Name: ONEOK Inc. (NYSE:OKE) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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ONEOK Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Commodity sales	20,975,462)	15,180,264)	7,255,259)	8,916,047)	11,395,642)
Services	1,411,430)	1,360,045)	1,286,983)	1,248,320)	1,197,554)
Revenues	22,386,892)	16,540,309)	8,542,242)	10,164,367)	12,593,196)
Cost of sales and fuel	(17,909,866)	(12,256,655)	(5,110,146)	(6,788,040)	(9,422,708)
Net margin	4,477,026)	4,283,654)	3,432,096)	3,376,327)	3,170,488)
Operations and maintenance	(958,246)	(900,420)	(761,176)	(863,708)	(803,146)
Depreciation and amortization	(626,132)	(621,701)	(578,662)	(476,535)	(428,557)
Impairment charges	—)	—)	(607,200)	—)	—)
General taxes	(191,458)	(166,668)	(125,028)	(119,156)	(103,922)
Other operating income (expense), net	106,229)	1,394)	1,327)	(2,575)	601)
Operating income	2,807,419)	2,596,259)	1,361,357)	1,914,353)	1,835,464)
Equity in net earnings from investments	147,720)	122,520)	143,241)	154,541)	158,383)
Impairment of equity investments	—)	—)	(37,730)	—)	—)
Allowance for equity funds used during construction	2,551)	1,682)	23,662)	64,815)	7,962)
Other income (expense), net	(32,099)	(3,333)	24,672)	9,055)	(14,254)
Interest expense, net of capitalized interest	(675,946)	(732,924)	(712,886)	(491,773)	(469,620)
Income before income taxes	2,249,645)	1,984,204)	802,316)	1,650,991)	1,517,935)
Income taxes	(527,424)	(484,498)	(189,507)	(372,414)	(362,903)
Net income	1,722,221)	1,499,706)	612,809)	1,278,577)	1,155,032)
Net income attributable to noncontrolling interests	—)	—)	—)	—)	(3,329)
Net income attributable to ONEOK	1,722,221)	1,499,706)	612,809)	1,278,577)	1,151,703)
Preferred stock dividends	(1,100)	(1,100)	(1,100)	(1,100)	(1,100)
Net income available to common shareholders	1,721,121)	1,498,606)	611,709)	1,277,477)	1,150,603)

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 between 2018 and 2022 is characterized by significant volatility in top-line revenue, followed by a strong recovery and expansion in profitability. Revenue experienced a contraction from 2018 through 2020, reaching a low of 8.54 billion USD, before surging to 22.39 billion USD by 2022. This trajectory was primarily driven by commodity sales, which exhibited high sensitivity to market fluctuations, whereas service-based revenues remained remarkably stable, growing marginally from 1.20 billion USD to 1.41 billion USD over the five-year period.

Revenue and Gross Margin Trends: A divergent pattern is observed between total revenues and net margins. While revenues declined by approximately 32% between 2018 and 2020, the net margin actually increased during that same period, rising from 3.17 billion USD to 3.43 billion USD. This suggests a capacity to maintain or improve gross profitability despite falling commodity prices. From 2021 onward, both revenues and net margins expanded rapidly, with the net margin reaching 4.48 billion USD by 2022.
Operating Expense Analysis: Operating expenses show a steady upward trend. Operations and maintenance costs rose from 803 million USD in 2018 to 958 million USD in 2022. Depreciation and amortization also climbed consistently, starting at 428 million USD in 2018 and reaching 626 million USD in 2022, indicating continued investment in capital assets. A significant non-recurring impairment charge of 607 million USD occurred in 2020, which contributed to a temporary dip in operating income.
Operating Income and Bottom-Line Performance: Operating income followed a U-shaped trajectory, dipping to 1.36 billion USD in 2020 before recovering to 2.81 billion USD in 2022. Net income mirrored this pattern, falling to a low of 612 million USD in 2020 and subsequently growing to 1.72 billion USD by 2022. The recovery in net income was supported by a stabilization in interest expenses, which peaked at 732 million USD in 2021 before decreasing to 675 million USD in 2022.
Taxation and Shareholder Returns: Income tax expenses grew in proportion to the recovery in pre-tax income, increasing from 189 million USD in 2020 to 527 million USD in 2022. Preferred stock dividends remained constant at 1.1 million USD annually throughout the period. Consequently, the net income available to common shareholders grew from 611 million USD in 2020 to 1.72 billion USD in 2022, representing a substantial increase in value attribution to common equity holders.

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