream company with a unique set of strengths. Its ability to deliver value across its expanded footprint, as well as drive earnings growth through strategic acquisitions and volume increases, positions it for continued success in the energy sector.
