ONEOK Q3 2025: Acquisition-Fueled Growth Drives Record Revenue

ONEOK, a key player in the U.S. midstream energy sector responsible for gathering, processing, and transporting natural gas and related liquids, recently released its financial results for the third quarter of 2025. We're diving into the company's latest 10-Q filing to unpack its performance and see what the numbers tell us about its current standing. The big takeaway? A significant surge in revenue and profit, largely powered by the successful integration of recent major acquisitions.

From Billions in Revenue to Millions in Profit

For the third quarter ending September 30, 2025, ONEOK reported a total revenue of $8.6 billion, a substantial increase from $5.0 billion in the same period last year. This impressive top-line growth filtered down to the bottom line, with the company posting a net income of $940 million, up from $693 million in Q3 2024.

To better understand how ONEOK converted its revenue into profit, the following flow diagram visualizes the company's quarterly income statement.

You'll notice an "Unallocated" category in the diagram showing a negative revenue and cost of revenue of nearly $1.2 billion. This figure primarily represents intersegment eliminations—transactions between ONEOK's own business divisions. For consolidated financial reporting, this internal buying and selling is canceled out to reflect only transactions with external customers.

The Acquisition Growth Engine

A major theme of this quarter's report is the powerful impact of strategic acquisitions, particularly those of EnLink and Medallion. These additions have significantly expanded ONEOK's operational footprint and are now major contributors to its financial results.

• Natural Gas Gathering and Processing: This segment saw its revenue more than double to $1.8 billion. The company's management discussion attributes a massive $250 million increase in the segment's adjusted EBITDA directly to the integration of EnLink's assets.
• Refined Products and Crude: This division experienced explosive growth, with revenue jumping from $963 million in Q3 2024 to $3.6 billion this quarter. The operational data tells a compelling story: crude oil volumes shipped more than doubled year-over-year to 1.8 million barrels per day, largely thanks to the new assets from Medallion and EnLink.
• Natural Gas Liquids (NGLs): ONEOK's largest segment by revenue also grew, reaching $3.9 billion. Growth here was driven by a combination of a $56 million EBITDA contribution from EnLink and strong performance in the company's core optimization and marketing activities.

Balancing Growth with Rising Costs

This expansion, however, does not come without costs. As ONEOK integrates these large-scale operations, its expenses have naturally increased.

• Cost of Sales and Fuel nearly doubled to $6.0 billion, reflecting higher commodity volumes and prices.
• Operations and maintenance costs rose by 25% to $639 million.
• Interest expense saw a significant jump to $450 million for the quarter, up from $325 million a year ago. This increase is a direct result of the debt taken on to finance the company's strategic acquisitions.

Looking Ahead

ONEOK's third-quarter results showcase a company in a successful, albeit costly, phase of expansion. The strategy of growing through major acquisitions is clearly paying off, delivering substantial gains in revenue and profitability. The key challenge moving forward will be to continue integrating these new assets efficiently, managing the higher operating costs, and servicing the increased debt load. For now, ONEOK is demonstrating that in the competitive midstream sector, bold moves toward greater scale can yield powerful results.