Oneok, Inc. · NYSE:OKE

Oneok — ONEOK Partners — Q4 2015 Earnings Presentation

15 slides from Oneok's earnings presentation, Feb 22, 2016

  1. Slide 1: Fourth-Quarter and Full-Year 2015 Earnings

    FOURTH-QUARTER AND FULL-YEAR 2015 EARNINGS Feb. 22, 2016

  2. 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 importa

  3. Slide 3: Index

    INDEX OKS Adjusted EBITDA Growth 4 Natural Gas Liquids Volume Update 5 Natural Gas Gathering and Processing Volume Update 7 Fourth Quarter vs. Third Quarter Segment Variances 9 Customer Credit 10 Appendix 11

  4. Slide 4: OKS Adjusted EBITDA Growth

    OKS ADJUSTED EBITDA GROWTH DELIVERING RESULTS – IN A CHALLENGING MARKET • Q1 – Q4 adjusted EBITDA Adjusted EBITDA and Distribution Coverage Ratio ($ in thousands, except coverage ratio) increased 39% and distribution $450,248 coverage ratio increased 72% in $403,682 2015 $387,277 1.03 ‒ Higher natur

  5. Slide 5: Natural Gas Liquids Volume Update

    NATURAL GAS LIQUIDS VOLUME UPDATE Gathering Volume (MBbl/d) 11% - 14% CAGR • Gathered volumes increased 44% in 2015, 175 compared with 2014, impacted by: 155 ‒ Volume growth in the Williston Basin, 800-870 Powder River Basin and Mid-Continent 769 520 547 533 ‒ Offset by ice storms in the Mid-Contine

  6. Slide 6: Ethane Opportunity by Basin / Incremental Ethane Demand

    ETHANE OPPORTUNITY BY BASIN INCREMENTAL ETHANE DEMAND • Approximately one-third of all U.S. ethane being rejected is on ONEOK Partners’ NGL system • ONEOK Partners’ NGL infrastructure already connects supply to Gulf Coast region ‒ Incremental ethane transported and fractionated volume potential of 1

  7. Slide 7: Natural Gas Gathering and Processing Volume Update

    NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE Gathered Volumes* (MMcf/d) Rocky Mountain 828 869 • Q4 2015 gathered volumes increased 16%, 760 compared with Q3 2015, and 36% compared with Q4 657 2014 – Lonesome Creek completed in November – Completed 95 well connects in Q4 2015, and more than 82

  8. Slide 8: Williston Basin Volume Update

    WILLISTON BASIN VOLUME UPDATE • Natural gas gathered volume expected to increase in 2016 – Higher natural gas capture percentage (reduced flaring) as a result of pipelines, compression and processing plant placed in- service in late 2015 and Bear Creek processing plant to be completed in Q3 2016 – N

  9. Slide 9: Business Segment Performance Q4 2015 vs. Q3 2015 Variances

    BUSINESS SEGMENT PERFORMANCE Q4 2015 vs. Q3 2015 VARIANCES • Natural Gas Liquids – $27.1 million increase in our fee-based exchange-services, due primarily to increased volume in the Williston Basin in Q4 2015, timing of minimum volume obligations, unplanned operational outages in Q3 2015 and decrea

  10. Slide 10: Customer Credit

    CUSTOMER CREDIT INVESTMENT-GRADE PROFILE – REDUCED RISK ONEOK Partners • No single customer represents more than 10% of 2015 revenues, only 15 customers individually represented 1% or more of 2015 revenues • The ten largest customers represent approximately 38% of 2015 revenues with nine being inves

  11. Slide 11: Appendix

    APPENDIX INEOK "ARTNERS AM. " jo) ro

  12. Slide 12: Natural Gas Gathering and Processing Segment Statistic Overview

    NATURAL GAS GATHERING AND PROCESSING SEGMENT STATISTIC OVERVIEW Williston Basin More than 1 million acres of dedicated production in most productive areas of the basin Williston Basin Core-area initial production (IP) rates are 800 to 1,200 Mcf/d; or 2 to 3 times higher than the fringe areas Willist

  13. Slide 13: Non-GAAP Reconciliations ONEOK Partners

    NON-GAAP RECONCILIATIONS ONEOK PARTNERS ONEOK Partners has disclosed in this presentation its historical and anticipated adjusted EBITDA, distributable cash flow (DCF) and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership’s financial performance

  14. Slide 14: OKS Non-GAAP Reconciliations

    OKS NON-GAAP RECONCILIATIONS ($ in Thousands) 1Q15 2Q15 3Q15 4Q15 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $147,032 $211,610 $229,665 $9,565 Interest expense 80,709 86,492 86,666 85,044 Depreciation and amortization 85,847 86,199 87,517 92,633 Impairment

  15. Slide 15: Slide 15

ONEOK Partners — Q4 2015 Earnings Presentation on 6ix