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2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P.

Oneok Partners, L.P. · Dec 9, 2014 · 112 slides

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Slides

  1. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 1
    WELLS FARGO ENERGY SYMPOSIUM New York City December 9-10, 2014
  2. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 2
    Terry Spencer President and Chief Executive Officer
  3. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 3
    MEETING AGENDA ONEOK AND ONEOK PARTNERS Welcome and Opening Remarks Introduction to Executive Leadership Team ONEOK and ONEOK Partners Overview Terry Spencer, President and CEO Key strategies Disciplined growth continues Future…
  4. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 4
    EXECUTIVE LEADERSHIP
  5. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 5
    LEADERSHIP ONEOK AND ONEOK PARTNERS 130 collective years of energy industry experience Terry Spencer President and Chief Executive Officer Derek Reiners Steve Lake Rob Martinovich Wes Christensen Bob Mareburger Senior Vice…
  6. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 6
    ONEOK OVERVIEW
  7. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 7
    ONEOK 2014 HIGHLIGHTS Repositioned ONEOK as a pure-play, publicly traded general partner of ONEOK Partners January 31: completed the separation of ONEOKs natural gas distribution segment into a stand-alone, publicly traded company…
  8. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 8
    ONEOK DELIVERING VALUE TO SHAREHOLDERS 14% increase expected in 2015 dividends declared compared with 2014 Projected 2.25-cent-per-share-per-quarter increase for 2015 12% 15% expected average annual dividend growth between 2014…
  9. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 9
    ONEOK AS PURE-PLAY GP CORPORATE STRUCTURE IS WORKING Simplified capital allocation ONEOK, Inc. Earnings and cash flow underpinned by 38.3% GP and LP interest as of Sept. 30, 2014 investment-grade MLP with predominantly fee-based…
  10. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 10
    OKS GROWTH BENEFITS OKE VALUE OF GP INTEREST TO ONEOK ONEOK Partners capital-growth Distributions Declared to ONEOK projects and strategic ( in Millions) 20% CAGR 762 acquisitions expected to drive continued distribution growth…
  11. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 11
    ONEOK PARTNERS OVERVIEW
  12. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 12
    ONEOK PARTNERS ASSET OVERVIEW Owns and operates strategically located assets in midstream natural gas and natural gas liquids businesses Provides nondiscretionary services to producers, processors and customers Natural Gas…
  13. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 13
    ONEOK PARTNERS 2014 HIGHLIGHTS Increased organic growth projects and strategic acquisitions: Announced: Approximately 1.7 billion Acquired: 800 million acquisition of West Texas LPG Pipeline LP and Mesquite Pipeline Completed:…
  14. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 14
    ONEOK PARTNERS DISTRIBUTION GROWTH CONTINUES 8% increase expected in 2015 distributions declared compared with 2014 Projected 1.5-cent-per-unit-per-quarter increase for 2015 6% 8% expected average annual distribution growth between…
  15. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 15
    ONEOK PARTNERS KEY POINTS Disciplined growth continues, driven by volume increases from organic growth projects and strategic acquisitions Predominantly fee-based earnings will continue gather, process, fractionate, store and…
  16. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 16
    OUR KEY STRATEGIES A PREMIER ENERGY COMPANY GROWTH Increase distributable cash flow through investments in organic growth projects and strategic acquisitions Continue to grow/expand our integrated natural gas and natural gas liquids…
  17. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 17
    DISCIPLINED GROWTH CONTINUES 14 BILLION TO 16 BILLION IN CAPITAL GROWTH PROJECTS Completed 8 billion of capital-growth projects and acquisitions from 2006 2014 Capital-growth projects in progress of nearly 3 billion and growing 4 to…
  18. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 18
    FUTURE GROWTH 4 BILLION 5 BILLION BACKLOG Future growth across multiple supply basins Development of supply basins over the next two decades will require significant infrastructure Backlog of unannounced growth projects includes:…
  19. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 19
    ONEOK PARTNERS INCREASING 2015 DISTRIBUTABLE CASH FLOW 11% 26% expected increase in 2015 DCF driven by fee-based volume growth compared with 2014 Commodity price environment not expected to significantly impact supply Ethane…
  20. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 20
    2015 OUTLOOK Volume Growth Continues to Deliver Fee-based Earnings Rob Martinovich Executive Vice President, Commercial
  21. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 21
    NATURAL GAS GATHERING AND PROCESSING GATHERED VOLUMES 2015 volumes gathered expected to increase 17% from 2014 Significant acreage dedications in core, higher return areas targeted by producers Improved drilling efficiencies drive…
  22. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 22
    NATURAL GAS GATHERING AND PROCESSING PROCESSED VOLUMES Natural Gas Processed (BBtu/d) 2015 processed volumes expected to increase 21% CAGR since 2010 17% from 2014 1,760 Higher volumes in Williston Basin Garden Creek II in service…
  23. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 23
    NATURAL GAS LIQUIDS GATHERING AND FRACTIONATION VOLUMES Increasing estimated 2015 gathering volumes by 14%, excluding the WTLPG acquisition, and increasing 58% including the acquisition, compared with 2014; fractionation volumes…
  24. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 24
    NATURAL GAS GATHERING AND PROCESSING CONTRACT PORTFOLIO Current contract mix aligns interests with customers Primarily percent-of-proceeds contracts with a fee-based component Bakken volume growth has increased commodity exposure…
  25. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 25
    NATURAL GAS GATHERING AND PROCESSING COMMODITY PRICE RISK MITIGATION 2014 hedged positions 2015 Volume* Assumed Annual Impact of 10% Price Natural gas: 73% at 4.07/MMBtu Prices Contribution Movement ( in millions) ( in millions)…
  26. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 26
    NATURAL GAS LIQUIDS MARGIN PROFILE MIX Exchange & Storage Services Gather, fractionate, transport and store NGLs Exchange & and deliver to market hubs; primarily fee based 50% 55% Storage Services Transportation Transportation 77%…
  27. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 27
    OKS PREDOMINANTLY FEE-BASED EARNINGS PERCENT OF MARGIN Sources of Margin Expect to remain predominantly fee based 1.2 B 1.6 B 1.6 B 1.7 B 2.1 B 2.6 B Commodity price risk 9% 11% 13% 11% Exists primarily in natural gas gathering and…
  28. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 28
    DISCIPLINED GROWTH CONTINUES IN MULTIPLE BASINS Terry Spencer, Rob Martinovich, Wes Christensen, Sheridan Swords, Phill May and Kevin Burdick
  29. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 29
    WILLISTON BASIN
  30. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 30
    WILLISTON BASIN DRILLING ECONOMICS Producer Economics Approximately 97% of producer Natural economics from crude-oil and NGL NGLs gas production 4% 3% Drilling is economical with crude-oil prices (WTI) as low as 4560 per barrel…
  31. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 31
    WILLISTON BASIN REDUCED FLARING AND VOLUME BACKLOG Flaring results in loss of NGL and natural gas value uplift 24% of North Dakotas natural gas production was flared in September 2014 North Dakota Industrial Commission (NDIC) policy…
  32. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 32
    OKS IN THE WILLISTON BASIN A LEADING SERVICE PROVIDER TO PRODUCERS Largest independent natural gas gatherer and processor in the Williston Basin. 3+ million Acreage net acres Dedications 60% of total acreage footprint…
  33. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 33
    WILLISTON BASIN CAPITAL INVESTMENTS 2015 2016 CapEx Expected Project ( in millions) Completion Lonesome Creek plant 1 and related infrastructure 550680 Q4 2015 200 MMcf/d Bear Creek plant and 2 related infrastructure 230330 Q2…
  34. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 34
    WILLISTON BASIN SERVING NEW ETHANE MARKETS De-ethanization facilities adjacent Stateline Natural Gas Processing plants to ONEOK Partners Stateline natural gas processing plants Approximately 70 million Gas Residue Gas Natural Gas…
  35. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 35
    POWDER RIVER BASIN
  36. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 36
    POWDER RIVER BASIN DRILLING ECONOMICS Approximately 83% of producer Producer Economics economics from crude-oil and NGL production NGLs 11% Drilling is economical with crude-oil prices (WTI) as low as 6070 per Natural barrel gas…
  37. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 37
    OKS IN THE POWDER RIVER BASIN EXPANDING OPERATIONS IN GROWING BASIN Strategic growth in the NGL-rich formations in the Powder River Basin. 130,000 net acres Acreage Dedications 23% of total acreage footprint Processing 50…
  38. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 38
    POWDER RIVER BASIN CAPITAL INVESTMENTS 2015 2016 Strategic expansion of existing basin footprint. CapEx Expected Project ( in millions) Completion Sage Creek plant and 50 Q4 2015 infrastructure upgrades Bronco plant and…
  39. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 39
    WILLISTON AND POWDER RIVER BASIN NATURAL GAS LIQUIDS TAKEAWAY Approximately 1 billion Bakken NGL Pipeline expansion Expand capacity to 135,000 bpd from 60,000 Williston Basin Bakken Shale bpd with additional pump stations;…
  40. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 40
    BREAK
  41. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 41
    MID-CONTINENT
  42. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 42
    MID-CONTINENT DRILLING ECONOMICS Approximately 85% of producer Producer Economics economics from crude-oil and NGL production NGLs Drilling is economical with crude-oil 15% prices (WTI) as low as 4570 per barrel in the SCOOP…
  43. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 43
    MID-CONTINENT INTEGRATED ASSETS AT WORK 500,000+ Acreage net acres Dedications 28% of total acreage footprint 700 MMcf/d currently Processing 900 MMcf/d Capacity expected by 2016 Natural Gas plants Natural Gas gathering NGL…
  44. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 44
    SCOOP KNOX PLANT KNOX NATURAL GAS PROCESSING PLANT Knox plant 365 million to 470 million 175 million to 240 million 200 MMcf/d natural gas processing facility Expected to be completed in the fourth quarter 2016 Related natural…
  45. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 45
    PERMIAN BASIN
  46. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 46
    PERMIAN DRILLING ECONOMICS Producer Economics Approximately 78% of producer economics from crude-oil and NGL production NGLs Drilling is economical with crude-oil 23% prices (WTI) as low as 4761 per barrel in the Delaware…
  47. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 47
    WEST TEXAS LPG AND MESQUITE PIPELINES NATURAL GAS LIQUIDS ACQUISITION 2,600 miles of NGL gathering pipeline 800 million 230,000 bpd, net Acquisition closed in November 2014 Expands NGL segments portfolio of assets NGL gathering…
  48. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 48
    NATURAL GAS PIPELINES GROWING EXPORTS TO MEXICO Proposed project: 208 miles of 30-inch pipeline from the Waha Hub area to a delivery point near San Elizario, Texas 450 million - 550 million Provide 500 600 MMcf/d capacity to…
  49. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 49
    FRACTIONATION CAPACITY
  50. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 50
    FRACTIONATION CAPACITY NATURAL GAS LIQUIDS Increased our fractionation capacity MB-2 75,000 bpd fractionator in service in December 2013 MB-3 75,000 bpd fractionator completed in December 2014 820,000 bpd of capacity…
  51. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 51
    ONEOK PARTNERS FINANCIALS Derek Reiners Senior Vice President, Chief Financial Officer & Treasurer
  52. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 52
    CREATING OKS UNITHOLDER VALUE DISTRIBUTION GROWTH 8% increase in 2015 distributions declared compared with 2014 Projected 1.5-cent-per-unit-per-quarter increase for 2015 6% 8% expected average annual distribution growth between 2014…
  53. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 53
    OKS FINANCIAL GUIDANCE SUMMARY 2015 Adjusted EBITDA range: 1.77 billion 1.99 billion Net income range: 1.12 billion 1.28 billion Distributable cash flow range: 1.31 billion 1.49 billion Capital expenditures: 2.6 billion 3.0 billion…
  54. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 54
    OKS 2015 FINANCIAL GUIDANCE BY SEGMENT Operating Income and Equity Earnings Natural gas gathering and processing: ( in Millions) Higher gathered and processed volumes 17% CAGR since 2010 1,527 Benefit of new processing plants and…
  55. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 55
    OKS STRONG BALANCE SHEET INVESTMENT GRADE Committed to investment-grade credit ONEOK Partners ratings Long-Term Debt-to-Capitalization Ratio S&P: BBB (stable) Moodys: Baa2 (stable) 46% 53% 52% 55% 51% Capital structure targets…
  56. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 56
    ONEOK FINANCIALS
  57. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 57
    CREATING OKE SHAREHOLDER VALUE DIVIDEND GROWTH 14% increase expected in 2015 dividends declared compared with 2014 Projected 2.25-cent-per-share-per-quarter increase for 2015 12% 15% expected average annual dividend growth between…
  58. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 58
    OKE FINANCIAL GUIDANCE SUMMARY 2015 Cash flow available for dividends: 580 million 660 million Free cash flow: 50 million 80 million after capital expenditures and dividends No expected borrowings; 300 million credit facility…
  59. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 59
    ONEOK INCOME TAXES Taxes on GP distributions at full corporate tax rate Taxes on LP distributions have been 100% deferred in recent years Cash tax rate expected to be 20% 25% of total distributions from ONEOK Partners beyond 2015…
  60. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 60
    NGL MARKETS OVERVIEW Sheridan Swords Senior Vice President, Natural Gas Liquids
  61. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 61
    INDUSTRY ENVIRONMENT NATURAL GAS LIQUIDS Supply growth continues from NGL-rich regions Ethane supply expected to continue to outpace demand Downward pressure on ethane prices expected until new world-scale ethylene cracking capacity…
  62. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 62
    ETHANE MARKETS SUPPLY AND DEMAND ASSUMPTIONS Ethane rejection is expected to continue until new world-scale ethylene cracking capacity comes on line beginning in 2017 Low price ethane environment is attracting future growth in…
  63. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 63
    PROPANE MARKETS GROWING EXPORTS PROVIDE PRICE SUPPORT Propane prices could see near term support as inventories decline due to strong crop-drying, normal winter weather and expanding export capacity Periods of time when Conway will…
  64. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 64
    CLOSING REMARKS Terry Spencer
  65. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 65
    CONCLUSIONS KEY POINTS ONEOK corporate structure is maximizing cash flow available for dividends Pure-play GP creates exceptional value through ownership of ONEOK Partners Expected 14 percent increase in 2015 dividends declared…
  66. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 66
    Q&A
  67. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 67
    APPENDIX Page 68
  68. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 68
    APPENDIX ONEOK PARTNERS GROWTH PROJECTS
  69. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 69
    ONEOK VISION AND MISSION Our Vision A pure-play general partner that creates exceptional value for all stakeholders through our ownership in ONEOK Partners by: Providing management and resources to ONEOK Partners, enabling it to…
  70. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 70
    ONEOK PARTNERS VISION AND MISSION Our Vision Creating exceptional value for all stakeholders by: Re-bundling services across the energy value chain, primarily through vertical integration, to provide customers with premium services…
  71. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 71
    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…
  72. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 72
    WILLISTON BASIN-RELATED GROWTH PROJECTS 2010 2014 (2.5 BILLION IN PROJECTS) CapEx Contract Major Project Scope Completed ( Millions) Type Garden Creek plant and related 120 MMcf/d* capacity 360 POP with fee December 2011…
  73. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 73
    WILLISTON BASIN-RELATED GROWTH PROJECTS 2015 2016 (2.2 BILLION IN PROJECTS) CapEx Contract Major Project Scope Timing ( Millions) Type Lonesome Creek plant and related 200 MMcf/d* capacity 550680 POP with fee Fourth quarter…
  74. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 74
    MID-CONTINENT-GULF COAST-RELATED GROWTH PROJECTS 2010 2014 (2.3 BILLION IN PROJECTS) Major Project Scope CapEx Contract Completed ( Millions) Type Sterling I expansion Installed 7 additional pump stations to increase capacity by…
  75. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 75
    MID-CONTINENT-GULF COAST-RELATED GROWTH PROJECTS 2015 2016 (600 MILLION IN PROJECTS) Major Project Scope CapEx Contract Timing ( Millions) Type Hutchinson to Medford NGL 95-mile NGL pipeline between existing NGL fractionation at…
  76. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 76
    ACQUISITIONS 2013 2014 (1.2 BILLION) Major Project Scope CapEx Contract Timing ( Millions) Type West Texas Pipeline & 2,600 total mile NGL gathering pipeline acquisition 800 Fee based November Mesquite Pipeline Permian Basin 2014…
  77. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 77
    OKS GROWTH: 2006 2009 MORE THAN 2 BILLION OF GROWTH PROJECTS COMPLETED 2010 was first full year of all of these projects contributing Grasslands Plant Expansion EBITDA Two-thirds of investments Fort Union Gas Guardian II…
  78. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 78
    APPENDIX NATURAL GAS GATHERING AND PROCESSING
  79. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 79
    ASSET OVERVIEW NATURAL GAS GATHERING AND PROCESSING Nondiscretionary services to producers Gathering, compression, treating and processing Williston Basin Diverse contract portfolio More than 2,000 contracts Powder River Primarily…
  80. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 80
    INDUSTRY ENVIRONMENT NATURAL GAS GATHERING AND PROCESSING Producers focusing on oil- and NGL-rich production to maximize returns In the basins where we operate, drilling remains economical in a lower crude-oil price environment…
  81. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 81
    WILLISTON BASIN BEAR CREEK NATURAL GAS GATHERING AND PROCESSING AND NGL INVESTMENTS Bear Creek plant 265 million to 375 million 230 million to 330 million 80 MMcf/d Expected to be completed in second quarter 2016 Natural gas…
  82. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 82
    WILLISTON BASIN DEMICKS LAKE NATURAL GAS GATHERING AND PROCESSING INVESTMENTS Demicks Lake plant 595 million to 770 million 330 million to 430 million 200 MMcf/d natural gas processing facility Expected to be completed in third…
  83. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 83
    WILLISTON BASIN LONESOME CREEK NATURAL GAS GATHERING AND PROCESSING INVESTMENTS Lonesome Creek plant 550 million to 680 million 320 million 390 million 200 MMcf/d natural gas processing facility Expected to be completed in fourth…
  84. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 84
    POWDER RIVER BASIN BRONCO NATURAL GAS GATHERING AND PROCESSING INVESTMENTS Bronco plant 170 million to 245 million 215 million to 305 million 100 MMcf/d Expected to be completed in third quarter 2016 Natural gas liquids pipeline…
  85. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 85
    ONEOK PARTNERS COMMODITY PRICE ASSUMPTIONS Price Assumptions (Unhedged) 2015 2016 2017 NGL composite/gallon* 0.89 1.09 1.11 NYMEX natural gas/ MMBtu 4.00 4.30 4.50 NYMEX natural gas/ MMBtu (Ventura) 4.05 4.20 4.32 NYMEX crude…
  86. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 86
    APPENDIX NATURAL GAS LIQUIDS
  87. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 87
    ASSET OVERVIEW NATURAL GAS LIQUIDS Provides nondiscretionary, fee-based services to natural gas processors and customers Gathering, fractionation, transportation, marketing and storage Extensive NGL gathering system Connected to…
  88. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 88
    STERLING NGL PIPELINES EXPANDING ACCESS TO GULF COAST MARKETS Sterling III pipeline Approximately 800 million Flexibility to transport NGL purity products and unfractionated NGLs 550-plus miles, 16-inch diameter 193,000 bpd,…
  89. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 89
    NEW FRACTIONATORS AND E/P SPLITTER INVESTMENTS AT MONT BELVIEU 950 million to 1.0 billion MB-2 fractionator - 75,000 bpd capacity In service in December 2013 100% of available capacity committed MB-3 fractionator - 75,000 bpd…
  90. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 90
    ETHANE REJECTION ASSUMPTIONS 2014 2017 2014 ethane rejection approximately 120,000 bpd 90,000 bpd of ethane rejection from existing Mid-Continent and Rockies natural gas processing plants that supply our NGL assets, excluding the…
  91. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 91
    FIRM PETROCHEMICAL ANNOUNCEMENTS APPROXIMATELY 500,000 BPD OF NEW ETHANE DEMAND Ethane Capacity Company Project Location Start-up (bpd) Williams Expansion 20,000 Geismar, La. 2014 LyondellBassell Expansion 26,000 Corpus Christi…
  92. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 92
    POTENTIAL PETROCHEMICAL ANNOUNCEMENTS APPROXIMATELY 336,000 BPD OF POTENTIAL ETHANE DEMAND Ethane Capacity Company Project Location Start-up (bpd) Aither Chemicals New Build 16,000 West Virginia 2017 Shell Appalachia New Build…
  93. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 93
    ETHANE EXPORTS FIRM AND POTENTIAL ETHANE EXPORTS Firm Ethane Export Demand Company Export Ethane Capacity (bpd) Location Start-up Cochin (EP) PIPELINE 8,000 Conway, KS to Sarnia current Vantage PIPELINE 60,000 Tioga, ND to Alberta…
  94. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 94
    APPENDIX NATURAL GAS PIPELINES
  95. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 95
    ASSET OVERVIEW NATURAL GAS PIPELINES Viking Gas Northern Border Transmission Predominantly fee-based income Pipeline 92% of transportation capacity contracted under demand-based rates in 2015 Guardian Pipeline 79% of…
  96. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 96
    INDUSTRY ENVIRONMENT NATURAL GAS PIPELINES End-user market-connected assets reduce impact of narrow location and summer/winter price differentials Increased demand for natural gas-fired electric generation driven by lower natural…
  97. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 97
    NORTHERN BORDER PIPELINE 50 PERCENT EQUITY INVESTMENT Links natural gas supply from Williston Basin western Canada and the Williston Bakken Shale Basin to Midwest markets Bison Pipeline interconnection Powder River Basin…
  98. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 98
    APPENDIX ENVIRONMENT, SAFETY AND HEALTH
  99. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 99
    ENVIRONMENT, SAFETY AND HEALTH (ESH) KEY POINTS Continue to produce sustainable improvement in ESH performance by protecting employees and the public, and by maintaining the mechanical reliability of our assets Continue to implement…
  100. 2014 WELLS FARGO ENERGY SYMPOSIUM – Oneok Partners, L.P. – slide 100
    ENVIRONMENT, SAFETY AND HEALTH CURRENT INITIATIVES Culture Enhancement Continue to evolve our culture to one of risk assessment, control and mitigation Integrate ESH more effectively into our other processes Establish expectations…

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