ONEOK's 2025 profits surge 12% after $10B Magellan acquisition
ONEOK, Inc. has reported strong financial results for 2025, with net income rising by 12% to $3.39 billion. The company also returned nearly $2.7 billion to shareholders through dividends and share buybacks. These figures follow its major acquisition of Magellan Midstream Partners in early 2024, which expanded its energy infrastructure across the US.
In 2025, ONEOK achieved a net income of $3.39 billion, up from the previous year, with earnings per share reaching $5.42. Around 90% of these earnings came from fee-based operations, providing stable revenue. The company's adjusted EBITDA grew by 18%, hitting $8.02 billion for the year, while the fourth quarter alone saw $2.15 billion in adjusted EBITDA and $977 million in net income.
The acquisition of Magellan Midstream Partners, completed in April 2024 for approximately $10.3 billion, played a key role in ONEOK's performance. Since the deal, the company has realised nearly $500 million in synergies, including $250 million in 2025. This takeover strengthened ONEOK's position in natural gas, crude oil, and natural gas liquids transportation and storage.
ONEOK also reduced its long-term debt by $3.1 billion during 2025. Looking ahead to 2026, the company expects a net income midpoint of $3.45 billion and an adjusted EBITDA midpoint of $8.1 billion. However, risks remain, including potential drops in crude oil prices, lower drilling activity, delays in third-party Permian NGL plants, and the expiration of major Bakken contracts.
ONEOK's 2025 results reflect growth in earnings, debt reduction, and shareholder returns. The company's focus on fee-based revenue and synergies from the Magellan acquisition has strengthened its financial position. For 2026, ONEOK aims for further income and EBITDA growth, though market and operational risks could impact performance.
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