Oneok (OKE 0.66%), a leading U.S. midstream energy infrastructure company, reported results on August 4, 2025. The most important headlines from the release were revenue (GAAP) increased by $2,993 million to $7,887 million compared to Q2 2024, modest profit growth, and confirmation of its strong dividend. Revenue (GAAP) reached $7.887 billion, beating analyst forecasts by $199 million, while diluted earnings per share (GAAP) of $1.34 edged above the consensus estimate by $0.01. The results reflect both organic growth and successful integration of recent acquisitions, and the company maintained its full-year financial guidance. Overall, the quarter demonstrated continued expansion in volumes and capacity, but also showed rising operating and capital costs that are worth monitoring as the year progresses.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $1.34 | $1.33 | $1.33 | 0.8% |
| Revenue (GAAP) | $7.89 billion | N/A | $4.89 billion | 61.4% |
| Adjusted EBITDA | $2.0 billion | N/A | N/A | |
| Net Income (GAAP) | $853 million | $780 million | 9.4% | |
| Operating Income | $1.43 billion | $1.23 billion | 16.4% |
Source: Analyst estimates for the quarter provided by FactSet.
The Heart of Oneok's Business and Recent Focus Areas
Oneok is a major midstream operator, meaning it transports, stores, and processes energy products such as natural gas, natural gas liquids (NGLs), and crude oil between production sites and end markets. Its integrated value chain covers transporting raw materials from oil and gas fields, processing and separating them, and moving finished fuels to storage or export facilities.
The company's recent strategy centers on three elements: growth through acquisitions, expanding energy infrastructure, and capitalizing on stable, fee-based contracts. Recent purchases of EnLink and Medallion have greatly expanded Oneok's physical footprint, especially in high-growth areas like the Permian Basin. At the same time, it is investing in new pipelines and export terminals to boost its capacity and connectivity. Key measures of success for Oneok include integration and cost savings, efficient deployment of capital, and securing regulatory and environmental compliance.
Quarterly Developments: Growth Across Operations, Cost Pressures, and Integration Progress
Oneok saw exceptional revenue growth, up more than 61% from the year-ago period (GAAP). This step-change reflects not only robust demand, but also the effect of integrating large new acquisitions such as EnLink and Medallion. Adjusted EBITDA, a non-GAAP measure, climbed 22.0% from the prior-year period as these acquisitions contributed $329 million in incremental results.
In its Natural Gas Liquids (NGL) business, raw feed throughput was 1,527 thousand barrels per day. The segment's adjusted EBITDA rose 6% to $673 million compared to Q2 2024 (non-GAAP). The volume increase was driven by higher production from the Rocky Mountain region, although profit margins were pressured by higher operating costs and lower price differences in products like ethane.
The Refined Products and Crude segment saw its adjusted EBITDA rise 19% to $557 million compared to Q2 2024. Crude oil volumes surged 143% compared to Q2 2024 due to the new asset base from acquisitions. The Refined Products and Crude segment benefitted from $21 million in lower operating costs but faced reduced optimization and marketing profits from tighter commodity price gaps.
Natural Gas Gathering and Processing results showed a 46% jump in adjusted EBITDA to $540 million compared to Q2 2024. Throughput climbed to 5,573 million cubic feet per day compared to Q2 2024 as newly acquired assets kicked in. However, divestitures and lower realized prices for NGLs partly offset this strength. The Natural Gas Pipelines segment grew its adjusted EBITDA by 24% to $188 million compared to Q2 2024. This was driven by contributions from EnLink, but the gain was tempered by reduced earnings following the sale of some interstate pipeline assets in 2024.
Strategic Moves and Investment Activity
Oneok made important progress on integrating recent acquisitions. These synergy opportunities include blending products, connecting acquired systems, and pooling purchasing to cut costs. Many of these benefits are expected to ramp up further in the second half of the year and into 2026 as infrastructure projects are completed.
The company also continued to spend heavily on growth, with capital expenditures up 56% to $749 million. For example, Rocky Mountain NGL volumes reached new records. At the same time, short-term borrowings increased and cash balances declined (from $733 million as of December 31, 2024, to $97 million as of June 30, 2025), mainly due to both project spending and working capital needs. Nearly $600 million of senior notes were repaid, maintaining focus on financial flexibility and balance sheet strength.
Cost inflation and higher integration expenses are noteworthy trends. Operating costs jumped 24% to $706 million compared to Q2 2024. The company noted it would be ready to slow capital spending if macroeconomic conditions deteriorate.
From a sustainability perspective, Oneok highlighted progress with its emissions reduction goals, saying it received a AAA rating from MSCI for environmental, social, and governance (ESG) practices. The company's focus on compliance and participation in initiatives such as the FTSE4Good Index continues to align with stakeholder expectations for sustainability.
Looking Ahead: Guidance, Outlook, and Key Watch Areas
Management reiterated its full-year 2025 financial guidance. It pointed to continued progress integrating acquisitions, ramping up volumes post-winter, and finishing high-impact infrastructure projects as tailwinds for the remainder of the year. The company expects further margin and earnings contributions from synergy projects that are mainly under its direct control. These include batching, blending, and expanded connections between acquired and legacy assets.
The quarterly dividend was affirmed at $1.03 per share, or $4.12 annualized. This maintains the company's long-standing focus on delivering predictable shareholder returns. Guidance for future quarters was not changed from previous statements. For upcoming quarters, balance sheet flexibility and discipline in capital allocation remain central themes as integration winds down and new growth opportunities are evaluated.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
