Oneok Earnings: Strong Performance, With Magellan Tax Benefits Already to Exceed Firm's Expectations

Oneok’s third-quarter results were good, and the firm upped its 2023 EBITDA estimate by $125 million, reflecting very strong volume growth in the Permian/Gulf Coast (18%) and Rockies (6%) regions. Higher fee rates and lower fractionation costs also contributed. Well connections in the Rockies are expected to be a midpoint of 550 wells, up from earlier expectations of 500 wells, while midcontinent wells are expected to be at the high end of the 45-55 range. Rockies volumes are about three times as valuable as midcontinent connections for Oneok.