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.

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 data reveals several notable trends and patterns across the analyzed periods.

Revenue Trends: Revenues experienced a decline from 2018 through 2020, decreasing from approximately $12.59 billion in 2018 to $8.54 billion in 2020. However, a significant recovery occurred in 2021 and 2022, with revenues soaring to over $16.5 billion and $22.4 billion respectively. This uptrend appears strongly driven by the commodity sales segment, which followed a similar pattern of decline until 2020 before sharply increasing afterward. Services revenues showed steady but modest growth throughout the entire period.
Cost Behavior: Cost of sales and fuel exhibited a pattern closely aligning with revenues; it declined substantially until 2020 and then rebounded sharply in 2021 and 2022. Operations and maintenance costs increased consistently year-over-year, reaching nearly $958 million by 2022. Depreciation and amortization expenses showed a generally upward trend over the years, indicating increased asset base or capital expenditures. A notable one-time impairment charge of $607 million was recorded in 2020, impacting overall expenses.
Profitability Metrics: Net margin trends closely mirrored revenues and costs trends, with slight improvement from 2018 to 2020, followed by a significant increase in 2021 and 2022. Operating income dropped considerably in 2020 but rebounded in subsequent years, reflecting the improved market conditions. Net income declined sharply in 2020, nearly halving compared to prior years, but recovered substantially in 2021 and 2022.
Other Income and Expenses: Equity earnings from investments decreased slowly over the periods but showed some recovery in 2022. Impairment of equity investments impacted 2020 negatively. Other income (expense) showed volatility, with small positive or negative amounts until a significant positive increase in 2022. Interest expense increased markedly in 2020 but decreased in 2022, potentially reflecting refinancing or changes in debt levels.
Taxation and Earnings Available to Shareholders: Income taxes generally increased proportionally with income, though 2020 exhibited notably lower tax expense consistent with reduced income before taxes. Net income available to common shareholders followed the pattern of net income overall, with a sharp drop in 2020 and recovery in 2021 and 2022. Preferred stock dividends remained constant throughout the period, indicating stable dividend policy for preferred shares.

Overall, the company experienced a downturn in 2020 likely linked to broader market or operational challenges, including asset impairments. This was followed by a robust recovery in 2021 and 2022 characterized by strong increases in revenue and profitability. Cost management showed steady increases in several operating expenses. The trends suggest resilience and improved operational performance post-2020, supported by increased commodity sales and efficient cost control despite rising maintenance and depreciation expenses.

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ONEOK Inc. (NYSE:OKE)

Income Statement