INDEX OVERVIEW 4 FUTURE GROWTH 14 APPENDIX 20 Business Segments 21 STACK and SCOOP 34 Permian Basin 37 Williston Basin 40 Powder River Basin 46 Environment, Social & Governance (ESG) 48 NON-GAAP RECONCILIATIONS 52 Elk Creek…
O V E RV I E W Mont Belvieu II fractionator Gulf Coast
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…
KEY INVESTMENT CONSIDERATIONS A PREMIER ENERGY INFRASTRUCTURE COMPANY Adjusted EBITDA Growth ( in billions) 2.5 MAJOR ENERGY INFRASTRUCTURE COMPANY Extensive systems connect North American energy supply with worldwide demand 2.0 1.8…
ONEOK VALUE CHAIN FROM WELLHEAD TO MARKET CENTERS LDCs Natural Gas Pipeline End-use Markets Electric generation Large industrials Residue Gas Natural Gas Gathering Raw Feed NGLs Ethane Well head Propane Natural Gas NGL…
ONEOK BUSINESS SEGMENTS Natural Gas Liquids Natural Gas Gathering Natural Gas Pipelines and Processing 15% 25% 2018 EARNINGS 60% GUIDANCE EARNINGS MIX 80 percent fee based 85 percent fee based 100 percent fee-based…
ONEOK VS. S&P 500 A UNIQUE INVESTMENT OPPORTUNITY ONEOK has the fastest growing dividend and EBITDA of S&P 500 high dividend yield investment-grade companies (shown as percentages) Median S&P Median ONEOK Dividend S&P 500…
ONEOK'S ATTRACTIVE DIVIDEND PROFILE 1 OF 53 COMPANIES IN THE S&P 500 WITH A DIVIDEND YIELD GREATER THAN 4 PERCENT S&P 500 Dividend Yield* 120 113 91 81 5.21% 47 32 14 7 0% 0% - 1% 1% - 2% 2% - 3% 3% - 4% 4% - 5% 5% -…
THE HIGH DIVIDEND YIELD UNIVERSE ONEOK HAS RETURNED MORE VALUE TO SHAREHOLDERS THAN OTHER HIGH DIVIDEND PEERS Evaluating the ONEOK Peer Universe* ONEOK has 25+ years of dividend stability and growth To t a l S h a r e h o l d e r R e…
FINANCIAL STRENGTH A COM PETITIVE ADVANTAGE INCREASING EXCESS CASH Prefunded a significant portion of capital-growth projects and immediately reduced Adjusted EBITDA Growth debt with a 1.2 billion equity offering in January 2018,…
2018 FINANCIAL GUIDANCE INCREASED Updated 2018 Guidance Range Reconciliation of Net Income to (Millions of dollars) Adjusted EBITDA and Distributable Cash Flow Net income 1,140 1,220 Interest expense, net of capitalized interest…
FUTURE GROWTH Bakken NGL Pipeline North Dakota
ANNOUNCED HOW WE GOT HERE ORGANIC GROWTH*: WTLPG Delaware Basin extension (2018) Sterling III expansion (2018) DISCIPLINED, STRATEGIC GROWTH & ACQUISITIONS Canadian Valley plant expansion (2018) ONEOK Gas Transportation expansions…
PRODUCER -DRIVEN NEED FOR MORE INFRASTRUCTURE CAPACITY EXPANSIONS CRITICAL TO MEETING GROWING PRODUCTION STACK/SCOOP Permian NGL Production Growth(Mb/d) NGL Production Growth (Mb/d) 2,400 800 2,000 Volume forecasts across the…
NATURAL GAS LIQUIDS GROWTH PROJECTS 5.0 BILLION ANNOUNCED SINCE JUNE 2017 CapEx Expected Project Scope ( in millions) Completion West Texas LPG (WTLPG) 120-mile pipeline lateral extension with capacity of 110,000 bpd in the Delaware…
GATHERING AND PROCESSING GROWTH PROJECTS 1.0 BILLION ANNOUNCED SINCE JUNE 2017 CapEx Expected Project Scope ( in millions) Completion 200 MMcf/d processing capacity through a long-term processing services agreement with a third…
NATURAL GAS PIPELINES GROWTH PROJECTS ANNOUNCED SINCE JUNE 2018 Expected Project Scope Completion ONEOK Gas Transportation 100 MMcf/d westbound expansion from the STACK area to multiple western Oklahoma pipeline delivery points Q4…
APPENDIX Mont Belvieu II fractionator Gulf Coast
BUSINESS SEGMENTS Mustang Pipeline Oklahoma
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…
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…
NATURAL GAS LIQUIDS VOLUME UPDATE Third quarter 2018 volumes gathered increased approximately 6 percent, compared G a t h e r e d Vo l u m e ( M B b l / d ) with the second quarter 2018 2018 volume growth expected to be driven…
ETHANE RECOVERY BY BASIN INCREMENTAL ETHANE DEMAND ONEOKs NGL infrastructure connects supply to the Gulf Coast market 100,000 bpd of additional ethane volumes gathered on 1 ONEOKs system compared with third quarter 2017 3 2…
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 Fee-based contracts with a…
NATURAL GAS GATHERING AND PROCESSING PREDOMINANTLY FEE BASED Increased fee-based contract mix by restructuring percent-of- Contract Mix by Earnings proceeds (POP) contracts with a fee component to include a higher fee rate Increasing…
NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE G a t h e r e d Vo l u m e s (MMcf/d) Rocky Mountain 1,900 1,980 Third quarter 2018 natural gas volumes processed increased approximately 8 1,680 1,524 1,561 percent, compared with…
NATURAL GAS GATHERING AND PROCESSING Three Months Ending December 31, 2018 Commodity Volumes Hedged Average Price Percent Hedged Natural Gas* (BBtu/d) 67.1 2.79 / MMBtu 74% Condensate (MBbl/d) 2.3 53.20 / Bbl 74% Natural Gas…
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 0.4 Natural Gas…
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 markets…
NATURAL GAS PIPELINES PREDOMINANTLY FEE BASED Firm demand-based contracts serving primarily investment- Sources of Earnings grade utility customers Recently announced up to 1.7 billion cubic feet per day of 4% 2% 4%…
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…
STACK AND SCOOP Mustang Pipeline Oklahoma
STACK AND SCOOP PLAYS RELIABLE FULL-SERVICE PROVIDER Natural Gas Liquids More than 110 existing natural gas processing plant connections in the Mid-Continent Currently gathering approximately 285,000 bpd of NGLs with incremental…
ARBUCKLE II PIPELINE CRITICAL INFRASTRUCTURE TO SERVE GROWING PRODUCTION Volume growth expected across ONEOK footprint, particularly in the STACK and SCOOP areas and Williston and Permian basins, creating a need for additional…
PERMIAN BASIN Roadrunner Pipeline Permian Basin
ONEOKS PERMIAN BASIN STRATEGY CONNECTING PERMIAN BASIN TO ARBUCKLE II UTILIZING INCREMENTAL, CAPITAL-EFFICIENT EXPANSIONS STRATEGY POTENTIAL FUTURE Legacy WTLPG system potential conversion to crude service New Permian to Arbuckle II…
PERMIAN BASIN RELIABLE SERVICE PROVIDER Natural Gas Liquids Approximately 40 third-party natural gas processing plant connections in the Permian Basin Completed West Texas LPG pipeline extension into Delaware Basin with initial…
WILLISTON BASIN Garden Creek plant North Dakota
WILLISTON BASIN INCREASING GAS-TO-OIL RATIOS (GOR) DRIVING VOLUME GROWTH Producer efficiencies across the basin leading to increasing New all-time high natural gas production of 2.44 Bcf/d production with fewer rigs reported in August…
WILLISTON BASIN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Gathering and Processing More than 1 Bcf/d of natural gas processing capacity, increasing to more than 1.4 Bcf/d in the first quarter 2020 More than 3 million acres…
ELK CREEK PIPELINE PROJECT ATTRACTIVE PROJECT RETURN 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…
DEMICKS LAKE I AND II PLANTS 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…
WILLISTON BASIN INCREASED NATURAL GAS CAPTURE RESULTS Increased NGL and natural gas value uplift Approximately 82% of North Dakotas natural gas production was captured in August 2018 North Dakota Industrial Commission (NDIC) policy…
POWDER RIVER BASIN Lonesome Creek plant North Dakota
POWDER RIVER BASIN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Liquids Assets located in NGL-rich Niobrara, Sussex and Turner formations Approximately 1 million acres dedicated to ONEOK NGL takeaway through Bakken NGL Pipeline…
ENVIRONMENT, SOCIAL & GOVERNANCE Mont Belvieu II fractionator Gulf Coast
ONEOKS ESG INITIATIVES AND PRACTICES PROMOTING LONG-TERM BUSINESS SUSTAINABILITY Effective Governance and Oversight Committed to Safety Diverse board of directors members elected annually, including a Training robust protocols and…
DELIVERING LONG -TERM VALUE ALIGNED WITH SHAREHOLDERS Value Creation and Equity Returns Drive Incentives Total Shareholder Returns ONEOKs executive compensation program is focused on ONEOKs total shareholder returns* have consistently…
ESG-RELATED RECOGNITION RECENT HIGHLIGHTS FTSE4Good Index Includes companies demonstrating strong ESG practices. The FTSE4Good indices are used by a variety of market participants to create and assess responsible investment funds and…
NON-GAAP R E C O N C I L I AT I O N S Mont Belvieu II fractionator Gulf Coast
NON-G A A P 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…
NON-G A A P RECONCILIATION 2016 2017 2018 ( in Millions) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD Reconciliation of Net Income to Adjusted EBITDA Net income 744 186 176 167 65 594 266 282 314 862 Interest expense, net of capitalized interest…
NON-G A A P RECONCILIATION INCOME FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA ( in Millions) 2013 2014 2015 2016 2017 Reconciliation of Net Income to Adjusted EBITDA Net Income 577 663 379 744 594 Interest expense, net of…
2018 FINANCIAL GUIDANCE INCREASED SEGMENT ADJUSTED EBITDA Updated 2018 Guidance Range Reconciliation of segment adjusted EBITDA to adjusted EBITDA (millions of dollars) Segment adjusted EBITDA: Natural Gas Liquids 1,485 1,535…
Loading...
