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August 6, 2025 • 4 min read
ONEOK, a major player in the U.S. midstream energy sector, recently filed its second-quarter 2025 financial results, offering a detailed look into its performance. For those unfamiliar, midstream companies like ONEOK operate the critical infrastructure—pipelines, processing plants, and storage facilities—that transports and prepares natural gas, natural gas liquids (NGLs), and crude oil for the market. Let's dive into their latest 10-Q filing to see how the company is navigating the current energy landscape.
The most striking takeaway from the report is the dramatic growth on the top line. For the second quarter of 2025, ONEOK reported total revenues of $7.9 billion, a significant jump from the $4.9 billion recorded in the same period last year. The story is similar for the first six months of the year, with revenues climbing to $15.9 billion from $9.7 billion in 2024.
This growth isn't just organic; it's largely fueled by the company's recent strategic acquisitions, particularly of EnLink Midstream and Medallion. The impact is clear across its business segments:
To visualize how these revenue streams flow through the company's operations, the following chart breaks down the income statement for the first six months of 2025.
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While the revenue growth is impressive, the filing also highlights the costs associated with such rapid expansion. Integrating large-scale operations like EnLink and Medallion inevitably leads to higher expenses across the board.
This increase in expenses means that while operating income grew to $1.4 billion from $1.2 billion, the growth rate (16%) was more modest than the revenue surge.
Adjusted EBITDA, a non-GAAP measure that provides a clearer picture of operational performance by excluding interest, taxes, depreciation, and amortization, shows a similar story. Total segment adjusted EBITDA for Q2 2025 was $2.0 billion, up from $1.6 billion in Q2 2024.
The "Natural Gas Gathering and Processing" and "Refined Products and Crude" segments were the stars, with their adjusted EBITDA growing by $169 million and $90 million, respectively, largely due to the new acquisitions. The core "Natural Gas Liquids" segment, however, saw more moderate growth, with adjusted EBITDA increasing by $38 million to $673 million.
ONEOK is clearly in a transformative phase. The acquisitions of EnLink and Medallion have fundamentally reshaped the company, dramatically increasing its scale and revenue-generating capacity. However, this growth has come at a significant cost, with higher operating expenses and debt service weighing on the bottom line.
The key challenge for ONEOK going forward will be to successfully integrate these new assets, streamline operations, and realize synergies that can improve profitability. The company is also continuing to invest in the future, with major capital projects like the $700 million Texas City Logistics export terminal and the $480 million Greater Denver pipeline expansion underway. Investors will be closely watching to see if this large-scale expansion translates into sustained, efficient, and profitable growth in the quarters to come.
Last updated: August 6, 2025