Oneok Reports Solid Q2; We See Pluses and Minuses for Second Half

Oneok’s second-quarter results were solid, in our view. After updating our model, we will hold our fair value estimate and narrow moat rating intact. Oneok has historically been a strong operator, and this quarter was no exception. Rocky Mountain volumes, which have been growing rapidly in the past few quarters, were impacted by severe weather in April 2022, but volumes normalized by the end of May. Still, EBITDA increased 11% to $886 million from last year’s levels, mainly due to higher fee rates. 2022 EBTIDA guidance remains unchanged at a midpoint of $3.62 billion, but we expect some upside as volumes continue to improve.