ONEOK Q2 2026 Earnings: Higher Volumes Lift Net Income by 13%

ONEOK (NYSE: OKE) reported second-quarter 2026 net income of $967 million, up from $853 million, while diluted EPS rose to $1.53 from $1.34. Adjusted EBITDA increased 7% to $2.12 billion as higher refined-products shipments, record NGL volumes and pipeline optimization outweighed rising operating costs and a modest decline in NGL segment EBITDA.

Core earnings results

For the quarter ended June 30, 2026, GAAP operating income increased approximately 11%, and adjusted EBITDA grew by $140 million. Operating costs rose faster, increasing approximately 17% as ONEOK incurred higher employee, outside-service and property-tax expenses across parts of its expanded system.

Quarterly capital expenditures declined by $136 million, although the company did not reduce its full-year capital spending plan. Adjusted EBITDA is a non-GAAP measure.

The prior-year quarter included $22 million of pretax transaction costs. Of that amount, $21 million was included in the adjusted EBITDA comparison.

Business and segment performance

Operating volumes increased across ONEOK’s system. Refined-products shipments rose 8%, NGL raw-feed throughput increased 7%—including 15% growth in the Gulf Coast and Permian region—and natural gas processing volumes increased 2%.

The segment results were uneven. Natural Gas Pipelines recorded the largest EBITDA increase, while Refined Products and Crude also posted double-digit growth. NGL adjusted EBITDA declined despite record throughput because higher costs and lower transportation and storage results offset the volume benefit.

Refined Products and Crude benefited from a $79 million increase in transportation and storage earnings, driven by higher volumes and rates, plus a $40 million increase in optimization and marketing. These benefits were partly offset by $48 million of additional operating costs.

Natural Gas Gathering and Processing gained $20 million from higher production volumes across all regions. Higher realized condensate prices also helped, but lower realized NGL prices and a $22 million increase in operating costs limited segment EBITDA growth.

Natural Gas Pipelines supplied most of the EBITDA increase

Natural Gas Pipelines adjusted EBITDA rose by $109 million, equivalent to about 78% of ONEOK’s $140 million companywide adjusted EBITDA increase. The segment benefited from $77 million of additional optimization and marketing earnings, primarily because of favorable price differentials between the Waha Hub and Katy, Texas, markets.

Higher firm transportation revenue added $19 million, while increased earnings from Northern Border Pipeline and Matterhorn Express Pipeline contributed another $17 million. This concentration means the persistence of favorable market spreads and optimization opportunities will remain important to the pace of earnings growth.

Profitability and capital spending

Operating income grew by $162 million even as operating costs increased by $117 million. Cost growth was particularly visible in the NGL and Refined Products and Crude segments, reflecting higher employee-related expenses, outside services and other costs associated with ONEOK’s larger operations.

Quarterly capital expenditures fell to $613 million from $749 million, but full-year guidance remained approximately $2.7 billion to $3.2 billion. ONEOK said the Greater Denver refined-products pipeline expansion was mechanically complete in early August, while several other strategic projects were nearing completion. The company also declared a quarterly dividend of $1.07 per share, equivalent to $4.28 annualized.

2026 guidance

ONEOK raised its financial guidance for the second time in 2026, citing continued segment performance, strategic opportunities across its integrated system and a constructive market environment. Capital expenditure guidance was unchanged.

Recent insider transactions

The six-month insider summary showed no insider purchases or sales and zero net shares purchased or sold. Separate filings listed five director stock grants and one stock gift; these were award or transfer events rather than open-market purchases.

Total insider shares held were reported at approximately 963,950.

Risks investors should monitor

• Optimization and spread sensitivity: A $77 million pipeline benefit came from favorable Waha-to-Katy price differentials. Less favorable spreads could reduce optimization and marketing earnings.
• Operating-cost growth: Companywide operating costs rose approximately 17%, constraining EBITDA growth in segments including NGL and Gathering and Processing.
• Commodity-price exposure: Lower realized NGL prices partly offset higher condensate prices in Gathering and Processing, showing that commodity movements can affect results despite higher volumes.
• Project and joint-venture performance: Several projects are nearing completion, making execution and utilization important. Six-month results also included losses from Powder Springs Logistics and a $60 million pretax noncash impairment of a joint-venture investment.

Summary

ONEOK’s second-quarter earnings growth was supported by higher system volumes, improved refined-products transportation results and a sharp increase in Natural Gas Pipelines EBITDA. Rising operating costs and weaker NGL segment EBITDA limited some of that benefit, but management still raised full-year net income, EPS and adjusted EBITDA guidance. The main issues to monitor are the durability of pipeline optimization gains, cost control and the contribution from projects nearing completion.