Slide 1: Investor Update May 2021
I N V E S T O R U P D AT E M AY 2 0 2 1
Slide 2: Forward-Looking Statements
F O RWA R D - LOOK ING S TAT E M E N TS 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 applica
Slide 3: First Quarter 2021 – At a Glance
F I R ST Q U A R T ER 2 0 2 1 – AT A G L A N CE RESILIENT BUSINESS DRIVES FINANCIAL STRENGTH EPS (Diluted) Growth $0.86 EPS $0.86 vs. $0.69 in Q4’20 $0.70 $0.69 $0.32 17% increase in adjusted EBITDA vs. Q4’20 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Adjusted EBITDA Growth >$245 million ($ in millions) $866.4
Slide 4: Updated 2021 Financial Guidance
U PD AT ED 2 0 2 1 F I N A N CIA L G U I D A NC E STRONG VOLUMES EXPECTED TO DRIVE SEGMENT RESULTS 2021 Guidance Range 2021 Earnings Drivers ($ in millions, except per share amounts) ◆ Higher Williston Basin natural gas and NGL Net income $ 1,200 – $ 1,500 volumes Diluted earnings per common share $
Slide 5: Integrated. Reliable. Diversified.
I N T EG RATED. R EL I A B LE. D I VER SIFIED. ◆ Competitively positioned – key asset locations and market share ◆ Approximately 40,000-mile network of natural gas liquids and natural gas pipelines ◆ Greater than 10 Bcf/d (or 10%) of U.S. natural gas production is reliant on the utilization of ONEOK
Slide 6: Delivering the Energy That Improves Our Lives
D EL I VERIN G T H E EN ER G Y T H AT I MPR O VES O U R L I VES COMMON USES OF NATURAL GAS AND NGLS Natural Gas: The lowest-emission hydrocarbon-based fuel, producing inexpensive, reliable and clean energy. Electricity Generation Heating and Cooking Transportation Fuel Industrial/Manufacturing Natur
Slide 7: Investment Thesis
I N VEST MEN T T H ESI S A PREMIER ENERGY INFRASTRUCTURE COMPANY ONEOK’s Competitive Position Key Priorities Operating Market Share Connectivity Operate safely and environmentally Leverage 1 responsibly Strategic assets in NGL Fully integrated assets Available capacity and Reinvest cash flow in high
Slide 8: Credit and ESG Ratings
C R ED I T A N D ESG R AT I N GS Investment Grade Credit Ratings ESG-focused Ratings and Rankings Agency Rating Issued/Affirmed Organization Rating / Ranking BBB Nov. 2020 MSCI ESG Ratings A rated Fitch Ratings (Stable) Sustainalytics Ranked in the top 10% in Refiners and Pipeline Industry Baa3 Mood
Slide 9: Promoting Long-Term Business Sustainability
PR O MO TI NG L O N G - TERM B U SI N ESS SU STA I NA BI LITY Environmental Social Governance Providing solutions to Long history of promoting Adoption of SASB reduce flaring in the diversity and inclusion reporting standards Williston Basin ESG-focused leadership Working to reduce Committed to ongo
Slide 10: Innovation and Infrastructure
I N N O VATI ON A N D I N F R A STR UC TUR E PROJECTS TO REDUCE EMISSIONS ONEOK is helping lead efforts The use of electric powered ONEOK interconnects with to reduce natural gas flaring compressors provides an renewable natural gas (RNG) in the Williston Basin, opportunity to reduce GHG facilities
Slide 11: ESG Initiatives and Practices
ESG I N I T IATIVES A N D PR A C T IC ES 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
Slide 12: Business Segments
B U SI N ESS SEG MEN TS 2021 UPDATED GUIDANCE Natural Gas Liquids Natural Gas Gathering Natural Gas Pipelines and Processing >15% ~25% 2021 ADJUSTED ~60% EBITDA GUIDANCE EARNINGS MIX ~90% fee based ~85% fee based >95% fee based(a) CONTRACT Fee-based, bundled service volume Fee contracts with a POP c
Slide 13: Natural Gas Liquids
N AT U R A L G A S L I Q UI DS ONE OF THE LARGEST INTEGRATED NGL SERVICE PROVIDERS Provides fee-based gathering, fractionation, transportation, marketing and storage services linking key NGL market centers Expect 2021 earnings to be ~90% fee based Primary NGL transportation provider for the Willisto
Slide 14: Natural Gas Liquids Volume Update
N AT U R A L G A S L I Q UI DS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled ▪ NGL raw feed throughput increased 4% compared with the Region Fourth Quarter 2020 First Quarter 2021 Rate (per gallon) fourth quarter 2020. Rocky Mountain(b) 244,000 bpd 253,00
Slide 15: Strong Natural Gas Liquids Volume Recovery
ST R O N G N AT U R A L G A S L I Q U IDS VO L U ME R EC O VERY Rockies Region NGL Raw Feed Throughput (bpd) Capacity Expandable to ~540,000 bpd • Minimal capital needed to further 100,000 expand Elk Creek Pipeline with pump Current Total Capacity ~440,000 bpd stations to meet future customer needs.
Slide 16: Ethane Recovery Economics
ET H A N E R EC O VERY EC O N O MIC S ONEOK’S NGL INFRASTRUCTURE CONNECTS SUPPLY WITH THE GULF COAST MARKET ◆ Increasing ethane prices drive improving recovery economics. ◆ Incremental ethane opportunity for ONEOK by region(a): ▪ Mid-Continent: ~100,000 bpd ▪ Williston Basin: ~100,000 bpd ◆ 25,000 b
Slide 17: Natural Gas Gathering and Processing
N AT U R A L G A S G AT H ERI NG A N D PR O C ESSIN G SERVING PRODUCERS IN KEY BASINS Provides gathering, compression, treating and processing services to producers. Expect 2021 earnings to be ~85% fee based Primarily fee-based contracts 15% 13% 14% ~15% 20% 16% with a POP(b) component Primary natur
Slide 18: Natural Gas Gathering and Processing Volume Update
N AT U R A L G A S G AT H ERI NG A N D PR O C ESSIN G VOLUME UPDATE G a t h e r e d Vo l u me s ( M M c f / d ) Rocky Mountain 1,937 2,065 1,909 1,850 – 2,110 ◆ 200 MMcf/d Bear Creek natural gas processing plant expansion and related infrastructure expected to be completed in the fourth quarter 2021
Slide 19: Capturing Flared Production
C A PT U R ING F L A RED PR O D U C TION LIMITED WILLISTON BASIN ACTIVITY NEEDED TO MAINTAIN CURRENT VOLUME LEVELS 1,750 O N E O K I l l u s t r a t i v e D e d i c a t e d G r o s s P r o d u c t i o n (a) ONEOK Natural Gas Bear Creek II Processing Capacity online 4Q21 1,500 ~45 average well comple
Slide 20: Williston Basin Production
W I L L ISTON B A SI N PR O D U C TION INCREASING GAS-TO-OIL RATIOS (GOR) AND GAS CAPTURE PRESENT OPPORTUNITIES North Dakota Oil and Gas Produced and GOR North Dakota Natural Gas Produced and Flared Gas Produced (MMcf/d) Oil Produced (MBbl/d) GOR Gas Produced (MMcf/d) Gas Flared (MMcf/d) 3,500 3,500
Slide 21: Natural Gas Pipelines
N AT U R A L G A S PI PEL IN ES CONNECTIVITY TO KEY MARKETS Provides fee-based natural gas transportation and storage services, and direct connectivity to end-use markets Expect 2021 earnings to be >95% fee based(a) <5% Connected directly to end-use markets: Local gas distribution companies, electri
Slide 22: Natural Gas Pipelines – Market Connected
N AT U R A L G A S PI PEL IN ES – MA R K ET C O N N EC TED Intrastate Pipeline System Interstate Pipeline System ◆ Connectivity between key markets ▪ Bi-directional between Mid-Continent and Permian Basin; Mexico markets; Gulf Coast market through pipeline interconnects ◆ Significant storage positio
Slide 23: Updated 2021 Financial Guidance: Non-GAAP Reconciliation
U PD AT ED 2 0 2 1 F I N A N CIA L G U I D A NC E NON-GAAP RECONCILIATION 2021 Guidance Range (Millions of dollars) Reconciliation of net income to adjusted EBITDA and distributable cash flow Net income $ 1,200 - $ 1,500 Interest expense, net of capitalized interest 755 - 715 Depreciation and amorti
Slide 24: Non-GAAP Reconciliation
N O N - G A AP R EC O N C I LI ATI O N 2020 2021 ($ in Millions) Q2 Q3 Q4 FY Q1 Reconciliation of Net Income to Adjusted EBITDA Net income $ 134 $ 312 $ 309 $ 613 $ 386 Interest expense, net of capitalized interest 219 176 177 713 186 Depreciation and amortization 140 153 154 579 157 Impairment char