Jefferies 2014 Global Energy Conference November 11, 2014
Robert F. Martinovich Executive Vice President, Commercial Page 2
What Well Cover Key Points Vision and Mission As a pure-play general partner, creating exceptional value through our ownership in ONEOK Partners by maximizing the dividend payout of ONEOK Well-positioned assets Connecting prolific…
Vision and Mission Page 5
ONEOK Vision and Mission Our Vision Has Changed 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,…
ONEOK Partners Vision and Mission Our Vision Remains the Same Creating exceptional value for all stakeholders by: Re-bundling services across the energy value chain, primarily through vertical integration, to provide customers with…
Our Key Strategies ONEOK Partners A Premier Energy Company Growth Increase distributable cash flow per unit through investments in internal growth projects and strategic acquisitions Continue to grow/expand our integrated natural…
Well-Positioned Assets Page 9
ONEOK as Pure-Play General Partner Overview ONEOK now consists of the general partner (GP) and limited partner (LP) interests in OKS ONEOK is one of the largest pure-play, publicly traded GPs Significant free cash flow driven by…
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 Generates predominantly fee-based…
Predominantly Fee-Based Earnings Percent of Margin Commodity price risk Exists primarily in natural gas gathering Sources of Margin and processing segment 1.2 B 1.6 B 1.6 B 1.7 B 2.1 B Mitigated by hedging 9% 11% 13% 20% Volume…
Disciplined Growth Continues Page 13
Disciplined Growth Continues 14 to 16 Billion in Capital Investments Approximately 8.3 to 9 billion in growth projects and strategic acquisitions in 2010- 2016 Approximately 4.7 billion of projects completed to date Approximately…
Announced Capital Investments 8.3 to 9.0 Billion By Region* By Segment* 1.0 0.8 4.1 4.9 4.6 2.0 Williston Basin to Bushton, Kansas Natural Gas Gathering and Processing Mid-Continent to Mont Belvieu, Texas Natural Gas…
Williston Basin Drilling Economics More than 90% of producer Producer Economics economics come from crude- Natural NGLs gas oil production 4% 2% Drilling is economical with crude-oil prices (WTI) as low as 45-60 per barrel High…
Williston Basin Crude-oil- and NGL-driven Economics One of the largest independent natural gas gatherers and processors Extensive infrastructure Williston Basin Best positioned to provide critical Bakken Shale midstream…
Williston Basin Natural Gas Gathering and Processing Investments Existing and announced natural gas processing 3.0 billion to 3.4 billion plants will provide more than 1.2 Bcf/d of capacity Eight new plants and related…
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 Williston Basin Bakken Shale second…
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…
Williston Basin Lonesome Creek Natural Gas Gathering and Processing Investments Lonesome Creek plant 550 million to 680 million 320-390 million 200 MMcf/d natural gas processing facility Williston Basin Bakken Shale Expected to be…
Sage Creek Acquisition Powder River Basin Sage Creek acquisition Approximately 440 million 305 million investment 50 MMcf/d natural gas processing facility and related natural gas gathering and NGL infrastructure NGL-rich area of…
Powder River Basin Bronco Plant Natural Gas Gathering and Processing and NGL Investments Bronco plant 215 million to 305 million 170 million to 245 million 100 MMcf/d Expected to be completed in third quarter 2016 Natural gas…
SCOOP Knox Plant Natural Gas Gathering and Processing Investments Knox plant 175 million to 240 million 365 million to 470 million 200 MMcf/d natural gas processing facility Expected to be completed in the fourth quarter 2016…
Cana-Woodford Canadian Valley Plant Natural Gas Gathering and Processing Investments Canadian Valley Plant 200 MMcf/d natural gas processing Approximately 300 million facility Well connections, upgrades and expansions to existing…
Williston Basin Related Investments Natural Gas Liquids Demicks Lake NGL infrastructure Approximately 1 billion 10-15 million to connect the Demicks Lake plant to the Bakken NGL pipeline Expected to be completed in third quarter…
Sterling NGL Pipelines Investments Approximately 810 million Sterling III pipeline Flexibility to transport NGL purity products and unfractionated NGLs 550-plus miles, 16-inch diameter 193,000 bpd, expandable to 260,000 bpd 75%…
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…
West Texas LPG and Mesquite Pipeline Natural Gas Liquids Acquisition 2,600 miles of NGL gathering pipeline 800 million 230,000 bpd Expected to close fourth quarter 2014 Will expand NGL segments portfolio of assets NGL gathering…
Future Growth Increased Backlog Range to 4 Billion to 5 Billion Lengthy backlog of unannounced growth projects Natural gas, NGL and crude-oil related infrastructure projects, including: Natural gas processing plants Natural gas…
Demonstrated Ability to Create Value Page 31
Creating OKS Unitholder Value Distribution Growth 6-8% expected annual distribution growth between 2013-2016 29% increase in distributions paid since 2011 67% increase since 2006, when a wholly owned subsidiary of ONEOK became…
Creating OKE Shareholder Value Dividend Growth 53% increase in 2014 dividends declared compared with 2013 Increased to 56 cents per share in April 2014, following the separation of ONEOKs natural gas distribution segment into ONE…
OKS Growth Benefits OKE Value of GP Interest to ONEOK ONEOK Partners growth Distributions Paid to ONEOK ( in Millions) projects expected to 20% CAGR drive continued OKS 607 distribution growth 536 Approximately two-thirds of…
OKS Financial Guidance Summary* 2014 Net income: range of 910 million-970 million Adjusted EBITDA: range of 1.55-1.61 billion Distributable cash flow: range of 1.155-1.215 billion Capital expenditures: 1.7 billion 1.6 billion in…
OKE Financial Guidance Summary* 2014 Cash flow available for dividends: 590-640 million Dividends: 53% increase in dividends declared for 2014 compared with 2013 Increased to 56 cents per share in April 2014, following the…
Key Investment Considerations Premier Energy Companies Strategic assets connecting prolific supply basins and key markets Non-discretionary services to producers, processors and customers Focused on creating value for both customers…
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