Oneok, Inc. · NYSE:OKE
Oneok — Q4 2024 Earnings Presentation
23 slides from Oneok's earnings presentation, Feb 25, 2025
Slide 1: 2024 Results and 2025 Guidance
2024 Results and 2025 Guidance February 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 legislati
Slide 3: A Premier Energy Infrastructure Leader
A Premier Energy Infrastructure Leader Extensive and Regionally Diversified Operations – Strategically located, ~60,000-mile pipeline network transporting natural gas liquids, refined products, crude oil and natural gas. High-Quality, Market-Connected Assets – Integrated value chain services, drivin
Slide 4: New Business Lines Enhance Long-Term Value Creation
New Business Lines Enhance Long-Term Value Creation ONEOK BUSINESS LINES 2022 K E Y AC Q U I S I T O N S (a) ONEOK BUSINESS LINES 2025 Natural Gas Gathering and Processing Natural Gas Gathering and Processing Transportation Transportation Natural Gas Pipelines Natural Gas Pipelines Storage Storage T
Slide 5: Evolution of ONEOK's Business Mix
Evolution of ONEOK’s Business Mix Gas Pipes Gas Pipes 8% Gas Pipes 13% NGLs NGLs G&P NGLs 13% G&P 37% 37% 28% $8.225 22% $6.784 ~$4 billion billion 30% billion 57% G&P 28% 27% Refined Products Refined Products and Crude and Crude Pre-Magellan EBITDA(a) 2024 EBITDA(b) 2025 EBITDA Guidance(c) Gas and
Slide 6: 2024 Accomplishments and Recent Highlights
2024 Accomplishments and Recent Highlights Financial Operational Sustainability • 11 consecutive years of EBITDA • Completed strategic acquisitions: • Received an MSCI ESG Rating of growth. • EnLink Midstream. AAA in 2024. • 4% dividend increase. • Medallion Midstream. • Morningstar Sustainalytics E
Slide 7: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Quarterly financial results • $1.0 billion net income including noncontrolling interest. • $923 million net income excluding noncontrolling interests, Natural Gas Liquids Natural Gas which were recently acquired. Gathering and Processing $696 million $489 million • $1.
Slide 8: Sustainable Adjusted EBITDA Growth
Sustainable Adjusted EBITDA Growth Proven Growth Through Commodity Cycles (adjusted EBITDA $ in billions) $150 $10,000• 11 consecutive years of adjusted EBITDA $9,000 growth (2013-2024). ~$8.225(d) $8,000 • >16% annual adjusted EBITDA growth rate WTI(a) $100 Earnings from ~$6.8(c) $7,000 (2013-2024)
Slide 9: Business Segment Performance
Business Segment Performance 4Q 2024 vs. 3Q 2024 Adjusted EBITDA Variances • Natural gas liquids increased: – $59 million increase due to adjusted EBITDA from EnLink. – $46 million increase in optimization and marketing due primarily to higher earnings on sales of purity NGLs held in inventory. – $2
Slide 10: Business Segment Performance
Business Segment Performance 4Q 2024 vs. 3Q 2024 Adjusted EBITDA Variances • Natural gas gathering and processing increased: – $200 million increase due to adjusted EBITDA from EnLink. – $16 million increase from the sale of certain non-strategic assets. – $17 million decrease from lower volumes in
Slide 11: Natural Gas Liquids
Natural Gas Liquids One of the Largest Integrated NGL Service Providers Provides fee-based gathering, fractionation, transportation, marketing and storage services linking key NGL market centers. Expect 2025 earnings to be >90% fee based Major NGL transportation provider for the Rocky Mountain, Mid-
Slide 12: Natural Gas Liquids Segment Update
Natural Gas Liquids Segment Update Average Raw Feed Throughput Volumes(a) • Rocky Mountain: – 8% increase in NGL raw feed throughput Average Bundled Region Third Quarter 2024 Fourth Quarter 2024 Rate (per gallon) compared with 2023. Rocky Mountain(b) 420,000 bpd 410,000 bpd ~ 30 cents • Growth Proje
Slide 13: Refined Products and Crude
Refined Products and Crude Critical Liquids Infrastructure and Fee-Based Business Model Provides refined products transportation, storage and distribution, and crude gathering, transportation and storage. Expect 2025 earnings to be ~90% fee based Longest refined products pipeline system 6% 7% 8% ~10
Slide 14: Refined Products and Crude Segment Update
Refined Products and Crude Segment Update Average Throughput Volumes(a) Third Quarter 2024 Fourth Quarter 2024 • Refined products (4Q 2024 vs. 3Q 2024): Total refined products volume shipped 1,580,000 bpd 1,521,000 bpd – >5% increase in average tariff rate. Gasoline 909,000 bpd 869,000 bpd • Crude o
Slide 15: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Serving Producers in Key Basins Provides gathering, compression, treating and processing services to producers. Expect 2025 earnings to be ~90% fee based 14% 14% ~10% Primarily fee-based contracts 20% 15% 22% with a POP(a) component Primary natural gas processer
Slide 16: Natural Gas Gathering and Processing Segment Update
Natural Gas Gathering and Processing Segment Update Average Processed Volumes(a) • Rocky Mountain: – 6% increase in processed volumes compared Region Third Quarter 2024 Fourth Quarter 2024 with 2023. Rocky Mountain 1,656 MMcf/d 1,594 MMcf/d – 509 wells connected in 2024. Mid-Continent 754 MMcf/d 748
Slide 17: Williston Basin Production Efficiency
Williston Basin Production Efficiency Williston Basin GORs Longer laterals = fewer well connections needed increased ~95% since 2016 4,000 3.00 • Three-mile laterals are increasing; 10% fewer wells needed to connect same lateral footage (2025 vs. 2022). 3,500 2.84 3,000 2.50 2.42 2,500 2.04 65% 87%
Slide 18: Natural Gas Pipelines
Natural Gas Pipelines Connectivity to Key Markets Provides fee-based natural gas transportation and storage services, and direct connectivity to end-use markets. Expect 2025 earnings to be ~95% fee based Connected directly to end-use markets: Local gas distribution companies, electric-generation fac
Slide 19: Natural Gas Demand – Strategically Positioned
Natural Gas Demand – Strategically Positioned Well positioned to benefit from industrial demand growth driven by data centers, LNG and ammonia facilities. • LNG export and industrial demand: – Directly connected to major LNG and industrial customers. – Exports provide brownfield storage expansion op
Slide 20: High-Return Organic Growth Projects
Expanding and Extending Core Infrastructure High-Return Organic Growth Projects Estimated Project Scope Completion 2 West Texas NGL Expands capacity 1 Pipeline Expansion to 740,000 bpd Completed(a) Elk Creek NGL Expands capacity 2 Pipeline Expansion to 435,000 bpd(b) Completed(b) Refined Products In
Slide 21: Texas City Logistics Export Terminal Joint Venture (TCX)
Texas City Logistics Export Terminal Joint Venture (TCX) Premier Gulf Coast location establishes wellhead-to-water NGL strategy • 50/50 joint venture with MPLX to construct a new, 400,000-bpd LPG export terminal(a). – 200,000 bpd for ONEOK customers. – Project also includes an 80/20 NGL pipeline joi
Slide 22: 2025 Financial Guidance
2025 Financial Guidance 2025 Guidance Ranges(a) 2025 Guidance Drivers ($ in millions, except per share amounts) Net income $ 3,210 – $ 3,690 • Higher volumes driven by increased Net income attributable to ONEOK $ 3,110 – $ 3,610 production. Diluted earnings per common share $ 4.97 – $ 5.77 • Full-ye
Slide 23: 2025 Financial Guidance Non-GAAP Reconciliation
2025 Financial Guidance Non-GAAP Reconciliation 2025 Guidance Ranges(a) ($ in millions) Reconciliation of net income to adjusted EBITDA 2023 2024 Net income $2,659 $3,112 $3,210 - $3,690 Interest expense, net of capitalized interest 866 1,371 1,770 - 1,730 Depreciation and amortization 769 1,134 1,6