Skip to main content UBS MLP One on One Conference – Oneok Partners, L.P. Investor Presentation | Shale Experts
Loading...
Pm

UBS MLP One on One Conference – Oneok Partners, L.P.

Oneok Partners, L.P. · Jan 13, 2016 · 59 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 Partners, L.P. – slide 1
    UBS MLP ONE-ON-ONE CONFERENCE Park City, Utah Jan. 12-13, 2016
  2. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 2
    INDEX ONEOK Partners Overview 4 ONEOK Partners 2016 Guidance 9 Financial Strength 23 ONEOK Overview and 2016 Guidance 25 Appendix ONEOK Partners Business Segments 30 2015 Volume Outlook 34 Natural Gas Gathering and Processing 39…
  3. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 3
    ONEOK PARTNERS OVERVIEW
  4. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 4
    ONEOK PARTNERS ASSET OVERVIEW Owns and operates strategically located assets in midstream natural gas liquids and natural gas businesses Provides nondiscretionary services to producers, processors and customers Extensive…
  5. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 5
    BUSINESS SEGMENTS INTEGRATION OUR COMPETITIVE ADVANTAGE Supply Diversification Predominantly Fee-Based Value Chain Long-term Growth Opportunities Natural Gas Pipelines Natural Gas Pipelines Connected to 50 transmission Nearly…
  6. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 6
    ONEOK PARTNERS WELL-POSITIONED TO CREATE LONG-TERM VALUE Increasing fee-based earnings through gathering, processing, fractionation, storage and transport services ONEOK Partners fee-based margin is expected to increase to…
  7. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 7
    OUR KEY STRATEGIES A PREMIER ENERGY COMPANY GROWTH Increase distributable cash flow through investments in organic growth projects and strategic acquisitions Continue to increase NGL and natural gas volume Continue to grow/expand…
  8. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 8
    ONEOK PARTNERS 2016 GUIDANCE
  9. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 9
    ONEOK PARTNERS 2016 GUIDANCE SUMMARY ONEOK Partners expects: No public debt or equity offerings well into 2017 Distribution coverage at 1.0x or better*, and distributions to remain flat compared with 2015 Capital-growth expenditures…
  10. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 10
    ONEOK PARTNERS SOURCES OF MARGIN PERCENT OF MARGIN Fee-based margin expected to increase to approximately Sources of Margin 85% in 2016 1.6 B 1.6 B 1.7 B 2.1 B 2.3 B 2.5 B Volume risk 9% 5% 11% 12% Exists primarily in natural gas…
  11. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 11
    NATURAL GAS LIQUIDS MARGIN PROFILE MIX Exchange & Storage Services Gather, fractionate, transport and store NGLs and Exchange & deliver to market hubs; primarily fee based 50% Storage Services 74% Transportation 72% 78%…
  12. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 12
    NATURAL GAS PIPELINES PERCENT OF MARGIN Sources of Margin Nearly 100% of margin is fee- 6% 6% 4% 8% 4% 4% based Minimal volume risk Backed by firm demand contracts Roadrunner Gas Transmission 94% 94% 96% 96% 96% pipeline project…
  13. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 13
    NATURAL GAS GATHERING AND PROCESSING CONTRACT PORTFOLIO Achieving increased fee-based contract mix by restructuring existing percent-of-proceeds (POP) contracts to increase the fee-based component Increasing fee-based margin while…
  14. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 14
    NATURAL GAS LIQUIDS 2016 VOLUME GUIDANCE Gathered volumes expected to average approximately 800,000 870,000 bpd; fractionation volumes expected to average approximately 540,000 590,000 bpd Lonesome Creek natural gas processing plant…
  15. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 15
    NATURAL GAS LIQUIDS ETHANE UPSIDE New world-scale petrochemical facilities expected to significantly increase ethane demand in 2017 and beyond Incremental ethane transported and fractionated volume potential greater than 150,000 bpd…
  16. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 16
    NATURAL GAS PIPELINES 2016 GUIDANCE Earnings to remain more than 95% fee-based 92% of transportation capacity contracted under demand-based rates 76% of natural gas storage capacity contracted under firm, fee-based arrangements…
  17. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 17
    NATURAL GAS GATHERING AND PROCESSING 2016 VOLUME GUIDANCE Natural Gas Gathered Volumes (MMcf/d) Gathered volumes expected to average approximately 1,700-1,800 MMcf/d or 2,2002,300 BBtu/d; processed volumes expected to 1,700-1,800…
  18. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 18
    WILLISTON BASIN VOLUME UPDATE Natural gas gathered volume increases in 2016 even as natural gas production remains relatively flat Full-year benefit of the Lonesome Creek processing plant and additional compression which was placed in…
  19. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 19
    WILLISTON BASIN VOLUME UPDATE Natural gas gathered volume expected to increase in 2016 Higher natural gas capture percentage (reduced flaring) as a result of pipelines, compression and processing plant placed in- service in late…
  20. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 20
    WILLISTON BASIN VOLUME UPDATE Natural gas gathered volume increases in 2016 even as natural gas production remains relatively flat Higher natural gas capture percentage (reduced flaring) as result of pipelines, compression and…
  21. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 21
    WILLISTON BASIN VOLUME UPDATE BASIN WIDE North Dakota Natural Gas Production, Case 1 and 2 2,400,000 Due to high-grading of rigs to most 2,200,000 prolific areas, the natural gas 2,000,000 1,800,000 volume does not decline in…
  22. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 22
    FINANCIAL STRENGTH
  23. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 23
    OKS STRONG BALANCE SHEET INVESTMENT GRADE ONEOK Partners Capital structure targets GAAP Debt-to-EBITDA Ratio 50/50 capitalization Debt-to-Adjusted EBITDA ratio < 4.0x 4.8x 4.7x Committed to investment-grade credit ratings 4.5x…
  24. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 24
    ONEOK OVERVIEW AND 2016 GUIDANCE
  25. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 25
    OKS GROWTH BENEFITS OKE VALUE OF GP INTEREST TO ONEOK ONEOK Partners capital-growth Distributions Declared to ONEOK projects and strategic ( in Millions) 18% CAGR 790 acquisitions expected to drive 694 continued distribution growth…
  26. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 26
    ONEOK 2016 GUIDANCE SUMMARY ONEOK expects: Dividend to remain flat Cash flow available for dividends of approximately 675 million Dividend coverage ratio of approximately 1.3x Free cash flow after dividends and cash on hand…
  27. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 27
    KEY INVESTMENT CONSIDERATIONS PREMIER ENERGY COMPANIES ONEOK Stable cash flow Cash flow underpinned by investment-grade MLP with fee-based business model GP and LP distributions from ONEOK Partners drive significant cash flow…
  28. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 28
    APPENDIX Page 29
  29. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 29
    APPENDIX ONEOK PARTNERS BUSINESS SEGMENTS
  30. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 30
    NATURAL GAS LIQUIDS ASSET OVERVIEW Provides nondiscretionary, fee-based services to natural gas processors and customers Gathering, fractionation, transportation, marketing and storage Extensive NGL gathering system Connected to…
  31. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 31
    NATURAL GAS PIPELINES ASSET OVERVIEW 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…
  32. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 32
    NATURAL GAS GATHERING AND PROCESSING ASSET OVERVIEW Nondiscretionary services to producers Williston Basin Gathering, compression, treating and processing Diverse contract portfolio More than 2,000 contracts Powder River Primarily…
  33. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 33
    APPENDIX 2015 VOLUME GUIDANCE Volume Growth Continues in Challenging Environment
  34. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 34
    NATURAL GAS LIQUIDS 2015 QUARTERLY VOLUME Bakken NGL Pipeline and Mid-Continent volumes gathered 2015 fractionated volumes: increased from previous target Expected to reach 645,000* bpd in fourth quarter Continued volume growth in…
  35. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 35
    NATURAL GAS PIPELINES INCREMENTAL FEE-BASED EARNINGS Converting coal-fired electric generators to Viking Gas cleaner natural gas Northern Border Transmission Pipeline Low natural gas pricing environment providing many opportunities…
  36. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 36
    WILLISTON BASIN INITIAL PRODUCTION RATES AND STATE-WIDE PRODUCTION North Dakota Crude Oil and Natural Gas Production** 1,800,000 1,700,000 1,600,000 Max Monthly Production, Mcfd* 1,500,000 1,400,000 1,300,000 1,200,000…
  37. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 37
    NATURAL GAS GATHERING AND PROCESSING 2015 QUARTERLY VOLUME Williston Basin significant supply backlog Volumes significantly increased from previous target Natural Gas Gathered Volumes* (MMcf/d) 5% increase in Q3; 4% increase in Q4…
  38. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 38
    APPENDIX NATURAL GAS GATHERING AND PROCESSING
  39. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 39
    WILLISTON BASIN Significant number of drilled but not completed wells are located in our asset footprint and acreage dedications Represents 5 wells waiting on completion* Existing OKS plants Compressor Lonesome Creek plant…
  40. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 40
    WILLISTON BASIN INCREASED GAS CAPTURE AND VOLUME BACKLOG BENEFITS OKS Increased natural gas capture results in increased NGL and natural gas value uplift 86% of North Dakotas natural gas production was captured in October 2015 North…
  41. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 41
    NATURAL GAS GATHERING AND PROCESSING COMMODITY PRICE RISK MITIGATION 2016 natural gas equity volumes are expected to be lower than in 2015 due to contract restructuring efforts. As contracts continue to become more fee-based, the…
  42. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 42
    ONEOK PARTNERS COMMODITY PRICE ASSUMPTIONS AND SENSITIVITIES NYMEX Crude Oil NYMEX Natural Gas NGL composite Conway/Belvieu Ethane Spread 2016 (/Bbl) (/MMBtu) (/gallon) (/gallon) 43.50 2.35 0.39 0.02 Unhedged Annual Contribution…
  43. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 43
    APPENDIX DISCIPLINED GROWTH CONTINUES IN MULTIPLE BASINS
  44. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 44
    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…
  45. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 45
    APPENDIX RECENT PROJECTS
  46. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 46
    OKS IN THE PERMIAN WEST TEXAS LPG PIPELINE SYSTEM 2,600 miles of NGL gathering pipeline 800 million acquisition closed in November 2014 285,000 bpd, gross capacity Expands NGL segments portfolio of assets NGL gathering system…
  47. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 47
    OKS IN THE PERMIAN GROWING EXPORTS TO MEXICO Roadrunner Gas Transmission 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…
  48. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 48
    APPENDIX ONEOK PARTNERS GROWTH PROJECTS
  49. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 49
    WILLISTON BASIN-RELATED GROWTH PROJECTS 1.5 BILLION COMPLETED CapEx Contract Major Project Scope Completed ( Millions) Type Bakken NGL Pipeline Bakken NGL Pipeline: 600-mile, 12-inch NGL pipeline with initial 90 Fee based September…
  50. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 50
    WILLISTON BASIN-RELATED GROWTH PROJECTS 1.3 BILLION ANNOUNCED CapEx Contract Major Project Scope Timing ( Millions) Type Stateline de-ethanization facilities 26,000 barrels per day (bpd) of ethane produced at Stateline I and II…
  51. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 51
    MID-CONTINENT AND GULF COAST-RELATED GROWTH PROJECTS 1.8 BILLION COMPLETED Major Project Scope CapEx Contract Completed ( Millions) Type Sterling III pipeline and 550-mile, 16-inch NGL pipeline 808 Fee based March 2014…
  52. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 52
    PERMIAN GROWTH PROJECTS 560 MILLION ANNOUNCED Approximate Contract Major Project Scope Costs Type Timing ( Millions) WesTex Transmission Pipeline Expansion Constructing two new and upgrading three 70-100 Fee based First quarter…
  53. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 53
    ACQUISITIONS 1.2 BILLION COMPLETED 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…
  54. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 54
    NON-GAAP RECONCILIATIONS ONEOK
  55. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 55
    OKE FINANCIAL MEASURES CASH FLOW AVAILABLE FOR DIVIDENDS ( in Millions) 2014 2015G* 2016G Recurring cash flows: Distributions from ONEOK Partners declared 633 694 790 Interest expense, excluding non cash items (69) (63) (105) Cash…
  56. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 56
    OKE NON-GAAP RECONCILIATION CASH FLOW AVAILABLE FOR DIVIDENDS AND FREE CASH FLOW ( in Millions) 2014 2015G* 2016G Net income attributable to ONEOK 314 317 360 Depreciation and amortization 15 3 5 Deferred income taxes 141 173 200…
  57. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 57
    NON-GAAP RECONCILIATIONS ONEOK PARTNERS
  58. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 58
    OKS NON-GAAP RECONCILIATIONS ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW ( in Millions) 2011 2012 2013 2014 2015G* 2016G Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income 831 888 804 911 935 1,120…
  59. UBS MLP One on One Conference – Oneok Partners, L.P. – slide 59

From the store

Browse maps, data & reports in the Shale Experts store