ONEOK Q3 results beat estimates on higher product volumes; raises 2026 outlook

Overview

• U.S. midstream operator's Q3 adjusted EBITDA and EPS beat analyst expectations

• Company raised 2026 financial guidance after strong year-to-date performance and Brazos acquisition

• Q3 results driven by higher NGLs, refined products, and natural gas volumes, plus increased optimization

Outlook

• ONEOK raises 2026 net income guidance to $4.09 bln-$4.27 bln

• Company lifts 2026 adjusted EBITDA outlook to $8.5 bln-$8.6 bln

• ONEOK expects 2026 capital expenditures of about $3.5 bln

Result Drivers

• HIGHER VOLUMES - Co said increased NGL raw feed, refined products, and natural gas volumes, especially in the Gulf Coast/Permian region, contributed to Q3 results

• OPTIMIZATION AND MARKETING - Co attributed improved Q3 results to increased optimization and marketing activity across segments, including higher earnings on sales of purity NGLs and favorable commodity price differentials

• BRAZOS ACQUISITION IMPACT - Co said recently completed Brazos Permian Midland acquisition contributed to Q3 performance and is expected to drive future earnings growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for ONEOK, Inc. (Oklahoma) is $99.96, about 3.7% above its October 26 closing price of $96.36

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)