OKLAHOMA CITY, Nov. 4 (UPI) — U.S. shale player ONEOK Partners announced good earnings in the third quarter and anticipates future growth in its natural gas volumes.
“Earnings growth continued in the third quarter as natural gas liquids and natural gas volumes increased in our highest-margin areas,” President and Chief Executive Officer Terry K. Spencer said in a statement.
The partnership draws heavily from operations in the Northern Plains states, including the Williston shale basin in North Dakota, which includes parts of the Bakken reserve area.
ONEOK, which has headquarters in Oklahoma, reported $82.2 million in third-quarter income, up 27 percent from third quarter 2014. Sales of $1.9 billion represented a 38 percent decline from the previous year.
Spencer said gas volumes should increase moving forward into the fourth quarter and into 2016 as a series of new pipeline systems in the region enter into operations. In a year, the company said it aims to open at least 40 miles of new pipelines and expand existing pipeline infrastructure in the Bakken reserve area, all of which represents at least $190 million in capital growth projects.
“Additionally, we’ve connected more than 720 new wells through the third quarter, and we expect to connect approximately 825 wells by the end of 2015,” Spencer said.
Weak economics as a result of lower crude oil and natural gas prices took their toll on the company in early 2014 when it announced it was suspending spending plans for natural gas processing plants in North Dakota, Oklahoma and Wyoming.
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