ONEOK Inc. operates in 3 segments: Natural Gas Gathering and Processing; Natural Gas Liquids; and Natural Gas Pipelines.
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- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Segment Profit Margin
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines |
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 reportable segment profit margin data reveals several notable trends over the five-year period ending in 2022.
- Natural Gas Gathering and Processing
- The profit margin for this segment shows a significant increase from 20.81% in 2018 to a peak of 35.71% in 2020. However, following this peak, there is a marked decline, with margins dropping to 19.93% in 2021 and further decreasing to 15.87% in 2022. This indicates a period of considerable volatility and recent weakening in profitability.
- Natural Gas Liquids
- This segment demonstrates a similar pattern to the Gathering and Processing segment, though with generally lower margins. The profit margin improves steadily from 13.17% in 2018 to a high of 22.81% in 2020. After 2020, there is a decline, with margins falling to 13.64% in 2021 and continuing down to 10.99% in 2022, suggesting a reduction in profitability following the 2020 peak.
- Natural Gas Pipelines
- The profit margin for the Natural Gas Pipelines segment remains consistently high throughout the period. It increases slightly from 84.83% in 2018 to a peak of 91.13% in 2020, then experiences a moderate decline to 86.97% in 2021 and 84.42% in 2022. Despite the reduction, profitability remains substantially higher than the other segments and relatively stable over time.
Overall, the data indicates that while all segments reached their highest profit margins around 2020, the subsequent two years show a downward trend, with the Gathering and Processing and Liquids segments experiencing more pronounced decreases. The Pipelines segment maintains a strong and more stable profit margin, suggesting it is less sensitive to the factors causing declines in the other segments.
Segment Profit Margin: Natural Gas Gathering and Processing
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Adjusted EBITDA | |||||
Revenues | |||||
Segment Profitability Ratio | |||||
Segment profit margin1 |
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).
1 2022 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenues
= 100 × ÷ =
The financial data for the Natural Gas Gathering and Processing segment reveals a series of noteworthy trends across a five-year period ending in 2022. The segment's revenues, adjusted EBITDA, and profit margins each exhibit distinct patterns that merit attention.
- Revenues
- The revenue figures demonstrate considerable volatility throughout the period. Revenues decreased substantially from approximately $3.03 billion in 2018 to about $1.82 billion in 2020. This decline was then followed by a strong recovery, with revenues surging to roughly $4.46 billion in 2021 and further increasing to $6.53 billion in 2022, representing a significant rebound and growth beyond the initial 2018 level.
- Adjusted EBITDA
- The adjusted EBITDA trend shows an initial increase from $631.6 million in 2018 to $702.7 million in 2019, followed by a decline to $650.0 million in 2020, reflecting the revenue contraction. Subsequently, there was a marked rebound in profitability, with adjusted EBITDA rising to $889.1 million in 2021 and then to $1.04 billion in 2022, surpassing prior years' levels. This suggests effective cost management or improvements in operational efficiency alongside revenue growth.
- Segment Profit Margin
- The profit margin experienced a fluctuating trajectory opposite to the trend in revenues and EBITDA. It increased from 20.81% in 2018 to a peak of 35.71% in 2020 despite falling revenues, indicating heightened profitability per revenue dollar during the downturn year. However, the margin declined significantly in subsequent years to 19.93% in 2021 and further to 15.87% in 2022, as revenues and EBITDA rose substantially. This decline implies that although the segment generated higher absolute profits, the relative profitability per revenue dollar was compressed, possibly due to increased costs, pricing pressure, or investment in growth initiatives.
Overall, the segment experienced a period of contraction followed by robust recovery and growth in revenues and earnings. The inverse relationship between profit margin and revenues during certain years suggests dynamic adjustments in cost structure or business conditions impacting profitability ratios. The data reflects a business that has navigated industry cyclicality and potential operational challenges, ultimately achieving higher earnings in nominal terms but at diminishing margins by 2022.
Segment Profit Margin: Natural Gas Liquids
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Adjusted EBITDA | |||||
Revenues | |||||
Segment Profitability Ratio | |||||
Segment profit margin1 |
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).
1 2022 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenues
= 100 × ÷ =
- Adjusted EBITDA
- The Adjusted EBITDA for the segment shows a generally upward trend from 2018 to 2022, increasing from $1,440,605 thousand in 2018 to $2,095,212 thousand in 2022. There is a noticeable jump between 2020 and 2021, where the figure rose by approximately 21.4%, followed by a smaller increase of about 6.7% from 2021 to 2022. This indicates improving earnings before interest, taxes, depreciation, and amortization, reflecting enhanced operational performance over the period.
- Revenues
- Revenue figures exhibit significant volatility within the five-year period. Starting at $10,934,578 thousand in 2018, revenues declined sharply in 2019 and 2020, reaching a low of $7,090,013 thousand in 2020. However, a strong recovery is evident in 2021, with revenues more than doubling to $14,391,873 thousand and continuing to rise to $19,066,822 thousand in 2022. The steep decline through 2020 likely reflects adverse market conditions, but the substantial rebound suggests improved market demand or pricing power in the later years.
- Segment Profit Margin
- The segment profit margin has fluctuated considerably over the period. Beginning at 13.17% in 2018, it increased to 22.81% in 2020, marking the highest margin during the timeframe. Subsequently, the margin declined significantly to 13.64% in 2021 and further to 10.99% in 2022. Despite rising revenues and EBITDA in the later years, the decreasing profit margin indicates rising costs or pricing pressures that have reduced profitability relative to total revenues.
- Overall Analysis
- While the segment's Adjusted EBITDA and revenues experienced considerable volatility, the general trajectory since 2020 has been positive in terms of nominal growth. However, the decline in segment profit margin since 2020 suggests that the gains in revenue and EBITDA have been accompanied by increased expenses or other factors compressing margins. This mixed financial performance underscores a need to carefully monitor cost control and market conditions to ensure sustained profitability going forward.
Segment Profit Margin: Natural Gas Pipelines
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Adjusted EBITDA | |||||
Revenues | |||||
Segment Profitability Ratio | |||||
Segment profit margin1 |
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).
1 2022 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenues
= 100 × ÷ =
The financial data for the Natural Gas Pipelines segment reveals several notable trends across the five-year period ending in 2022.
- Adjusted EBITDA
- The adjusted EBITDA shows a general upward trajectory from 2018 to 2021, increasing from approximately $366 million to about $528 million, reflecting steady improvement in earnings before interest, taxes, depreciation, and amortization. However, in 2022, there is a decline to approximately $488 million, indicating a reduction in operating profitability or increased expenses in the most recent year.
- Revenues
- Revenues exhibit consistent growth over the period from 2018 through 2021, rising from around $432 million to nearly $607 million. However, similar to EBITDA, revenues decrease in 2022 to approximately $579 million. This decrease suggests some market challenges or reduced sales volumes impacting the segment's top line.
- Segment Profit Margin
- The segment profit margin shows a generally high level of profitability, fluctuating between approximately 84.4% and 91.1%. The margin peaks in 2020 at over 91%, indicating enhanced operational efficiency or cost management that year. Following 2020, the margin decreases steadily, reaching the lowest point in 2022 at roughly 84.4%, which may indicate increased costs or pricing pressures affecting profitability despite high revenues.
Overall, the data suggest that while the segment experienced growth and strong profitability through 2021, 2022 introduced some downturns in both revenue and earnings metrics, with profitability margins also slightly compressed. This pattern indicates potential external or internal factors impacting financial performance during the latest year analyzed.
Segment Return on Assets (Segment ROA)
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines |
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 annual reportable segment Return on Assets (ROA) data for the specified periods reveals distinct trends across the three business segments.
- Natural Gas Gathering and Processing
- The ROA shows a relatively stable performance during the initial three years, with values fluctuating slightly around 10%. From 2018 to 2020, the percentages were 10.39%, 10.34%, and 10%, respectively, indicating minimal variation. However, a notable increase is observed starting in 2021, where the ROA rises significantly to 13.14%, followed by further growth to 14.85% in 2022. This upward trend suggests an improvement in asset efficiency or profitability within this segment in recent years.
- Natural Gas Liquids
- This segment exhibits a downward trend initially, with ROA decreasing from 14.91% in 2018 to 11.68% in 2019. The figure stabilizes slightly in 2020 at 11.86% before an uptick occurs in 2021 reaching 13.54%, and a modest increase continuing into 2022 to 14.31%. Overall, the data indicates some volatility with a decline followed by recovery toward earlier higher profitability levels.
- Natural Gas Pipelines
- The ROA for the pipeline segment demonstrates a consistent upward trajectory from 2018 through 2021. Starting at 17.18% in 2018, it increased steadily each year to reach 19.52% in 2019, 20.83% in 2020, and 24.63% in 2021. However, a slight decline occurs in 2022, where the ROA drops to 21.67%. Despite the decrease in the final year, the segment maintains its position as the highest performing in terms of ROA throughout the observed periods.
In summary, the Natural Gas Gathering and Processing segment displays a recent and marked improvement in asset returns. The Natural Gas Liquids segment experiences an initial drop but recovers to near initial performance levels by 2022. The Natural Gas Pipelines segment shows sustained growth over most of the period with a minor setback in the latest year, yet it remains the segment with the highest return on assets overall.
Segment ROA: Natural Gas Gathering and Processing
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Adjusted EBITDA | |||||
Total assets | |||||
Segment Profitability Ratio | |||||
Segment ROA1 |
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).
1 2022 Calculation
Segment ROA = 100 × Adjusted EBITDA ÷ Total assets
= 100 × ÷ =
- Adjusted EBITDA
- The Adjusted EBITDA exhibited an overall upward trend during the five-year period. Starting at approximately $631.6 million at the end of 2018, it increased to a peak of about $1.04 billion by the end of 2022. There was a moderate rise from 2018 to 2019, followed by a slight decline in 2020. However, the metric experienced significant growth in 2021 and continued to increase substantially in 2022.
- Total Assets
- Total assets fluctuated over the period under review. Beginning at approximately $6.08 billion in 2018, total assets rose to around $6.80 billion in 2019. They then decreased to about $6.50 billion in 2020 before ascending again to approximately $6.77 billion in 2021 and further to roughly $6.98 billion in 2022. Despite these fluctuations, total assets demonstrated a general upward trajectory by the end of the period.
- Segment Return on Assets (ROA)
- The segment ROA maintained a relatively stable level from 2018 through 2020, remaining close to 10%. Beginning in 2021, a notable increase was observed, with ROA rising to 13.14%, and continuing to climb to 14.85% by the end of 2022. This trend indicates an improvement in asset profitability within the segment during the latter years.
- Summary
- Overall, the data suggest positive developments in financial performance for the segment. Adjusted EBITDA showed strong growth, particularly in the last two years, signaling enhanced earnings capacity. Total assets experienced some volatility but ended on a higher note relative to the starting point, reflecting potential asset growth or investments. The rise in segment ROA during 2021 and 2022 highlights increased efficiency and profitability in utilizing assets. These combined trends point to strengthening operational performance and financial position in the natural gas gathering and processing segment over the analyzed timeframe.
Segment ROA: Natural Gas Liquids
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Adjusted EBITDA | |||||
Total assets | |||||
Segment Profitability Ratio | |||||
Segment ROA1 |
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).
1 2022 Calculation
Segment ROA = 100 × Adjusted EBITDA ÷ Total assets
= 100 × ÷ =
- Adjusted EBITDA
- The adjusted EBITDA shows a consistent upward trend over the five-year period. Starting at approximately 1.44 billion US dollars in 2018, it increased steadily each year to reach about 2.10 billion US dollars by 2022. Notably, the most significant growth occurred between 2020 and 2021, reflecting an increase of roughly 21.4%. This suggests improving operational profitability within the segment over the observed timeframe.
- Total Assets
- Total assets exhibited substantial growth from 2018 through 2022. The asset base expanded from about 9.66 billion US dollars in 2018 to approximately 14.64 billion US dollars in 2022, indicating significant investment or asset acquisitions in the segment. The most pronounced increase occurred between 2018 and 2019, with assets rising by nearly 30%. Growth continued thereafter but at a more moderate pace.
- Segment Return on Assets (ROA)
- Segment ROA experienced some fluctuations over the period under review. It started at 14.91% in 2018, decreased in 2019 to 11.68%, and then stabilized in subsequent years, showing a moderate recovery to 14.31% by 2022. Despite the dip in 2019, the return on assets remained relatively strong, indicating effective utilization of assets to generate earnings within the segment.
- Overall Analysis
- Overall, the financial data reveal growth in both profitability and asset base, with adjusted EBITDA and total assets increasing substantially over five years. Although the segment ROA declined initially, it regained momentum, suggesting improved efficiency or profitability in asset usage by the end of the period. These trends imply strategic expansion and operational improvement within the segment.
Segment ROA: Natural Gas Pipelines
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Adjusted EBITDA | |||||
Total assets | |||||
Segment Profitability Ratio | |||||
Segment ROA1 |
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).
1 2022 Calculation
Segment ROA = 100 × Adjusted EBITDA ÷ Total assets
= 100 × ÷ =
- Adjusted EBITDA
- The Adjusted EBITDA shows a general upward trend from 2018 to 2021, increasing from 366.3 million USD in 2018 to a peak of 527.8 million USD in 2021. However, in 2022, there is a noticeable decline to 488.4 million USD, representing a reduction from the previous year's highest value.
- Total Assets
- Total assets remained relatively stable from 2018 to 2021, fluctuating around the 2.1 billion USD mark without significant changes. In 2022, there is a more pronounced increase to approximately 2.25 billion USD, indicating asset growth during that year.
- Segment Return on Assets (ROA)
- The segment ROA demonstrates gradual improvement from 17.18% in 2018 to a maximum of 24.63% in 2021, reflecting increasing efficiency in asset utilization. In 2022, the ROA decreases to 21.67%, still above the earlier years but lower than the peak in 2021.
Segment Asset Turnover
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines |
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 annual reportable segment asset turnover ratios for the periods ending December 31 from 2018 through 2022 reveal distinct trends across the three segments.
- Natural Gas Gathering and Processing
- The asset turnover ratio for this segment demonstrated a declining trend from 0.50 in 2018 to a low point of 0.28 in 2020. However, a significant recovery occurred thereafter, with the ratio rising to 0.66 in 2021 and further improving to 0.94 in 2022. This indicates a rebound in the efficiency with which assets were used to generate revenue in this segment following a prior period of declining performance.
- Natural Gas Liquids
- This segment exhibited a similar pattern to the first segment, with an initial decrease in asset turnover from 1.13 in 2018 to 0.52 in 2020. Subsequently, the ratio improved substantially to 0.99 in 2021 and then to 1.30 in 2022. The marked increase in the latter two years reflects enhanced asset utilization and possibly increased market demand or operational improvements.
- Natural Gas Pipelines
- The asset turnover ratio here remained relatively stable over the five-year period, fluctuating mildly between 0.20 and 0.28. Starting at 0.20 in 2018, it increased marginally to 0.23 in 2019 and 2020, peaked slightly at 0.28 in 2021, and then experienced a minor decline to 0.26 in 2022. This stability suggests consistent asset utilization within this segment, without dramatic shifts.
Overall, the data indicates that both the Natural Gas Gathering and Processing and Natural Gas Liquids segments experienced a downturn in asset turnover in the early years, likely reflecting operational challenges or market conditions, followed by a notable recovery and enhancement in asset efficiency by 2022. Conversely, the Natural Gas Pipelines segment maintained steady asset turnover rates throughout the period, suggesting stable operational characteristics in that division.
Segment Asset Turnover: Natural Gas Gathering and Processing
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenues | |||||
Total assets | |||||
Segment Activity Ratio | |||||
Segment asset turnover1 |
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).
1 2022 Calculation
Segment asset turnover = Revenues ÷ Total assets
= ÷ =
- Revenues
- The revenue figures exhibit significant fluctuations over the five-year period. Revenues decreased from approximately $3.03 billion in 2018 to a low of $1.82 billion in 2020, representing a substantial decline. Following this trough, revenues rebounded sharply to $4.46 billion in 2021 and further increased to $6.53 billion in 2022, indicating a strong recovery and growth trend in the latter two years.
- Total Assets
- Total assets show a generally upward trend, beginning at approximately $6.08 billion in 2018 and increasing to around $6.98 billion by the end of 2022. The asset base expanded steadily through this timeframe with only a slight dip observed in 2020. This suggests ongoing investment or acquisition activities to support operational growth or capacity expansion.
- Segment Asset Turnover
- The segment asset turnover ratio follows a pattern reflective of the revenue and asset trends. It declines markedly from 0.5 in 2018 to a low of 0.28 in 2020, consistent with the revenue downturn and relatively stable asset base in that year. After 2020, the ratio increases substantially, reaching 0.66 in 2021 and further rising to 0.94 in 2022. This indicates improved efficiency in generating revenue from assets, particularly during the recovery period, suggesting better utilization of the segment's asset base.
Segment Asset Turnover: Natural Gas Liquids
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenues | |||||
Total assets | |||||
Segment Activity Ratio | |||||
Segment asset turnover1 |
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).
1 2022 Calculation
Segment asset turnover = Revenues ÷ Total assets
= ÷ =
- Revenue Trends
- Revenues demonstrated significant variability over the five-year period. There was a pronounced decline from 10,934,578 thousand US dollars in 2018 to 7,090,013 thousand US dollars in 2020. Following this low point, revenues increased substantially in 2021, reaching 14,391,873 thousand US dollars, and this upward trajectory continued in 2022, culminating in the highest recorded value of 19,066,822 thousand US dollars during the period.
- Total Assets
- Total assets showed a consistent upward trend throughout the period. Starting at 9,663,640 thousand US dollars in 2018, total assets increased each year, reaching 14,643,324 thousand US dollars by the end of 2022. This represents a steady expansion of asset base, indicating ongoing investments or asset accumulation within this segment.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures efficiency in generating revenues from assets, displayed considerable fluctuation. It started at 1.13 in 2018, experienced a sharp decline to 0.68 in 2019, and further dropped to 0.52 in 2020, indicating decreasing efficiency during this period. This trend reversed in 2021, with the ratio increasing to 0.99, and further improving to 1.3 in 2022, surpassing the initial 2018 level. This suggests enhanced asset utilization and improved operational performance in the latter years.
- Overall Insights
- The period saw an initial downturn in revenues coupled with declining asset turnover, possibly reflecting challenging market or operational conditions. However, beginning in 2021, both revenues and asset turnover improved markedly, alongside continued growth in total assets. This combination points to a recovery phase with increased efficiency in asset use and expanding business scale within this segment.
Segment Asset Turnover: Natural Gas Pipelines
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenues | |||||
Total assets | |||||
Segment Activity Ratio | |||||
Segment asset turnover1 |
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).
1 2022 Calculation
Segment asset turnover = Revenues ÷ Total assets
= ÷ =
- Revenue Trends
- Revenues exhibited an overall upward trajectory from 2018 to 2022. Starting at approximately 431.7 million USD in 2018, revenues increased steadily each year, reaching a peak of around 606.9 million USD in 2021. However, in 2022, there was a moderate decline to about 578.5 million USD, indicating a slight contraction after the previous year’s growth.
- Total Assets
- Total assets showed a generally stable to increasing pattern over the five-year period. Initial levels were around 2.13 billion USD in 2018, with a minor dip observed in 2019 and 2020 to approximately 2.09 billion USD and 2.10 billion USD, respectively. Subsequently, assets increased in 2021 and 2022, reaching roughly 2.25 billion USD by the end of 2022, suggesting ongoing asset base expansion in the later years.
- Segment Asset Turnover
- The segment asset turnover ratio displayed a progressive improvement, beginning at 0.20 in 2018 and rising to 0.23 in both 2019 and 2020. A notable increase occurred in 2021, when the ratio peaked at 0.28, reflecting enhanced efficiency in utilizing assets to generate revenue. In 2022, the ratio slightly decreased to 0.26, yet remained above earlier years, indicating sustained relatively strong asset utilization.
- Overall Insights
- The data suggests that the natural gas pipelines segment experienced growth in revenue and asset base throughout the period, with a temporary slowdown in revenue in the latest year. The asset turnover ratio improvement points to enhanced operational efficiency, especially around 2021, before a marginal retreat in 2022. These trends indicate a potentially successful asset deployment strategy, albeit with some recent pressure on revenue generation.
Segment Capital Expenditures to Depreciation
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines |
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).
- Natural Gas Gathering and Processing
- The capital expenditures to depreciation ratio for this segment exhibits a decreasing trend over the examined period. Starting at 3.54 in 2018, the ratio peaks at 4.22 in 2019, indicating higher capital expenditures relative to depreciation. Subsequently, a sharp decline occurs in 2020 to 1.81, followed by further decreases to 1.06 in 2021. However, in 2022, there is a modest rebound to 1.73, suggesting a slight increase in capital investment relative to asset depreciation compared to the previous year.
- Natural Gas Liquids
- This segment shows significant volatility in the capital expenditure to depreciation ratio. A high ratio of 7.51 is recorded in 2018, which nearly doubles to 14.26 in 2019, indicating a substantial increase in capital expenditures relative to depreciation. This is followed by a pronounced decrease to 6.09 in 2020, then a dramatic drop to just above 1.00 in 2021, signaling a major reduction in capital investment relative to asset wear. In 2022, the ratio increases slightly to 1.92, indicating a moderate recovery in capital spending.
- Natural Gas Pipelines
- The ratio for this segment demonstrates a generally decreasing trend from 2018 to 2020, starting at 2.16 and declining to 1.29. However, the trend reverses thereafter with a gradual increase observed in 2021 and 2022 to 1.58 and 1.99 respectively. This indicates a recovery in capital expenditures relative to depreciation, approaching the levels seen at the start of the period.
Segment Capital Expenditures to Depreciation: Natural Gas Gathering and Processing
ONEOK Inc.; Natural Gas Gathering and Processing; segment capital expenditures to depreciation calculation
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Capital expenditures | |||||
Depreciation and amortization | |||||
Segment Financial Ratio | |||||
Segment capital expenditures to depreciation1 |
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).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital Expenditures
- The capital expenditures demonstrate a fluctuating trend over the five-year period. The amount increased substantially from 694,611 thousand US dollars in 2018 to a peak of 926,489 thousand US dollars in 2019. This was followed by a significant decrease to 446,142 thousand US dollars in 2020, with further reduction to 275,165 thousand US dollars in 2021. However, the figure rose again to 444,851 thousand US dollars in 2022, showing a recovery from the prior year's low but not reaching earlier peaks.
- Depreciation and Amortization
- Depreciation and amortization expenses exhibit a steady upward trend from 196,090 thousand US dollars in 2018 to 260,011 thousand US dollars in 2021, indicating growing asset bases or increased amortization charges. In 2022, there is a slight decrease to 257,311 thousand US dollars, which might suggest stabilization or minor adjustments in asset valuation or useful lives.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation shows considerable variability, beginning at 3.54 in 2018 and rising to its highest point of 4.22 in 2019. This signals a period where capital investments significantly outpaced depreciation expenses. Subsequently, the ratio declines sharply to 1.81 in 2020 and further to 1.06 in 2021, indicating that capital expenditures were nearly equivalent to or just slightly above depreciation in those years. In 2022, the ratio improves to 1.73, suggesting a modest increase in capital investment relative to depreciation but at a level considerably below the earlier peak years.
- Overall Analysis
- The data reveals an initial phase of aggressive capital investment up to 2019, followed by a marked reduction in spending through 2020 and 2021, possibly reflecting strategic shifts or external factors impacting investment activity. Depreciation steadily increased, reflecting ongoing asset utilization and possibly new asset additions in prior years. The capital expenditure to depreciation ratio's fluctuation underscores changing investment intensity relative to asset wear and tear, with recent years indicating more conservative capital deployment with closer alignment to depreciation charges.
Segment Capital Expenditures to Depreciation: Natural Gas Liquids
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Capital expenditures | |||||
Depreciation and amortization | |||||
Segment Financial Ratio | |||||
Segment capital expenditures to depreciation1 |
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).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital Expenditures
- The capital expenditures show significant volatility over the five-year period. There was a sharp increase from approximately $1.31 billion in 2018 to nearly $2.80 billion in 2019, followed by a substantial decline to around $1.66 billion in 2020. This downward trend continued dramatically in 2021, with capital expenditures falling to approximately $307 million. However, in 2022, the capital expenditures rebounded to about $581 million, indicating a moderate recovery but still well below the levels seen in earlier years.
- Depreciation and Amortization
- Depreciation and amortization exhibited a consistent upward trend throughout the period. Starting at roughly $174 million in 2018, the figures increased steadily each year, reaching approximately $302 million by 2022. This steady rise suggests ongoing asset base growth or changes in depreciation policies.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio experienced significant fluctuations. It peaked at 14.26 in 2019, reflecting capital expenditures vastly exceeding depreciation expense, indicating aggressive investment in assets. Subsequently, the ratio declined sharply to 6.09 in 2020, then further plummeted to just above 1.0 in 2021, signifying a reduction in capital spending to approximately even with depreciation. In 2022, the ratio rose slightly to 1.92, suggesting some increase in investment, though still moderate compared to earlier periods.
- Summary
- Overall, the data reveals a pattern of initial heavy investment in capital assets in 2019, followed by a significant reduction in capital expenditures through 2021. Despite the decreased capital spending, depreciation and amortization costs have steadily increased, which may reflect asset aging or the impact of prior investments. The segment's capital expenditure to depreciation ratio indicates a shift from aggressive growth or asset replacement towards a more conservative capital investment approach in recent years. The modest rebound in capital expenditures in 2022 suggests potential renewed investment activity, though at a lower scale than the peaks observed earlier.
Segment Capital Expenditures to Depreciation: Natural Gas Pipelines
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
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Selected Financial Data (US$ in thousands) | |||||
Capital expenditures | |||||
Depreciation and amortization | |||||
Segment Financial Ratio | |||||
Segment capital expenditures to depreciation1 |
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).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The analysis of the annual data for the "Natural Gas Pipelines" segment reveals several notable trends over the five-year period ending in 2022.
- Capital expenditures
- Capital expenditures exhibited a fluctuating pattern. Starting at $119.2 million in 2018, they decreased markedly to $71.9 million in 2020, representing the lowest level in the observed period. Subsequently, capital expenditures increased significantly to $92.6 million in 2021 and further to $123.4 million in 2022, surpassing the 2018 level. This trend indicates a shift from a period of reduced investment to renewed and expanding capital commitments in the latter years.
- Depreciation and amortization
- Depreciation and amortization expenses showed a steady upward trajectory throughout the period. Beginning at approximately $55.1 million in 2018, these expenses increased incrementally each year, reaching $62.1 million in 2022. The consistent rise reflects ongoing asset base growth or higher amortizable intangible assets within the segment.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation experienced variability but generally mirrored the trends in capital spending. Initially, the ratio was 2.16 in 2018, dropping to a low of 1.29 in 2020, coinciding with the dip in capital expenditures. The ratio then improved to 1.58 in 2021 and further to 1.99 in 2022. This suggests that capital investment relative to asset depreciation recovered significantly after 2020, indicating a phase of asset growth or replacement activity that outpaced the rate of asset consumption represented by depreciation.
Overall, the data indicate a cyclical investment pattern within the natural gas pipeline segment, with a trough in capital expenditures around 2020, followed by a pronounced increase. Meanwhile, depreciation steadily increased, reflecting an expanding asset base. The capital expenditure to depreciation ratio corroborates this pattern, highlighting the segment's fluctuating intensity of capital reinvestment relative to asset aging.
Revenues
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
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Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines | |||||
Total Segments |
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).
- Natural Gas Gathering and Processing
- The revenue in this segment displayed a fluctuating trend over the five-year period. Starting at approximately $3.03 billion in 2018, it declined consistently for two consecutive years, reaching a low of about $1.82 billion in 2020. However, the following years saw a significant recovery and growth, with revenues jumping to approximately $4.46 billion in 2021 and further increasing to around $6.53 billion by the end of 2022. This pattern suggests initial challenges or reduced activity in the segment during 2019-2020, followed by a substantial rebound and expansion.
- Natural Gas Liquids
- Revenues in this segment initially declined from approximately $10.93 billion in 2018 to about $7.09 billion in 2020, indicating a downward trend over the first three years. From 2020 onwards, there was a marked upward trajectory, with revenues increasing to approximately $14.39 billion in 2021 and further to around $19.07 billion in 2022. This recovery and subsequent growth reflect a strong resurgence in the market or operational scale in this segment in the last two years.
- Natural Gas Pipelines
- This segment experienced relatively stable revenues throughout the period, with modest growth over the years. Starting around $432 million in 2018, revenues increased slightly to nearly $472 million in 2019 and remained fairly steady around $480 million in 2020. A more noticeable rise occurred in 2021 reaching about $607 million, followed by a slight decrease to approximately $579 million in 2022. Overall, the segment maintained consistent performance with moderate fluctuations.
- Total Segments
- Total segment revenues reveal a trend consistent with the individual segment performances. Starting at approximately $14.40 billion in 2018, there was a decline to about $9.39 billion by 2020, reflecting the collective downturn during that period. Subsequently, the total revenue experienced a sharp increase, reaching nearly $19.46 billion in 2021 and peaking at approximately $26.18 billion in 2022. This pattern indicates a noteworthy overall recovery and robust growth post-2020, driven mainly by significant gains in the Natural Gas Gathering and Processing and Natural Gas Liquids segments.
Adjusted EBITDA
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
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Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines | |||||
Total Segments |
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).
- Natural Gas Gathering and Processing Segment
- The adjusted EBITDA for the Natural Gas Gathering and Processing segment exhibited an overall upward trend from 2018 to 2022. It started at $631.6 million in 2018 and increased steadily to $702.7 million in 2019. After a slight decline to $650.0 million in 2020, it rose significantly to $889.1 million in 2021 and further to $1.04 billion in 2022, indicating strong growth particularly in the last two years of the period analyzed.
- Natural Gas Liquids Segment
- The Natural Gas Liquids segment demonstrated consistent growth throughout the entire period from 2018 to 2022. Beginning at $1.44 billion in 2018, the adjusted EBITDA increased incrementally each year, reaching $1.47 billion in 2019, $1.62 billion in 2020, $1.96 billion in 2021, and finally $2.10 billion in 2022. This reflects a sustained positive performance with significant gains, especially between 2020 and 2022.
- Natural Gas Pipelines Segment
- This segment showed moderate growth from 2018 to 2021, with adjusted EBITDA rising from $366.3 million in 2018 to $408.8 million in 2019, continuing upward to $437.4 million in 2020, and then to $527.8 million in 2021. However, the segment experienced a decline in 2022, with adjusted EBITDA decreasing to $488.4 million, indicating a reversal of the prior growth trend in the last year.
- Total Segments
- The aggregate adjusted EBITDA across all reportable segments increased steadily over the five-year period. Total adjusted EBITDA grew from $2.44 billion in 2018 to $2.58 billion in 2019, then to $2.70 billion in 2020. It experienced a more pronounced increase to $3.38 billion in 2021 and further to $3.62 billion in 2022. The growth is largely driven by the strong performance in the Natural Gas Liquids and Gathering and Processing segments, offset somewhat by the recent dip in the Natural Gas Pipelines segment.
Depreciation and amortization
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
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Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines | |||||
Total Segments |
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).
- Natural Gas Gathering and Processing
- The depreciation and amortization expenses for this segment show a consistent upward trend from 2018 through 2021, increasing from approximately $196 million to $260 million. However, in 2022, there is a slight decline to about $257 million, indicating a minor reduction after several years of growth.
- Natural Gas Liquids
- This segment demonstrates a significant increase over the analyzed period. Starting at around $174 million in 2018, the expenses steadily rise, with particularly marked growth between 2019 and 2020, and continuing through 2022, reaching over $302 million. This suggests substantial investment or increased amortization related to this segment's assets.
- Natural Gas Pipelines
- The depreciation and amortization costs for pipelines remain relatively stable, with minor fluctuations. From $55 million in 2018, the values show a slight increase overall, reaching approximately $62 million by 2022. The trend is less pronounced compared to the other segments, indicating steady asset base or slower capital expenditure changes.
- Total Segments
- The aggregate depreciation and amortization expense across all reportable segments has grown consistently over the five-year span. From around $425 million in 2018, the total expands steadily year-over-year, peaking near $622 million in 2022. This reflects overall asset growth and amortization patterns across the company's operations, with the majority contribution coming from the Natural Gas Gathering and Processing and Natural Gas Liquids segments.
Total assets
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
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Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines | |||||
Total Segments |
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).
- Natural Gas Gathering and Processing
- The total assets in this segment demonstrated a generally positive trend from 2018 to 2022. Starting at approximately 6,078 million US dollars in 2018, the assets increased steadily to about 6,979 million by the end of 2022, reflecting a moderate and consistent growth over the five-year period. A slight dip occurred in 2020, but the subsequent years showed recovery and growth beyond the previous high.
- Natural Gas Liquids
- This segment experienced significant growth throughout the period. Total assets expanded from roughly 9,663 million US dollars in 2018 to approximately 14,643 million in 2022. The increase was particularly marked between 2018 and 2019, when assets surged by nearly 30%, and this upward trajectory continued steadily with smaller gains each year, indicating major investments or asset acquisitions in this segment.
- Natural Gas Pipelines
- The assets in the pipelines segment remained relatively stable over the analyzed period. Values oscillated slightly around the 2,100 million US dollars mark, starting at approximately 2,132 million in 2018 and ending just above 2,253 million in 2022. This consistency suggests minimal volatility and limited capital expansion in this segment compared to others.
- Total Segments
- The aggregate total assets across all segments increased consistently over the five years. The total grew from approximately 17,874 million US dollars in 2018 to nearly 23,877 million in 2022. The most notable jump occurred between 2018 and 2019, with steady but more moderate growth continuing thereafter. Overall, the data reflects ongoing asset growth attributed primarily to the strong performance of the Natural Gas Liquids and Natural Gas Gathering and Processing segments.
Capital expenditures
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
---|---|---|---|---|---|
Natural Gas Gathering and Processing | |||||
Natural Gas Liquids | |||||
Natural Gas Pipelines | |||||
Total Segments |
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 capital expenditures data for the reporting periods from December 31, 2018, through December 31, 2022, reveal distinct trends across various segments.
- Natural Gas Gathering and Processing
- Capital expenditures in this segment started at $694,611 thousand in 2018, increased significantly to $926,489 thousand in 2019, then sharply declined to $446,142 thousand in 2020. This downward trend continued in 2021, reaching a low of $275,165 thousand before partially recovering to $444,851 thousand in 2022. Overall, the expenditures exhibited considerable volatility with an initial peak in 2019 followed by a substantial contraction and a modest rebound by the end of the period.
- Natural Gas Liquids
- This segment showed a highly fluctuating capital expenditure pattern over the analyzed period. Starting at $1,306,341 thousand in 2018, expenditures more than doubled to $2,796,604 thousand in 2019, representing the peak for the entire reporting window. A steep reduction followed in 2020 to $1,655,759 thousand, which was then followed by an even more pronounced drop to $306,949 thousand in 2021. A recovery was noted in 2022, with expenditures increasing to $580,837 thousand. Despite this increase, the 2022 figure remained significantly below the peak levels observed in 2018 and 2019.
- Natural Gas Pipelines
- Capital expenditures in the pipeline segment were generally lower and more stable compared to the other two segments. The values ranged from $71,918 thousand in 2020 to $123,443 thousand in 2022. The segment experienced a slight decrease from $119,185 thousand in 2018 to $99,221 thousand in 2019, followed by a decline to $71,918 thousand in 2020. Thereafter, expenditures gradually increased to $92,617 thousand in 2021 and further to $123,443 thousand in 2022. This pattern indicates a recovery trend following a trough in 2020.
- Total Segments
- Aggregated capital expenditures across all segments peaked at $3,822,314 thousand in 2019, nearly doubling the 2018 level of $2,120,137 thousand. Thereafter, total expenditures dropped precipitously to $2,173,819 thousand in 2020 and saw a sharp further decline to $674,731 thousand in 2021. Despite a partial recovery in 2022 to $1,149,131 thousand, total capital expenditures remained well below the peak levels experienced in 2019. This overall trend reflects significant curtailment of capital spending beginning in 2020, with a gradual recovery underway by 2022.