EARNINGS ROUNDUP
Various Oklahoma-based publicly traded companies reported third quarter results this week. Paycom Software
Oklahoma City-based Paycom Software said this week its third-quarter net income was $28.8 million, compared to $20.9 million the same time a year ago.
It also reported total revenues during the third quarter of $133 million, up 32 percent compared to total revenues of $101 million during 2017’s third quarter. Adjusted earnings before interest, taxes, depreciation and amortization also climbed in a year-over-year comparison of the quarters.
Paycom Software provides its clients with comprehensive, cloudbased human capital management software. The company’s total debt was $34.8 million, as of Sept. 30.
“The digital transformation of the human capital management industry continues to progress and organizations across virtually every industry are recognizing the power they gain in giving their employees a direct relationship with their HR and payroll software database,” said Chad Richison, Paycom’s founder and CEO.
“I believe we are driving this transition for businesses and their employees and our ability to lead in this area is underscored by our strong third quarter results.”
Blueknight Energy
Oklahoma City-based Blueknight Energy Partners reported it earned a net income of $2.4 million in the third quarter, compared to $9.8 million it earned in the same quarter in 2017.
“Our third quarter represented a period of transition for Blueknight, highlighted by the closing of the sale of assets (three asphalt terminals) to the general partner, the restart of the second Oklahoma crude line, and the rebound of the crude oil storage and transportation markets,” said Mark Hurley, Blueknight’s CEO.
“These developments are positioning us to meet the objectives we outline in July to improve cash flow, increase distribution coverage and reduce debt. We expect to see gains in these areas over the remainder of 2018 and throughout 2019.”
Williams Cos. Inc.
TULSA — Williams Cos. Inc. reported a net income of $129 million in the third quarter, up $96 million compared to the same time a year ago.
The company said its cash flow for the quarter was $746 million, and highlighted other significant achievements, such as simplifying its business model by acquiring Williams Partners and selling its Four Corners business area that included two gas processing plants, one carbon dioxide treating facility and 3,700 miles of pipeline in New Mexico and Colorado for $1.13 billion.
Williams also closed on its joint venture deal with KKR to acquire Discovery DJ Services from TPG Growth, and placed its AtlanticSunrise project into service in early October.
“This quarter’s strong execution and results highlight why we are so bullish on the future,” Williams CEO Alan Armstrong said.
WPX Energy
TULSA — By every measure except one, Tulsabased WPX Energy posted impressive gains in a comparison of its third quarters this year and last.
In its earnings report issued Wednesday, the Tulsa-based oil and natural gas company reported it produced 83,400 barrels of crude daily during the third quarter, up 54 percent compared to the same time the year before.
WPX also posted doubledigit increases in the average overall production for wells it drilled and completed in the Delaware Basin (the western part of the Permian field) and in the Williston Basin (the Bakken Shale Field) for the third quarter of 2018, compared to the same 2017 quarter.
However, the company posted a net loss of $6 million for the period this year, primarily because of $139 million in charges it had to take on oil hedges because of higher-than-expected pricing for the commodity.
“We delivered phenomenal growth ... as higher oil volumes resulted in better margins and deleveraging,” WPX CEO Rick Muncrief said. “And we’ve done it while staying true to our plan and developing a technical approach to real-time optimization that I believe is among the best in our industry.”
Magellan Midstream Partners
Tulsa-based Magellan Midstream Partners, which primarily transports, stores and distributes refined petroleum products and crude oil, reported a third-quarter net income of about $595 million, compared to about $199 million the same time a year ago.
Officials said the 2018 results include a gain of about $354 million related to the sale of 20 percent of the partnership’s interest in BridgeTex Pipeline Co. The partnership’s distributable cash flow was about $282 million for third quarter, compared to about $235 million the same time in 2017.
Officials said the gain Magellan made through the BridgeTex sale wasn’t included in that total because those dollars aren’t related to the partnership’s ongoing operations.
As for operational gains, officials said they beat the firm’s previously issued guidance, thanks to stronger-than-expected crude oil pipeline shipments and condensate splitter results.
“Magellan continues to generate solid financial results from all of our operating segments, and our business fundamentals remain extremely strong,” said Michael Mears, Magellan’s CEO.
“Further, our current slate of expansion spending represents a record $2.5 billion of attractive construction projects to expand our pipeline and storage capabilities and generate incremental distributable cash flow for our investors for years to come.”
AAON
Tulsa-based AAON Inc. reported its third quarter net income fell, compared to the same time a year ago. However, it also said its backlog of work has climbed.
The company, which engineers, manufactures, markets and sells air conditioning and heating equipment, reported its net income was $14.1 million, compared to $14.7 million the same period a year ago. It posted sales of about $113 million, down from almost $114 million in 2017.
Its backlog of orders, meanwhile, stood at $126.8 million at the end of September, compared to $73.8 million a year earlier. The company is debt free, officials said.
“While our gross profit improved in the third quarter, our business continues to be impacted by the implementation of new manufacturing technologies, a lack of labor availability and the productivity of our new hires,” AAON CEO Norman H. Asbjornson said.
“Even though we are experiencing record backlogs, we have slowed our rate of adding new employees and this has improved both productivity and throughput. Warranty costs continue to be higher than historical levels but we are beginning to see slow improvement. Certain other costs are higher year over year but these are manageable and will be offset by increased sales volumes.”