Oneok, Inc. · NYSE:OKE

Oneok — Q2 2018 Earnings Presentation

11 slides from Oneok's earnings presentation, Jul 31, 2018

  1. Slide 1: Second-Quarter 2018 Results

    SECOND-QUARTER 2 0 1 8 R E S U LT S July 31, 2018

  2. 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

  3. Slide 3: Index

    INDEX FINANCIAL STRENGTH 4 NATURAL GAS LIQUIDS 5 NATURAL GAS GATHERING AND PROCESSING 6 NATURAL GAS PIPELINES 7 SECOND-QUARTER 2018 VS. FIRST-QUARTER 2018 SEGMENT VARIANCES 8 UPDATED 2018 FINANCIAL GUIDANCE 9 NON-GAAP RECONCILIATIONS 10 Mont Belvieu I fractionator — Gulf Coast

  4. Slide 4: Financial Strength

    FINANCIAL STRENGTH INCREASING EXCESS CASH AND IMPROVED LEVERAGE METRICS ◆ $1.2 billion equity offering in January 2018 prefunded a significant portion of ONEOK’s capital- Adjusted EBITDA Growth growth projects, immediately reducing debt ($ in millions) ◆ $1.25 billion senior notes issuance completed

  5. Slide 5: Natural Gas Liquids

    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 Mid-Continent  Ethane volumes across ONEOK’s system increased 60,000 bpd

  6. Slide 6: 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 ) Williston Basin 1,840 – 2,050 ◆ Bear Creek natural gas processing plant expansion to 130 MMcf/d complete 1,524 1,561 1,680 ◆ Expect to connect approximately 550 wells in 2018 965-1,075 781 839  322 well

  7. Slide 7: 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) ◆ Expect more than 95 percent fee-based earnings in 2018, and:  Approximately 95 percent of transportation capacity contracted  Approximately 65 percent of natural

  8. Slide 8: Business Segment Performance

    BUSINESS SEGMENT PERFORMANCE Q2 2018 VS. Q1 2018 ADJUSTED EBITDA VARIANCES ◆ Natural gas gathering and processing increased  $32.3 million increase due primarily to natural gas volume growth in the Williston Basin and the STACK and SCOOP areas  $8.2 million increase due to contract settlements  $

  9. Slide 9: 2018 Financial Guidance Updated July 31, 2018

    2018 FINANCIAL GUIDANCE UPDATED JULY 31, 2018 NON-GAAP RECONCILIATION 2018 Updated Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 1,020 - $ 1,150 Interest expense, net of capitalized interest 485 - 465 Depreciation and am

  10. Slide 10: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION 2017 2018 ($ in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Reconciliation of Net Income to Adjusted EBITDA Net income $186 $176 $167 $65 $594 $266 $282 Interest expense, net of capitalized interest 116 118 127 125 486 116 113 Depreciation and amortization 99 101 102 104 406 104 107 Impai

  11. Slide 11: Bear Creek plant — Williston Basin

    Bear Creek plant — Williston Basin

ONEOK — Q2 2018 Earnings Presentation on 6ix