Oneok Partners says 3Q net rises 48 percent

AP News
Posted: Nov 01, 2011 5:41 PM
Oneok Partners says 3Q net rises 48 percent

Natural gas storage and transportation company Oneok Partners LP said Tuesday that its net income rose 48 percent as it benefited from favorable price moves for natural gas liquids. The company raised its full-year profit forecast.

The company said it earned $209.7 million, or 84 cents per share, for the quarter that ended Sept. 30. That was up from $141.5 million, or 54 cents per share, a year earlier. Revenue rose 40.3 percent to $2.9 billion, from $2.07 billion a year earlier.

Analysts surveyed by FactSet were expecting a profit of 69 cents on revenue of $2.6 billion.

Oneok said its profit rose because of favorable moves in prices for natural gas liquids. Other factors included increased transportation capacity and higher natural gas liquid volumes, as well as contract renegotiations.

Its natural gas liquids segment had operating earnings of $157.1 million, up from $83.2 million a year ago, on favorable price differentials.

The company said it now expects to earn $740 million to $770 million, up $110 million on both ends of the range from its previous prediction. The bigger expected profit is because of higher expected earnings in its natural gas liquids segment.

Shares fell 48 cents to close at $49.52 before the results were released.