ONEOK, Inc.

ONEOK reported second quarter 2026 net income of $967 million, or $1.53 per diluted share, versus the prior year period up 13%. Adjusted EBITDA totaled $2.12 billion, up 7% year over year, driven by volume growth and strong segment-level performance. Management raised full-year 2026 guidance to a net income midpoint of $3.6 billion, diluted EPS midpoint of $5.68, and adjusted EBITDA midpoint of $8.35 billion, with the net income and EBITDA midpoints up $150 million and $250 million, respectively, versus original February guidance. 2026 CapEx guidance remains $2.7 billion to $3.2 billion, with spending expected to accelerate in the second half and likely toward the upper end of the range. The company also said cumulative cash tax benefits are now expected to be about $2.6 billion, versus the approximately $1.5 billion previously discussed, deferring meaningful cash tax payments until 2031. Management reiterated long-term adjusted EBITDA growth of mid- to high single digits over the next 5 to 7 years, supported by ongoing projects, operating leverage, and a pipeline of organic and commercial opportunities.

Pierce Norton framed the quarter as proof that ONEOK is turning a constructive energy backdrop into visible growth across an integrated platform. He emphasized that the company’s growth case is not dependent on one basin or commodity, citing multiple drivers including Permian, Mid-Continent, Powder River, Bakken, LPG exports, LNG-linked gas demand, and refined products. His tone was confident and upbeat, stressing discipline, operational excellence, and a value-driven capital allocation strategy.

Walt Hulse focused on the stronger 2026 outlook and the financial flexibility it creates. He pointed to the raised guidance, unchanged CapEx of $2.7 billion to $3.2 billion, and the improved tax picture, including roughly $2.6 billion of cumulative cash tax benefits and a cash tax runway extended to 2031. He also said the company remains on track toward its long-term leverage target of 3.5x debt to EBITDA and expects EPS growth to exceed EBITDA growth over time, especially if free cash flow supports share repurchases.

Analysts pressed management on what really underpins the mid- to high single-digit EBITDA growth target, how much depends on white-space fill versus new infrastructure, and whether bolt-on M&A is included. Management said most of the growth is organic, driven by existing basin growth, system optimization, and low-capital brownfield opportunities, while M&A would be selective and disciplined. Questions also focused on NGL margins, Bakken ethane recovery, and Permian capacity; management said margins were affected by a higher mix of lower-rate ethane, Bakken NGL egress is not a concern, and Permian expansions and long-lead equipment purchases leave them positioned for growth beyond 2027.