ONEOK reports higher third-quarter profits as acquisitions payoff

ONEOK, the U.S. oil and gas pipeline operator, reported a higher profit in the third quarter on Tuesday. This was due to the robust volumes in Rocky Mountain Region as well as the effect of a number of acquisitions.

ONEOK has diversified its portfolio over the last two years through acquisitions, including a Gulf Coast NGL pipe system from Easton Energy as well as Medallion Midstream, EnLink Midstream, and Medallion Midstream.

ONEOK acquired the remaining 49.9% of NGP XI Midstream Holdings' stake in the Delaware Basin Joint Venture in June for $940 million. This gave the company the sole ownership of the natural gas gathering, processing, and distribution facilities in West Texas, New Mexico, and the Delaware Basin.

The core profit of the Natural Gas Liquids segment increased by nearly 20%, to $748 millions. Meanwhile, the core profit for the Natural Gas Gathering and Processing segment grew by roughly 78% from a previous year to $566.

The segment's core profit for refined products and crude rose to $582 millions during the third quarter. This was primarily due to the Medallion acquisition and the EnLink purchase.

ONEOK's 60,000-mile network of pipelines transports crude oil, refined products, and natural gas.

The Tulsa-based company, which is headquartered in Oklahoma, reported a net profit attributable shareholders of $939 millions, or $1.49 a share, for the third quarter that ended on September 30. This compares to $692 million or $1.18 a share a year ago. (Reporting from Vallari Srivastava, Bengaluru. Editing by Alan Barona.)

(source: Reuters)