ONEOK raises 2026 profit forecast on higher Permian volumes

ONEOK Inc. (OKE) raised its 2026 net income and adjusted EBITDA forecasts on Oct. 27, 2026, after reporting higher third-quarter results, the company said in an earnings release furnished with an 8-K filing.

Net income attributable to ONEOK was $1.35 billion, or $2.13 per diluted share, for the quarter ended Sept. 30. That figure includes a one-time noncash income tax benefit of $336 million, or 53 cents per diluted share, tied to the ONEOK, Inc. reorganization related to its minority equity transaction.

ONEOK provides gathering, processing, fractionation, transportation, storage and marine export services, and it operates a pipeline network of about 60,000 miles, according to the release.

Here's how the company did:

• Diluted EPS: $2.13 vs. $1.49 a year earlier
• Revenue: $12.455 billion vs. $8.634 billion a year earlier
• Adjusted EBITDA: $2.238 billion, up 6% from a year earlier

Results benefited from higher natural gas liquids, refined products and natural gas volumes, along with higher optimization and marketing activity, the company said.

Revenue has risen in each of the last three quarters, from $8.63 billion in the third quarter of 2025 to $12.05 billion in the second quarter of 2026, according to its SEC filings.

2026 guidance

ONEOK raised its 2026 net income guidance to a range of $4.09 billion to $4.27 billion, up from the $3.21 billion to $3.79 billion range it gave on April 28. Adjusted EBITDA guidance rose to $8.5 billion to $8.6 billion, from $8.0 billion to $8.5 billion.

The company also raised its midpoint for earnings per diluted share to $6.30, from a midpoint of $5.53 in April.

The increase includes expected contributions from the Brazos Permian Midland acquisition of about $75 million, with about $50 million expected to show up in adjusted EBITDA net of transaction costs. Total 2026 capital expenditure guidance is about $3.5 billion, reflecting enhanced growth opportunities and capital spending tied to the Brazos deal.

Norton said the results reflected higher Permian Basin volumes. "Higher Permian Basin volumes and the continued execution by our employees to integrate our systems contributed to ONEOK's third-quarter results," said President and CEO Pierce H. Norton II. "Based on this performance and our outlook for the remainder of the year, we are once again raising our 2026 financial guidance, reflecting the momentum we continue to see across the business."

Segment results

Natural gas liquids adjusted EBITDA was $718 million, down from $748 million a year earlier. The company cited a $45 million decrease tied to higher inventory of unfractionated NGLs in exchange services.

Refined products and crude adjusted EBITDA rose to $685 million from $582 million. Optimization and marketing rose $87 million, on higher liquids blending earnings and higher crude marketing earnings.

Natural gas gathering and processing adjusted EBITDA was $563 million, compared with $566 million a year earlier. Natural gas pipelines adjusted EBITDA rose to $231 million from $200 million, driven by favorable price differentials between the Waha Hub and Katy, Texas, markets.

Capital, charges and capital returns

The company reported $937 million of capital expenditures in the quarter, up from $804 million a year earlier. For the nine months, it recorded a pretax noncash charge of $60 million related to the impairment of a joint-venture investment in its refined products and crude segment.

ONEOK said it completed a $9 billion minority equity investment and extinguished nearly $5.5 billion of debt principal in September 2026. Credit ratings were upgraded to BBB+ by S&P Global Ratings and Fitch Ratings.

In October, the company declared a quarterly dividend of $1.07 per share, or $4.28 per share annualized.