Oneok, Inc. · NYSE:OKE
Oneok — Q3 2019 Earnings Presentation
14 slides from Oneok's earnings presentation, Oct 29, 2019
Slide 1: Third Quarter 2019 Results
THIRD QUARTER 2019 R E S U LT S O C T. 2 9 , 2 0 1 9
Slide 2: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS Statements contained in this presentation that include company expectations or predictions should be considered forward-looking statements that are covered by the safe harbor protections provided under federal securities legislation and other applicable laws. It is import
Slide 3: Index
INDEX FINANCIAL STRENGTH 4 2020 EARNINGS DRIVERS 5 CAPITAL-GROWTH PROJECTS 6 NATURAL GAS LIQUIDS 7 NATURAL GAS GATHERING AND PROCESSING 8 NATURAL GAS PIPELINES 9 THIRD QUARTER 2019 VS. SECOND QUARTER 2019 10 SEGMENT VARIANCES UPDATED 2019 FINANCIAL GUIDANCE 11 NON-GAAP RECONCILIATION 12 Elk Creek Pi
Slide 4: Financial Strength – A Competitive Advantage
FINANCIAL STRENGTH – A COM PETITIVE ADVANTAGE INCREASING LIQUIDITY Distributable Cash Flow (DCF) in Excess of Dividends Paid ◆ Significant liquidity from a $2 billion senior notes issuance completed in ($ in millions) August 2019 $183(a) ▪ $2.5 billion of borrowing capacity available on ONEOK’s cred
Slide 5: Earnings Drivers
EARNINGS DRIVERS EXPECTED KEY DRIVERS FEE-BASED SOLUTIONS 2020 OUTLOOK NATURAL GAS FLARING >300 MMcf/d ~500 MMcf/d recent new capacity from ONEOK and third-party processing >550 MMcf/d currently flaring in North Dakota on ONEOK dedicated acreage and plants currently online; volume growth from contin
Slide 6: Attractive-Return Projects Expand Core Infrastructure
AT T R A C T I V E - R E T U R N P R O J E C T S E X PA N D C O R E I N F R A S T R U C T U R E PROJECTS EXPECTED TO GENERATE 4-6X ADJUSTED EBITDA MULTIPLES ~ $4.5 billion in capital-growth projects expected to be completed through Q1 2020 MB-5 fractionator (Q1 2021, $750M) Demicks Lake II plant (Ja
Slide 7: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE ◆ Rocky Mountain(a) NGL raw reed throughput volume increased approximately Average NGL Raw Feed Throughput Volumes(b) 7% compared with the second quarter 2019 Region Second Quarter 2019 Third Quarter 2019 Average Bundled Rate (per gallon) ▪ Expect region to exit 201
Slide 8: Natural Gas Gathering and Processing
NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) Rocky Mountain 1,915 – 2,115 1,937 Expect to connect approximately 525-550 wells in 2019 1,680 ◆ 1,561 ▪ 412 well connects through the first nine months of 2019 973 925-1,025 781 839 ◆ Third quarter 2019
Slide 9: Natural Gas Pipelines
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) ◆ Natural gas transportation capacity contracted increased 12% compared with the third quarter 2018 ◆ Recently completed capital-growth projects in the Permian Basin
Slide 10: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q3 2019 VS. Q2 2019 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids increased ▪ $24.9 million increase in optimization and marketing due primarily to higher earnings related to the sale of NGL purity products previously held in inventory and wider location price differen
Slide 11: Updated 2019 Financial Guidance
UPDATED 2019 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION Updated 2019 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 1,220 - $ 1,330 Interest expense, net of capitalized interest 505 - 485 Depreciation and amortization 485
Slide 12: Non-GAAP Reconciliation
NON-G A A P RECONCILIATION 2017 2018 2019 ($ in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Reconciliation of Net Income to Adjusted EBITDA Net income $186 $176 $167 $65 $594 $266 $282 $314 $293 $1,155 $337 $312 $309 Interest expense, net of capitalized interest 116 118 127 125 486 116 113 122
Slide 13: Non-GAAP Reconciliations
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 ONEOK’s financial performance, and are defined as follows: Adjusted EBITDA is defined as net income f
Slide 14: Elk Creek Pipeline — Kansas
Elk Creek Pipeline — Kansas