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NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P.

Oneok Partners, L.P. · May 20, 2015 · 94 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.

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  1. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 1
    NAPTP Investor Conference Orlando, Florida May 20, 2015
  2. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 2
    Terry K. Spencer President and Chief Executive Officer
  3. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 3
    What Well Cover Key Points ONEOK Partners Overview Supply and market diversification Well-positioned assets Connecting prolific supply basins to key markets Disciplined growth continues Investing in new and existing…
  4. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 4
    ONEOK PARTNERS OVERVIEW
  5. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 5
    ONEOK PARTNERS WELL-POSITIONED TO WITHSTAND CHALLENGING MARKET CONDITIONS Experienced leadership team, making prudent financial decisions Early mover among peers to proactively revise financial guidance Disciplined growth continues,…
  6. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 6
    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…
  7. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 7
    WELL-POSITIONED ASSETS
  8. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 8
    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 Extensive…
  9. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 9
    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…
  10. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 10
    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…
  11. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 11
    ASSET OVERVIEW NATURAL GAS PIPELINES Primarily fee-based income 92% of transportation capacity contracted under demand-based rates in 2015 85% of contracted system transportation capacity serves end-use markets in 2015 Connected…
  12. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 12
    DISCIPLINED GROWTH CONTINUES IN MULTIPLE BASINS
  13. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 13
    DISCIPLINED GROWTH CONTINUES 14 BILLION TO 16 BILLION IN CAPITALGROWTH PROJECTS Completed nearly 8 billion of capital-growth projects and acquisitions since 2006 Announced capital-growth projects of nearly 3 billion 4 to 5 14.2 to…
  14. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 14
    OKS IN THE WILLISTON BASIN A LEADING SERVICE PROVIDER TO PRODUCERS Significant natural gas and natural gas liquids takeaway capacity. 3+ million Acreage net acres Dedications 60% of total acreage footprint Processing 600…
  15. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 15
    OKS IN THE POWDER RIVER BASIN OPERATIONS IN NGL-RICH BASIN 130,000 Acreage net acres Dedications 23% of total acreage footprint Processing 50 MMcf/d current Capacity 50 MMcf/d announced Existing Gathering Pipeline Bronco…
  16. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 16
    OKS IN THE MID-CONTINENT INTEGRATED ASSETS AT WORK 500,000+ Acreage net acres Dedications 28% of total acreage footprint Processing 700 MMcf/d currently Capacity 200 MMcf/d announced Integrated assets Natural Gas plants Natural…
  17. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 17
    OKS IN THE PERMIAN ROADRUNNER GAS TRANSMISSION GROWING EXPORTS TO MEXICO 50-50 joint venture with Fermaca 200 miles of 30-inch diameter pipeline Provide up to 640 MMcf/d capacity to existing El Paso, Texas, markets and up to 570…
  18. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 18
    OKS IN THE PERMIAN WEST TEXAS LPG PIPELINE SYSTEM 2,600 miles of NGL gathering pipeline 800 million 285,000 bpd, gross Acquisition closed in November 2014 Expands NGL segments portfolio of assets NGL gathering system mileage…
  19. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 19
    VOLUME OUTLOOK Volume Growth Continues in Challenging Environment
  20. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 20
    NATURAL GAS GATHERING AND PROCESSING GATHERED VOLUMES 2015 volumes gathered expected to increase 10% from 2014; 2016 volumes expected to increase 16% from 2015 Expect to reach approximately 2,080 BBtu/d, or 1,625 MMcf/d of natural…
  21. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 21
    NATURAL GAS GATHERING AND PROCESSING WILLISTON BASIN GATHERED VOLUMES 2015 volumes gathered expected to increase 39% from 2014; 2016 volumes expected to increase 27% from 2015 Expect range of approximately 570 MMcf/d of natural gas…
  22. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 22
    NATURAL GAS GATHERING AND PROCESSING MID-CONTINENT BASIN GATHERED VOLUMES 2015 volumes gathered expected to decrease 8% from 2014; 2016 volumes expected to increase 6% from 2015 Mid-Continent volume decline due to Oklahoma well…
  23. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 23
    NATURAL GAS GATHERING AND PROCESSING PROCESSED VOLUMES Natural Gas Processed (BBtu/d) 2015 processed volumes expected to increase 20% CAGR 8% from 2014 1,660 Expect to reach approximately 1,860 BBtu/d, 1,534 or 1,425 MMcf/d, in…
  24. NAPTP INVESTOR CONFERENCE – 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 Pursuing opportunities to convert existing…
  25. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 25
    NATURAL GAS LIQUIDS GATHERING AND FRACTIONATION VOLUMES Gathered volumes expected to be below 2015 guidance due to short-haul barrels on West Texas LPG pipeline system; fractionation volumes are relatively flat compared with 2014…
  26. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 26
    NATURAL GAS LIQUIDS GATHERED VOLUME Connected to approximately 180 processing plants More than 160 plants are operated by a third party Processing plant connections in 2015 Six third-party plants First quarter Williston Basin (1),…
  27. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 27
    FRACTIONATION CAPACITY NATURAL GAS LIQUIDS Increased our fractionation capacity MB-2 75 MBbl/d fractionator in service in 100% Fractionation December 2013 Capacity MB-3 75 MBbl/d fractionator completed in December 2014 26%…
  28. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 28
    NATURAL GAS LIQUIDS MARGIN PROFILE MIX Exchange & Storage Services Gather, fractionate, transport and store NGLs Exchange & and deliver to market hubs; primarily fee based Storage Services Transportation 68% 77% 74% Transportation…
  29. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 29
    NATURAL GAS PIPELINES INCREMENTAL FEE-BASED EARNINGS Converting coal-fired electric generators to Viking Gas cleaner natural gas Northern Border Pipeline Transmission Low natural gas pricing environment providing many…
  30. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 30
    NATURAL GAS PIPELINES PERCENT OF MARGIN Nearly 100% of margin is fee-based Sources of Margin 8% 6% 6% 4% 8% 4% Minimal volume risk Backed by take-or-pay contracts Connect directly to end-use markets Local natural gas distribution…
  31. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 31
    ONEOK PARTNERS SOURCES OF MARGIN PERCENT OF MARGIN Sources of Margin 2015 fee-based margin increased to 75% due to 1.2 B 1.6 B 1.6 B 1.7 B 2.1 B 2.3 B low commodity prices 9% 11% 12% 9% Commodity price risk 20% Exists primarily in…
  32. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 32
    DEMONSTRATED ABILITY TO CREATE VALUE
  33. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 33
    CREATING OKS UNITHOLDER VALUE DISTRIBUTION GROWTH 3% 5% increase expected in 2015 distributions declared compared with 2014 Long-term distribution growth rate will be re-evaluated as the environment becomes more stable…
  34. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 34
    OKS FINANCIAL GUIDANCE SUMMARY 2015 Adjusted EBITDA range: 1.51 billion 1.73 billion Net income range: 845 million 1.01 billion Distributable cash flow range: 1.08 billion 1.26 billion Capital expenditures: 1.0 billion 1.4 billion…
  35. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 35
    OKS STRONG BALANCE SHEET INVESTMENT GRADE Committed to investment-grade credit Total Debt-to-Capitalization Ratio ratings S&P: BBB (stable) Moodys: Baa2 (stable) 50% 52% 53% 55% 54% Capital structure targets 50/50 capitalization…
  36. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 36
    KEY INVESTMENT CONSIDERATIONS PREMIER ENERGY COMPANIES Strategic assets connecting prolific supply basins and key markets Nondiscretionary services to producers, processors and customers Stable cash flow ONEOK Partners primarily…
  37. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 37
    QUESTIONS
  38. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 38
    INDEX ONEOK Partners Overview 5 Well-Positioned Assets 8 Disciplined Growth Continues 13 Volume Outlook 20 Demonstrated Ability to Create Value 33 Appendix Williston Basin 42 Powder River Basin 51 Mid-Continent 56 Permian…
  39. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 39
    APPENDIX
  40. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 40
    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…
  41. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 41
    APPENDIX WILLISTON BASIN
  42. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 42
    WILLISTON BASIN DRILLING ECONOMICS Producer Economics Approximately 97% of producer economics Natural from crude-oil and NGL production gas NGLs Drilling is economical with crude-oil prices 4% 3% (WTI) as low as 4560 per barrel…
  43. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 43
    WILLISTON BASIN REDUCED FLARING AND VOLUME BACKLOG BENEFITS OKS Reduced flaring results in increased NGL and natural gas value uplift 19% of North Dakotas natural gas production was flared in March 2015 North Dakota Industrial…
  44. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 44
    WILLISTON BASIN ANNOUNCED CAPITAL INVESTMENTS CapEx Expected Project ( in millions) Completion Lonesome Creek plant 1 and related infrastructure 550680 Q4 2015 200 MMcf/d Additional compression 80100 Q4 2015 Stateline…
  45. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 45
    WILLISTON BASIN DEMICKS LAKE NATURAL GAS GATHERING AND PROCESSING AND NGL INVESTMENTS Demicks Lake plant and related natural gas 565 million to 785 million infrastructure 475 million to 670 million 200 MMcf/d natural gas processing…
  46. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 46
    WILLISTON BASIN SERVING NEW ETHANE MARKETS De-ethanization facilities adjacent to Stateline Natural Gas Processing plants ONEOK Partners Stateline natural gas processing plants Gas Residue Gas Approximately 60 million - 80 million…
  47. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 47
    WILLISTON BASIN BEAR CREEK NATURAL GAS GATHERING AND PROCESSING AND NGL INVESTMENTS Bear Creek plant and related natural 265 million to 375 million gas infrastructure 230 million to 330 million 80 MMcf/d Expected to be completed…
  48. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 48
    WILLISTON BASIN LONESOME CREEK NATURAL GAS GATHERING AND PROCESSING INVESTMENTS Lonesome Creek plant and upgrades and expansions of existing infrastructure 550 million 680 million 200 MMcf/d natural gas processing facility…
  49. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 49
    NORTHERN BORDER PIPELINE 50 PERCENT EQUITY INVESTMENT Integrated asset position Williston Basin Bakken Shale Links natural gas supply from western Canada and the Williston Basin to Midwest markets Powder River Basin Bison…
  50. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 50
    APPENDIX POWDER RIVER BASIN
  51. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 51
    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…
  52. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 52
    POWDER RIVER BASIN BRONCO NATURAL GAS GATHERING AND PROCESSING INVESTMENTS Bronco plant 175 million to 260 million 130 million to 200 million 50 MMcf/d Suspended until market conditions improve Natural gas liquids pipeline…
  53. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 53
    POWDER RIVER BASIN ANNOUNCED CAPITAL INVESTMENTS CapEx Expected Project ( in millions) Completion Sage Creek plant and 50 Q4 2015 infrastructure upgrades Bronco plant and related 130200 Suspended* infrastructure 50 MMcf/d…
  54. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 54
    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;…
  55. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 55
    APPENDIX MID-CONTINENT
  56. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 56
    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…
  57. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 57
    SCOOP KNOX PLANT KNOX NATURAL GAS PROCESSING PLANT Knox plant and related natural gas infrastructure, including natural gas gathering pipelines and natural gas compression 240 million to 470 million 200 MMcf/d natural gas…
  58. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 58
    APPENDIX PERMIAN BASIN
  59. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 59
    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…
  60. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 60
    APPENDIX ONEOK PARTNERS FINANCIALS
  61. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 61
    ONEOK PARTNERS 2015 OPERATING INCOME AND EQUITY EARNINGS GUIDANCE BY SEGMENT Natural Gas Gathering and Processing Natural Gas Liquids Natural Gas Pipelines 14% 68% 18% 180 million 864 million 225 million Page 62
  62. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 62
    OKS 2015 FINANCIAL GUIDANCE BY SEGMENT Operating Income and Equity Earnings* Natural gas gathering and processing: ( in Millions) Higher gathered and processed volumes 13% CAGR Benefit of new processing plants and 1,269…
  63. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 63
    APPENDIX ONEOK PARTNERS GROWTH PROJECTS
  64. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 64
    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…
  65. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 65
    WILLISTON BASIN-RELATED GROWTH PROJECTS COMPLETED 800 MILLION IN PROJECTS CapEx Contract Major Project Scope Completed ( Millions) Type Bakken NGL Pipeline Bakken NGL Pipeline: 600-mile, 12-inch NGL pipeline with initial 75-90 Fee…
  66. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 66
    WILLISTON BASIN-RELATED GROWTH PROJECTS 2.0 BILLION ANNOUNCED CapEx Contract Major Project Scope Timing ( Millions) Type Lonesome Creek plant and related 200 MMcf/d* capacity 550680 POP with fee Fourth quarter infrastructure…
  67. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 67
    MID-CONTINENT AND GULF COAST-RELATED GROWTH PROJECTS 1.8 BILLION IN PROJECTS COMPLETED Major Project Scope CapEx Contract Completed ( Millions) Type Sterling III pipeline and 550-mile, 16-inch NGL pipeline 808 Fee based March 2014…
  68. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 68
    ACQUISITIONS 1.2 BILLION Major Project Scope CapEx Contract Timing ( Millions) Type Sage Creek natural gas 50 MMcf/d* natural gas processing capacity 305 POP with fee September 2013 processing plant Powder River Basin components…
  69. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 69
    JOINT VENTURE 475 MILLION Approximate Contract Major Project Scope Costs* Type Timing ( Millions) Roadrunner Gas Transmission 50-50 joint venture with Fermaca 450-500 Fee based Various Pipeline Phases I, II, III 200-mile natural gas…
  70. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 70
    FUTURE GROWTH 4 BILLION 5 BILLION BACKLOG Project backlog: approximately 60% natural gas liquids primarily fee based, 25% natural gas pipelines primarily fee based and 15% natural gas gathering and processing Future growth across…
  71. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 71
    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…
  72. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 72
    APPENDIX NATURAL GAS GATHERING AND PROCESSING
  73. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 73
    NATURAL GAS GATHERING AND PROCESSING COMMODITY PRICE RISK MITIGATION Nine month forward 2015 hedged positions* 2016 hedged positions* Natural gas: 79% at 3.89/MMBtu Natural gas: 42% at 3.08/MMBtu 149,500 MMBtu/d of estimated equity…
  74. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 74
    NATURAL GAS GATHERING AND PROCESSING COMMODITY PRICE SENSITIVITIES 2015 Volume* Assumed Prices Annual Contribution Net Margin ( in millions) Impact of 10% Price Movement ** ( in millions) Natural gas (MMBtu/d) 30,800 3.50 / MMbtu…
  75. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 75
    ONEOK PARTNERS COMMODITY PRICE ASSUMPTIONS ONEOK Partners' 2015 average composite NGL equity barrel is: estimated to be 13% ethane, 58% propane, 7% iso-butane, 21% normal-butane and 1% natural gasoline; priced at the Mont Belvieu,…
  76. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 76
    APPENDIX NATURAL GAS LIQUIDS
  77. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 77
    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,…
  78. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 78
    FRACTIONATORS AND E/P SPLITTER INVESTMENTS AT MONT BELVIEU 945 million to 965 million MB-2 fractionator - 75,000 bpd capacity In service in December 2013 100% of available capacity committed MB-3 fractionator - 75,000 bpd capacity…
  79. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 79
    ETHANE REJECTION ASSUMPTIONS 2014 2017 Ethane rejection continues at existing Mid-Continent, Rockies and Williston Basin natural gas processing plants that supply ONEOK Partners NGL assets Estimated Ethane Rejection (MBbl/d) 45…
  80. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 80
    APPENDIX ONEOK OVERVIEW
  81. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 81
    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…
  82. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 82
    ONEOK AS PURE-PLAY GP CORPORATE STRUCTURE IS WORKING Simplified capital allocation ONEOK, Inc. Earnings and cash flow underpinned by 37.6% GP and LP interest as of March 31, 2015 investment-grade MLP with fee-based business model…
  83. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 83
    APPENDIX ONEOK FINANCIALS
  84. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 84
    OKS GROWTH BENEFITS OKE VALUE OF GP INTEREST TO ONEOK ONEOK Partners capital-growth Distributions Declared to ONEOK projects and strategic ( in Millions) 17% CAGR 694 acquisitions expected to drive 633 continued distribution growth…
  85. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 85
    CREATING OKE SHAREHOLDER VALUE DIVIDEND GROWTH 4% 8% increase expected in 2015 dividends declared compared with 2014 Long-term dividend growth rate will be re-evaluated as the environment becomes more stable Prudent to retain…
  86. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 86
    OKE FINANCIAL GUIDANCE SUMMARY 2015 Cash flow available for dividends: 570 million 650 million Free cash flow: 90 million 120 million after capital expenditures and dividends No expected borrowings; 300 million credit facility…
  87. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 87
    ONEOK INCOME TAXES Taxes on GP distributions at full corporate tax rate Taxes on LP distributions have been 100% deferred in recent years Bonus depreciation renewed in 2014 2015 cash taxes expected to be zero Page 88
  88. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 88
    NON-GAAP RECONCILIATIONS ONEOK
  89. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 89
    NON-GAAP RECONCILIATIONS ONEOK, INC. ONEOK has disclosed in this presentation anticipated cash flow available for dividends, free cash flow and dividend coverage ratio, all amounts that are non-GAAP financial measures. Management…
  90. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 90
    OKE FINANCIAL MEASURES CASH FLOW AVAILABLE FOR DIVIDENDS ( in Millions) 2014 2015G* Recurring cash flows: Distributions received from ONEOK Partners declared 633 694 Interest expense, excluding non cash items (69) (63) Cash income…
  91. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 91
    OKE NON-GAAP RECONCILIATION CASH FLOW AVAILABLE FOR DIVIDENDS AND FREE CASH FLOW ( in Millions) 2014 2015G* Net income attributable to ONEOK 314 317 Depreciation and amortization 15 3 Deferred income taxes 141 173 Equity in…
  92. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 92
    NON-GAAP RECONCILIATIONS ONEOK PARTNERS
  93. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 93
    OKS NON-GAAP RECONCILIATIONS ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW ( in Millions) 2010 2011 2012 2013 2014 2015G* Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income 473 831 888 804 911 935…
  94. NAPTP INVESTOR CONFERENCE – Oneok Partners, L.P. – slide 94

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