Slide 1: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS August 2023
Slide 2: Cautionary Statement
CAUTIO NARY STATEMENT Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in t
Slide 3: Cautionary Statement (Continued)
CAUTIO NARY STATEMENT (CO NTINUED) No Offer or Solicitation This presentation is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any s
Slide 4: ONEOK vs. S&P 500: A Unique Investment Opportunity
O NEO K VS. S&P 500 A UNIQUE INVESTMENT OPPORTUNITY 387 Investment Grade Credit Rating (BBB-/Baa3) 290 Large Market Cap 29 (>$20 billion) High ESG Rating 13 (‘AAA’ from MSCI) Consensus EPS Growth (>10% 2022-2023E) 1 High Dividend Yield and Dividend Stability (~6%; >25 years without a dividend cut) S
Slide 5: Acquisition of Magellan Midstream Partners
ACQ UISITIO N O F MAG ELLAN MIDSTREAM PARTNERS This acquisition provides a compelling long-term value proposition, resulting in a more diversified company with added scope, scale and synergy opportunities. Diverse free cash Enhanced growth flow generation opportunities Combining two industry Strong
Slide 6: Synergy Opportunities
SYNERG Y O PPO RTUNITIES IMMEDIATE TO NEAR-TERM (1-4 YEARS) WITH SIGNIFICANT POTENTIAL UPSIDE BATCHING BLENDING Risk-weighted Synergy Opportunities Assumed Near-term ◆ Liquids pipelines provide opportunities to move NGLs or ◆ Ability to mix products to obtain the (in millions) Potential refined prod
Slide 7: Attractive Dividend Profile
ATTRACTIVE DIVIDEND PRO FILE ONE OF THE HIGHEST YIELDS IN THE S&P 500 >25 YEARS OF DIVIDEND STABILITY 184 190 12% annual growth rate dividends paid (2000 – 2023) $3.82(a) 102 5.7% dividend yield 27 $0.31 0% > 0% - 2% > 2% - 5% > 5% 2000 2023 Source: Bloomberg dividend yield data as of July 21, 2023.
Slide 8: Business Segment Performance
BUSINESS SEG MENT PERFO RMANCE Q2 2023 VS. Q1 2023 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids decreased ▪ $764 million decrease related to the Medford incident, due to the settlement gain of $779 million in the first quarter 2023, which was offset partially by $46 million of third-party fractio
Slide 9: Natural Gas Liquids: Regional Volume Update
NATURAL G AS LIQ UIDS REGIONAL VOLUME UPDATE Average Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled Region First Quarter 2023 Second Quarter 2023 ▪ 17% increase in NGL raw feed throughput compared Rate (per gallon) with the first quarter 2023. Rocky Mountain(b) 321,000 bpd 374,000
Slide 10: Natural Gas Gathering and Processing: Regional Volume Update
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE Average Processed Volumes ◆ Rocky Mountain: Region First Quarter 2023 Second Quarter 2023 ▪ 8% increase in processed volumes compared Rocky Mountain 1,361 MMcf/d 1,473 MMcf/d with the first quarter 2023. ▪ 284 wells connected year-to-dat
Slide 11: Williston Basin Production
WILLISTO N BASIN PRO DUCTIO N RISING GAS-TO-OIL RATIOS (GORS) AND GAS CAPTURE PRESENT OPPORTUNITIES Williston Basin GORs have Statewide flaring has decreased from increased ~90% since 2016. 36% in 2014 to ~5% in May 2023. 3,500 3.00 3,500 Gas Produced (MMcf/d) 2.78 Gas Produced (MMcf/d) 3,000 Oil Pr
Slide 12: Natural Gas Pipelines – Market Connected
NATURAL G AS PIPELINES – MARKET CO NNECTED Intrastate Pipeline System Interstate Pipeline System ◆ Connectivity between key markets ▪ Bi-directional between Mid-Continent and Permian Basin; Mexico markets; Gulf Coast market through pipeline interconnects ◆ Significant storage position creates reliab
Slide 13: Saguaro Connector Pipeline
SAG UARO CO NNECTO R PIPELINE PROPOSED PROJECT OVERVIEW Transporting natural gas from West Texas to the Mexico Border ◆ Originating at the Waha Hub traversing west connecting at the International Intrastate pipeline originating at the Waha Hub Boundary with a new pipeline under development in Mexico
Slide 14: Non-GAAP Reconciliation
NO N -G AAP RECO NCILIATIO N Non-GAAP Reconciliation ($ in millions) Reconciliation of net income Updated 2023 to adjusted EBITDA 2021 2022 Guidance Range(c) Net income(a) (b) $1,500 $1,722 $2,390 - $2,590 Interest expense, net of capitalized interest 733 676 695 - 675 Depreciation and amortization