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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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ONEOK Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	1,722,221)	1,499,706)	612,809)	1,278,577)	1,155,032)
Depreciation and amortization	626,132)	621,701)	578,662)	476,535)	428,557)
Impairment charges	—)	—)	644,930)	—)	—)
Equity in net earnings from investments	(147,720)	(122,520)	(143,241)	(154,541)	(158,383)
Distributions received from unconsolidated affiliates	146,718)	123,010)	144,352)	163,476)	170,528)
Deferred income taxes	463,419)	472,057)	186,730)	372,729)	361,010)
Other, net	91,790)	94,091)	35,327)	(26,101)	23,570)
Accounts receivable	(87,274)	(610,531)	(1,297)	(19,688)	383,993)
NGLs and natural gas in storage, net of commodity imbalances	(62,149)	(105,038)	172,316)	(10,193)	(5,846)
Accounts payable	(26,106)	622,425)	(80,257)	(62,946)	(320,132)
Risk-management assets and liabilities	197,460)	(93,713)	(187,458)	(86,268)	117,717)
Other assets and liabilities, net	(18,536)	45,084)	(63,805)	15,199)	30,673)
Changes in assets and liabilities	3,395)	(141,773)	(160,501)	(163,896)	206,405)
Adjustments to reconcile net income to net cash provided by operating activities	1,183,734)	1,046,566)	1,286,259)	668,202)	1,031,687)
Cash provided by operating activities	2,905,955)	2,546,272)	1,899,068)	1,946,779)	2,186,719)
Capital expenditures, less allowance for equity funds used during construction	(1,202,057)	(696,854)	(2,195,381)	(3,848,349)	(2,141,475)
Distributions received from unconsolidated affiliates in excess of cumulative earnings	20,267)	19,363)	31,808)	94,168)	26,757)
Other, net	42,554)	12,199)	(106,956)	(14,577)	(170)
Cash used in investing activities	(1,139,236)	(665,292)	(2,270,529)	(3,768,758)	(2,114,888)
Dividends paid	(1,671,582)	(1,667,431)	(1,605,366)	(1,457,628)	(1,335,058)
Distributions to noncontrolling interests	—)	—)	—)	—)	(3,500)
Borrowing (repayment) of short-term borrowings, net	—)	—)	(220,000)	220,000)	(614,673)
Issuance of long-term debt, net of discounts	869,393)	—)	3,244,777)	4,185,435)	1,795,773)
Repayment of long-term debt	(895,814)	(604,894)	(1,457,222)	(1,057,348)	(932,650)
Issuance of common stock	32,442)	32,791)	969,759)	29,040)	1,203,981)
Acquisition of noncontrolling interests	—)	—)	—)	—)	(195,000)
Other	(27,322)	(19,551)	(56,949)	(88,537)	(15,922)
Cash provided by (used in) financing activities	(1,692,883)	(2,259,085)	874,999)	1,830,962)	(97,049)
Change in cash and cash equivalents	73,836)	(378,105)	503,538)	8,983)	(25,218)
Cash and cash equivalents at beginning of period	146,391)	524,496)	20,958)	11,975)	37,193)
Cash and cash equivalents at end of period	220,227)	146,391)	524,496)	20,958)	11,975)

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).

An analysis of the cash flow trends from 2018 to 2022 reveals a company characterized by consistent growth in operating cash generation, aggressive capital investment during the mid-period, and a disciplined approach to shareholder returns.

Operating Cash Flow Performance: Cash provided by operating activities demonstrates a sustained upward trajectory, increasing from 2,186,719 thousand US$ in 2018 to 2,905,955 thousand US$ in 2022. While net income experienced a notable decline in 2020 to 612,809 thousand US$, largely impacted by a 644,930 thousand US$ impairment charge, the overall cash generation remained resilient. Depreciation and amortization costs grew steadily throughout the period, rising from 428,557 thousand US$ to 626,132 thousand US$, reflecting an expanding asset base.
Investing Activities and Capital Expenditures: Investing activities were dominated by capital expenditures, which peaked in 2019 at 3,848,349 thousand US$. This period of intensive investment was followed by a significant reduction in spending, with expenditures dropping to 696,854 thousand US$ in 2021 before moderating to 1,202,057 thousand US$ in 2022. The volatility in investing outflows suggests a cycle of major infrastructure expansion followed by a period of optimization and lower capital intensity.
Financing Strategy and Debt Management: Financing activities shifted from net inflows to net outflows over the five-year period. To fund the capital expenditure surge in 2019 and 2020, the company relied heavily on the issuance of long-term debt, recording 4,185,435 thousand US$ and 3,244,777 thousand US$ in those respective years. Subsequent years saw a transition toward debt repayment and a cessation of large-scale debt issuance, as evidenced by the net cash used in financing activities totaling 2,259,085 thousand US$ in 2021 and 1,692,883 thousand US$ in 2022.
Dividend Sustainability and Shareholder Returns: Dividend payments increased steadily each year, rising from 1,335,058 thousand US$ in 2018 to 1,671,582 thousand US$ in 2022. A comparison between operating cash flow and dividend payments indicates a strong capacity to cover distributions. By 2022, cash provided by operating activities was approximately 1.74 times the amount of dividends paid, suggesting a sustainable payout ratio supported by organic cash generation rather than external financing.
Liquidity and Cash Position: The end-of-period cash and cash equivalents remained relatively low compared to the scale of annual operations, fluctuating between a low of 11,975 thousand US$ in 2018 and a peak of 524,496 thousand US$ in 2020. The final balance of 220,227 thousand US$ in 2022 indicates a lean liquidity strategy, where cash is rapidly deployed into investments or returned to shareholders.

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