Earnings Increase Driven by Volumes and Optimization
Second quarter 2026 earnings increased primarily due to higher NGL, Refined Products, and natural gas volumes and higher optimization and marketing activity.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ONEOK’s second quarter of fiscal 2026 was defined by a 52.8% surge in revenue, driven by sharply higher commodity sales in its Refined Products and Crude segment and robust optimization and marketing gains in Natural Gas Pipelines. Management attributed earnings growth to higher volumes across natural gas liquids, refined products, and natural gas, along with increased marketing activity. However, cost of sales rose even faster, compressing operating margins to 13.2% from 18.1% a year ago, while the company’s sizable growth pipeline depends on volatile energy price differentials.
Revenue
$12.05B
+52.77% YoY
EPS (Diluted)
$1.53
+14.18% YoY
Operating Income
$1.59B
+11.32% YoY
Source: SEC XBRL
Oneok (OKE) reported Q2 FY2026 revenue of $12.05B, up 52.8% year over year. Operating margin was 13.2%, down 4.9 points from 18.1% a year earlier. OKE's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.53 | 1.48 | Beat +3.7% |
| Mar 2026 | 1.32 | 1.32 | Beat +0.3% |
| Dec 2025 | 1.55 | 1.53 | Beat +1.0% |
| Sep 2025 | 1.49 | 1.46 | Beat +1.9% |
Reported EPS of $1.53 versus the $1.48 analyst consensus — a +3.7% beat for Jun 2026.
4 reported segments · SEC XBRL
Segment revenue totals $14.05B; with -$2B of reconciling items (corporate, unallocated and eliminations) it ties to the $12.05B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Second quarter 2026 earnings increased primarily due to higher NGL, Refined Products, and natural gas volumes and higher optimization and marketing activity.
Source: 10-Q Item 2 MD&A
Each of the four reportable segments is primarily fee-based, and consolidated earnings are expected to be approximately 90% fee-based in 2026, supported by long-term contracts.
Source: 10-Q Item 2 MD&A
Primary capital projects include the Bighorn plant ($365M, mid-2027), Medford fractionator rebuild ($485M, phased completion 2026–2027), Texas City Logistics export terminal ($700M, early 2028), MBTC Pipeline ($280M, early 2028), Eiger Express Pipeline ($350M, mid-2028), and Greater Denver pipeline expansion ($480M, Q3 2026).
Source: 10-Q Item 2 MD&A
Adjusted EBITDA for Natural Gas Pipelines rose $109 million year-over-year, primarily due to favorable price differentials between the Waha Hub and Katy, Texas, markets in optimization and marketing.
Source: 10-Q Item 2 MD&A
In April 2026, the company redeemed $491 million of 4.85% senior notes due July 2026 and entered a $1.2 billion term loan agreement, with an initial $600 million drawn at 4.59% interest.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Optimization and marketing earnings heavily depend on product, location, and seasonal price differentials, such as the Waha–Katy spread. An adverse shift in these differentials could materially reduce segment profits.
Source: 10-Q Financial Statements (XBRL)
Cost of revenue rose 72.4% year-over-year, outpacing revenue growth and causing the operating margin to contract by 4.9 percentage points. Continued cost inflation could further erode profitability.
Source: 10-Q Financial Statements (XBRL)
A working capital deficit of $1.9 billion as of June 30, 2026, stems from current debt maturities and short‑term borrowings. Although management expects no material adverse impact, a tightening of credit markets could strain liquidity.
Source: 10-Q Financial Statements (XBRL)
Long‑term debt of $31.5 billion results in a debt‑to‑equity ratio of 1.37. Planned capital expenditures of $2.7–$3.2 billion in 2026, if funded largely by additional debt, could pressure credit metrics and increase financial risk.
Source: 10-Q Financial Statements (XBRL)
Geopolitical conditions in the Middle East contribute to commodity price volatility and may disrupt supply chains. Additionally, regulatory changes, such as the methane fee reversal in 2025, can impact operating costs.
Source: 10-Q Financial Statements (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.05 $B | 7.89 $B | +52.77% |
Cost of Revenue $B | 9.24 $B | 5.36 $B | +72.43% |
Operating Income $B | 1.59 $B | 1.43 $B | +11.32% |
Net Income $M | 966.00 $M | 841.00 $M | +14.86% |
EPS (Basic) $ | 1.53 $ | 1.34 $ | +14.18% |
EPS (Diluted) $ | 1.53 $ | 1.34 $ | +14.18% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
OKE delivered strong Q1 FY2026 results with revenue surging 19.6% YoY to $9.62B and net income rising 21.7% to $774M, though elevated cost of revenue and a current ratio below 1.0 highlight ongoing leverage and liquidity considerations.
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.
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