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UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc.

Oneok Inc. · Feb 29, 2012 · 107 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 NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 1
    UBS Natural Gas, Electric Power and MLP Conference Dallas, Texas February 29, 2012
  2. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 2
    Index Key Points Vision and Strategy 5 Well-positioned assets 8 Track record of disciplined growth 15 Demonstrated ability to create value 25 Appendix ONEOK 36 Financial 37 Natural Gas Distribution 41 Energy Services 48…
  3. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 3
    Key Points Vision and Strategy A premier energy company Well-positioned assets: Connecting prolific supply basins to key markets Track record of disciplined growth through: Investing in new and existing infrastructure…
  4. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 4
    Vision and Strategy Page 5
  5. UBS NATURAL GAS ELECTRIC POWER AND MLP 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 NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 6
    Our Key Strategies A Premier Energy Company Operate in a safe, reliable and environmentally responsible manner Generate consistent growth and sustainable earnings Increase distributable cash flow at ONEOK Partners through a…
  7. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 7
    Well-Positioned Assets Page 8
  8. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 8
    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…
  9. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 9
    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…
  10. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 10
    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…
  11. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 11
    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…
  12. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 12
    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…
  13. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 13
    Energy Services Asset Overview Delivers natural gas, together with bundled, reliable, premium products and services Peaking services Primarily to LDCs Access to prolific supply and high-demand areas Deep industry knowledge and…
  14. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 14
    Track Record of Disciplined Growth Page 15
  15. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 15
    Disciplined Growth Continues 6 Billion in Capital Investments Announced approximately 2.7 to 3.3 billion in growth projects in 2011-2014 Adjacent to and within our existing operating footprint including: 1.5 to 1.8 billion related…
  16. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 16
    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 Existing…
  17. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 17
    Bakken Shale Natural Gas Gathering and Processing Investments Three new plants and related 910 million 1.1 billion infrastructure Garden Creek 100 MMcf/d Bakken Completed December 2011 Shale Stateline I 100 MMcf/d Expected to be…
  18. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 18
    NGL Industry Environment Key Points NGL supply growing from liquids-rich regions Petrochemical demand growth in Gulf Coast NGLs enjoy significant price advantage vs. crude-oil based feedstock Fractionation capacity is tight with new…
  19. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 19
    Bakken Shale Natural Gas Liquids Investments Bakken Pipeline 595 million to 730 million 450-550 million 525-to 615-mile, 12-inch diameter, NGL pipeline from Bakken Shale to Overland Pass Pipeline Bakken Initial capacity to…
  20. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 20
    Sterling NGL Pipelines and Fractionator Investments 910 million to 1.2 billion Build new Sterling III pipeline Flexibility to transport purity products and unfractionated NGLs 610 million to 810 million 570-plus-mile, 16-inch…
  21. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 21
    Cana-Woodford Shale and Granite Wash Investments 235 million to 295 million Natural Gas Liquids Expands partnerships existing Mid- Continent NGL gathering system Connects three new processing plants and expands capacity at three…
  22. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 22
    Future Growth 1 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 NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 23
    Acquisitions Point of View Expand current businesses in existing footprint or adjacent areas Enter new lines of business within the energy value chain Must create value for both customers and investors Disciplined buyer Corporate…
  24. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 24
    Demonstrated Ability to Create Value Page 25
  25. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 25
    OKS Growth Benefits OKE ONEOKs Growth Engine 1-cent-per-quarter Distributions paid to ONEOK ( in Millions) distribution increase 20% CAGR provides 11.5 million in 432 incremental annual distributions to ONEOK 333 Growth projects…
  26. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 26
    Stable Cash Flows Key Points Business is built to weather economic cycles through: Regulatory-recovery mechanisms Hedging strategies to mitigate risk Predominantly fee-based earnings in ONEOK Partners segment Non-discretionary…
  27. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 27
    Free Cash Flow at ONEOK Provides Financial Flexibility 155-195 million in 2012 guidance Stand-alone cash flow, before changes in working capital Lower bonus depreciation than in 2011 ( in Millions) 215-260 million in 2013 and…
  28. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 28
    Three-year Financial Outlook* Expectations for ONEOK Average annual net income growth of 18-22% between 2012- 2014 Driven by continued growth at ONEOK Partners Dividend growth of 50% by 2014** Long-term dividend payout target of…
  29. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 29
    Value for ONEOK Shareholders Dividend Growth July 2012 dividend increase Dividends paid per share 13% CAGR** of 5 cents per share* Dividend growth of 50% by 2014* Long-term dividend payout target of 60-70% of recurring 2.54…
  30. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 30
    Creating Shareholder Value Total Shareholder Return ONEOKs total return exceeds S&P 500 and S&P 500 Utilities Indices ONEOK as of Jan. 31, 2012 700% 595% 600% 500% 400% 300% 220% 200% 134% 100% 90% 70% 41% 37% 16%…
  31. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 31
    Three-year Financial Outlook* Expectations for ONEOK Partners Average annual EBITDA growth of 18-22% (2012-2014) Driven by earnings from capital projects Sustainable distribution growth Projected 2.5-cent-per-unit per-quarter…
  32. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 32
    Value Creation for OKS Unitholders Outlook Expects 2.5-cent-per-unit Distributions Paid Per Unit per-quarter increase for (Split Adjusted) 8% CAGR** 0.710 2012* 0.685 0.660 15-20% annual distribution 0.635 0.610…
  33. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 33
    Creating Unitholder Value Total Unitholder Return ONEOK Partners total return exceeds S&P 500 and Alerian MLP Indices ONEOK Partners as of Jan. 31, 2012 600% 500% 459% 400% 335% 300% 200% 167% 146% 142% 100% 89% 70%…
  34. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 34
    Key Investment Considerations A Premier Energy Company Strategic assets connecting prolific supply basins and key markets Non-discretionary services to producers, processors and customers Focused on creating value for both customers…
  35. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 35
    Appendix ONEOK Page 36
  36. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 36
    Appendix ONEOK Financial Page 37
  37. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 37
    Financial Guidance Summary* 2012 Net income: range of 360-410 million Capital expenditures: approximately 302 million on a stand- alone basis Stand-alone cash flow before changes in working capital: midpoint of 740 million 155-195…
  38. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 38
    Earnings 2012 Financial Guidance Operating income and equity earnings growth: Stand-alone Operating Income Plus Equity Earnings* 8% increase from 2011 ( in Millions) ONEOK Partners 706 655 decreases: 609 625 591 597 ONEOK…
  39. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 39
    Strong Balance Sheet Investment Grade Commitment to investment-grade credit ONEOK Stand Alone rating Debt-to-Capitalization Ratio* S&P: BBB (stable) Moodys: Baa2 (stable) 40% 48% 52% 46% 45% Capital structure 59% Goal: 50/50…
  40. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 40
    Appendix Natural Gas Distribution Page 41
  41. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 41
    Financial Performance Natural Gas Distribution Goal: Minimize the gap between actual and allowed returns Allowed return on equity (ROE)*: Range of 10.1-10.7% 2012 estimate: 9.3%* Operating Income ( In Millions) CAGR = 11% 225…
  42. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 42
    Regulatory - On the Horizon Natural Gas Distribution Oklahoma - Oklahoma - Performance-based rate Performance-based rate filing in March 2012 with filing in March 2013 with Oklahoma - A new rates to be effective new rates to be…
  43. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 43
    Oklahoma Natural Gas Natural Gas Distribution Largest customer base Approximately 82 percent of states natural gas customers 836,000 customers 75% in metropolitan areas Oklahoma Corporation Commission Three commissioners elected…
  44. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 44
    Oklahoma Natural Gas Performance-based Rates Performance-based rate structure If actual ROE is higher Increase frequency and than band: decrease size of rate case 75 bps 75% revenue- changes sharing requirement 25% earnings Once…
  45. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 45
    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…
  46. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 46
    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…
  47. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 47
    Appendix Energy Services Page 48
  48. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 48
    Meeting Customer Needs Energy Services Utilities need non-uniform natural gas supply as dictated by weather requirements Utilities are willing to pay a premium for callable service Assures physical gas is available when and where…
  49. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 49
    What We Do Energy Services Provide bundled, reliable products and services to natural gas and electric utilities Buy natural gas supply from diverse sources Lease and optimize storage and transportation capacity Effectively use…
  50. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 50
    Current Efforts Action Plan Maintain existing premium-services customers More than 90% retained annually Premium-services fees lower due to lower natural gas price and volatility Maximize earnings through effective optimization…
  51. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 51
    Capacity Realignment Efforts Energy Services Realign contracted capacity Storage Capacity (Bcf) with customer requirements 91 Expected storage capacity to 65 83 Bcf by year end 2012 74 76 60 Bcf by year end 2015 65 Expected…
  52. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 52
    Rebasing Cost Structure Current Plans Re-contract transportation and storage capacity Renewal Estimates Based on Capacity* At competitive rates that are economically attractive Aligned with premium-services 88% customer needs…
  53. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 53
    Financial Profile 2012 Guidance 2010 2011 2012 (Thousands of dollars, except Bcf and MMBtu/d) Actual Actual Guidance (Feb. 20, 2012) Premium services fees 60,348 53,003 59,500 Average storage capacity* (Bcf) 73.6 74.1 74.1 Assumed…
  54. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 54
    Appendix ONEOK Partners Page 55
  55. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 55
    ONEOK Partners Strong Asset Position Strategic assets connecting prolific supply basins to key markets Embedded growth opportunities within existing operating footprint Provides non-discretionary services to producers, processors…
  56. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 56
    Predominantly Fee-Based Earnings Percent of Margin Fee-based margins increase in 2012 Sources of Margin Capital investments provide 0.9 B 1.1 B 1.1 B 1.2 B 1.6 B 1.6 B predominantly fee-based earnings 9% 13% 18% growth 20% 20%…
  57. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 57
    Appendix ONEOK Partners Financial Page 58
  58. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 58
    Financial Guidance Summary* 2012 Net income: range of 810-870 million Distributable cash flow: range of 925-985 million Capital expenditures: approximately 2.0 billion 1.9 billion in growth capital 109 million in maintenance…
  59. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 59
    Earnings 2012 Financial Guidance Gathering and processing: Higher gathered and processed Operating Income and Equity Earnings* ( in Millions) volumes 14% CAGR Garden Creek natural gas 1,067 1,037 processing plant in service late…
  60. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 60
    Distribution Coverage Financial Discipline Target coverage ratio of Distributable Cash Flow (DCF) 1.05x to 1.15x ( in Millions) Considerations 946 955 140 Capital project execution 320 815 Volume growth 637 558 588 626…
  61. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 61
    Strong Balance Sheet Investment Grade ONEOK Partners Committed to investment-grade Debt-to-Capitalization Ratio* credit rating S&P: BBB (stable) Moodys: Baa2 (stable) 48% 55% 54% 55% 50% 53% Capital structure targets 50/50…
  62. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 62
    Appendix ONEOK Partners Growth Projects Page 63
  63. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 63
    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 50-60 per barrel* Increased…
  64. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 64
    Bakken Shale Current Environment Backlog of wells waiting to be fractured Shortage of crews Competing with other shales Increases well-completion costs Crude takeaway capacity with pipeline, rail and truck Existing OKS…
  65. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 65
    Bakken-related Project Status 2011-2014 % Contract In-service Major Project Contracting Status Committed Type Date Garden Creek plant and related Backed by volume commitments 100% committed POP with fee Dec. 2011 infrastructure and…
  66. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 66
    Supply Commitments Bakken Growth Projects Majority of Bakken-related projects are backed by volume commitments for 5+ years New processing plants are primarily percent-of-proceeds contracts, aligned with producers Percentage of…
  67. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 67
    Mid-Continent-Gulf Coast NGL Project Status 2011-2014 Contracting % Contract In-service Major Project Status Committed Type Date Sterling I expansion Capacity available 100% committed Differential November for optimization or fee…
  68. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 68
    Supply Commitments Mid-Continent and Gulf-Coast Growth Projects Substantially committed by in-service dates Percentage of Available Capacity Committed* 100% 90% 25% 80% 70% 60% 50% 100% 100% 100% 100% 40% 30% 75% 20% 10%…
  69. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 69
    Bakken Shale Garden Creek Plant Natural Gas Gathering and Processing Investments Garden Creek plant 100 MMcf/d natural gas processing facility 150-210 million In service Well-connects, upgrades and expansions to existing Garden…
  70. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 70
    Bakken Shale Stateline I Plant Natural Gas Gathering and Processing Investments Stateline I plant 100 MMcf/d natural gas processing facility 180-205 million In service third quarter 2012 Well-connects, upgrades and expansions to…
  71. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 71
    Bakken Shale Stateline II Plant Natural Gas Gathering and Processing Investments Stateline II plant 100 MMcf/d natural gas processing facility 135-150 million In service first half of 2013 Well-connects, upgrades and expansions…
  72. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 72
    NGL Distribution Pipeline Expansion Sterling I Installed seven additional pump stations along Sterling I pipeline Increased capacity by 15,000 bpd Transports NGL purity products from Medford, Okla., fractionator to Mont Belvieu,…
  73. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 73
    Niobrara Shale Growth Potential Producers accumulating significant acreage Bakken Driven by crude-oil Shale economics Gathering and processing infrastructure required Bakken NGL pipeline designed to expand in order Niobrara…
  74. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 74
    Mississippian Lime New Play with Great Potential Existing natural gas gathering and processing and NGL assets are well positioned Exceptional potential Mississippian Lime Eastern section contains higher amount of NGLs Western…
  75. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 75
    ONEOK Partners Growth More than 2 Billion of Growth Projects Completed 2006-2009 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…
  76. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 76
    Appendix Natural Gas Gathering and Processing Page 77
  77. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 77
    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…
  78. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 78
    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 75% of keep-whole contracts to reduce…
  79. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 79
    Commodity Price Risk Mitigation Natural Gas Gathering and Processing Contract restructuring reduced keep-whole sensitivity Commodity Price Sensitivity Before Hedging Margin Impact 2012 hedged positions* 4.8 4.5 NGLs: 72% at…
  80. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 80
    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…
  81. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 81
    Gathered Volumes Natural Gas Gathering and Processing 2012 volumes gathered Natural Gas Gathered (BBtu/d) increase by 15% Wells connected 1,171 1,164 1,188 2012: 800+ (estimate) 1,123 1,067 1,030 2011: 583 2010: 316 754 2009:…
  82. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 82
    Processed Volumes Natural Gas Gathering and Processing 2012 processed volumes Natural Gas Processed (BBtu/d) expected to increase 24% from 2011 886 Higher volumes in Williston Basin 674 713 Garden Creek in service 658 621 641…
  83. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 83
    Future Growth Opportunities Natural Gas Gathering & Processing Continue growing our Bakken Shale/Williston Basin super- system New processing plants, additional infrastructure in Williston Basin region Western Oklahoma and Texas…
  84. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 84
    Appendix Natural Gas Pipelines Page 85
  85. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 85
    Asset Overview Natural Gas Pipelines Predominantly fee-based Northern Border Viking Gas Transmission income Pipeline Approximately 82% of Guardian Pipeline transportation capacity contracted under demand- Midwestern Gas…
  86. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 86
    Sustainable, Stable Cash Flow Natural Gas Pipelines Interstate Pipelines Wholly owned pipelines are 87% Viking Gas Transmission subscribed under firm, demand- Northern Border Pipeline based rates in 2012 Guardian Intrastate…
  87. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 87
    Northern Border Pipeline 50-Percent Equity Investment Links natural gas supply from western Canada to Midwest markets Bakken Shale Bison Pipeline interconnection Supply diversity accessing Powder River Rockies natural gas with…
  88. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 88
    Future Growth Opportunities Natural Gas Pipelines Connections to new natural gas-fired electric-generation plants Providing pipeline takeaway capacity for growing natural gas shale plays Pipeline expansions and extensions into new…
  89. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 89
    Appendix Natural Gas Liquids Page 90
  90. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 90
    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 NGL Gathering…
  91. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 91
    Volume Growth Natural Gas Liquids 2012 gathering volumes increase by 25%; fractionation volumes increase by 13% Significant volume growth in the Mid-Continent from 30 new processing plants and growth from existing plants Currently…
  92. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 92
    Margin Profile Natural Gas Liquids Exchange & Storage Services Gather, fractionate, transport and store Exchange & NGLs and deliver to market hubs; primarily Storage Services fee based 68% 62% Transportation Transportation 59%…
  93. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 93
    NGL Transportation Capacity Four Straws Sterling I and II distribution pipelines are at capacity Sterling I expansion complete Arbuckle NGL gathering pipeline can be used to capture market differentials The Four Straws will…
  94. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 94
    Arbuckle Pipeline Delivering Unfractionated NGLs to Gulf Coast Expanding to 240,000 bpd From southern Oklahoma through Barnett Shale to Mont Belvieu Expected to be in service early second quarter 2012 Another option to deliver…
  95. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 95
    Overland Pass Pipeline 50-Percent Equity Investment Links NGL supply from Bakken Shale Rockies to Mid-Continent and Gulf-Coast markets Williams is 50% owner and became operator in April 2011 Williams is anchor shipper Strong…
  96. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 96
    Future Growth Opportunities Natural Gas Liquids Gathering, Fractionation & Storage NGL Pipelines Increase fractionation capacity Overland Pass and Arbuckle Expand existing Mid-Continent Expansions and laterals to new NGL facilities…
  97. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 97
    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…
  98. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 98
    Fractionation Capacity Natural Gas Liquids 549,000 bpd, net ownership 60,000 bpd agreement for fractionation services with Targa began in second quarter 2011 Increasing our fractionation capacity Expanding Bushton by 60,000 bpd…
  99. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 99
    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…
  100. UBS NATURAL GAS ELECTRIC POWER AND MLP CONFERENCE – Oneok Inc. – slide 100
    Non-GAAP Reconciliations ONEOK Partners Page 101

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