INDEX OVERVIEW 4 FUTURE GROWTH 17 APPENDIX 25 Business Segments 26 Williston Basin 39 Mid-Continent 44 Permian Basin 47 Powder River Basin 50 NON-GAAP RECONCILIATIONS 52 Elk Creek Pipeline Kansas
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) MAJOR ENERGY INFRASTRUCTURE COMPANY 2.45 2.60 Extensive systems connect North American energy supply with worldwide demand…
ONEOK BUSINESS SEGMENTS Natural Gas Liquids Natural Gas Gathering Natural Gas Pipelines and Processing 15% 25% 2019 EARNINGS 60% GUIDANCE EARNINGS MIX 80 percent fee based 85 percent fee based 95 percent fee based CONTRACT…
ONEOKS FEE-FOR -SERVICE BUSINESS MODEL FEE-BASED EARNINGS COLLECTED FROM WELLHEAD TO MARKET CENTERS Natural Gas Gathering and Processing Fees/Sales Natural Gas Gathering and Processing 2018 Adj. EBITDA Natural Gas Liquids Fees/Sales…
ONEOK VS. S&P 500 A UNIQUE INVESTMENT OPPORTUNITY (shown as percentages) Median S&P Median ONEOK Dividend S&P 500 Aristocrats (b) Approximate Current 5.4 2.0 2.4 Dividend Yield EBITDA Growth (a) 14.6 6.5 6.0 2019…
ONEOK'S ATTRACTIVE DIVIDEND PROFILE 1 OF 51 COMPANIES IN THE S&P 500 WITH A DIVIDEND YIELD GREATER THAN 4 PERCENT S&P 500 Dividend Yield 124 115 4.95% 86 78 51 33 12 6 0% 0% - 1% 1% - 2% 2% - 3% 3% - 4% 4% - 5% 5% - 6%…
THE HIGH DIVIDEND YIELD UNIVERSE ONEOK HAS RETURNED MORE VALUE TO SHAREHOLDERS THAN OTHER HIGH DIVIDEND PEERS Evaluating the ONEOK Peer Universe (a) 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…
FINANCIAL STRENGTH A COM PETITIVE ADVANTAGE INCREASING EXCESS CASH Adjusted EBITDA Growth Total liquidity of 3.5 billion at Dec. 31, 2018, with borrowing capacity of 2.5 billion ( in billions) available on ONEOKs credit facility and…
ONEOK 2019 FINANCIAL GUIDANCE 2019 Guidance Range ( in millions) Midpoint Net income 1,140 1,270 1,400 Adjusted EBITDA 2,500 2,600 2,700 Distributable cash flow 1,820 1,940 2,060 Capital-growth expenditures 2,500 3,100 3,700…
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…
FUTURE GROWTH Elk Creek Pipeline Kansas
ELK CREEK PIPELINE VOLUME RAMP EXPECT TO ACHIEVE FOUR TO SIX TIMES EBITDA MULTIPLE IN FIRST QUARTER 2020 Up to 240,000 Current contracted capacity: 170,000 bpd Additional contracted volume: Demicks Lake II and third-party plant…
NORTH DAKOTA NATURAL GAS FLARING CONNECTED MORE THAN 600 WELLS IN 2018 ONEOK Dedicated Gross Production 1,700 1,500 Capacity with Demicks Lake II 1,300 Capacity with Demicks Lake I MMcf/d 1,100 Gas Flared Current ONEOK…
WILLISTON BASIN PRODUCTION INCREASING PRODUCTION AT LOWER CRUDE OIL PRICES AND WITH FEWER RIGS Rig Count vs. Natural Gas Production (a) North Dakota Crude Oil Performance (c) 250 3.0 Natural Gas Production 13% CAGR (b) 200…
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 2.72 Bcf/d reported production with fewer rigs in January…
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…
APPENDIX Mont Belvieu fractionator Texas
BUSINESS SEGMENTS Mustang Pipeline Oklahoma
NATURAL GAS LIQUIDS ONE OF THE LARGEST INTEGRATED NGL SERVICE PROVIDERS Integrated NGL pipeline system from the Williston Basin to the Gulf Coast, linking key NGL market centers at Conway, Kansas and Mont Belvieu, Texas Provides…
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 NGL volumes gathered increased 12 percent compared with 2017 G a t h e r e d Vo l u m e ( M B b l / d ) Ethane volumes across ONEOKs system increased approximately 65,000 bpd compared with 2017 2018…
NATURAL GAS LIQUIDS VOLUME UPDATE New Disclosure NGL Gathered and Fractionated N G L R a w F e e d T h r o u g h p u t Vo l u m e Vo l u m e s ( M B b l / d ) (d)(MBbl/d) 912 770 812 715 586 621 1,080-1,165 895 1,010 836…
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 1,915-2,115 1,937 143 well connects completed in the fourth quarter 2018; 610 for the full year 2018 1,680 1,561 973 925-1,025…
NATURAL GAS GATHERING AND PROCESSING Year Ending December 31, 2019 Commodity Volumes Hedged Average Price Percent Hedged Natural Gas (BBtu/d) (a) 82.0 2.30 / MMBtu 81% Condensate (MBbl/d) 2.7 58.55 / Bbl 92% Natural Gas Liquids…
NATURAL GAS GATHERING AND PROCESSING COMMODITY PRICE SENSITIVITIES (a) Earnings Impact Earnings Impact ( in Millions) ( in Millions) Commodity Sensitivity 2019 (b) 2020 (c) Natural Gas 0.10 / MMBtu 3.9 3.6 Natural Gas Liquids…
NATURAL GAS PIPELINES CONNECTIVITY TO KEY MARKETS Predominantly fee-based earnings 96% of transportation capacity contracted under firm demand-based rates in 2018 85% of contracted system transportation capacity served end-use…
NATURAL GAS PIPELINES PREDOMINANTLY FEE BASED Firm demand-based contracts serving primarily investment- Sources of Earnings grade utility customers Recently announced approximately 1.6 billion cubic feet per 2% 4% 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 2019, and: Approximately 95 percent of…
WILLISTON BASIN Garden Creek plant North Dakota
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 Expected to reach 100,000 bpd in the first quarter 2020 Growing production in the region drives…
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 81% of North Dakotas natural gas production was captured in January 2019 North Dakota Industrial Commission (NDIC) policy…
MID -CONTINENT REGION Canadian Valley plant Oklahoma
MID -CONTINENT REGION RELIABLE FULL-SERVICE PROVIDER SERVING GROWTH IN THE STACK AND SCOOP PLAYS Natural Gas Liquids More than 110 existing natural gas processing plant connections Currently gathering approximately 576,000 bpd of NGLs…
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
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…
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…
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…
NON-GAAP R E C O N C I L I AT I O N S Mont Belvieu II fractionator Gulf Coast
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…
2019 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2019 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income 1,140 - 1,400 Interest expense, net of capitalized…
NON-G A A P RECONCILIATION 2016 2017 2018 ( in Millions) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Reconciliation of Net Income to Adjusted EBITDA Net income 744 186 176 167 65 594 266 282 314 293 1,155 Interest expense, net of capitalized…
NON-GAAP RECONCILIATION NET INCOME TO ADJUSTED EBITDA (millions of dollars) 2014 2015 2016 2017 2018 Reconciliation of net income to adjusted EBITDA Net income 663 379 744 594 1,155 Interest expense, net of capitalized interest 356…
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