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OKE Had Higher Revenue Growth than KMI and WMB Recently

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Comparing revenue growth

Over the last eight quarters, ONEOK’s (OKE) YoY (year-over-year) revenue growth averaged 29%, higher than the averages of 8% for Williams Companies (WMB) and 1% for Kinder Morgan (KMI).

However, in the trailing four-year period, quarterly revenue growth averaged 4% for ONEOK, lower than the average of 6% for Williams Companies. In comparison, Kinder Morgan’s revenue growth averaged -3% during this period.

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The graph above shows the total revenues of Kinder Morgan, Williams Companies, and ONEOK over the last five years. As the graph shows, Kinder Morgan’s revenues were on a downward trend from the fourth quarter of 2013 to the second quarter of 2016. They’ve been relatively flat over the last two years.

ONEOK’s revenues

ONEOK’s revenues fell significantly between the fourth quarter of 2013 and the first quarter of 2015. The significant recent growth in ONEOK’s revenues largely made up for the previous fall, resulting in lower average growth in the four-year period. From the lower baseline of 2015, ONEOK’s revenue has seen much higher growth in the trailing two-year period.

In comparison, as the graph shows, Williams Companies’ revenue has grown more consistently in the last four years.

Recent growth

In the first half of 2018, ONEOK’s revenue rose 11% YoY, higher than Williams Companies’ 7% revenue growth and Kinder Morgan’s 1% revenue growth in the period.

Next, we’ll compare the earnings growths of these three companies.

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