Slide 1: Investor Update
INVESTOR UPDATE November 2022
Slide 2: Forward-Looking Statements
FO RWARD-LO O KING S TATE M E NTS Statements contained in this presentation regarding company expectations, outlooks, targets, predictions and other similar statements should be considered forward-looking statements that are covered by the safe harbor protections provided under federal securities le
Slide 3: Mission, Vision and Values
M IS S IO N, V IS IO N AND VALUE S We deliver energy products and services vital to an CORE VALUES: Our Compass advancing world. We commit to a zero-incident culture for the well-being of our Safety & employees, contractors and communities and to operate in an MISSION: Environmental environmentally
Slide 4: ONEOK vs. S&P 500: A Unique Investment Opportunity
O NE O K V S . S & P 500 A UNIQUE INVESTMENT OPPORTUNITY 380 Investment Grade Credit Rating (BBB-/Baa3) 269 Large Market Cap 176 (>$20 billion) High ESG Rating 135 (‘A’ or better from MSCI) Consensus EPS Growth (>5% CAGR 2022-2024E) 1 High Dividend Yield and Dividend Stability (>6%; >25 years withou
Slide 5: Financial Strength
FINANCIAL S TRE NG TH DELIVERING LONG-TERM VALUE TO SHAREHOLDERS SOLID RETURNS SUSTAINABLE EBITDA GROWTH >25 YEARS OF DIVIDEND RETURN ON INVESTED CAPITAL(a) STABILITY EBITDA vs. WTI ($ in millions) $4,000 $3,620 13.6% $3.74 $150 WTI(b) $125 $3,000 13% CAGR Dividends Paid $100 2000 - 2021 11.0% $2,00
Slide 6: Third Quarter 2022 Highlights
THIRD Q UARTE R 2022 HIG HLIG HTS EPS (Diluted) Growth $0.96 ON TRACK TO ACHIEVE 2022 FINANCIAL GUIDANCE MIDPOINTS $0.92 • Net income, earnings per share (EPS) and adjusted EBITDA increased in Q3. 13% increase • Increase in natural gas and NGL volumes, and higher storage rates. $0.87 since Q4’21 $0.
Slide 7: 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 (NGL) and natural gas pipelines ◆ Greater than 10 Bcf/d (or 10%) of U.S. natural gas production is reliant on the utilization of ON
Slide 8: Investment Thesis
INV E S TM E NT TH E S I 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 hi
Slide 9: Delivering the Energy That Improves Our Lives
DE LIV E RING THE E NE RG Y THAT IM P RO V E S O UR LIV E S COMMON USES OF NATURAL GAS AND NGLS Natural Gas: A lower-emission hydrocarbon-based fuel, producing reliable and cleaner energy, compared with other fossil fuels. Electricity Generation Heating and Cooking Transportation Fuel Industrial/Man
Slide 10: Business Segments
BUS INE S S S E G M E N TS 2022 GUIDANCE N AT U R A L G A S N AT U R A L G A S G AT H E R I N G N AT U R A L G A S LIQUIDS AND PROCESSING PIPELINES >10% >25% 2022 ADJUSTED ~60% EBITDA GUIDANCE EARNINGS MIX ~90% fee based >80% fee based >95% fee based CONTRACT Fee-based, bundled service volume Fee co
Slide 11: Natural Gas Liquids
NATURAL G AS LIQ UIDS ONE OF THE LARGEST INTEGRATED NGL SERVICE PROVIDERS Provides fee-based gathering, fractionation, transportation, marketing and storage services linking key NGL market centers Expect 2022 earnings to be ~90% fee based Primary NGL transportation provider for the Williston Basin/P
Slide 12: Natural Gas Liquids: Regional Volume Update
NATURAL G AS LIQ UIDS REGIONAL VOLUME UPDATE Average Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled 12% increase in NGL raw feed throughput compared Region Second Quarter 2022 Third Quarter 2022 Rate (per gallon) with the second quarter 2022. Rocky Mountain(b) 329,000 bpd 370,000
Slide 13: Strong Natural Gas Liquids Volume Recovery
S TRO NG NATURAL G AS LIQ UIDS V O LUM E RE CO V E RY 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 stations to meet future Current Total Capacity ~440,000 bpd customer needs. 70,000 •
Slide 14: Global NGL Demand Outlook
G LO BAL NG L DE M AND O UTLO O K DIVERSE USES DRIVE DEMAND GROWTH Global NGL Demand Forecast (Million bpd) LPG Ethane NGL Demand Growth Drivers 20 Ethane Liquified Petroleum Gas (LPG) 16 Petrochemical Demand Residential Transportation Fuel 12 ~20% Growth 2020-2040 Petrochemical Petrochemical Health
Slide 15: Natural Gas Gathering and Processing
NATURAL G AS G ATHE RING AND P RO CE S S ING SERVING PRODUCERS IN KEY BASINS Provides gathering, compression, treating and processing services to producers. Expect 2022 earnings to be >80% fee based Primarily fee-based contracts 15% 13% 14% 14% 16% <20% with a POP(a) component Primary natural gas pr
Slide 16: Natural Gas Gathering and Processing: Regional Volume Update
NATURAL G AS G ATHE RING AND P RO CE S S ING REGIONAL VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) ◆ Rocky Mountain: Rocky Mountain Mid-Continent 12% increase in processed volumes compared with the second quarter 2022. 2,065 2,090– 2,370 244 wells connected year-to-date 1,909 2,030
Slide 17: Williston Basin Production Efficiency
WILLIS TO N BA S IN P RO DUCTIO N E FFICIE NCY Rising Gas-to-Oil Expanding Core Driven by Increased Coordination Between Improved Drilling and Producers & Midstream Operators Ratios (GORs) Completion Technologies Driving Higher Gas Capture Basin-wide natural gas production has increased ONEOK’s proc
Slide 18: Williston Basin Production
WILLIS TO N BA S IN P RO DUCTIO N RISING GAS-TO-OIL RATIOS (GORS) AND GAS CAPTURE PRESENT OPPORTUNITIES Williston Basin GOR’s have Statewide flaring has decreased from increased >90% since 2016. 36% in 2014 to ~6% in August 2022. 3,500 3.00 3,500 Gas Produced (MMcf/d) Gas Produced (MMcf/d) 2.88 3,00
Slide 19: Limited Activity Needed to Maintain Volumes
LIM ITE D ACTIV ITY NE E DE D TO M AINTAIN V O LUM E S ONEOK Illustrative Williston Basin 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) 1,750 ~45 average well completions per month ~35 average well completions per month 1,500 Gas capture ~25 average well completions per month opportunity ~15 a
Slide 20: Increasing GORs Result in Natural Gas Volume Growth
I N C R E A S I N G G O R S R E S U LT I N N AT U R A L G A S V O L U M E G R O W T H 1,600,000 1,400,000 1.4 MMBOPD Flat 1.3 MMBOPD Flat 1,200,000 1.2 MMBOPD Flat ND Oil, MMBOPD 1.1 MMBOPD Flat 1,000,000 800,000 600,000 400,000 200,000 - 6,000,000 1.4 MMBOPD Flat 1.3 MMBOPD Flat 5,000,000 1.2 MMBOP
Slide 21: Williston Basin Production
WILLIS TO N BA S IN P RO DUCTIO N INCREASING PRODUCTION WITH FEWER RIGS AND IMPROVING WELL PERFORMANCE North Dakota Natural Gas Performance North Dakota Crude Oil Performance (Average Well Production, Mcf) (Average Well Production, Bbl) 600,000 IP Year 250,000 IP Year 2014 2014 2015 500,000 2015 201
Slide 22: Natural Gas Pipelines
NATURAL G AS P IP E LINE S CONNECTIVITY TO KEY MARKETS Provides fee-based natural gas transportation and storage services, and direct connectivity to end-use markets Expect 2022 earnings to be >95% fee based Connected directly to end-use markets: Local gas distribution companies, electric-generation
Slide 23: Natural Gas Pipelines – Market Connected
NATURAL G AS P IP E LINE S – M ARKE T CO NNE CTE D 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 position create
Slide 24: 2022 Financial Guidance
2022 FINANCIAL G UIDANCE NET INCOME AND ADJUSTED EBITDA MIDPOINTS AFFIRMED Non-GAAP Reconciliation 2022 Guidance Ranges ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) $ 1,550 - $ 1,830 Interest expense, net of capitalized interest 705 - 685 Depreciation and amortizatio
Slide 25: Environmental, Social and Governance (ESG)
E N V I R O N M E N TA L , SOCIAL AND GOVERNANCE (ESG) Arbuckle II Pipeline completed restoration — Oklahoma
Slide 26: ESG Performance and Reporting
E S G P E RFO RM ANCE AND RE P O RTING ESG Ratings and Rankings ONEOK received an MSCI ESG Rating CDP of AAA. Top 30% As of 2022 U.S. and Canada Oil and Gas sector (C rated) #5 out of 57 companies assessed in the ONEOK’s ESG Risk Rating places it in Oil and Gas Storage and Transportation the top 10%
Slide 27: ONEOK's Sustainability Journey
O NE O K’S S US TAINABILITY JO URNE Y MILESTONES ON OUR PATH TO CONTINUOUS IMPROVEMENT 2010 2007 2009 2010 2014 2017 2018 2019 2020 2021 Formed ESH 1st ESG report GRI reporting Added Formed new Conducted first Established ESG Renewables team Announced 2030 Leadership published environmental Sustaina
Slide 28: ESG Initiatives and Practices - Highlights
E S G INITIATIV E S AND P RACTICE S - HIG HLIG HTS COMMITTED TO SAFETY & OUR PEOPLE & EFFECTIVE GOVERNANCE THE ENVIRONMENT COMMUNITIES & OVERSIGHT Absolute emissions reduction target: >$8 million contributed to local Diverse board of directors: Members 2.2 million metric ton reduction of combined co
Slide 29: Absolute Emissions Reduction Target
ABSOLUTE EMISSIONS REDUCTION TARGET Total 2019 Scope 1 & 2 Emissions (MMT CO2e) Emissions Reduction Opportunities Carbon Dioxide Electricity Electrification of natural gas (CO2e) Consumption compression assets. 3.1 3.0 2.2 MMT Reduction Methane emission mitigation through Combined Scope 1 & 2 best m
Slide 30: Innovation and Infrastructure
INNO VATIO N AND INFRAS TRUCTURE 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 including la
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