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Oneok expects falling gas prices to reduce earnings

Keywords: Tags  Oneok, natural gas, NGL, natural gas liquids

NEW YORK — Natural gas processor Oneok Inc. anticipates its earnings will fall below previous expectations this year due to lower prices for natural gas liquids (NGLs) and "widespread and prolonged ethane rejection," the company said in announcing its latest results.

Ethane rejection means that ethane remains within the natural gas stream instead of being separated out and sold off as an NGL due to low prices for the product.

The company expects its net income to be between $350 million and $400 million this year, down from previous forecasts of $405 to $455 million, although the reduced forecast is not expected to affect capital spending.

Tulsa, Okla.-based Oneok posted net income of nearly $360.62 million last year, virtually even with $360.59 million in 2011, on revenue that fell 14.7 percent to $12.63 billion from $14.81 billion partly due to lower natural gas and NGL prices.

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