Oneok, Inc. · NYSE:OKE
Oneok — Q3 2018 Earnings Presentation
13 slides from Oneok's earnings presentation, Oct 30, 2018
Slide 1: Third-Quarter 2018 Results
THIRD-QUARTER 2 0 1 8 R E S U LT S O C T. 3 0 , 2 0 1 8
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 UPDATED 2018 FINANCIAL GUIDANCE 5 NATURAL GAS LIQUIDS 7 NATURAL GAS GATHERING AND PROCESSING 8 NATURAL GAS PIPELINES 9 THIRD-QUARTER 2018 VS. SECOND-QUARTER 2018 10 SEGMENT VARIANCES NON-GAAP RECONCILIATION 11 Elk Creek Pipeline – Wyoming
Slide 4: Financial Strength – A Competitive Advantage
FINANCIAL STRENGTH – A COMPETITIVE ADVANTAGE INCREASING EXCESS CASH ◆ Prefunded a significant portion of capital-growth projects and immediately reduced Adjusted EBITDA Growth debt with a $1.2 billion equity offering in January 2018, satisfying equity financing ($ in millions) needs in 2018 $650.2 ◆
Slide 5: 2018 Financial Guidance Increased
2018 FINANCIAL GUIDANCE INCREASED Updated 2018 Guidance Range Reconciliation of Net Income to (Millions of dollars) Adjusted EBITDA and Distributable Cash Flow Net income $ 1,140 – $ 1,220 Interest expense, net of capitalized interest 480 – 470 Depreciation and amortization 425 – 435 Income taxes 35
Slide 6: 2018 Financial Guidance Increased – Segment Adjusted EBITDA
2018 FINANCIAL GUIDANCE INCREASED SEGMENT ADJUSTED EBITDA Updated 2018 Guidance Range (Millions of dollars) Reconciliation of segment adjusted EBITDA to adjusted EBITDA Segment adjusted EBITDA: Natural Gas Liquids $ 1,485 – $ 1,535 Natural Gas Gathering and Processing 600 – 620 Natural Gas Pipelines
Slide 7: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE ◆ Third quarter 2018 volumes gathered increased approximately 6 percent, compared G a t h e r e d Vo l u m e ( M B b l / d ) with the second quarter 2018 ◆ 2018 volume growth expected to be driven primarily by increased producer activity in 910–940 the STACK and SCO
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 1,900 – 1,980 ◆ Third quarter 2018 natural gas volumes processed increased approximately 8 1,680 1,524 1,561 percent, compared with the second quarter 2018 950-990 ◆ Expect to connect appro
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) ◆ Expect more than 95 percent fee-based earnings in 2018, and: Approximately 95 percent of transportation capacity contracted Approximately 65 percent of natural
Slide 10: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q3 2018 VS. Q2 2018 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids increased $29.4 million increase in optimization and marketing due primarily to wider location price differentials $20.8 million increase in exchange services due to increased volumes in the STACK an
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2016 2017 2018 ($ in Millions) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD Reconciliation of Net Income to Adjusted EBITDA Net income $744 $186 $176 $167 $65 $594 $266 $282 $314 $862 Interest expense, net of capitalized interest 470 116 118 127 125 486 116 113 122 351 Depreciation and amo
Slide 12: Non-GAAP Reconciliations
NON-GAAP 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 from
Slide 13: Elk Creek Pipeline — Kansas
Elk Creek Pipeline — Kansas