ONEOK Q4 Revenues Rise 29% as Margins Dip, $3B Capex Plan Set
Adjusted EPS beat estimates as revenues jumped 29% year over year, while operating margins dipped. Management forecast flat 2026 earnings, approved a $3 billion capital expenditure plan and highlighted the Magellan tax shield deferring cash taxes until 2029.
1. Q4 Financial Results
ONEOK delivered adjusted EPS above consensus and posted revenues up 29% year over year. Operating margins contracted by one percentage point compared with the prior period.
2. 2026 Outlook and Capital Plans
Management guided flat earnings for 2026, signaling no major growth acceleration in the upcoming year. The board approved a $3 billion capital expenditure program focused on infrastructure maintenance and capacity expansions.
3. Tax Strategy and Cash Flow Impacts
The company continues to benefit from the Magellan tax shield, which defers cash tax payments through 2029. This deferred liability enhances free cash flow available for growth and debt reduction.
4. Valuation and Dividend Profile
ONEOK shares trade at 11.87x EV/EBITDA, below its five-year average valuation multiple. The 4.76% dividend yield is supported by high-margin fee-based contracts and accretive recent acquisitions.