Key Takeaways:
ONEOK Inc. raised its full-year 2026 financial guidance after first-quarter adjusted EBITDA increased 13 percent from the prior year, citing strong volumes and an improved market environment.
“Energy markets remain dynamic, but long-term fundamentals are strong,” Pierce H. Norton, President and Chief Executive Officer, said on the company’s earnings call. “As global demand continues to grow, infrastructure, not supply, is the constraint, and that is exactly where ONEOK, Inc. is positioned.”
The energy infrastructure company increased its 2026 adjusted EBITDA guidance to a midpoint of $8.25 billion and raised its net income projection to a midpoint of $3.5 billion. For the first quarter, ONEOK reported adjusted EBITDA of approximately $2.0 billion and net income of $776 million, or $1.23 per diluted share. The results included a $60 million noncash impairment charge.
Shares of ONEOK were little changed in trading. The company’s updated guidance suggests management expects momentum to build through the year, with the first quarter expected to be the lowest EBITDA quarter of 2026.
The stronger outlook was underpinned by broad-based volume growth. Natural Gas Liquids (NGL) volumes in the Rocky Mountain region grew 11 percent year-over-year, while Gulf Coast volumes surged 30 percent, helped by new third-party connections. In the refined products and crude segment, volumes increased 12 percent, supported by strong gasoline and diesel demand.
The company is advancing several major projects, including the relocation of its Shadowfax processing plant to the Midland Basin and the planned completion of its Medford NGL fractionator expansion by year-end. Management noted that most large capital expenditures are scheduled to be completed by 2027, which is expected to increase free cash flow for debt reduction and shareholder returns.
“Refresh requests for capacity on our announced LPG export dock were already increasing and have accelerated more recently as customers look to diversify supply toward the U.S.,” said Sheridan C. Swords, Chief Commercial Officer.
The guidance increase signals management’s confidence that higher volumes and constructive market conditions will persist. Investors will watch for progress on major capital projects, including the Bighorn processing plant, and updates on new demand from data centers and LNG exports in the second half of the year.
This article is for informational purposes only and does not constitute investment advice.
