Feb 24 (Reuters) - Pipeline operator ONEOK OKE.N forecast annual income growth of about 11% and reported a 34.2% rise in fourth-quarter profit on Monday, helped by higher demand and accretive contributions from the EnLink acquisition.
In November, the company said it would buy the remaining shares of EnLink Midstream for $4.3 billion, following its acquisition of a 43% controlling interest in the peer from Global Infrastructure Partners for about $3.3 billion.
The company also reported a 3% growth in the Rocky Mountain region natural gas liquids $(NGL)$ raw feed throughput volumes and a 4% increase in crude oil volume shipped.
Last year, ONEOK acquired an NGL pipeline system from Easton Energy to broaden its NGL asset portfolio, and also expanded its refined products pipeline to the Greater Denver area.
Its quarterly core profit from the NGL segment was up 13.5% at $696 million from a year earlier, while its quarterly core profit from the refined products and crude segment was up 42.2% at $603 million.
Earnings were also boosted by adjusted core profit from its natural gas pipelines segment, which more than tripled to $417 million on the back of the company selling three of its pipelines to peer DT Midstream DTM.N for $1.2 billion.
The company now expects current-year net income between $3.21 billion and $3.69 billion, the mid-point of which was up about 11% from last year.
The pipeline operator also expects annual capital expenditure between $2.8 billion and $3.2 billion, which was higher than Wall Street expectation of $2.24 billion, according to data compiled by LSEG.
The Tulsa, Oklahoma-based company reported net income attributable of $923 million, or $1.57 per share, for the quarter ended December 31, compared with $688 million, or $1.18 per share, a year earlier.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Alan Barona)
((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal))
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