ONEOK to Release Q2 Earnings: What's in Store for the Stock?

ONEOK Inc. OKE is scheduled to release second-quarter 2025 results on Aug. 4, after market close. The company delivered a negative earnings surprise of 15.5% in the last reported quarter. 

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Major Factors That May Impact OKE's Q2 Results

In May 2025, ONEOK acquired the remaining 49.9% interest in Delaware G&P LLC for $940 million. With a combined processing capacity of over 700 million cubic feet per day (MMcf/d), Delaware Basin JV owns natural gas collection and processing facilities in the Delaware Basin in West Texas and New Mexico. 

During the first quarter of 2025, ONEOK completed its acquisition of EnLink Midstream, LLC. This deal further enhances the company’s integrated midstream business and provides exceptional value to all stakeholders. 

These strategic acquisitions are expected to have yielded significant cost savings and synergies, thereby further enhancing the company's profitability in the to-be-reported quarter.

The quarterly earnings are likely to have continued to gain from strong fee-based contracts, as more than 90% of its revenues might have been fee-based.

The company’s bottom line is also projected to have benefited from wells connected in its Rocky Mountain and Mid-Continent regions in the previous quarters. This should have further increased natural gas gathering and processing volumes. 

However, higher depreciation and amortization and increased interest expense might have offset some of the positives in the to-be-reported quarter.

Q2 Expectations for OKE

The Zacks Consensus Estimate for earnings is pegged at $1.35 per share, indicating a year-over-year increase of 1.5%. The Zacks Consensus Estimate for revenues is pinned at $8.56 billion, indicating an increase of 75% year over year.

The Zacks Consensus Estimate for Raw feed throughput is pinned at 1,702.67 thousand barrels of natural gas liquid per day, up 24.7% year over year. 

The Zacks Consensus Estimate for Natural gas transportation capacity contracted is pegged at 4,616.37 thousand dekatherms per day, down 42.2% year over year. Last year, ONEOK completed sale of three wholly-owned interstate natural gas pipelines. As a result of this divestiture, natural gas transportation capacity contracted has been declining.  

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for ONEOK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
 

ONEOK, Inc. Price and EPS Surprise

ONEOK, Inc. price-eps-surprise | ONEOK, Inc. Quote

Earnings ESP: The company’s Earnings ESP is +0.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ONEOK has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same sector, as these too have the right combination of elements to come up with an earnings beat this reporting cycle.

TC Energy TRP is likely to come up with an earnings beat when it announces second-quarter results on July 31, before market open. It has an Earnings ESP of +1.49% and a Zacks Rank #3 at present.

TRP’s long-term (three to five years) earnings growth rate is 4%. The company delivered an average earnings surprise of 4.83% for the trailing four quarters.

Chevron CVX is expected to come up with an earnings beat when it reports second-quarter results on Aug. 1, before market open. It has an Earnings ESP of +3.63% and a Zacks Rank #3 at present.

CVX’s long-term earnings growth rate is 8.74%. The Zacks Consensus Estimate for second-quarter earnings is pinned at $1.66 per share. 

Cheniere Energy LNG is expected to post an earnings beat when it announces second-quarter results on Aug. 7, before market open. It has an Earnings ESP of +6.36% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for second-quarter earnings is pinned at $2.36 per share. It delivered an average earnings surprise of 65.2% in the past four quarters. 

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research