ONEOK Gears Up to Report Q2 Earnings: What to Expect From the Stock?
ONEOK Inc. OKE is scheduled to release second-quarter 2026 results on Aug. 3, after market close. The Zacks Consensus Estimate for earnings is currently pegged at $1.39 per share on revenues of $10.8 billion.
Second-quarter earnings estimates have gone down 3.47% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 36.96%.
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OKE’s Earnings Surprise History
ONEOK’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.49%.
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What the Zacks Model Unveils for OKE
Our proven model does not conclusively predict an earnings beat for ONEOK this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, ONEOK carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Some companies in the same sector with the right combination of the two factors for an earnings beat this season are Energy TransferET, Devon Energy Corp. DVN and Plains All American Pipeline, L.P.PAA. ET, DVN and PAA currently have an Earnings ESP of +5.88%, +0.61% and +6.71%, respectively. All three stocks carry a Zacks Rank #3 at present.
Factors Likely to Have Influenced OKE’s Q2 Performance
ONEOK’s second-quarter earnings are likely to have been supported by rising natural gas demand, driven by increasing data center activity, higher liquefied natural gas exports and growing industrial consumption.
The company’s bottom-line performance is also expected to have benefited from a stable fee-based business model, with 90% of its revenues projected to be generated through fee-based contracts. Seasonal recovery may have improved operating conditions, while the peak refinery turnaround season could also have benefited the company and supported its second-quarter performance.
The ramp-up in well completions in the Rocky Mountain and Mid-Continent regions during the previous quarters is likely to have contributed to stronger earnings and boosted natural gas gathering and processing volumes.
However, higher interest expenses may have trimmed some of the gains in the quarter to be reported.
Q2 Expectations for OKE
The Zacks Consensus Estimate for Raw feed throughput is pinned at 1,545.93 thousand barrels of natural gas liquid per day, suggesting 1.2% year-over-year growth.
The Zacks Consensus Estimate for Natural gas processing volumes is pegged at 5,850.42 million cubic feet of gas per day, indicating a 5% increase from the year-ago reported level.
OKE’s Price Performance
OKE shares have gained 19.5% over the past six months compared with the industry’s rise of 16.6%.
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OKE Shares Are Trading at a Premium
The company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. ONEOK is trading at 15.16X compared with its industry’s 13.97X.
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