ONEOK Partners, L.P. (OKS) has reported a 3,744.73 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $277.47 million, or $0.60 a share in the quarter, compared with $7.22 million, or $0.33 a share for the same period last year. Revenue during the quarter surged 37.46 percent to $2,653.53 million from $1,930.38 million in the previous year period. Gross margin for the quarter contracted 711 basis points over the previous year period to 23.82 percent. Total expenses were 87.34 percent of quarterly revenues, down from 87.47 percent for the same period last year. This has led to an improvement of 13 basis points in operating margin to 12.66 percent.
Operating income for the quarter was $335.93 million, compared with $241.91 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $470.52 million compared with $450.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 559 basis points in the quarter to 17.73 percent from 23.32 percent in the last year period.
"ONEOK Partners reported strong 2016 financial performance as adjusted EBITDA increased nearly 18 percent compared with 2015, driven by higher fee-based earnings in all three business segments," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "The partnership’s full-year distribution coverage of 1.09 times improved substantially compared with 2015."
Operating cash flow improves significantly
ONEOK Partners, L.P. has generated cash of $1,486.78 million from operating activities during the year, up 38.69 percent or $414.80 million, when compared with the last year. The company has spent $612.59 million cash to meet investing activities during the year as against cash outgo of $1,188.53 million in the last year. It has incurred net capital expenditure of $596.36 million on net basis during the year, down 49.56 percent or $585.94 million from year ago.
The company has spent $878.86 million cash to carry out financing activities during the year as against cash inflow of $79.10 million in the last year period.
Cash and cash equivalents stood at $0.41 million as on Dec. 31, 2016, down 92.01 percent or $4.67 million from $5.08 million on Dec. 31, 2015.
Debt moves up
ONEOK Partners, L.P. has witnessed an increase in total debt over the last one year. It stood at $7,809.23 million as on Dec. 31, 2016, up 6.26 percent or $459.93 million from $7,349.30 million on Dec. 31, 2015. Interest coverage ratio improved to 3.80 for the quarter from 2.83 for the same period last year.
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