Oneok, Inc. · NYSE:OKE
Oneok — Investor Presentation (March 2020)
11 slides from Oneok's investor presentation, March 2020
Slide 1: Investor Update March 2020
2 = ONEOK INVESTOR UPDATE MARCH 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: 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) • Moody’s: Baa3 (positive) • $2.50 billion credit facility – no borrowings outstanding Significant Liqu
Slide 4: Well-Capitalized Customer Base
WE LL-CAP ITALIZE D CUS TO M E R BAS E DIVERSIFIED COUNTERPARTIES WITH HIGH CREDIT QUALITY No single customer represents more than 10% of ONEOK’s revenue. Investment-grade Customers Primary Customers Contract Structure YE 2019 • Large integrated and well-capitalized producers, and • Limited counterp
Slide 5: History of Growth Through Commodity Cycles
H I S TO RY O F G R O W T H T H R O U G H C O M M O D I T Y C Y C L E S Adjusted EBITDA ($ in billions) Natural Gas Processed Volumes (MMcf/d) Adj. EBITDA Avg. Crude Oil Price ($/barrel) (a) Rocky Mountain Mid-Continent Avg. Crude Oil Price ($/barrel) 1,933 1,808 $93 1,552 1,409 880 1,197 1,280 723
Slide 6: Historical Williston Basin Production
HIS TO RICAL WILLIS TO N BAS IN P RO DUCTIO N INCREASING NATURAL GAS VOLUMES DESPITE DOWNTURN ◆ Natural gas production increased 4% 2015- 2016 despite a 12% decrease in crude oil Williston Basin Production(a) production 3,000 $120 ◆ More flared gas and drilled but $98 2,500 $100 uncompleted (DUC) we
Slide 7: Williston Basin
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 Bcf/d reported in January production with fewer rigs. 2020, compared with 2.7 Bcf/d in January 2019. 3,500 3,000 2,500 2,
Slide 8: Williston Basin
WILLIS TO N BAS IN INCREASED NATURAL GAS CAPTURE RESULTS ◆ Increased NGL and natural gas value uplift ◆ Approximately 85% of North Dakota’s natural gas production was captured in January 2020 ◆ North Dakota Industrial Commission (NDIC) policy targets: Natural gas capture: currently 88%, increasing
Slide 9: 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 10: Non-GAAP Reconciliation: Net Income to Adjusted EBITDA
NO N-G AAP RE CO NCILIATIO N NET INCOME TO ADJUSTED EBITDA (millions of dollars) 2015 2016 2017 2018 2019 Reconciliation of net income to adjusted EBITDA Net income $ 379 $ 744 $ 594 $ 1,155 $ 1,279 Interest expense, net of capitalized interest 417 470 486 470 492 Depreciation and amortization 355 3
Slide 11: Demicks Lake plant — North Dakota
Demicks Lake plant — North Dakota