B A R C L AY S C E O ENERGY CONFERENCE N e w Yo r k S e p t . 5 - 6 , 2 0 1 7
INDE X ONEOK OVERVIEW 4 GUIDANCE 12 APPENDIX 19 STACK AND SCOOP 21 Permian Basin 26 Williston Basin 30 Powder River Basin 34 Natural Gas Liquids 36 Natural Gas Gathering and Processing 38 Natural Gas Pipelines 42 NON-GAAP…
O NE O K O V E RV IE W PA G E 4 Garden Creek plant North Dakota
KE Y INV E S TM E NT CO NS IDE RATI O NS A PREMIER ENERGY COMPANY Sources of Earnings STRATEGIC, INTEGRATED ASSETS ( in billions) One of the largest energy midstream service providers in the U.S. 2.8 B Well-positioned in NGL-rich…
INTE G RATE D. RE LIABLE . DIV E RS IFIE D. Approximately 38,000-mile network of natural gas liquids and natural gas pipelines Provides midstream services to producers, processors and customers Significant basin diversification…
NATURAL G AS LIQ UIDS PREDOMINANTLY FEE BASED Sources of Earnings ( in billions) 1.5 B Exchange Services Primarily fee based 1.4 B Gather, fractionate and transport raw NGL feed to storage and 1.3 B market hubs 1.1 B…
NATURAL G AS G ATHE RING AND P RO CE S S ING PREDOMINANTLY FEE BASED Achieved increased fee-based contract mix by restructuring percent-of-proceeds (POP) contracts with a fee component to include a higher fee rate Increasing…
NATURAL G AS P IP E LINE S PREDOMINANTLY FEE BASED Firm demand-based contracts serving primarily investment- Sources of Earnings grade utility customers Roadrunner Gas Transmission pipeline project and WesTex 4% 2% 4% 3% 8%…
S TACK G RO WTH P RO JE CTS EXPANDING CAPACITY TO ACCOMMODATE CUSTOMER NEEDS CapEx Expected Project Scope ( in millions) Completion 60,000 bpd NGL pipeline expansion Increases capacity to 250,000 bpd Sterling III expansion Includes…
P RO JE CTS UNDE R DE V E LO P M ENT ORGANIC GROWTH PRIMARILY FEE-BASED Across multiple supply basins and major market areas Target adjusted EBITDA multiples of five to seven times Backlog of unannounced growth projects includes:…
G UIDANCE PA G E 1 2 Mont Belvieu II fractionator Gulf Coast
2017 FINANCIAL G UIDANCE S UM M ARY UPDATED AUG. 1, 2017 Dividends Paid Per Share Per Year Adjusted EBITDA: 1,885 million 2,055 million 19% CAGR since 2013 Distributable cash flow: 1,275 million 1,435 million Target dividend…
NATURAL G AS LIQ UIDS 2017 VOLUME EXPECTATIONS 2017 processing plant connections: Six completed in 2017: Three in the first quarter: Mid-Continent region (1), Permian Basin (1), Rocky Mountain region (1) Two in the second quarter:…
E THANE RE CO V E RY BY BAS IN INCREMENTAL ETHANE DEMAND ONEOKs NGL infrastructure connects supply to Gulf Coast region Incremental ethane transported and fractionated volume potential of 175,000 200,000 bpd Potential annual…
NATURAL G AS G ATHE RING AND P RO CE S S ING 2017 VOLUME EXPECTATIONS G a t h e r e d Vo l u m e s (MMcf/d) 1,561 1,575 1,680 Mid-Continent 1,404 1,524 Increased producer activity expected to continue in the 862 781 775-850 STACK…
NATURAL G AS P IP E LINE S WELL-POSITIONED AND MARKET-CONNECTED N a t u r a l G a s Tr a n s p o r t a t i o n Capacity Contracted (MDth/d) Expect more than 95 percent fee-based in 2017, and: Approximately 93 percent of…
S TRO NG BALA NCE S HE E T COMMITTED TO INVESTMENT-GRADE CREDIT RATING Leverage target Credit ratings: GAAP debt-to-EBITDA ratio < 4.0x S&P: BBB (stable) Committed to taking necessary steps to maintain investment- Moodys: Baa3…
AP P E NDIX PA G E 1 9 WesTex Pipeline Permian Basin
O NE O K G RO WTH: 2006-2016 9 BILLION INVESTED IN INFRASTRUCTURE 1. Bakken/Williston Basin 1 2. Niobrara/Powder River Basin Plants: Garden Creek I, II and III; Grasslands Plant Niobrara NGL Lateral Expansion; Stateline I and II;…
S TACK AND SCOOP PA G E 2 1 Mustang Pipeline Oklahoma
S TACK AND S CO O P P LAY S * RELIABLE FULL-SERVICE PROVIDER Natural Gas Liquids Approximately 100 third-party natural gas processing plant connections in Mid-Continent Approximately 140,000 bpd incremental ethane opportunity out…
S TACK AND S CO O P P LAY S FULL-SERVICE CAPABILITY Natural Gas Liquids Currently gathering approximately 150,000 200,000 bpd of NGLs More than 110 existing natural gas processing plant connections in the Mid-Continent Three new…
S TACK AND S CO O P P LAY S WELL-POSITIONED GATHERING AND PROCESSING ASSETS Natural Gas Gathering and Processing Approximately 200,000 acres dedicated in the STACK Producer results continue to improve through enhanced well…
S TACK AND S CO O P P LAY S PROVIDING CONNECTIVITY Natural Gas Pipelines Connected to 34 natural gas processing plants in Oklahoma with a total capacity of 1.8 Bcf/d Access to on-system utility and industrial markets with peak…
P E RM IAN BAS IN PA G E 2 6 Roadrunner Pipeline Permian Basin
P E RM IAN BAS IN RELIABLE SERVICE PROVIDER Natural Gas Liquids Nearly 40 third-party natural gas processing plant connections in the Permian Basin Two new plant connections completed in 2017 West Texas LPG pipeline system…
P E RM IAN BAS IN FULL-SERVICE CAPABILITY Natural Gas Liquids Extensive network of natural gas liquids pipelines connecting supply to Gulf Coast and Conway, Kansas, market centers Ability to offer transportation and fractionation…
P E RM IAN BAS IN PROVIDING CONNECTIVITY Natural Gas Pipelines Connected to more than 25 natural gas processing plants serving the Permian Basin with a total capacity of 1.9 Bcf/d Well-positioned in the Delaware Basin with a…
WILLIS TO N BAS IN PA G E 3 0 Bakken NGL Pipeline North Dakota
WILLIS TO N BAS IN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Liquids Four third-party natural gas processing plant connections in the Williston Basin Bakken NGL Pipeline expandable to 160,000 bpd with additional pump…
WILLIS TO N BAS IN COMPETITIVELY ADVANTAGED ASSET FOOTPRINT Natural Gas Gathering and Processing More than 3 million acres dedicated to ONEOK Approximately 1 million acres in the core Nearly 1 Bcf/d of natural gas processing…
WILLIS TO N BAS IN INCREASED NATURAL GAS CAPTURE RESULTS Increased NGL and natural gas value uplift Approximately 89% of North Dakotas natural gas production was captured in June 2017 North Dakota Industrial Commission (NDIC) policy…
P O WDE R RIV E R BAS IN PA G E 3 4 Lonesome Creek plant North Dakota
P O WDE R RIV E R BAS IN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Liquids Assets located in NGL-rich Niobrara, Sussex and Turner formations NGL takeaway through Bakken NGL Pipeline and Overland Pass Pipeline Two…
NATURAL G AS LIQ UIDS PA G E 3 6 Mont Belvieu II fractionator Gulf Coast
NATURAL G AS LIQ UIDS ONE OF THE LARGEST INTEGRATED NGL SERVICE PROVIDERS Provides fee-based services to natural gas processors and customers Gathering, fractionation, transportation, marketing and storage Extensive NGL gathering…
NATURAL G AS G ATHE RING AND P RO CE S S ING PA G E 3 8 Garden Creek plant North Dakota
NATURAL G AS G ATHE RING AND P RO CE S S ING SERVING PRODUCERS IN KEY BASINS Provides gathering, compression, treating and processing services to producers Diverse contract portfolio More than 2,000 contracts Percent of proceeds…
NATURAL G AS G ATHE RING AND P RO CE S S ING VOLUMES HEDGED AS OF JUNE 30, 2017 Six Months Ending December 31, 2017 Commodity Volumes Hedged Average Price Percent Hedged Natural Gas* (BBtu/d) 72.9 2.63 / MMBtu 95% Condensate…
NATURAL G AS G ATHE RING AND P RO CE S S ING COMMODITY PRICE SENSITIVITIES AFTER HEDGING* Earnings Impact* Earnings Impact* ( in Millions) ( in Millions) Commodity Sensitivity 2017** 2018*** Natural Gas 0.10 / MMBtu 0.1 0.3…
NATURAL G AS P IP E LINE S PA G E 4 2 WesTex Pipeline Permian Basin
NATURAL G AS P IP E LINE S CONNECTIVITY TO KEY MARKETS Predominantly fee-based income 93% of transportation capacity contracted under firm demand- based rates expected in 2017 82% of contracted system transportation capacity serves…
NON-GAAP R E C O N C I L I AT I O N S PA G E 4 4 Mont Belvieu II fractionator Gulf Coast
NO N-G AAP RE CO NCILIATIO NS ONEOK has disclosed in this presentation adjusted EBITDA, distributable cash flow (DCF) and dividend coverage ratio, which are non-GAAP financial metrics, used to measure ONEOKs financial performance, and…
NO N-G AAP RE CO NCILIATIO N NET INCOME TO ADJUSTED EBITDA ( in Millions) 2013 2014 2015 2016 Reconciliation of Income from Continuing Operations to Adjusted EBITDA Net income from continuing operations 589 669 385 746 Interest…
NO N-G AAP RE CO NCILIATIO N 2015 2016 2017 2017 ( in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations 96 151 165 (27) 385 176 180 195 195 746 186…
NO N-G AAP RE CO NCILIATIO N NET INCOME TO ADJUSTED EBITDA AND DCF Original 2017 Updated 2017 Guidance Range* Guidance Range** (Millions of dollars) Reconciliation of Income from Continuing Operations to Adjusted EBITDA and…
NO N-G AAP RE CO NCILIATIO N SEGMENT ADJUSTED EBITDA TO ADJUSTED EBITDA Original 2017 Updated 2017 Guidance Range* Guidance Range** (Millions of dollars) Reconciliation of segment adjusted EBITDA to adjusted EBITDA Segment…
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