AI Takeaway
OKE (ONEOK) delivered strong FY2025 revenue growth of 55.0% to $33.6B—largely driven by the Magellan Midstream acquisition—while net income rose 11.8% to $3.4B, though operating margins compressed significantly due to higher cost of revenue from expanded operations.
Revenue
$33.63B
++54.99% YoY
EPS (Basic)
$5.43
++4.62% YoY
Operating Income
$5.74B
++15.07% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue jumped 55.0% YoY from $21.7B to $33.6B in FY2025, reflecting the full-year consolidation of Magellan Midstream assets acquired in late 2023, which substantially expanded ONEOK's refined products and crude oil pipeline footprint.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Cost of revenue surged 75.6% YoY to $23.4B, outpacing revenue growth of 55.0%, causing operating margin to compress sharply from 23.0% to 17.1%. This reflects the higher commodity-cost pass-through nature of the expanded midstream and liquids pipeline business.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Operating cash flow grew 14.5% YoY to $5.6B, enabling ONEOK to increase dividends paid by 11.7% to $2.6B while maintaining capital discipline, underscoring the cash-generative strength of its fee-based midstream model.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockOKE's current ratio stands at 0.71, meaning current liabilities of $6.4B exceed current assets of $4.5B. Cash and equivalents plummeted 89.4% YoY to just $78M, leaving limited liquidity buffer. The company relies heavily on credit facilities and operating cash flow to meet near-term obligations.
Source: Source: 10-K Balance Sheet & Key Ratios (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.55 versus the $1.53 analyst consensus — a +1.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $33.63B | $21.7B | +54.99% |
Cost of Revenue | $23.37B | $13.31B | +75.59% |
Operating Income | $5.74B | $4.99B | +15.07% |
Net Income | $3.39B | $3.04B | +11.80% |
EPS (Basic) | $5.43 | $5.19 | +4.62% |
EPS (Diluted) | $5.42 | $5.17 | +4.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $66.64B | $64.07B | +4.01% |
Current Assets | $4.49B | $4.24B | +5.90% |
Current Liabilities | $6.37B | $4.72B | +34.88% |
Stockholders' Equity | $22.48B | $17.04B | +31.99% |
Cash & Equivalents | $78M | $733M | -89.36% |
Long-Term Debt | $30.75B | $31.02B | -0.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $5.6B | $4.89B | +14.55% |
Investing Cash Flow | $-3.75B | $-6.61B | +43.27% |
Financing Cash Flow | $-2.5B | $2.12B | -218.12% |
Dividends Paid | $2.58B | $2.31B | +11.67% |
Share Buybacks | $75M | $159M | -52.83% |
D&A | $1.51B | $1.13B | +33.51% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.1% | 23.0% | -5.92% |
Net Margin | 10.1% | — | — |
ROE | 15.1% | — | — |
ROA | 5.1% | — | — |
Current Ratio | $0.705 | — | — |
Other companies in Oil & Gas Storage & Transportation
ONEOK's revenue grew 55.0% YoY to $33.6B in FY2025, up from $21.7B in the prior year. This growth was primarily driven by the full-year consolidation of Magellan Midstream, which was acquired in late 2023 and added significant refined products and crude oil pipeline volumes to ONEOK's existing natural gas midstream business.
OKE delivered strong top-line growth of 55% to $33.6B and net income of $3.4B (+11.8%), supported by robust operating cash flow of $5.6B that funded a growing dividend of $2.6B. However, operating margins compressed from 23.0% to 17.1% due to higher commodity-related costs from the Magellan acquisition, and the current ratio of 0.71 highlights near-term liquidity tightness.
OKE's dividend appears well-supported by its FY2025 operating cash flow of $5.6B, which comfortably covers the $2.6B in dividends paid during the year, implying a cash flow payout ratio of approximately 46%. The 11.7% increase in dividends paid YoY reflects management's confidence in the sustainability of cash generation from its expanded midstream asset base.
Based on the financial data, key risks include a current ratio below 1.0 (0.71) with cash dropping 89.4% to just $78M, elevated long-term debt of $30.8B from the Magellan acquisition, and significant operating margin compression of nearly 6 percentage points. Integration execution risk from the large-scale Magellan transaction and EPS dilution from higher share counts are also notable concerns for investors.
OKE's financial health is mixed: the company generates strong operating cash flow of $5.6B and has grown stockholders' equity 32% to $22.5B, but carries $30.8B in long-term debt and has a current ratio of just 0.71 with only $78M in cash. The business is cash-generative and growing, but the balance sheet remains leveraged and near-term liquidity depends on credit facility access rather than cash reserves.