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Released August 05, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream operator ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) reported solid second-quarter 2021 results as oil and gas production and gas-to-oil ratios continue to rise in North Dakota's Williston Basin. Throughput of natural gas liquids (NGLs) increased across the company's service territory. As ONEOK completes projects to grow both its gas processing and transmission capacity, the company expects to minimize capital outlays in the near future.
In ONEOK's second-quarter earnings conference call with analysts, Chief Financial Officer Walt Hulse said, "Our outlook for growth in 2022 has continued to strengthen. Higher commodity prices, accelerating producer activity and the rising gas-to-oil ratio in the Williston Basin provide a tailwind into next year. With available capacity across our operations and the completion of our Bear Creek plant expansion later this year, significant earnings power remains across our assets without the need for significant capital investment."
The Bear Creek natural gas processing expansion in Dunn County, North Dakota, entails the addition of a second train to process up to 200 million cubic feet per day of natural gas from the Bakken Shale. The project is expected to be completed early in the fourth quarter of this year. Once in service, ONEOK will have approximately 1.7 billion cubic feet per day of processing capacity in the Williston Basin, allowing the company to grow its volumes with minimal capital outlay. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for the Bear Creek expansion project report.
Other active projects include construction of an additional NGL fractionator (known as MB-5) at the company's facility in Mont Belvieu, Texas. The fractionator will provide 125,000 barrels per day (BBL/d) of fractionation capacity, bringing total capacity at the site to 400,000 BBL/d. Construction, which began in early 2019, was paused in the first half of 2020 at the onset of the COVID-19 pandemic, but the facility is expected to be completed later this year. Subscribers can click here for the detailed project report.
While production of NGLs is up significantly over second-quarter 2020's severe curtailment in the immediate aftermath of the onset of the pandemic, it also increased quarter over quarter. ONEOK reported NGL raw feed throughput in its three operating territories:
ONEOK may begin a project to increase gas processing capacity at another plant later this year. At the Sage Creek processing plant in Wyoming, ONEOK is in the late engineering stage for the addition of a third 25 million-cubic-foot-per-day train to bring total site capacity to 75 million cubic feet per day of gas from the Powder River Basin. The project could be completed next summer. Subscribers can click here for the project report.
ONEOK reported second-quarter 2021 net income of $342.1 million, compared with $134.3 million in the corresponding quarter of 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
In ONEOK's second-quarter earnings conference call with analysts, Chief Financial Officer Walt Hulse said, "Our outlook for growth in 2022 has continued to strengthen. Higher commodity prices, accelerating producer activity and the rising gas-to-oil ratio in the Williston Basin provide a tailwind into next year. With available capacity across our operations and the completion of our Bear Creek plant expansion later this year, significant earnings power remains across our assets without the need for significant capital investment."
The Bear Creek natural gas processing expansion in Dunn County, North Dakota, entails the addition of a second train to process up to 200 million cubic feet per day of natural gas from the Bakken Shale. The project is expected to be completed early in the fourth quarter of this year. Once in service, ONEOK will have approximately 1.7 billion cubic feet per day of processing capacity in the Williston Basin, allowing the company to grow its volumes with minimal capital outlay. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for the Bear Creek expansion project report.
Other active projects include construction of an additional NGL fractionator (known as MB-5) at the company's facility in Mont Belvieu, Texas. The fractionator will provide 125,000 barrels per day (BBL/d) of fractionation capacity, bringing total capacity at the site to 400,000 BBL/d. Construction, which began in early 2019, was paused in the first half of 2020 at the onset of the COVID-19 pandemic, but the facility is expected to be completed later this year. Subscribers can click here for the detailed project report.
While production of NGLs is up significantly over second-quarter 2020's severe curtailment in the immediate aftermath of the onset of the pandemic, it also increased quarter over quarter. ONEOK reported NGL raw feed throughput in its three operating territories:
- The Rocky Mountain region increased NGL throughput by 18% compared with the first quarter of 2021.
- The Mid-Continent region increased throughput 16% from the first quarter.
- Gulf Coast/Permian NGL throughput increased 16% from the prior quarter.
ONEOK may begin a project to increase gas processing capacity at another plant later this year. At the Sage Creek processing plant in Wyoming, ONEOK is in the late engineering stage for the addition of a third 25 million-cubic-foot-per-day train to bring total site capacity to 75 million cubic feet per day of gas from the Powder River Basin. The project could be completed next summer. Subscribers can click here for the project report.
ONEOK reported second-quarter 2021 net income of $342.1 million, compared with $134.3 million in the corresponding quarter of 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
