April 30 (Reuters) - Pipeline operator ONEOK ( OKE )

reported a fall in first-quarter profit on Tuesday as it booked

higher operating costs and capital expenditures.

The company reported net income of $639 million, or

$1.09 per share, for the three months ended March 31, compared

with $1.05 billion, or $2.34 per share, last year.

Analysts had expected net income of $1.15 per share.

ONEOK ( OKE ) also raised its 2024 net income forecast to a range of

$2.73 billion to $3.03 billion, compared with the previously

announced range of $2.61 billion to $3.01 billion, banking on

upcoming demand for natural gas.

While natural gas prices fell from last year's peak,

down about 20.4% during the quarter compared to the

corresponding period in 2023, ONEOK ( OKE ) reported an uptick in its

natural gas gathering and pipeline segments, with capacity

contacted rising to 97% from 96%.

ONEOK ( OKE ) was "supported by higher year-over-year volumes in the

Rocky Mountain region and contributions from the refined

products and crude segment," CEO Pierce Norton said.

The company's natural gas liquids segment saw the steepest

fall in adjusted EBITDA, falling to $588 million from $1.28

billion last year, with throughput down 1.2%.

The decrease was largely related to an insurance settlement

gain of $779 million in the first quarter of 2023 from the

Medford incident, along with higher operating costs.

Its refiner products and crude segment shipped 1,411 mbbl

per day. The company moved into transporting refined products

and oil last year following its acquisition of rival Magellan

Midstream in an $18.8 billion deal.

Revenue came in at $4.78 billion, higher than the $4.52

billion reported in the same quarter last year.

"Rockies volumes were up about 12% year over year, and earn

fees about three to four times higher than Midcontinent and Gulf

Coast/Permian barrels," Morningstar analyst Stephen Ellis said.

"We expect to increase our fair value estimate to $73 from

$70 per share, as we incorporate slightly higher volumes into

our model."

(Reporting by Seher Dareen and Roshia Sabu in Bengaluru;

Editing by Anil D'Silva)