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UBS MLP ONE ON ONE CONFERENCE – Oneok Inc.

Oneok Inc. · Jan 15, 2013 · 100 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 1
    UBS MLP One-on-One Conference Park City, Utah January 15-16, 2013
  2. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 2
    Index Overview Vision and Strategy 5 Well-positioned assets 8 Track record of disciplined growth 14 Demonstrated ability to create value 24 Appendix ONEOK Partners Growth Projects 31 Financial 46 Natural Gas Gathering and…
  3. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 3
    Overview Key Points Vision and Strategy A premier energy company Well-positioned assets Connecting prolific supply basins to key markets Track record of disciplined growth Investing in new and existing infrastructure Demonstrated…
  4. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 4
    Vision and Strategy Page 5
  5. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 5
    Our Vision A Premier Energy Company Creating exceptional value for customers Rebundling services across the value chain, primarily through vertical integration, to provide customers with premium services at lower costs Applying our…
  6. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 6
    Our Key Strategies A Premier Energy Company ONEOK Partners Increase distributable cash flow per unit through investments in internal growth projects Financial Manage our balance sheet and maintain investment-grade credit rating…
  7. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 7
    Well-Positioned Assets Page 8
  8. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 8
    ONEOK Partners Asset Overview Owns and operates assets in midstream natural gas and natural gas liquids businesses Provides non-discretionary services to producers, processors and customers Primarily fee-based earnings Aligned…
  9. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 9
    Well Positioned in Shale Plays Our Fairway Active in and evaluating numerous shale plays Producer supply commitments are key Exposure to NGL-rich resource development Provides platform for future growth Bakken Shale Williston…
  10. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 10
    Asset Overview Natural Gas Gathering and Processing Non-discretionary services Williston Basin to producers Gathering, compression, treating and processing Wind River Powder River Natural gas supplies from six basins Diverse…
  11. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 11
    Asset Overview Natural Gas Pipelines Predominantly fee-based Viking Gas Northern Border Transmission income Pipeline Assumes 88% of transportation Guardian capacity contracted under Pipeline demand-based rates in 2013 100% of…
  12. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 12
    Asset Overview Natural Gas Liquids Provides non-discretionary and fee-based services to processors and customers Gathering, fractionation, transportation, marketing and storage Extensive NGL gathering system Connected to…
  13. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 13
    Track Record of Disciplined Growth Page 14
  14. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 14
    Disciplined Growth Continues 8 Billion in Capital Investments Announced approximately 4.2 to 4.8 billion in growth projects in 2011-2014 Adjacent to and within our existing operating footprint including: 2.1 to 2.4 billion related…
  15. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 15
    Bakken Shale Strategic Fit Largest independent processor Extensive infrastructure Best positioned to provide critical midstream capability Knowledgeable workforce and contractors in place Strong producer relationships Acreage…
  16. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 16
    Bakken Shale Drilling Economics More than 90% of producer economics from crude-oil Producer Economics* production Natural Drilling is economical with NGLs gas 6% 3% crude-oil prices as low as 55-70 per barrel (WTI)* Increased…
  17. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 17
    Bakken Shale Natural Gas Gathering and Processing Investments Four new plants and related 1.4 billion to 1.5 billion infrastructure Garden Creek 100 MMcf/d Bakken Completed December 2011 Shale Garden Creek II 100 MMcf/d Expected…
  18. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 18
    Bakken Shale Natural Gas Liquids Investments Bakken NGL Pipeline 702 million to 807 million 550-650 million 600-mile, 12-inch diameter Bakken Initial capacity of 60,000 bpd Shale Expected to be completed in first quarter 2013…
  19. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 19
    Bakken Shale Crude-Oil Investment Bakken Crude Express 1,300-mile crude oil pipeline Proposed capacity of 200,000 bpd Transport light-sweet crude oil from Bakken Shale to Cushing, Okla. Binding open season concluded Nov. 20 Did…
  20. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 20
    Sterling NGL Pipelines Investments 610 million to 810 million Construct Sterling III pipeline Flexibility to transport purity products and unfractionated NGLs 570-plus-mile, 16-inch diameter 193,000 bpd expandable to 250,000 bpd…
  21. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 21
    New Fractionators and E/P Splitter Investments at Mont Belvieu 870 million to 1.0 billion MB-2 fractionator 300-390 million Expected to be completed in mid-2013 75,000 bpd capacity 100% of available capacity committed MB-3…
  22. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 22
    Future Growth 2 Billion-plus Backlog Lengthy backlog of unannounced growth projects Includes natural gas and NGL-related infrastructure projects, including: Natural gas processing plants NGL fractionation and storage facilities…
  23. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 23
    Demonstrated Ability to Create Value Page 24
  24. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 24
    OKS Financial Guidance Summary 2012 Net income: range of 860-910 million Distributable cash flow: range of 975 million-1.025 billion Capital expenditures: approximately 1.9 billion* 1.8 billion in growth capital 104 million in…
  25. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 25
    OKS Financial Guidance Summary* 2013 Net income: range of 935 million - 1.015 billion EBITDA: range of 1.36 - 1.48 billion Distributable cash flow: range of 1.05 - 1.14 billion Capital expenditures: approximately 2.2 billion** 2.1…
  26. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 26
    OKS Three-year Financial Outlook 2012*-2015 Average annual EBITDA growth of 17-21% expected (2012*-2015) Driven by earnings from completed capital projects Sustainable distribution growth Projected 2-cent-per-unit per-quarter…
  27. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 27
    Creating OKS Unitholder Value Distribution Growth and Total Unitholder Return 33% total increase in distributions paid since 2010 64% since 2006 10-15% annual distribution growth expected in 2012*-2015 ONEOK Partners total return…
  28. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 28
    OKS Distribution Coverage Financial Discipline Distributable Cash Flow (DCF) Target long-term ( in Millions) 17% CAGR coverage ratio of 1.05x 1,095 to 1.15x 30 Considerations 1,004 946 1,065 Capital project execution 185…
  29. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 29
    OKS Strong Balance Sheet Investment Grade ONEOK Partners Committed to investment-grade credit rating S&P: BBB (stable) Total Debt-to-Capitalization Ratio Moodys: Baa2 (stable) Capital structure targets 50/50 capitalization…
  30. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 30
    Appendix ONEOK Partners Growth Projects Page 31
  31. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 31
    Announced Capital Investments 4.2 to 4.8 Billion By Region* By Segment* 0.6 1.8 2.2 1.7 2.7 Bakken Shale Natural Gas Gathering and Processing Mid-Continent to Gulf Coast Natural Gas Liquids Cana-Woodford Shale…
  32. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 32
    Bakken-related Project Status 2011-2014 % Contract Major Project Contracting Status Completed Committed Type Garden Creek plant and related Backed by volume commitments 100% POP with fee December 2011 infrastructure and acreage…
  33. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 33
    Bakken Shale Natural Gas Flaring Currently flaring 30-35% of natural gas production* Loss of NGL and natural gas value uplift Garden Creek North Dakota Monthly Natural Gas Flared startup Percent of Production* % 45 40 35 30 25…
  34. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 34
    Bakken Shale Garden Creek Plant Natural Gas Gathering and Processing Investments Garden Creek plant 100 MMcf/d natural gas processing facility Completed December 2011 Well-connects, upgrades and expansions to existing…
  35. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 35
    Bakken Shale Garden Creek II Plant Natural Gas Gathering and Processing Investments Garden Creek II plant 100 MMcf/d natural gas processing facility Expected to be completed in third quarter 2014 Well-connects, upgrades and…
  36. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 36
    Bakken Shale Stateline I Plant Natural Gas Gathering and Processing Investments Stateline I plant 180-205 million 100 MMcf/d natural gas processing facility Completed September 2012 Well-connects, upgrades and expansions to…
  37. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 37
    Bakken Shale Stateline II Plant Natural Gas Gathering and Processing Investments Stateline II plant 135-150 million 100 MMcf/d natural gas processing facility Expected to be completed in first quarter of 2013 Well-connects,…
  38. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 38
    Bakken Shale Divide County Natural Gas Gathering and Processing Investments Divide County gathering system 270-mile system in Divide County, N.D. Expected to be completed in third quarter 2013 Gather and deliver natural Garden…
  39. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 39
    Mid-Continent-Gulf Coast-related Project Status 2011-2014 % Contract Major Project Contracting Status Completed Committed Type Sterling I expansion Capacity available for 100% Differential or November 2011 optimization fee based…
  40. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 40
    Cana-Woodford Shale and Granite Wash Natural Gas Liquids Investments 220 million Natural Gas Liquids Expanded partnerships existing Mid- Continent NGL gathering system Connected three new processing plants and expands capacity at…
  41. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 41
    Cana-Woodford - Canadian Valley Plant Natural Gas Gathering and Processing Investments Canadian Valley Plant 190 million Mississippian 200 MMcf/d natural gas processing Lime facility Expected to be completed in first quarter 2014…
  42. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 42
    Niobrara Shale Growth Potential Producers accumulating significant acreage Bakken Shale Driven by crude-oil economics Gathering and processing infrastructure required Bakken NGL pipeline designed to expand in order to capture…
  43. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 43
    Mississippian Lime New Play with Great Potential Existing natural gas gathering and processing and NGL assets are well positioned Significant potential Mississippian Lime Eastern section contains higher amount of NGLs Western…
  44. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 44
    OKS Growth: 2006-2009 More than 2 Billion of Growth Projects Completed 2010 was first full year of all projects contributing EBITDA Two-thirds of investments were NGL-related projects fee based Set the stage for next tranche of…
  45. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 45
    Appendix ONEOK Partners Financial Page 46
  46. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 46
    OKS 2013 Financial Guidance By Segment Natural gas gathering and Operating Income and Equity Earnings* ( in Millions) processing: 14% CAGR 1,165 Higher gathered and processed 1,067 1,077 276 volumes 211 250 Gathering and…
  47. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 47
    OKS Predominantly Fee-Based Earnings Percent of Margin Fee-based margins expected to increase in 2013 Sources of Margin Capital investments provide 0.9 B 1.1 B 1.1 B 1.2 B 1.6 B 1.7 B 1.8 B predominantly fee-based earnings 9% 13%…
  48. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 48
    OKS Commodity Price Risk 2013 Hedging Commodity price risk primarily 2013 Margin Breakdown resides in natural gas gathering and processing Equity production from percent-of- proceeds contracts 13% 2013 hedged positions* Natural…
  49. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 49
    Commodity Price Risk Mitigation Natural Gas Gathering and Processing Contract restructuring reduced keep- whole sensitivity Commodity Price Sensitivity Before Hedging 4.8 Margin Impact 2012 fourth-quarter hedged positions 4.5 3.8…
  50. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 50
    Appendix Natural Gas Gathering and Processing Page 51
  51. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 51
    Contract Portfolio Natural Gas Gathering and Processing Contract restructuring is a core capability Increases fee-based business and reduces commodity price sensitivity Conditioning language on approximately 75% of keep-whole…
  52. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 52
    Volume Growth by Basin Natural Gas Gathering and Processing Williston Basin produces high NGL-content gas - produced with crude oil Oklahoma and Kansas regions produce moderately wet gas - requires processing Powder River Basin…
  53. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 53
    Gathered Volumes Natural Gas Gathering and Processing 2013 volumes gathered Natural Gas Gathered (BBtu/d) expected to increase 16% from 2012 1,331 1,171 1,164 Wells connected 1,123 1,152 1,067 1,030 2013: 1,000+ (estimate)…
  54. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 54
    Processed Volumes Natural Gas Gathering and Processing 2013 processed volumes Natural Gas Processed (BBtu/d) expected to increase 24% 1,105 from 2012 Higher volumes in Williston Basin 890 Stateline I completed 605 September 2012…
  55. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 55
    Appendix Natural Gas Pipelines Page 56
  56. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 56
    Northern Border Pipeline 50-Percent Equity Investment Links natural gas supply from western Canada to Midwest markets Bakken Bison Pipeline interconnection Shale Supply diversity accessing Rockies natural gas with continued…
  57. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 57
    Appendix Natural Gas Liquids Page 58
  58. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 58
    NGL Demand Driven by Petrochemical Companies Petrochemical demand remains robust Ethane supplies are growing NGLs enjoy significant price advantage vs. crude oil-based feedstocks Cracker capacity utilization rates expected to remain…
  59. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 59
    Ethane Fractionation and Cracker Capacity Outlook for Ethane Capacity* Ethane Fractionation Capacity and Cracker Capacity 1,900 1,800 1,700 1,600 1,500 MBPD 1,400 1,300 1,200 1,100 1,000 900 Sep-12 Mar-13…
  60. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 60
    Volume Growth Natural Gas Liquids 2013 gathering volumes estimated to increase by 32%; fractionation volumes estimated to increase by 19% Bakken NGL Pipeline completed in first quarter 2013 Significant volume growth in the…
  61. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 61
    Margin Profile Natural Gas Liquids Exchange & Storage Services Gather, fractionate, transport and store NGLs and deliver to market hubs; primarily Exchange & Storage Services fee based 68% 59% Transportation Transportation 59%…
  62. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 62
    NGL Supply Decline Rates 80,000 Substantial new supply U.S. Natural Gas needed to just offset U.S. Production by Year* 70,000 base decline 2011 Correlation of U.S. natural gas 60,000 production to NGL production 2010 Industry…
  63. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 63
    Arbuckle Pipeline Delivering Unfractionated NGLs to Gulf Coast Expanded to 240,000 bpd From southern Oklahoma through Barnett Shale to Mont Belvieu Completed in April 2012 Expanding to 255,000 bpd in 2013 Another option to…
  64. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 64
    Overland Pass Pipeline 50-Percent Equity Investment Bakken Links NGL supply from Shale Rockies to Mid-Continent and Gulf-Coast markets Williams is 50% owner and became operator in April 2011 Williams is anchor shipper Niobrara…
  65. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 65
    Optimization Opportunities Natural Gas Liquids Provides earnings upside to fee-based business How it works: Ability to deliver NGL products at either Conway or Mont Belvieu Utilize assets, contract portfolio and market knowledge…
  66. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 66
    Fractionation Capacity Natural Gas Liquids Currently 609,000 bpd, net ownership* Increasing our fractionation capacity 60,000 bpd of fractionation services from Targa began in second quarter 2011 Bushton 60,000 bpd expansion…
  67. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 67
    U.S. NGL Supply Sources and End Uses 2011 Averages NGL Supply Sources NGL products1 NGL End Uses Ethane - 42% Primary Propane - 28% Petrochemicals 54% of NGLs Supplied Gas Processing Normal Butane - 7% 80% of U.S Supply…
  68. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 68
    Appendix ONEOK Page 69
  69. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 69
    Structure ONEOK, Inc. [NYSE: OKE] ONEOK Partners GP, L.L.C. General partner (100% of GP) Natural Gas Energy ONEOK Partners, L.P. Distribution Services [NYSE: OKS] *2% general partner interest and 41.4 % ONEOK, Inc. owns…
  70. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 70
    ONEOK Today A Premier Energy Company Assets that fit and work together Integrated operations Connecting prolific supply basins to key markets Proven ability to grow profitably ONEOK Partners is ONEOKs primary growth vehicle…
  71. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 71
    Business Segments Provide Stability and Opportunity ONEOK Partners ONEOKs primary growth vehicle Growth at OKS benefits OKE Generates primarily fee-based earnings Provides non-discretionary services to producers, processors and…
  72. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 72
    Natural Gas Distribution Asset Overview Kansas City Eighth largest U.S. natural gas distributor Wichita Tulsa Largest in Oklahoma and Kansas; Oklahoma City third largest in Texas More than 2 million customers served El…
  73. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 73
    Energy Services Asset Overview Delivers natural gas, together with bundled, reliable, premium services and products Peaking services Primarily to LDCs Leased Pipeline Capacity Leased Storage Capacity Storage* 72.4 Bcf of…
  74. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 74
    Appendix ONEOK Financial Page 75
  75. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 75
    OKE Financial Guidance Summary* 2012 Net income: lower half of the 345-375 million range Capital expenditures: 314 million on a stand-alone basis Stand-alone cash flow before changes in working capital: midpoint of 695 million Low…
  76. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 76
    OKE Financial Guidance Summary* 2013 ONEOK net income: range of 405-455 million Capital expenditures: 317 million on a stand-alone basis Stand-alone cash flow before changes in working capital: midpoint of 785 million 140-180…
  77. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 77
    OKE Three-year Financial Outlook 2012*-2015 Average annual net income growth of 20-25% expected between 2012*-2015 Driven by continued earnings growth at ONEOK Partners, primarily through volume growth Total dividend growth of…
  78. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 78
    Creating OKE Shareholder Value Dividend Growth and Total Shareholder Return 65% total increase in dividends paid since 2010 146% since 2006 Long-term dividend payout target of 60-70% of recurring earnings ONEOKs total return…
  79. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 79
    OKS Growth Benefits OKE ONEOKs Growth Engine Distributions Paid to ONEOK Each 1-cent-per-unit ( in Millions) 22% CAGR distribution increase provides 12.5 million in incremental 599 annual distributions to ONEOK in 2012 437 295…
  80. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 80
    OKE Free Cash Flow Provides Financial Flexibility 140-180 million in 2013 guidance Stand-Alone Cash Flow, 190-260 million expected in 2014 Before Changes in Working Capital and 2015 ( in Millions) Driven by growth at ONEOK…
  81. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 81
    OKE 2013 Financial Guidance By Segment ONEOK Partners increases: Stand-Alone Operating Income Plus Equity Earnings* Higher volumes ( in Millions) Lower optimization margins 809 Natural gas distribution increases: 659 ONEOK 655…
  82. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 82
    OKE Strong Balance Sheet Investment Grade Commitment to investment- ONEOK Stand Alone Total Debt-to-Capitalization Ratio grade credit rating S&P: BBB (stable) Moodys: Baa2 (stable) Capital structure 46% 40% 45% 52% 59% 54% Goal:…
  83. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 83
    Appendix Natural Gas Distribution Page 84
  84. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 84
    Financial Performance Natural Gas Distribution Goal: Minimize the gap between allowed and actual returns 2013 allowed return on equity (ROE)*: 10.1% 2013 estimate: 8.5%* Operating Income** ( In Millions) CAGR = 10% 225 215…
  85. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 85
    Regulatory - On the Horizon Natural Gas Distribution Oklahoma - Performance-based rate filing in Oklahoma - Performance- March 2013 with new rates to be effective July based rate filing approved in 2013, if applicable; expected to…
  86. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 86
    Oklahoma Natural Gas Natural Gas Distribution Largest customer base Approximately 83 percent of states natural gas customers 836,000 customers 75% in metropolitan areas Oklahoma Corporation Commission Three commissioners elected…
  87. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 87
    Kansas Gas Service Natural Gas Distribution Coldest territory Approximately 67 percent of states natural gas customers 632,000 customers 60% in metropolitan areas Kansas Corporation Commission Three commissioners appointed by…
  88. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 88
    Kansas Gas Service Rate Case Update Rate application filed in May Last adjustment to base rates in January 2007 In December 2012 Kansas Corporation Commission approved settlement 28 million increase in base rates 18 million…
  89. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 89
    Texas Gas Service Natural Gas Distribution Third largest natural gas distributor in the state Approximately 14 percent of states natural gas customers 621,000 customers 75% in metropolitan areas Home Rule with 10 jurisdictions…
  90. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 90
    Appendix Energy Services Page 91
  91. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 91
    Action Plan Rebase Cost Structure Align leased transportation and storage capacity with premium-services requirements Turn back non-premium-services-related leases upon expiration Re-contract leased capacity at reduced costs and/or…
  92. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 92
    Capacity Realignment Efforts Energy Services Realign contracted capacity with premium-services customer requirements Expected storage capacity to 60 Bcf by year end 2015 Reduction in working-capital requirements Storage Capacity…
  93. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 93
    Non-GAAP Reconciliations ONEOK Partners Page 94
  94. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 94
    Non-GAAP Reconciliations ONEOK Partners ONEOK Partners has disclosed in this presentation EBITDA and Distributable Cash Flow (DCF) amounts that are non-GAAP financial measures. Management believes these measures provide useful…
  95. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 95
    Non-GAAP Reconciliations EBITDA and Distributable Cash Flow ( in Millions) 2006 2007 2008 2009 2010 2011 2012G* 2013G** Reconciliation of Net Income to EBITDA and Distributable Cash Flow Net Income 445 408 626 435 473 831 885 975…
  96. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 96
    Non-GAAP Reconciliations ONEOK Page 97
  97. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 97
    Non-GAAP Reconciliations ONEOK ONEOK has disclosed in this presentation stand-alone cash flow, before changes in working capital, free cash flow, and stand-alone operating income and equity earnings, amounts that are non-GAAP…
  98. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 98
    Non-GAAP Reconciliations Stand-Alone Cash Flow, Before Changes in Working Capital and Free Cash Flow ( in Millions) 2008 2009 2010 2011 2012G* 2013G** Net income attributable to ONEOK 312 305 335 361 360 430 Equity in earnings of…
  99. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 99
    Non-GAAP Reconciliations Stand-Alone Operating Income and Equity Earnings ( in Millions) 2007 2008 2009 2010 2011 2012G* 2013G** Consolidated operating income from continuing operations 815 908 883 943 1,159 1,104 1,231 Operating…
  100. UBS MLP ONE ON ONE CONFERENCE – Oneok Inc. – slide 100

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