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UBS Midstream and MLP Conference – Oneok Inc.

Oneok Inc. · Jan 9, 2018 · 53 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 Midstream and MLP Conference – Oneok Inc. – slide 1
    UBS MIDSTREAM AND MLP CONFERENCE P a r k C i t y, U t a h J a n . 9 - 1 0
  2. UBS Midstream and MLP Conference – Oneok Inc. – slide 2
    INDE X NEW PERIOD OF GROWTH 4 OVERVIEW 12 GUIDANCE 18 APPENDIX 24 STACK and SCOOP 26 Permian Basin 32 Williston Basin 36 Powder River Basin 40 Business Segments 42 NON-GAAP RECONCILIATIONS 48 Mont Belvieu I fractionator…
  3. UBS Midstream and MLP Conference – Oneok Inc. – slide 3
    NEW PERIO D O F G RO WTH Bakken NGL Pipeline North Dakota
  4. UBS Midstream and MLP Conference – Oneok Inc. – slide 4
    ANNO UNCED G RO WTH PRO JECTS SINCE JUNE 2017 CapEx Expected Project Scope ( in millions) Completion 200 MMcf/d processing capacity through long-term processing services agreement with third Additional STACK party 40 Q4 2017…
  5. UBS Midstream and MLP Conference – Oneok Inc. – slide 5
    ELK CREEK PIPELINE PRO JECT COMPELLING STRATEGIC RATIONALE Existing Bakken NGL Pipeline and Overland Pass Pipeline operating at full capacity Growing production in the region drives need for increased NGL takeaway Attractive…
  6. UBS Midstream and MLP Conference – Oneok Inc. – slide 6
    P R O D U C E R - D R I V E N N E E D F O R M O R E W I L L I S T O N B A S I N N G L TA K E AWAY CAPACITY EXPANSION IS CRITICAL TO MEET GROWING PRODUCTION Williston Basin Crude Oil Supply Attractive producer economics driven entirely…
  7. UBS Midstream and MLP Conference – Oneok Inc. – slide 7
    WILLISTO N BASIN INCREASING GAS-TO-OIL RATIOS (GOR) DRIVING VOLUME GROWTH Approximately 55 percent of North Dakota rigs are on North Dakota reported record levels of natural gas production ONEOKs dedicated acreage in 2017: October…
  8. UBS Midstream and MLP Conference – Oneok Inc. – slide 8
    WEST TEXAS LPG EXPANSIO N EXTENDING REACH INTO PROLIFIC DELAWARE BASIN Approximately 120-mile, 16-inch pipeline extension with initial capacity of 110,000 bpd Supported by long-term dedicated NGL production from two planned…
  9. UBS Midstream and MLP Conference – Oneok Inc. – slide 9
    PRO JECTS UNDER DEVELO PMENT ORGANIC GROWTH PRIMARILY FEE-BASED Across multiple supply basins and major market areas 1.6 billion - 2.1 billion inventory of capital-growth projects under development: NGL pipelines, fractionation and…
  10. UBS Midstream and MLP Conference – Oneok Inc. – slide 10
    STRO NG BALANCE SHEET POSITIONING ONEOK FOR CONTINUED GROWTH Funding highly accretive growth while maintaining de- Adjusted EBITDA Growth ( in billions) leveraging target of < 4.0x 2.5 billion revolving credit facility 1.8 1.9…
  11. UBS Midstream and MLP Conference – Oneok Inc. – slide 11
    O VERVIEW Garden Creek plant North Dakota
  12. UBS Midstream and MLP Conference – Oneok Inc. – slide 12
    KEY INVESTMENT CO NSIDERATIO 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 plays and…
  13. UBS Midstream and MLP Conference – Oneok Inc. – slide 13
    INTEG RATED. RELIABLE. DIVERSIFIED. Approximately 38,000-mile network of natural gas liquids and natural gas pipelines Provides midstream services to producers, processors and customers Significant basin diversification Growth…
  14. UBS Midstream and MLP Conference – Oneok Inc. – slide 14
    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 Transportation…
  15. UBS Midstream and MLP Conference – Oneok Inc. – slide 15
    NATURAL G AS G ATHERING AND PRO CESSING 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 fee-based…
  16. UBS Midstream and MLP Conference – Oneok Inc. – slide 16
    NATURAL G AS PIPELINES 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% pipeline…
  17. UBS Midstream and MLP Conference – Oneok Inc. – slide 17
    G UIDANCE Lonesome Creek plant North Dakota
  18. UBS Midstream and MLP Conference – Oneok Inc. – slide 18
    2017 FINANCIAL G UIDANCE SUMMARY 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 coverage…
  19. UBS Midstream and MLP Conference – Oneok Inc. – slide 19
    NATURAL G AS LIQ UIDS VOLUME UPDATE G a t h e r e d Vo l u m e ( M B b l / d ) 2017 processing plant connections: Six completed in 2017: Three in the first quarter: Mid-Continent region (1), Permian Basin (1), Rocky Mountain region…
  20. UBS Midstream and MLP Conference – Oneok Inc. – slide 20
    ETHANE RECO VERY BY BASIN INCREMENTAL ETHANE DEMAND ONEOKs NGL infrastructure connects supply to the Gulf Coast region Incremental ethane transported and fractionated volume potential of 175,000 200,000 bpd Potential annual earnings…
  21. UBS Midstream and MLP Conference – Oneok Inc. – slide 21
    NATURAL G AS G ATHERING AND PRO CESSING 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 Williston Basin 1,404 1,524 130 well connects completed in the third quarter 2017; 313 through the 781 775-850…
  22. UBS Midstream and MLP Conference – Oneok Inc. – slide 22
    NATURAL G AS PIPELINES 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 earnings in 2017, and: Approximately 93 percent of…
  23. UBS Midstream and MLP Conference – Oneok Inc. – slide 23
    APPENDIX Mont Belvieu II fractionator Gulf Coast
  24. UBS Midstream and MLP Conference – Oneok Inc. – slide 24
    O NEO K G RO WTH: 2006 -2016 9 BILLION INVESTED IN INFRASTRUCTURE 1. Bakken/Williston Basin 2. Niobrara/Powder River Basin 1 Plants: Garden Creek I, II and III; Grasslands Plant Niobrara NGL Lateral Expansion; Stateline I and II;…
  25. UBS Midstream and MLP Conference – Oneok Inc. – slide 25
    STACK AND SCO O P Mustang Pipeline Oklahoma
  26. UBS Midstream and MLP Conference – Oneok Inc. – slide 26
    STACK AND SCO O P PRO DUCTIO N ONEOK ASSETS: WELL POSITIONED IN HIGH ACTIVITY AREAS Higher levels of proppant injection may be a leading indicator for Producers continue to expand their areas of focus based on production activity…
  27. UBS Midstream and MLP Conference – Oneok Inc. – slide 27
    STACK AND SCO O P PLAYS RELIABLE FULL-SERVICE PROVIDER Natural Gas Liquids Approximately 110 third-party natural gas processing plant connections in Mid-Continent Approximately 140,000 bpd incremental ethane opportunity out of the…
  28. UBS Midstream and MLP Conference – Oneok Inc. – slide 28
    STACK AND SCO O P PLAYS 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…
  29. UBS Midstream and MLP Conference – Oneok Inc. – slide 29
    STACK AND SCO O P PLAYS WELL-POSITIONED GATHERING AND PROCESSING ASSETS Natural Gas Gathering and Processing More than 300,000 acres dedicated in the STACK and SCOOP Producer results continue to improve through enhanced well…
  30. UBS Midstream and MLP Conference – Oneok Inc. – slide 30
    STACK AND SCO O P PLAYS 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 demand of…
  31. UBS Midstream and MLP Conference – Oneok Inc. – slide 31
    PERMIAN BASIN Roadrunner Pipeline Permian Basin
  32. UBS Midstream and MLP Conference – Oneok Inc. – slide 32
    PERMIAN BASIN 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 expandable…
  33. UBS Midstream and MLP Conference – Oneok Inc. – slide 33
    PERMIAN BASIN 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 services…
  34. UBS Midstream and MLP Conference – Oneok Inc. – slide 34
    PERMIAN BASIN 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 significant…
  35. UBS Midstream and MLP Conference – Oneok Inc. – slide 35
    WILLISTO N BASIN Bakken NGL Pipeline North Dakota
  36. UBS Midstream and MLP Conference – Oneok Inc. – slide 36
    WILLISTO N BASIN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Liquids Four third-party natural gas processing plant connections Highest margin NGL barrel with average bundled fee rates of approximately 30 cents per gallon…
  37. UBS Midstream and MLP Conference – Oneok Inc. – slide 37
    WILLISTO N BASIN 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 capacity…
  38. UBS Midstream and MLP Conference – Oneok Inc. – slide 38
    WILLISTO N BASIN INCREASED NATURAL GAS CAPTURE RESULTS Increased NGL and natural gas value uplift Approximately 84% of North Dakotas natural gas production was captured in October 2017 North Dakota Industrial Commission (NDIC) policy…
  39. UBS Midstream and MLP Conference – Oneok Inc. – slide 39
    PO WDER RIVER BASIN Lonesome Creek plant North Dakota
  40. UBS Midstream and MLP Conference – Oneok Inc. – slide 40
    PO WDER RIVER BASIN 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 third-party…
  41. UBS Midstream and MLP Conference – Oneok Inc. – slide 41
    BUSINESS SEG MENTS Garden Creek plant North Dakota
  42. UBS Midstream and MLP Conference – Oneok Inc. – slide 42
    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…
  43. UBS Midstream and MLP Conference – Oneok Inc. – slide 43
    NATURAL G AS G ATHERING AND PRO CESSING 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 (POP)…
  44. UBS Midstream and MLP Conference – Oneok Inc. – slide 44
    NATURAL G AS G ATHERING AND PRO CESSING VOLUMES HEDGED AS OF SEPT. 30, 2017 Three Months Ending December 31, 2017 Commodity Volumes Hedged Average Price Percent Hedged Natural Gas* (BBtu/d) 72.9 2.63 / MMBtu 89% Condensate (MBbl/d)…
  45. UBS Midstream and MLP Conference – Oneok Inc. – slide 45
    NATURAL G AS G ATHERING AND PRO CESSING COMMODITY PRICE SENSITIVITIES AFTER HEDGING* Earnings Impact Earnings Impact Earnings Impact ( in Millions) ( in Millions) ( in Millions) Commodity Sensitivity 2017** 2018*** 2019***…
  46. UBS Midstream and MLP Conference – Oneok Inc. – slide 46
    NATURAL G AS PIPELINES 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 end-…
  47. UBS Midstream and MLP Conference – Oneok Inc. – slide 47
    NON-GAAP R E C O N C I L I AT I O N S Mont Belvieu II fractionator Gulf Coast
  48. UBS Midstream and MLP Conference – Oneok Inc. – slide 48
    NO N -G AAP RECO 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…
  49. UBS Midstream and MLP Conference – Oneok Inc. – slide 49
    NO N -G AAP RECO NCILIATIO N NET INCOME TO ADJUSTED EBITDA ( in Millions) 2013 2014 2015 2016 Reconciliation of Income from Continuing Operations to Adjusted EBITDA Income from continuing operations 589 669 385 746 Interest…
  50. UBS Midstream and MLP Conference – Oneok Inc. – slide 50
    NO N -G AAP RECO NCILIATIO N 2015 2016 2017 ( in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Reconciliation of Income from Continuing Operations to Adjusted EBITDA Income from continuing operations 96 151 165 (27) 385 176 180…
  51. UBS Midstream and MLP Conference – Oneok Inc. – slide 51
    NO N -G AAP RECO NCILIATIO N NET INCOME TO ADJUSTED EBITDA AND DCF 2017 Guidance Range* (Millions of dollars) Reconciliation of Income from Continuing Operations to Adjusted EBITDA and Distributable Cash Flow Income from continuing…
  52. UBS Midstream and MLP Conference – Oneok Inc. – slide 52
    NO N -G AAP RECO NCILIATIO N SEGMENT ADJUSTED EBITDA TO ADJUSTED EBITDA 2017 Guidance Range* (Millions of dollars) Reconciliation of segment adjusted EBITDA to adjusted EBITDA Segment adjusted EBITDA: Natural Gas Liquids 1,135…
  53. UBS Midstream and MLP Conference – Oneok Inc. – slide 53
    Bear Creek plant Williston Basin

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