Key Highlights

  • Third-quarter diluted EPS was $2.13 against $1.49, including a $0.53 per share noncash income tax benefit.
  • Adjusted EBITDA rose 6% to $2,238 million from $2,119 million.
  • 2026 adjusted EBITDA guidance was raised to $8.5 billion to $8.6 billion from $8.2 billion to $8.5 billion.
  • NGL raw feed throughput rose to 1,661 thousand barrels a day from 1,574, up 6%.
  • The quarterly dividend is $1.07 per share, or $4.28 annualized.

ONEOK Earnings: Did a Tax Benefit Inflate the EPS Beat?

ONEOK (NYSE:OKE) reported third-quarter results on Tuesday, October 27, 2026. Net income attributable to ONEOK was $1,350 million and diluted EPS $2.13, against $939 million and $1.49 a year earlier. As screened, the estimate was $1.50 and the surprise 41.99%.

Largely, yes. The quarter included a $336 million noncash income tax benefit, worth $0.53 per share, tied to the reorganization for the minority equity transaction. Excluding it, EPS would be about $1.60 as calculated, still above the screened estimate. Adjusted EBITDA, which the benefit does not touch, rose 6% to $2,238 million.

Revenue was $12,455 million against $8,634 million, up about 44% as calculated, while operating income was $1,568 million against $1,558 million.

ONEOK Segments: Which Businesses Moved Adjusted EBITDA?

Refined Products and Crude earned $685 million against $582 million, helped by an $87 million increase in optimization and marketing, including $67 million from liquids blending, and a $36 million gain in transportation and storage. Natural Gas Pipelines earned $231 million against $200 million, with higher transportation and Waha-to-Katy price differentials.

Natural Gas Liquids earned $718 million against $748 million, as exchange services fell $27 million and operating costs rose $27 million. Natural Gas Gathering and Processing was nearly flat at $563 million.

NGL raw feed throughput rose 6%, including 16% growth in the Gulf Coast and Permian region, and refined products shipped rose 6%. Gas processed was 5,866 million cubic feet a day, with Permian volumes up 4%, while crude shipped fell to 1,693 thousand barrels a day from 1,813.

ONEOK Guidance: How Far Did the 2026 Outlook Move?

Management raised 2026 adjusted EBITDA guidance to $8.5 billion to $8.6 billion, a $8.55 billion midpoint, from $8.2 billion to $8.5 billion in August. Net income is guided to $4.09 billion to $4.27 billion, from $3.41 billion to $3.79 billion, and the diluted EPS midpoint rose to $6.30 from $5.68.

Capital expenditures are now about $3.5 billion, against $2.7 billion to $3.2 billion before. The Brazos Permian Midland assets are expected to add about $75 million in 2026, with about $50 million in adjusted EBITDA net of transaction costs.

With nine-month adjusted EBITDA at $6,356 million, the midpoint implies roughly $2.19 billion for the fourth quarter as calculated. The company attributed the raise to momentum across the business, higher Permian volumes and integration of its systems, and said it expects meaningful 2027 earnings growth from Brazos and growth projects, without a numerical range.

ONEOK Balance Sheet: What Did the $9 Billion Equity Deal Change?

The company completed a $9 billion minority equity investment and extinguished nearly $5.5 billion of debt principal in September. Total debt was about $28.5 billion as calculated, and two major rating agencies upgraded it to BBB+.

Nine-month cash from operations was $4,366 million against $4,053 million, capital spending was $2,414 million and dividends paid were $2,022 million. The release announced no buyback.

ONEOK Next Steps: What Should Be Watched After the Raise?

The earnings call was scheduled for Wednesday, October 28, at 11 a.m. Eastern, where management is expected to expand on the 2027 commentary. Investors will look for Brazos integration progress, the fourth-quarter run rate implied by the guidance, and gas processing volumes after a flat third quarter.