ONEOK Raises 2026 Guidance as a One-Time Tax Benefit Lifts Third-Quarter Profit

ONEOK raised its 2026 guidance on Oct. 27 after third-quarter profit rose, helped by higher Permian volumes and a one-time tax benefit.

ONEOK reported third-quarter 2026 results on Oct. 27, 2026, after the market close. The quarter ended Sept. 30, 2026.

Net income was $1.384 billion, up from $940 million a year earlier. Net income attributable to ONEOK was $1.35 billion, or $2.13 a share.

A year earlier, attributable net income was $939 million, or $1.49 a share. Seeking Alpha reported that the $2.13 result beat its tally by $0.63 a share.

A one-time tax benefit did much of the lifting

Attributable profit includes a one-time noncash income tax benefit of $336 million. The benefit added $0.53 a share to diluted earnings.

Without that benefit, diluted earnings would have been $1.60 a share, a TickerGrove calculation. The comparison matters because the benefit came from a reorganization, not operations.

The reorganization was related to the minority equity transaction ONEOK completed in the quarter. Net income also included $33 million attributable to noncontrolling interests from that investment.

Adjusted EBITDA was $2.238 billion, up 6% from $2.119 billion a year earlier. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, with adjustments.

The adjusted figure included a $53 million net benefit from the minority equity and Brazos transactions. Operating income was $1.568 billion, against $1.558 billion a year earlier.

Operating costs rose to $861 million from $738 million. Capital spending was $937 million in the quarter, including $162 million of maintenance capital.

Permian volumes rose across the system

Natural gas liquids are fuels and feedstocks separated from raw natural gas. ONEOK's raw feed throughput of those liquids rose 6%.

In the Gulf Coast and Permian region, that throughput rose 16%. Refined products volumes shipped rose 6%, the company said.

Permian region natural gas volumes processed rose 4%. The company credited higher volumes and higher optimization and marketing activity.

Refined products carried the segment growth

The Natural Gas Liquids segment posted adjusted EBITDA of $718 million. That was down from $748 million a year earlier.

Refined Products and Crude posted $685 million, up from $582 million. Natural Gas Gathering and Processing posted $563 million, against $566 million.

Natural Gas Pipelines posted $231 million, up from $200 million. The segment figures are adjusted EBITDA, the company's non-GAAP measure.

Guidance rose for the full year

ONEOK raised 2026 net income guidance to a range of $4.09 billion to $4.27 billion. The midpoint is $4.18 billion.

Attributable net income guidance rose to a midpoint of $3.985 billion. Earnings guidance rose to a midpoint of $6.30 a share.

Adjusted EBITDA guidance rose to a range of $8.5 billion to $8.6 billion. Its midpoint is $8.55 billion.

The raise reflects strong year-to-date performance and volumes, the company said. It also includes the recently completed Brazos Permian Midland acquisition.

That acquisition is expected to contribute about $75 million to 2026 results. About $50 million of that should reach adjusted EBITDA, net of transaction costs.

Total 2026 capital spending guidance is about $3.5 billion. The update reflects growth opportunities and spending tied to the Brazos acquisition.

"Based on this performance and our outlook for the remainder of the year, we are once again raising our 2026 financial guidance," Chief Executive Pierce H. Norton II said.

Debt fell and credit ratings rose

ONEOK extinguished nearly $5.5 billion of debt principal in September 2026. It also completed a $9 billion minority equity investment.

The company completed its acquisition of Brazos Midstream's Permian Midland Basin assets. S&P Global Ratings and Fitch Ratings upgraded its credit ratings to BBB+.

In October, ONEOK declared a quarterly dividend of $1.07 a share. That is $4.28 a share on an annualized basis.

What remains unknown

What remains unknown is how much of the guidance raise reflects Brazos beyond the stated contribution. The release does not split the rest between volumes, prices and marketing.

Also unknown is whether the segment pattern holds, with liquids earnings down and refined products up. Management takes questions on its Oct. 28 call, at 11 a.m. Eastern.

What to watch is that call, Brazos integration detail, and fourth-quarter volumes. The verified record is clear: profit rose, guidance rose, and a one-time benefit flattered the headline earnings.