ONEOK (OKE)

Arctic Blast Brings a Chill to ONEOK Earnings

December’s Arctic blast will likely dampen 4Q22 earnings for midstream company ONEOK (OKE), as gas volumes in pipeline samples for its Bakken system declined by 14% vs November.

The Bakken G&P system is one of OKE’s largest assets by EBITDA. In East Daley’s Financial Blueprint company model, we estimate the Bakken system will earn $687 million for 2022, comprising 19% of ONEOK’s total EBITDA for the year.

The powerful front brought snow and bitter temperatures ahead of the holidays across most of the Lower 48, causing wellheads and equipment to freeze over in several basins. In the Williston Basin in Montana and North Dakota, residue gas output fell by 0.9 Bcf/d over the Dec. 23 – Dec. 29 week. OKE – Bakken was one of several G&P systems to see impacts late in the quarter.