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April 2018 Investor Update – Oneok Partners, L.P.

Oneok Partners, L.P. · Apr 9, 2018 · 55 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. April 2018 Investor Update – Oneok Partners, L.P. – slide 1
    I N V E S T O R U P D AT E APRIL 2018
  2. April 2018 Investor Update – Oneok Partners, L.P. – slide 2
    INDEX FUTURE GROWTH 4 OVERVIEW 12 GUIDANCE 19 APPENDIX 25 STACK and SCOOP 27 Permian Basin 33 Williston Basin 37 Powder River Basin 42 Business Segments 44 NON-GAAP RECONCILIATIONS 50 Mont Belvieu II fractionator Gulf Coast
  3. April 2018 Investor Update – Oneok Partners, L.P. – slide 3
    FUTURE GROWTH Bakken NGL Pipeline North Dakota
  4. April 2018 Investor Update – Oneok Partners, L.P. – slide 4
    PRODUCER -DRIVEN NEED FOR MORE INFRASTRUCTURE CAPACITY EXPANSIONS CRITICAL TO MEETING GROWING PRODUCTION Permian NGL Production Growth(Mb/d) STACK/SCOOP 2,000 NGL Production Growth (Mb/d) 1,000 1,600 800 1,200 600 800 Volume…
  5. April 2018 Investor Update – Oneok Partners, L.P. – slide 5
    NATURAL GAS LIQUIDS GROWTH PROJECTS 3.6 BILLION ANNOUNCED SINCE JUNE 2017 CapEx Expected Project Scope ( in millions) Completion 120-mile pipeline lateral extension with capacity of 110,000 bpd in the Delaware Basin West Texas LPG…
  6. April 2018 Investor Update – Oneok Partners, L.P. – slide 6
    GATHERING AND PROCESSING GROWTH PROJECTS 600 MILLION ANNOUNCED SINCE JUNE 2017 CapEx Expected Project Scope ( in millions) Completion Additional STACK 200 MMcf/d processing capacity through long-term processing services agreement…
  7. April 2018 Investor Update – Oneok Partners, L.P. – slide 7
    DEMICKS LAKE PLANT PROCESSING CAPACITY TO SUPPORT PRODUCER GROWTH AND HELP MEET GAS CAPTURE TARGETS Williston Basin growth continues with enhanced well-completion techniques driving increased production and lower breakeven economics…
  8. April 2018 Investor Update – Oneok Partners, L.P. – slide 8
    ELK CREEK PIPELINE PROJECT 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 Producer drilling and…
  9. April 2018 Investor Update – Oneok Partners, L.P. – slide 9
    ARBUCKLE II PIPELINE AND MB -4 FRACTIONATOR CRITICAL INFRASTRUCTURE TO SERVE GROWING PRODUCTION Volume growth expected across ONEOK footprint, particularly in STACK and SCOOP areas and Williston Basin, creating a need for additional…
  10. April 2018 Investor Update – Oneok Partners, L.P. – slide 10
    WEST TEXAS LPG EXPANSION 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 third-party…
  11. April 2018 Investor Update – Oneok Partners, L.P. – slide 11
    OVERVIEW Mont Belvieu II fractionator Gulf Coast
  12. April 2018 Investor Update – Oneok Partners, L.P. – slide 12
    KEY INVESTMENT CONSIDERATIONS A PREMIER ENERGY COMPANY Adjusted EBITDA Growth ( in billions) 2.3 2.0 1.8 STRATEGIC, INTEGRATED ASSETS 1.6 1.6 One of the largest energy midstream service providers in the U.S. 1.2 Well-positioned in…
  13. April 2018 Investor Update – Oneok Partners, L.P. – slide 13
    INTEGRATED. 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. April 2018 Investor Update – Oneok Partners, L.P. – slide 14
    NATURAL GAS LIQUIDS PREDOMINANTLY FEE BASED Sources of Earnings Exchange Services Primarily fee based Gather, fractionate and transport raw NGL feed to storage and market hubs Transportation & Storage Services Fee based Transport NGL…
  15. April 2018 Investor Update – Oneok Partners, L.P. – slide 15
    NATURAL GAS GATHERING AND PROCESSING PREDOMINANTLY FEE BASED 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 earnings while…
  16. April 2018 Investor Update – Oneok Partners, L.P. – slide 16
    NATURAL GAS 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%…
  17. April 2018 Investor Update – Oneok Partners, L.P. – slide 17
    STRONG BALANCE SHEET POSITIONING ONEOK FOR CONTINUED GROWTH Funding highly accretive growth while maintaining de- Adjusted EBITDA Growth ( in billions) leveraging target of < 4.0x 2.3 2.5 billion revolving credit facility 2.0 1.8…
  18. April 2018 Investor Update – Oneok Partners, L.P. – slide 18
    GUIDANCE Canadian Valley plant - Oklahoma
  19. April 2018 Investor Update – Oneok Partners, L.P. – slide 19
    2018 FINANCIAL GUIDANCE SUMMARY D ivid en d s Paid Per Sh are Per Year Adjusted EBITDA: 2,215 million 2,415 million 3.25 - 3.31 Distributable cash flow: 1,615 million 1,815 million 2.43 2.46 2.72 2.13 Target dividend coverage ratio…
  20. April 2018 Investor Update – Oneok Partners, L.P. – slide 20
    NATURAL GAS LIQUIDS VOLUME UPDATE 2018 volume growth expected to be driven primarily by increased G a t h e r e d Vo l u m e ( M B b l / d ) producer activity in the STACK and SCOOP areas and increased ethane recovery in the…
  21. April 2018 Investor Update – Oneok Partners, L.P. – slide 21
    ETHANE RECOVERY BY BASIN INCREMENTAL ETHANE DEMAND ONEOKs NGL infrastructure connects supply to the Gulf Coast market Incremental ethane transported and fractionated volume potential of 175,000 200,000 bpd Approximately 100 million of…
  22. April 2018 Investor Update – Oneok Partners, L.P. – slide 22
    NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE G a t h e r e d Vo l u m e s (MMcf/d) Williston Basin 1,840 2,050 117 well connects completed in the fourth quarter 2017; 430 for the full year 2017 1,524 1,561 1,680 Approximately 25…
  23. April 2018 Investor Update – Oneok Partners, L.P. – slide 23
    NATURAL GAS 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 2018, and: Approximately 95 percent of…
  24. April 2018 Investor Update – Oneok Partners, L.P. – slide 24
    APPENDIX Mont Belvieu II fractionator Gulf Coast
  25. April 2018 Investor Update – Oneok Partners, L.P. – slide 25
    ONEOK GROWTH: 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; Lonesome…
  26. April 2018 Investor Update – Oneok Partners, L.P. – slide 26
    STACK AND SCOOP Mustang Pipeline Oklahoma
  27. April 2018 Investor Update – Oneok Partners, L.P. – slide 27
    STACK AND SCOOP PRODUCTION 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 production…
  28. April 2018 Investor Update – Oneok Partners, L.P. – slide 28
    STACK AND SCOOP 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…
  29. April 2018 Investor Update – Oneok Partners, L.P. – slide 29
    STACK AND SCOOP PLAYS FULL-SERVICE CAPABILITY Natural Gas Liquids Currently gathering approximately 200,000 250,000 bpd of NGLs More than 110 existing natural gas processing plant connections in the Mid-Continent Recently announced…
  30. April 2018 Investor Update – Oneok Partners, L.P. – slide 30
    STACK AND SCOOP 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 completions…
  31. April 2018 Investor Update – Oneok Partners, L.P. – slide 31
    STACK AND SCOOP 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…
  32. April 2018 Investor Update – Oneok Partners, L.P. – slide 32
    PERMIAN BASIN Roadrunner Pipeline Permian Basin
  33. April 2018 Investor Update – Oneok Partners, L.P. – slide 33
    PERMIAN BASIN RELIABLE SERVICE PROVIDER Natural Gas Liquids Approximately 40 third-party natural gas processing plant connections in the Permian Basin West Texas LPG pipeline system expandable through additional pump stations and…
  34. April 2018 Investor Update – Oneok Partners, L.P. – slide 34
    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…
  35. April 2018 Investor Update – Oneok Partners, L.P. – slide 35
    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…
  36. April 2018 Investor Update – Oneok Partners, L.P. – slide 36
    WILLISTON BASIN Garden Creek plant North Dakota
  37. April 2018 Investor Update – Oneok Partners, L.P. – slide 37
    WILLISTON BASIN INCREASING GAS-TO-OIL RATIOS (GOR) DRIVING VOLUME GROWTH Producer efficiencies across the basin leading to increasing North Dakota reported record levels of natural gas production production with fewer rigs in 2017:…
  38. April 2018 Investor Update – Oneok Partners, L.P. – slide 38
    WILLISTON BASIN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Liquids Elk Creek Pipeline will add 240,000 bpd of NGL takeaway capacity by year-end 2019 Expandable to 400,000 bpd Four third-party natural gas processing plant…
  39. April 2018 Investor Update – Oneok Partners, L.P. – slide 39
    WILLISTON 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 More than 1 Bcf/d of natural gas processing capacity…
  40. April 2018 Investor Update – Oneok Partners, L.P. – slide 40
    WILLISTON BASIN INCREASED NATURAL GAS CAPTURE RESULTS Increased NGL and natural gas value uplift Approximately 85% of North Dakotas natural gas production was captured in January 2018 North Dakota Industrial Commission (NDIC) policy…
  41. April 2018 Investor Update – Oneok Partners, L.P. – slide 41
    POWDER RIVER BASIN Lonesome Creek plant North Dakota
  42. April 2018 Investor Update – Oneok Partners, L.P. – slide 42
    POWDER 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 Elk Creek Pipeline…
  43. April 2018 Investor Update – Oneok Partners, L.P. – slide 43
    BUSINESS SEGMENTS Mont Belvieu II fractionator Gulf Coast
  44. April 2018 Investor Update – Oneok Partners, L.P. – slide 44
    NATURAL GAS LIQUIDS 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…
  45. April 2018 Investor Update – Oneok Partners, L.P. – slide 45
    NATURAL GAS GATHERING AND PROCESSING 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) with…
  46. April 2018 Investor Update – Oneok Partners, L.P. – slide 46
    NATURAL GAS GATHERING AND PROCESSING Year Ending December 31, 2018 Commodity Volumes Hedged Average Price Percent Hedged Natural Gas* (BBtu/d) 67.2 2.79 / MMBtu 83% Condensate (MBbl/d) 2.4 52.65 / Bbl 77% Natural Gas Liquids**…
  47. April 2018 Investor Update – Oneok Partners, L.P. – slide 47
    NATURAL GAS GATHERING AND PROCESSING COMMODITY PRICE SENSITIVITIES AFTER HEDGING* Earnings Impact Earnings Impact ( in Millions) ( in Millions) Commodity Sensitivity 2018** 2019** Natural Gas 0.10 / MMBtu 0.5 2.8 Natural Gas…
  48. April 2018 Investor Update – Oneok Partners, L.P. – slide 48
    NATURAL GAS PIPELINES CONNECTIVITY TO KEY MARKETS Predominantly fee-based income 94% of transportation capacity contracted under firm demand- based rates in 2017 83% of contracted system transportation capacity served end- use…
  49. April 2018 Investor Update – Oneok Partners, L.P. – slide 49
    NON-GAAP R E C O N C I L I AT I O N S Mont Belvieu II fractionator Gulf Coast
  50. April 2018 Investor Update – Oneok Partners, L.P. – slide 50
    NON-GAAP RECONCILIATIONS 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 are…
  51. April 2018 Investor Update – Oneok Partners, L.P. – slide 51
    NON-GAAP RECONCILIATION NET INCOME TO ADJUSTED EBITDA ( in Millions) 2013 2014 2015 2016 2017 Reconciliation of Income from Continuing Operations to Adjusted EBITDA Income from continuing operations 589 669 385 746 594 Interest…
  52. April 2018 Investor Update – Oneok Partners, L.P. – slide 52
    NON-GAAP RECONCILIATION 2016 2017 ( in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Reconciliation of Income from Continuing Operations to Adjusted EBITDA Income from continuing operations 176 180 195 195 746 186 176 167 65594 Interest…
  53. April 2018 Investor Update – Oneok Partners, L.P. – slide 53
    NON-GAAP RECONCILIATION NET INCOME TO ADJUSTED EBITDA AND DCF 2018 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income 955 - 1,155 Interest expense, net of…
  54. April 2018 Investor Update – Oneok Partners, L.P. – slide 54
    NON-GAAP RECONCILIATION SEGMENT ADJUSTED EBITDA TO ADJUSTED EBITDA 2018 Guidance Range (Millions of dollars) Reconciliation of segment adjusted EBITDA to adjusted EBITDA Segment adjusted EBITDA: Natural Gas Liquids 1,300 -…
  55. April 2018 Investor Update – Oneok Partners, L.P. – slide 55
    Bear Creek plant Williston Basin

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