Oneok, Inc. · NYSE:OKE
Oneok — J.P. Morgan Virtual Energy Conference June 2020
18 slides from Oneok's conference presentation, June 2020
Slide 1: J.P. Morgan Virtual Energy Conference June 2020
J . P. M O R G A N VIRTUAL ENERGY CONFERENCE JUNE 2020
Slide 2: Forward-Looking Statements
FO RWARD-LO O KING S TATE M E NTS Statements contained in this presentation that include company expectations, outlooks or predictions should be considered forward-looking statements that are covered by the safe harbor protections provided under federal securities legislation and other applicable la
Slide 3: Responding to COVID-19
RE S P O NDING TO CO V ID-19 ONEOK - AN ESSENTIAL CRITICAL INFRASTRUCTURE BUSINESS Employee and Community Business Contractor Support Support Sustainability We continue to monitor and take action Approximately $600,000 pledged to We remain focused on operating assets considering CDC and government s
Slide 4: Solid Business Model – Proven Performance
S O LID BUS INE S S M O DE L – P RO V E N P E RFO RM ANCE BUILT TO WITHSTAND VARIOUS MARKET CONDITIONS • Solid investment-grade balance sheet Financial Strength and Flexibility • S&P: BBB (stable) – affirmed April 30, 2020 • Moody’s: Baa3 (stable) – affirmed May 26, 2020 • $2.50 billion credit facil
Slide 5: Integrated. Reliable. Diversified.
INTE G RATE D. RE LIABLE . DIV E RS IFIE D. ◆ Competitively positioned – key asset locations and market share ◆ Approximately 40,000-mile network of natural gas liquids and natural gas pipelines ◆ Provides midstream services to producers, processors and customers ◆ Significant basin diversification
Slide 6: Financial Strength – A Competitive Advantage
FINANCIAL S TRE NG TH – A CO M P E TITIV E ADVANTAG E INCREASING LIQUIDITY Distributable Cash Flow (DCF) in ◆ Significant liquidity from $3.25 billion of senior notes issuances completed in 2020 Excess of Dividends Paid ($ in millions) Weighted average coupon rate of 4.69% from 2020 notes issuance
Slide 7: Well-Capitalized Customer Base
WE LL-CAP ITALIZE D CUS TO M E R BAS E DIVERSIFIED COUNTERPARTIES WITH HIGH CREDIT QUALITY No single customer represents more than 10% of ONEOK’s revenue. Investment-grade Customers Primary Customers Contract Structure YE 2019 • Large integrated and well-capitalized producers, and • Limited counterp
Slide 8: Williston Basin: Increasing Gas-to-Oil Ratios
WILLIS TO N BAS IN INCREASING GAS-TO-OIL RATIOS (GOR) DRIVING VOLUME GROWTH ◆ Producer efficiencies across the basin leading to increasing ◆ Natural gas production of more than 3.1 Bcf/d reported in March production with fewer rigs. 2020, compared with 2.8 Bcf/d in March 2019. 3,500 3,000 2,500 2,00
Slide 9: Williston Basin: Increased Natural Gas Capture
WILLIS TO N BAS IN INCREASED NATURAL GAS CAPTURE RESULTS ◆ Increased NGL and natural gas value uplift ◆ Approximately 87% of North Dakota’s natural gas production was captured in March 2020 ◆ North Dakota Industrial Commission (NDIC) policy targets: Natural gas capture: currently 88%, increasing t
Slide 10: ESG Initiatives and Practices
E S G INITIATIV E S AND P RACTICE S PROMOTING LONG-TERM BUSINESS SUSTAINABILITY ◆ Effective Governance and Oversight ◆ Committed to Safety Diverse board of directors – members elected annually, including a Training – robust protocols and training focused on employee, asset and nonexecutive chair
Slide 11: ESG-Related Recognition
E S G -RE LATE D RE CO G NITIO N RECENT HIGHLIGHTS ◆ Included in 30 ESG-related indexes, including: Dow Jones Sustainability North America Index - Tracks the stock performance of the world's leading companies in terms of economic, environmental and social criteria. FTSE4Good Index - Includes com
Slide 12: Natural Gas Liquids Volume Update
NATURAL G AS LIQ UIDS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(b) ◆ Rocky Mountain and Gulf Coast/Permian NGL volumes increased approximately 8% and 3%, respectively, compared with the fourth Average Bundled Region Fourth Quarter 2019 First Quarter 2020 Rate (per gallon) quarter 2019. R
Slide 13: Natural Gas Gathering and Processing Volume Update
NATURAL G AS G ATHE RING AND P RO CE S S ING VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) Rocky Mountain 1,937 2,065 2,070 ◆ 107 well connects completed in the first quarter 2020 1,680 First quarter 2020 natural gas volumes processed increased approximately 5%, 983 909 ◆ 973 839 compar
Slide 14: Natural Gas Pipelines
NATURAL G AS P IP E LINE S 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 4% compared with the first quarter 2019 ◆ Expect more than 95% fee-based earnings in 2020, and: Appro
Slide 15: 2020 Outlook Non-GAAP Reconciliation
2020 O UTLO O K NON-GAAP RECONCILIATION 2020 Outlook (Millions of dollars) Reconciliation of net income to adjusted EBITDA and distributable cash flow Net income $ 500 - $ 900 Interest expense, net of capitalized interest 695 - 645 Depreciation and amortization 585 - 545 Income taxes 160 - 290 Impai
Slide 16: Non-GAAP Reconciliation
NO N-G AAP RE CO NCILIATIO N 2017 2018 2019 2020 ($ in Millions) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Reconciliation of net income (loss) to adjusted EBITDA and distributable cash flow Net income (loss) $594 $266 $282 $314 $293 $1,155 $337 $312 $309 $321 $1,279 $(142) Interest expense, net of capital
Slide 17: Non-GAAP Reconciliations
NO N-G AAP RE CO NCILIATIO NS 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
Slide 18: Bear Creek plant — Williston Basin
Bear Creek plant — Williston Basin
ONEOK — J.P. Morgan Virtual Energy Conference June 2020 on 6ix