Stock Analysis on Net
Stock Analysis on Net

ONEOK Inc. (NYSE:OKE)

This company has been moved to the archive! The financial data has not been updated since August 8, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

ONEOK Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 52,012 2,897 980 (1,278) 260
State 11,993 9,544 1,797 963 1,633
Current tax expense 64,005 12,441 2,777 (315) 1,893
Federal 422,577 433,469 154,068 327,806 319,551
State 40,842 38,588 32,662 44,923 41,459
Deferred tax expense 463,419 472,057 186,730 372,729 361,010
Provision for income taxes 527,424 484,498 189,507 372,414 362,903

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Current tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. ONEOK Inc. current tax expense increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax expense Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. ONEOK Inc. deferred tax expense increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. ONEOK Inc. provision for income taxes increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

ONEOK Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 23.44% 24.42% 23.62% 22.56% 23.96%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. ONEOK Inc. effective income tax rate increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

ONEOK Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Employee benefits and other accrued liabilities 82,194 95,952 96,741 99,510 91,587
Federal net operating loss 1,104,617 1,337,050 1,473,093 858,030 420,318
State net operating loss and benefits 196,369 216,181 258,929 171,779 108,004
Derivative instruments 18,759 118,063 134,499 83,710 22,108
Other 30,048 4,863 12,894 12,769 13,378
Deferred tax assets 1,431,987 1,772,109 1,976,156 1,225,798 655,395
Carryforward expected to expire prior to utilization (74,997) (84,755) (121,212) (94,794) (73,820)
Valuation allowance for state net operating loss and tax credits (74,997) (84,755) (121,212) (94,794) (73,820)
Net deferred tax assets 1,356,990 1,687,354 1,854,944 1,131,004 581,575
Excess of tax over book depreciation (94,815) (84,692) (87,021) (84,631) (73,113)
Investment in partnerships (3,000,700) (2,769,352) (2,437,620) (1,582,436) (728,193)
Deferred tax liabilities (3,095,515) (2,854,044) (2,524,641) (1,667,067) (801,306)
Net deferred tax assets (liabilities) (1,738,525) (1,166,690) (669,697) (536,063) (219,731)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. ONEOK Inc. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. ONEOK Inc. net deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. ONEOK Inc. net deferred tax assets (liabilities) decreased from 2020 to 2021 and from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

ONEOK Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax liabilities 1,738,525 1,166,690 669,697 536,063 219,731

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. ONEOK Inc. deferred tax liabilities increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

ONEOK Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Liabilities
Total liabilities (as reported) 17,885,209 17,606,450 17,036,356 15,586,170 11,652,128
Less: Noncurrent deferred tax liabilities, net 1,738,525 1,166,690 669,697 536,063 219,731
Total liabilities (adjusted) 16,146,684 16,439,760 16,366,659 15,050,107 11,432,397
Adjustment to Total ONEOK Shareholders’ Equity
Total ONEOK shareholders’ equity (as reported) 6,493,885 6,015,163 6,042,398 6,225,951 6,579,543
Less: Net deferred tax assets (liabilities) (1,738,525) (1,166,690) (669,697) (536,063) (219,731)
Total ONEOK shareholders’ equity (adjusted) 8,232,410 7,181,853 6,712,095 6,762,014 6,799,274
Adjustment to Net Income Attributable To ONEOK
Net income attributable to ONEOK (as reported) 1,722,221 1,499,706 612,809 1,278,577 1,151,703
Add: Deferred income tax expense (benefit) 463,419 472,057 186,730 372,729 361,010
Net income attributable to ONEOK (adjusted) 2,185,640 1,971,763 799,539 1,651,306 1,512,713

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

ONEOK Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

ONEOK Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 7.69% 9.07% 7.17% 12.58% 9.15%
Adjusted net profit margin 9.76% 11.92% 9.36% 16.25% 12.01%
Financial Leverage
Reported financial leverage 3.75 3.93 3.82 3.50 2.77
Adjusted financial leverage 2.96 3.29 3.44 3.23 2.68
Return on Equity (ROE)
Reported ROE 26.52% 24.93% 10.14% 20.54% 17.50%
Adjusted ROE 26.55% 27.45% 11.91% 24.42% 22.25%
Return on Assets (ROA)
Reported ROA 7.06% 6.35% 2.66% 5.86% 6.32%
Adjusted ROA 8.97% 8.35% 3.46% 7.57% 8.30%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ONEOK Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ONEOK Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ONEOK Inc. adjusted ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ONEOK Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

ONEOK Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ONEOK 1,722,221 1,499,706 612,809 1,278,577 1,151,703
Revenues 22,386,892 16,540,309 8,542,242 10,164,367 12,593,196
Profitability Ratio
Net profit margin1 7.69% 9.07% 7.17% 12.58% 9.15%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ONEOK 2,185,640 1,971,763 799,539 1,651,306 1,512,713
Revenues 22,386,892 16,540,309 8,542,242 10,164,367 12,593,196
Profitability Ratio
Adjusted net profit margin2 9.76% 11.92% 9.36% 16.25% 12.01%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Net profit margin = 100 × Net income attributable to ONEOK ÷ Revenues
= 100 × 1,722,221 ÷ 22,386,892 = 7.69%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to ONEOK ÷ Revenues
= 100 × 2,185,640 ÷ 22,386,892 = 9.76%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ONEOK Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 24,379,094 23,621,613 23,078,754 21,812,121 18,231,671
Total ONEOK shareholders’ equity 6,493,885 6,015,163 6,042,398 6,225,951 6,579,543
Solvency Ratio
Financial leverage1 3.75 3.93 3.82 3.50 2.77
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets 24,379,094 23,621,613 23,078,754 21,812,121 18,231,671
Adjusted total ONEOK shareholders’ equity 8,232,410 7,181,853 6,712,095 6,762,014 6,799,274
Solvency Ratio
Adjusted financial leverage2 2.96 3.29 3.44 3.23 2.68

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Total ONEOK shareholders’ equity
= 24,379,094 ÷ 6,493,885 = 3.75

2 Adjusted financial leverage = Total assets ÷ Adjusted total ONEOK shareholders’ equity
= 24,379,094 ÷ 8,232,410 = 2.96

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ONEOK Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ONEOK 1,722,221 1,499,706 612,809 1,278,577 1,151,703
Total ONEOK shareholders’ equity 6,493,885 6,015,163 6,042,398 6,225,951 6,579,543
Profitability Ratio
ROE1 26.52% 24.93% 10.14% 20.54% 17.50%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ONEOK 2,185,640 1,971,763 799,539 1,651,306 1,512,713
Adjusted total ONEOK shareholders’ equity 8,232,410 7,181,853 6,712,095 6,762,014 6,799,274
Profitability Ratio
Adjusted ROE2 26.55% 27.45% 11.91% 24.42% 22.25%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income attributable to ONEOK ÷ Total ONEOK shareholders’ equity
= 100 × 1,722,221 ÷ 6,493,885 = 26.52%

2 Adjusted ROE = 100 × Adjusted net income attributable to ONEOK ÷ Adjusted total ONEOK shareholders’ equity
= 100 × 2,185,640 ÷ 8,232,410 = 26.55%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ONEOK Inc. adjusted ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ONEOK 1,722,221 1,499,706 612,809 1,278,577 1,151,703
Total assets 24,379,094 23,621,613 23,078,754 21,812,121 18,231,671
Profitability Ratio
ROA1 7.06% 6.35% 2.66% 5.86% 6.32%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ONEOK 2,185,640 1,971,763 799,539 1,651,306 1,512,713
Total assets 24,379,094 23,621,613 23,078,754 21,812,121 18,231,671
Profitability Ratio
Adjusted ROA2 8.97% 8.35% 3.46% 7.57% 8.30%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income attributable to ONEOK ÷ Total assets
= 100 × 1,722,221 ÷ 24,379,094 = 7.06%

2 Adjusted ROA = 100 × Adjusted net income attributable to ONEOK ÷ Total assets
= 100 × 2,185,640 ÷ 24,379,094 = 8.97%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ONEOK Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.