B A R C L AY S C E O ENERGY CONFERENCE SEPTEMBER 2019
INDE X OVERVIEW 4 FUTURE GROWTH 17 APPENDIX 26 Business Segments 29 Williston Basin 41 Mid-Continent 45 Permian Basin 48 Powder River Basin 51 NON-GAAP RECONCILIATIONS 53 Elk Creek Pipeline Kansas
O V E RV I E W Mont Belvieu II fractionator Gulf Coast
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…
KE Y INV E S TM E NT CO NS IDE RATI O NS 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…
FINANCIAL S TRE NG TH A CO M P E TITIV E ADVANTAG E INCREASING EXCESS CASH Distributable Cash Flow (DCF) in Excess of Dividends Paid DCF in excess of dividends paid of 183 million, a 20% increase ( in millions) compared with the first…
INV E S TM E NT TH E S I S ONEOKs Competitive Position Key Priorities Connectivity Makes system duplication uneconomic Operate safely and environmentally Full NGL value chain essential for operations NGL pipelines, fractionators,…
O NE O K BUS INE S S S E G M E N TS Natural Gas Liquids Natural Gas Gathering Natural Gas Pipelines and Processing 15% 25% 2019 EARNINGS 60% GUIDANCE EARNINGS MIX 80% fee based 85% fee based 95% fee based CONTRACT…
O NE O KS FE E -FO R-S E RV I C E B U S INE S S M O D E L 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…
E ARNING S DRIV E RS EXPECTED KEY DRIVERS FEE-BASED SOLUTIONS 2020 OUTLOOK 850 MMcf/d new capacity NATURAL GAS FLARING 300 MMcf/d on ONEOK dedicated acreage and from ONEOK and third-party processing plants expected to be 500…
LO NG -TE RM G RO WTH O UTLO O K LEADING EARNINGS PER SHARE (EPS) GROWTH 3-year EPS Growth (Median CAGR) 12/31/2018 - 12/31/2021 ONEOK 15.9% S&P 500 (a) 7.6% (shown as percentages) Median S&P 500 Median ONEOK Dividend…
ATTRACTIV E DIV IDE ND P RO FILE 1 OF 38 COMPANIES IN THE S&P 500 WITH A DIVIDEND YIELD GREATER THAN 5% S&P 500 Dividend Yield 114 109 81 5.21% 69 57 37 17 21 0% 0% - 1% 1% - 2% 2% - 3% 3% - 4% 4% - 5% 5% - 6% 6%…
E S G INITIATIV E S AND P RACTICE S 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…
E S G -RE LATE D RE CO G NITIO N 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…
DE LIV E RING LO NG -TE RM 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…
FUTURE G R O WTH Elk Creek Pipeline Kansas
E LK CRE E K P IP E LI N E V O LU M E RAM P EXPECT TO ACHIEVE FOUR TO SIX TIMES EBITDA MULTIPLE IN FIRST QUARTER 2020 Up to 240,000(a) Plants contracted: volumes up to 225,000 bpd Additional contracted volume: Demicks Lake II,…
NO RTH DAKO TA NATURAL G AS FLARING CONNECTED MORE THAN 600 WELLS IN 2018 O N E O K D e d i c a t e d G r o s s P r o d u c t i o n (a) 1,500 Capacity with Demicks Lake II Capacity with MMcf/d Demicks Lake I GG aa ss FF…
WILLIS TO N BA S IN P RO DUCTIO N INCREASING PRODUCTION AT LOWER CRUDE OIL PRICES AND WITH FEWER RIGS Rig Count vs. Natural Gas Production(a) N o r t h D a k o t a C r u d e O i l P e r f o r m a n c e (c) 250 3.0 Natural Gas…
WILLIS TO N BAS IN 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 2.9 Bcf/d reported in production with fewer rigs June…
WILLIS TO N BAS IN INCREASED NATURAL GAS CAPTURE RESULTS Increased NGL and natural gas value uplift Approximately 76% of North Dakotas natural gas production was captured in June 2019 North Dakota Industrial Commission (NDIC) policy…
NATURAL G AS LIQ UIDS G RO WTH P RO JE CTS CapEx Expected Project Scope ( in millions) Completion 900-mile NGL pipeline from the Williston Basin to the Mid-Continent with capacity of up to 240,000 bpd, and related infrastructure Elk…
G ATHE RING AND P RO CE S S ING G RO WTH P RO JE CTS CapEx Expected Project Scope ( in millions) Completion 200 MMcf/d processing plant in the core of the Williston Basin Demicks Lake I plant and Expected to open full by capturing…
NATURAL G AS P IP E LINE S G RO WTH P RO JE CTS Expected Project Scope Completion ONEOK Gas Transportation 100 MMcf/d westbound expansion from the STACK area to multiple western Oklahoma pipeline delivery points Complete (OGT)…
AP P E NDIX Mont Belvieu fractionator Texas
O NE O K V S . S & P 500 A UNIQUE INVESTMENT OPPORTUNITY Note: Data as of July 31, 2019. PAGE 27
O NE O K 2019 FINANCIAL G UIDANCE 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…
BUS INE S S S E G M E NTS Mustang Pipeline Oklahoma
NATURAL G AS LIQ UIDS 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 G AS LIQ UIDS 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…
NATURAL G AS LIQ UIDS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(a) NGL raw feed throughput volumes increased 8%, Average Bundled compared with the first quarter 2019 Region/Asset First Quarter 2019 Second Quarter 2019…
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 Fee-based contracts with…
NATURAL G AS G ATHE RING AND P RO CE S S ING 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…
NATURAL G AS G ATHE RING AND P RO CE S S ING 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 Expect to connect approximately 620 wells in 2019 1,680 1,561 259 well connects completed in the first…
NATURAL G AS G ATHE RING AND P RO CE S S ING Six Months Ending Dec. 31, 2019 Commodity Volumes Hedged Average Price Percent Hedged Natural Gas (BBtu/d)(a) 82.0 2.30 / MMBtu 73% Condensate (MBbl/d) 2.6 58.55 / Bbl 76% Natural Gas…
NATURAL G AS G ATHE RING AND P RO CE S S ING COMMODITY PRICE SENSITIVITIES(a) Earnings Impact Earnings Impact ( in Millions) ( in Millions) Commodity Sensitivity 2019(b) 2020(c) Natural Gas 0.10 / MMBtu 2.1 4.0 Natural Gas…
NATURAL G AS P IP E LINE S 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 G AS P IP E LINE S PREDOMINANTLY FEE BASED Firm demand-based contracts serving primarily investment- Sources of Earnings grade utility customers Recently completed approximately 1.3 billion cubic feet per day 2% 4% 4%…
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) Natural gas transportation capacity contracted increased 14% compared with the second quarter…
WILLIS TO N BAS IN Bear Creek plant North Dakota
WILLIS TO N BAS IN PROVIDING VALUABLE TAKEAWAY CAPACITY Natural Gas Gathering and Processing More than 1 Bcf/d of natural gas processing capacity, increasing to more than 1.6 Bcf/d in the first quarter 2021 More than 3 million acres…
E LK CRE E K P IP E LINE P RO JE CT 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…
WILLIS TO N BA S IN P RO CE S S ING P LANT P RO JE CTS PROCESSING CAPACITY TO SUPPORT PRODUCER GROWTH AND HELP MEET GAS CAPTURE TARGETS Williston Basin growth continues with enhanced well-completion techniques driving increased…
M ID-CO NTINE NT RE G IO N Canadian Valley plant Oklahoma
M ID-CO NTINE NT RE G IO N 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 575,000 bpd of…
ARBUCKLE II P IP E LINE 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…
P E RM IAN BAS IN Roadrunner Pipeline Permian Basin
O NE O KS P E RM IAN BAS IN S TRATE G Y 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…
P E RM IAN BAS IN West Texas LPG Pipeline Extension (complete) and RELIABLE SERVICE PROVIDER Expansions (in progress) Natural Gas Liquids Approximately 40 third-party natural gas processing plant connections in the Permian Basin…
P O WDE R RIV E R BAS IN 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 Approximately 1 million acres dedicated to ONEOK NGL takeaway through Bakken NGL…
NON-GAAP R E C O N C I L I AT I O N S 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…
2019 FINANCIAL G UIDANCE 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…
NO N-G AAP RE CO NCILIATIO N 2017 2018 2019 ( in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Reconciliation of Net Income to Adjusted EBITDA Net income 186 176 167 65 594 266 282 314 293 1,155 337 312 Interest expense, net of…
NO N-G AAP RE CO NCILIATIO N 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…
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