Oneok, Inc. · NYSE:OKE

Oneok — Q4 2017 Earnings Presentation

16 slides from Oneok's earnings presentation, Feb 26, 2018

  1. Slide 1: Fourth-Quarter and Full-Year 2017 Results

    FOURTH-QUARTER AND FULL-YEAR 2 0 1 7 R E S U LT S Feb. 26, 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 NATURAL GAS LIQUIDS 4 NATURAL GAS GATHERING AND PROCESSING 5 NATURAL GAS PIPELINES 6 FOURTH-QUARTER 2017 VS. THIRD-QUARTER 2017 7 SEGMENT VARIANCES ANNOUNCED CAPITAL-GROWTH PROJECTS 8 2018 FINANCIAL GUIDANCE 13 NON-GAAP RECONCILIATIONS 14 Mont Belvieu I fractionator — Gulf Coast

  4. Slide 4: 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 850–1,000 ◆ Ethane rejection on ONEOK’s system expected to

  5. Slide 5: 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 ◆ 117 well connects completed in the fourth quarter 2017; 430 for the full year 2017 1,524 1,561 1,680 ◆ Approximately 25 rigs on ONEOK’s dedicated acreage 965-1,075 781 839

  6. Slide 6: 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

  7. Slide 7: Business Segment Performance

    BUSINESS SEGMENT PERFORMANCE Q4 2017 VS. Q3 2017 VARIANCES ◆ Natural gas liquids increased  $30.1 million increase in exchange services due primarily to increased volumes in the STACK and SCOOP areas and the Williston Basin and increased ethane recovery, and reduced volumes in the third quarter 201

  8. Slide 8: Arbuckle II Pipeline and MB-4 Fractionator

    ARBUCKLE II PIPELINE AND MB -4 FRACTIONATOR CRITICAL INFRASTRUCTURE TO SERVE GROWING PRODUCTION ◆ Volume growth expected across ONEOK footprint, particularly in STACK and SCOOP areas and Williston Basin, creating a need for additional capacity ◆ Pipeline and fractionator projects serving producer ne

  9. Slide 9: Demicks Lake Plant

    DEMICKS LAKE PLANT 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 economics  One-third of the rigs needed today to develop the same volume p

  10. Slide 10: Elk Creek Pipeline Project

    ELK CREEK PIPELINE PROJECT COMPELLING STRATEGIC RATIONALE ◆ 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 completion improvements driving break-evens lower  Increas

  11. Slide 11: Natural Gas Liquids Growth Projects

    NATURAL GAS LIQUIDS GROWTH PROJECTS $3.6 BILLION ANNOUNCED SINCE JUNE 2017 CapEx Expected Project Scope ($ in millions) Completion • 120-mile pipeline lateral extension with capacity of 110,000 bpd in the Delaware Basin West Texas LPG Pipeline • Supported by long-term dedicated NGL production from t

  12. Slide 12: Gathering and Processing Growth Projects

    GATHERING AND PROCESSING GROWTH PROJECTS $600 MILLION ANNOUNCED SINCE JUNE 2017 CapEx Expected Project Scope ($ in millions) Completion Additional STACK • 200 MMcf/d processing capacity through long-term processing services agreement with third party $40 In Service processing capacity • 30-mile natu

  13. Slide 13: 2018 Financial Guidance Summary

    2018 FINANCIAL GUIDANCE SUMMARY D ivid en d s Paid Per Sh are Per Year ◆ Adjusted EBITDA: $2,215 million – $2,415 million $3.25 - $3.31 ◆ Distributable cash flow: $1,615 million – $1,815 million $2.43 $2.46 $2.72 $2.13  Target dividend coverage ratio of ≥1.2 times ◆ Net income: $955 million – $1,15

  14. Slide 14: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION ANNOUNCED JAN. 22, 2018 2018 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 955 - $ 1,155 Interest expense, net of capitalized interest 495 - 455 Depreciation and amortization 425 - 435 Income taxe

  15. Slide 15: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION ANNOUNCED JAN. 22, 2018 2018 Guidance Range (Millions of dollars) Reconciliation of segment adjusted EBITDA to adjusted EBITDA Segment adjusted EBITDA: Natural Gas Liquids $ 1,300 - $ 1,430 Natural Gas Gathering and Processing 575 - 625 Natural Gas Pipelines 335 - 355 Other 5

  16. Slide 16: Bear Creek plant — Williston Basin

    Bear Creek plant — Williston Basin

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