Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 3, 2026 · Beat 4 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
ONEOK's results underscore the growing role of natural gas in powering AI data centers and broader electrification. The company's 1 GW power generation supply award and advancing data center discussions highlight incremental demand for natural gas infrastructure, which could drive additional pipeline and processing investments. As LNG exports and power demand grow, ONEOK's integrated NGL and natural gas systems are well positioned to capture volume growth.
ONEOK delivered strong Q2 results with record NGL throughput, 7% YoY adjusted EBITDA growth, and 13% YoY net income growth. The company announced the Denver refined products expansion (35,000 bpd) was placed in service on August 1, and remains on track for Delaware Basin processing expansions (110 MMcf/d) in Q3, Medford Phase 1 fractionation (100,000 bpd) in Q4, and Bighorn plant (upsized to 400 MMcf/d) in mid-2027. LPG export capacity reached its 80% contracting threshold, and the company secured a 1 GW power generation supply agreement. NGL margins were slightly softer due to higher ethane recovery mix, but volumes were strong, particularly in July and August.
Management raised 2026 guidance for the second time this year, increasing net income midpoint to $3.6 billion, EPS to $5.68, and adjusted EBITDA to $8.35 billion (up $150M and $250M from original guidance, respectively). They reaffirmed mid- to high single-digit adjusted EBITDA growth over the next 5-7 years, underpinned by recently completed and upcoming projects, operating leverage, and a growing pipeline of organic and bolt-on opportunities. CapEx guidance remains $2.7-3.2 billion, with spending expected to accelerate in H2 as major projects near completion. Management also extended cash tax runway to 2031, now expecting $2.6 billion in cumulative cash tax benefits, and noted potential for further guidance upside if momentum holds into Q3.
“We now expect a 2026 net income midpoint of $3.6 billion, a diluted earnings per share midpoint of $5.68 and an adjusted EBITDA midpoint of $8.35 billion.”
on Guidance raise
“We're pleased to announce that we've reached our targeted contracting threshold of 80% for our 200,000 barrels per day of LPG export capacity, which is currently under construction as part of our export dock joint venture.”
on LPG export contracting
“We were recently awarded a supply agreement for 1 gigawatt of power plant demand, further expanding our participation in a growing source of natural gas demand.”
on Power generation demand
How much of the mid- to high single-digit EBITDA growth can be underwritten by filling white space on the current system versus building new infrastructure?
Pierce Norton highlighted multiple reinforcing growth drivers across all five segments, including Permian/Mid-Continent/Powder River growth, Bakken stability, rising LPG exports, global crude demand for reliable supply, and LNG/power generation demand. He emphasized it's not one thing but a multitude of factors across the footprint.
How much remaining uncontracted capacity do you have on West Texas LPG, and can legacy EnLink volumes be migrated to it?
Sheridan Swords said West Texas LPG has capacity up to 740,000 bpd with plenty of room for expected growth, and no near-term expansion needed. He noted over 50,000 bpd of legacy EnLink volumes on a third-party pipeline will roll onto West Texas LPG as contracts expire starting late 2026 through 2028.
What is your outlook for ethane recovery and NGL egress out of the Bakken?
Sheridan Swords said NGL egress is strong, running up to 500,000 bpd with plenty of spare capacity, and they can flex ethane as needed. He doesn't see egress as an issue in forward plans.