Oneok, Inc. · NYSE:OKE

Oneok — Corporate Update (May 2019)

40 slides from Oneok's corporate update, May 13, 2019

  1. Slide 1: 2019 Interstate Pipelines Customer Meeting

    2019 I N T ER STAT E PI PEL I N ES C U ST OM ER M EET I N G M AY 1 3 - 1 4 , 2 0 1 9 GLEN RICHARS M AN AG E R - IN T E R S TAT E C O M M E R C IAL ONEOK Plaza — Oklahoma

  2. Slide 2: Agenda

    2019 INTERSTATE PIPELINES MEETING AGENDA Welcome 8:30am-8:45am Regulatory 8:45am-9:10am IT Applications 9:10am-9:30am Pipeline Operations 9:30am-10:00am Break 10:00am-10:15am Keynote 10:15am-11:30am PA G E 2

  3. Slide 3: Regulatory Update

    REGULATORY UPDATE RON MUCCI VICE PRESIDENT, RATES & REGULATORY ONEOK Plaza — Oklahoma

  4. Slide 4: Midwestern Gas Transmission Co. Section Review

    MIDWESTERN GAS TRANSMISSION CO. SECTION 5 REVIEW – RP18-441-000 AND RP18-1048-000 ◆ Milestones ▪ Review initiated on March 15, 2018 ▪ Cost and revenue study filed on May 29, 2018 ▪ Settlement discussions occurred June 2018 through July 2018 ◇ 6.5% mainline rate reduction ◇ Implemented fuel tracker ▪

  5. Slide 5: Midwestern Gas Transmission Future Rate Case Timing

    MIDWESTERN GAS TRANSMISSION CO. FUTURE RATE CASE TIMING ◆ Stipulation and Settlement Agreement Key Dates ▪ Rate moratorium prohibits changes to settlement rates before September 1, 2021 ▪ “Comeback” requirement ◇ Pre-filing settlement process initiation by September 30, 2022 ◇ Section 4 filing by Fe

  6. Slide 6: Viking Gas Transmission Comeback Requirement and Timing

    VIKING GAS TRANSMISSION COMPANY RP14-1185-000 “COMEBACK” REQUIREMENT AND TIMING ◆ Stipulation and Settlement Agreement Key Dates ▪ Section 4 filing with new rates to be in effect by January 1, 2020 ▪ Pre-filing settlement process initiation by January 31, 2019 ◇ Settlement discussions occurred Janua

  7. Slide 7: Impacts of 2017 Tax Cuts and Jobs Act

    IMPACTS OF 2017 TAX CUTS AND JOBS ACT ORDER NO. 849 IN RM18-11-000 (ISSUED JULY 18, 2018) ◆ Form No. 501-G ▪ One time report on cost of service, rate base, ROE, and tax structure ▪ 2017 Q4 Form 2 data adjusted for tax rate decrease ▪ Determines “indicated percentage reduction in revenue” due to redu

  8. Slide 8: Summary of Form No. 501-G Filings

    IMPACTS OF 2017 TAX CUTS AND JOBS ACT SUMMARY OF FORM NO. 501-G FILINGS ◆ 127 pipeline companies required by Order No. 849 to file 501-G ▪ 105 pipelines filed 501-G ◇ Rough 6:1 ratio – 6 pipelines explained why an adjustment was unnecessary for every pipeline that filed for rate reduction ▪ 22 pipel

  9. Slide 9: Current Regulatory Environment: Ongoing Policy Discussions

    CURRENT REGULATORY ENVIRONM ENT ONGOING POLICY DISCUSSIONS & DEVELOPMENT ◆ FERC Notice of Inquiry (NOI) to explore whether and how to revise policies on pipeline certification ▪ Docket No. PL18-1-000 ◆ FERC NOI to examine policies used to determine ROE ▪ Docket No. PL19-4-000 ◆ FERC Physical & Cyber

  10. Slide 10: Regulatory Update

    REGULATORY UPDATE AIDEN SMITH MANAGER, MARKET ANALYSIS & STRATEGY ONEOK Plaza — Oklahoma

  11. Slide 11: The Brattle Group Study

    THE BRATTLE GROUP STUDY RELEASED JULY 19, 2018 Source: The Cost of Preventing Baseload Retirements: A Preliminary Examination of the DOE Memorandum http://www.brattle.com/news-and-knowledge/news/report-by-brattle-econom ists-assesses-potential-costs-associated-with-administration-policy-designed- to

  12. Slide 12: FERC's State of the Markets Report

    FERC’S STATE OF THE M ARKETS REPORT ISSUED ON APRIL 18, 2019 – 2018 GENERATION ADDITIONS & RETIREMENTS Source: FERC State of the M arkets Report 2018 https://www.ferc.gov/CalendarFiles/20190418105357-A-3-report.pdf PA G E 12

  13. Slide 13: Current Regulatory Environment: Gas-Electric Coordination

    CURRENT REGULATORY ENVIRONM ENT GAS – ELECTRIC COORDINATION ◆ DOE Memo on “Grid Reliability and Resilience Pricing” issued on September 29, 2017 ▪ Section 403 of the Department of Energy Organization Act ▪ FERC Docket No. RM18-1-000 ◇ Terminated January 8, 2018 ◇ Subject to rehearing on March 8, 201

  14. Slide 14: New Imbalance Reports and Mobile Pipeline System Maps

    NE W I M BAL ANCE RE PORT S AND M OBI L E PI PE L I NE S YS T E M M APS WESLEY LI A R C H I T E C T O F I T A P P L I C AT I O N S J E R E M Y F L YN T D I R E C T O R O F I T A P P L I C AT I O N S ONEOK Plaza — Oklahoma

  15. Slide 15: New Imbalance Reports System

    N EW I M B A L A N C E R EPOR T S SYST EM ◆ IT has re-engineered the Imbalance Report system (went live in May 2018). ◆ The new imbalance reports automation system features these benefits: ▪ Fully compliant with SOX requirements. ◇ Imbalance request uniformly sent via our Informational Postings webs

  16. Slide 16: New Imbalance Reports System

    N EW I M B A L A N C E R EPOR T S SYST EM ▪ Historical Archiving ◇ All customers’ previously generated imbalance reports (HTML, CSV, Excel, PDF) are backed up indefinitely for future retrieving and referencing if requested. ▪ Comprehensive DR(Disaster Recovery) system and data redundancy capabilitie

  17. Slide 17: Future Enhancements

    F U T U R E EN H A N C EM EN T S VISUALIZING THE REPORT PA G E 17

  18. Slide 18: Mobile Pipeline System Maps (PLSM)

    MOBILE PIPELINE SYSTEM MAPS (PLSM) ACCESS TO NATURAL GAS PIPELINE DATA EASIER THAN EVER ◆ Why PLSM Mobile? ➢ Save time. ➢ Enhanced productivity. ➢ Location flexibility. ➢ Ease of research. ➢ Streamlining of business processes. ◆ What It Can Do? ➢ Easily locate NGP pipeline geo locations. ➢ Report pi

  19. Slide 19: PLSM Demo

    PLSM DEMO e000 ATET = 4:14 PM 81% Midwestern Pipeline ) VERMILLION / DUKE DELIV. ® Lat: 39.917971352475945 Lon: -8... ONEOK PAGE 19

  20. Slide 20: Gas Sale Automation: Offer Presentation Screen

    GAS SALE AUTOM ATION Offer Presentation Screen: Page 20 PA G E 20

  21. Slide 21: Gas Sale Automation: Bid Offer Notification

    GAS SALE AUTOM ATION Bid Offer Notification Page 21 PA G E 21

  22. Slide 22: Gas Sale Automation: Bid Screen

    GAS SALE AUTOM ATION Bid Screen Page 22 PA G E 22

  23. Slide 23: Gas Sale Automation: Award Screen

    GAS SALE AUTOM ATION Award Screen Page 23 PA G E 23

  24. Slide 24: Gas Sale Automation: Bid Notification

    GAS SALE AUTOM ATION Bid Notification Page 24 PA G E 24

  25. Slide 25: Questions or Comments?

    QUESTIONS OR COM M ENTS? ◆ ONEOK IT will be available throughout the day to answer questions and receive feedback. PA G E 25

  26. Slide 26: Customer Meeting May 2019: Interstate Operations

    CUSTOMER MEETING MAY 2019 INTERSTATE OPERATIONS JOHNNIE JARRED – DIRECTOR PIPELINE OPERATIONS ANTHONY GEDMINAS – SUPERVISOR ENGINEERING VICTOR DUFOUR – MANAGER RELIABILITY

  27. Slide 27: Safety Culture

    SAFETY CULTURE ANTHONY GEDMINAS Individual Employee Safety, key programs and focus: ◆ Employee stop work authority. ◆ Operator qualifications and development of proficiencies. ◆ Vehicle safety. ◆ Near miss and good catch sharing across organizations. ◆ Emergency drills. ◆ Safety awards and safety re

  28. Slide 28: Reliability

    RELIABILITY VICTOR DUFOUR PA G E 28

  29. Slide 29: Reliability

    RELIABILITY VICTOR DUFOUR PA G E 29

  30. Slide 30: Safety Culture

    SAFETY CULTURE Public safety: ◆ Gas handling ◆ Third-party damage prevention programs ◆ Environmental responsibility ◆ Gas quality monitoring ◆ Cathodic protection/internal corrosion inspection ◆ Smart pigging ◆ Line depth of cover ◆ Maintenance records ◆ Emergency drills ◆ Right of way clearing PA

  31. Slide 31: Reliability

    RELIABILITY VICTOR DUFOUR PA G E 31

  32. Slide 32: Reliability

    RELIABILITY VICTOR DUFOUR PA G E 32

  33. Slide 33: Reliability

    RELIABILITY ◆ Public safety and pipeline safety ◆ Specialization of workforce ◆ Compression PA G E 33

  34. Slide 34: Reliability

    RELIABILITY afin j \ jog . Se Sine, mt " : a bes ae. d a : Lan wea b @ _ pests p J de it i) U we ] PAGE 34 <> ONEOK

  35. Slide 35: Reliability

    RELIABILITY ◆ Measurement ▪ Range and pressure drop extreme cold. ◆ Flow control ◆ Gas quality equipment ◆ Generators PA G E 35

  36. Slide 36: Reliability

    RELIABILITY PA G E 36

  37. Slide 37: Reliability

    RELIABILITY ◆ Pumps ◆ Battery Backup/UPS systems ◆ Maintenance programs ◆ Environmental responsibility ◆ Emergency drills ◆ Heat exchangers ◆ Automated mainline valves in strategic locations PA G E 37

  38. Slide 38: Reliability

    RELIABILITY VICTOR DUFOUR PA G E 38

  39. Slide 39: Reliability

    RELIABILITY VICTOR DUFOUR PA G E 39

  40. Slide 40: Closing Remarks & Questions

    CLOSING REMARKS & QUESTIONS

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