Third Quarter (3Q) Update | Midstream - Gas Gathering

OneOK report 3Q; Higher NGL Volumes, Net Income

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   |    Tuesday,October 27,2020

ONEOK, reports third quarter 2020 financial results, higher natural gas liquids (NGL) volumes and updated its 2020 outlook.

Third Quarter 2020 Results, Compared With The Third Quarter 2019:

• Net income of $312.3 million, resulting in 70 cents per diluted share.
• 15% increase in adjusted EBITDA to $747.0 million.
• 14% increase in operating income to $550.4 million.
• 16% decrease in operating costs.
• 1.30 times distributable cash flow coverage of dividend.
• 7% increase in NGL raw feed throughput volumes.
• 94 cents per MMBtu average fee rate in the natural gas gathering and processing segment.

Third Quarter 2020 Results, Compared With The Second Quarter 2020:

• 55% increase in operating income.
• 40% increase in adjusted EBITDA.
• 33% increase in Rocky Mountain Region NGL raw feed throughput volumes.
• 25% increase in Rocky Mountain Region natural gas volumes processed.
• 9% decrease in operating costs.

Updated 2020 Outlook:

Given the recovery of curtailed volumes in the regions where ONEOK operates, 2020 net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) are now expected to approach the midpoint of the ranges provided on April 28, 2020, of $500 million to $900 million, and $2,600 million to $3,000 million, respectively.

"Third quarter results were driven by curtailed volume returning to our system resulting in improved earnings," said Terry K. Spencer, ONEOK president and chief executive officer. "NGL volumes across all of our operating areas have exceeded pre-pandemic levels, and natural gas volumes processed in the Rocky Mountain region have exceeded 1.2 billion cubic feet per day. Volumes achieved in September were more in-line with our original pre-pandemic 2020 expectations.

"We remain focused on operating safely and environmentally responsibly," said Spencer. "Reliable service and value creation continue to guide our strategy as we evaluate the opportunities ahead of us."