Stock Analysis on Net
AI Tokens
Stock Analysis on Net

ONEOK Inc. (NYSE:OKE)

This company has been moved to the archive! The financial data has not been updated since August 8, 2023.

Common-Size Income Statement

ONEOK Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Commodity sales 93.70 91.78 84.93 87.72 90.49
Services 6.30 8.22 15.07 12.28 9.51
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales and fuel -80.00 -74.10 -59.82 -66.78 -74.82
Net margin 20.00% 25.90% 40.18% 33.22% 25.18%
Operations and maintenance -4.28 -5.44 -8.91 -8.50 -6.38
Depreciation and amortization -2.80 -3.76 -6.77 -4.69 -3.40
Impairment charges 0.00 0.00 -7.11 0.00 0.00
General taxes -0.86 -1.01 -1.46 -1.17 -0.83
Other operating income (expense), net 0.47 0.01 0.02 -0.03 0.00
Operating income 12.54% 15.70% 15.94% 18.83% 14.58%
Equity in net earnings from investments 0.66 0.74 1.68 1.52 1.26
Impairment of equity investments 0.00 0.00 -0.44 0.00 0.00
Allowance for equity funds used during construction 0.01 0.01 0.28 0.64 0.06
Other income (expense), net -0.14 -0.02 0.29 0.09 -0.11
Interest expense, net of capitalized interest -3.02 -4.43 -8.35 -4.84 -3.73
Income before income taxes 10.05% 12.00% 9.39% 16.24% 12.05%
Income taxes -2.36 -2.93 -2.22 -3.66 -2.88
Net income 7.69% 9.07% 7.17% 12.58% 9.17%
Net income attributable to noncontrolling interests 0.00 0.00 0.00 0.00 -0.03
Net income attributable to ONEOK 7.69% 9.07% 7.17% 12.58% 9.15%
Preferred stock dividends 0.00 -0.01 -0.01 -0.01 -0.01
Net income available to common shareholders 7.69% 9.06% 7.16% 12.57% 9.14%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial performance from 2018 to 2022 exhibits significant volatility in revenue composition and margin stability, characterized by a notable shift in the mix of commodity sales versus service-based revenues and fluctuations in operational efficiency.

Revenue Stream Dynamics
A cyclical pattern is observed in the revenue mix. Commodity sales, the primary revenue driver, decreased from 90.49% in 2018 to a low of 84.93% in 2020, before rising sharply to 93.70% by 2022. Conversely, service revenues peaked in 2020 at 15.07% before contracting to 6.30% in 2022, indicating a growing reliance on commodity-driven income over the five-year period.
Gross Margin and Cost of Sales
The cost of sales and fuel showed substantial variance, reaching a minimum of 59.82% of revenues in 2020, which resulted in a peak net margin of 40.18% for that year. However, cost pressures intensified in subsequent years, with cost of sales rising to 80.00% by 2022, subsequently compressing the net margin to 20.00%, the lowest level in the analyzed period.
Operating Expense Trends
Operations and maintenance expenses as a percentage of revenue peaked at 8.91% in 2020 before trending downward to 4.28% by 2022. Depreciation and amortization followed a similar trajectory, rising to 6.77% in 2020 and declining to 2.80% by 2022. A significant non-recurring impairment charge of 7.11% of revenues in 2020 contributed to a temporary reduction in operating profitability during that fiscal year.
Operating and Net Income Performance
Operating income reached its highest point in 2019 at 18.83% of revenues but experienced a gradual decline to 12.54% by 2022. Net income attributable to the company mirrored this volatility, peaking at 12.58% in 2019 and dipping to 7.17% in 2020 due to the aforementioned impairment charges, before stabilizing at 7.69% in 2022.
Financial Obligations and Taxation
Interest expenses, net of capitalized interest, showed a prominent spike in 2020, reaching 8.35% of revenues, which suggests a period of increased leverage or higher financing costs. By 2022, this burden was reduced to 3.02% of revenues. Income tax expenses remained relatively stable, fluctuating between 2.22% and 3.66% of revenues throughout the period.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?