Slide 1: 2022 Results and 2023 Guidance
2022 RESULTS AND 2023 GUIDANCE February 2023
Slide 2: Forward-Looking Statements
FO RWARD -LO O KING 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 legis
Slide 3: ONEOK vs. S&P 500: A Unique Investment Opportunity
O NEO K VS. S&P 500 A UNIQUE INVESTMENT OPPORTUNITY 383 Investment Grade Credit Rating (BBB-/Baa3) 229 Large Market Cap 169 (>$30 billion) High ESG Rating 150 (‘A’ or better from MSCI) Consensus EPS Growth (>3% CAGR 2023-2025E) 1 High Dividend Yield and Dividend Stability (>5.5%; >25 years without a
Slide 4: 2022 Accomplishments and Updates
2022 ACCO MPLISHMENTS AND UPDATES HIGHLIGHTS COMPARED WITH 2021, UNLESS NOTED FINANCIAL OPERATIONAL 15% increase in net income Record Rocky Mountain region volumes NGL volumes +12% 9 consecutive years of EBITDA growth Natural gas processed +4% Increased dividend to 95.5 cents per share Demicks Lake
Slide 5: Financial Strength
FINANCIAL STRENG TH DELIVERING LONG-TERM VALUE TO SHAREHOLDERS SOLID RETURNS SUSTAINABLE EBITDA GROWTH >25 YEARS OF DIVIDEND RETURN ON INVESTED CAPITAL(a) STABILITY EBITDA vs. WTI ($ in millions) $4,575(c) $4,000 $150 $3.82* 14.8% WTI(b) $125 $3,000 12% CAGR Dividends Paid $100 2000 - 2023 $2,000 $7
Slide 6: Fourth-Quarter Highlights and Updates
FO URTH -Q UARTER HIG HLIG HTS AND UPDATES EPS (Diluted) Growth $1.08 ACHIEVED 2022 FINANCIAL GUIDANCE $0.96 24% increase since Q1’22 $0.92 • Net income, earnings per share (EPS) and adjusted EBITDA met or $0.87 surpassed 2022 guidance midpoints. • Driven by increased natural gas and NGL volumes, an
Slide 7: Business Segment Performance
BUSINESS SEG MENT PERFO RMANCE Q4 2022 VS. Q3 2022 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids increased (includes $52.7 million of business interruption insurance recoveries related to the Medford incident) ▪ $81.3 million increase in optimization and marketing due primarily to higher earnings
Slide 8: 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 2023 earnings to be >90% fee based Primary NGL transportation provider for the Williston Basin/P
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 Third Quarter 2022 Fourth Quarter 2022 ▪ 12% increase in volumes compared with 2021 despite Rate (per gallon) multiple weather events. Rocky Mountain(b) 370,000 bpd 333,000 bp
Slide 10: Natural Gas Gathering and Processing
NATURAL G AS G ATHERING AND PRO CESSING SERVING PRODUCERS IN KEY BASINS Provides gathering, compression, treating and processing services to producers. Expect 2023 earnings to be >75% fee based Primarily fee-based contracts 13% 14% 14% 16% with a POP(a) component 22% <25% Primary natural gas process
Slide 11: Natural Gas Gathering and Processing: Regional Volume Update
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE Average Gathered Volumes Average Processed Volumes ◆ Rocky Mountain: Third Quarter Fourth Quarter Third Quarter Fourth Quarter Region 2022 2022 2022 2022 ▪ 4% increase in processed volumes compared with 2021 despite multiple weather even
Slide 12: Williston Basin Production
WILLISTO N BASIN PRO DUCTIO N RISING GAS-TO-OIL RATIOS (GORS) AND GAS CAPTURE PRESENT OPPORTUNITIES Williston Basin GOR’s have Statewide flaring has decreased from increased >80% since 2016. 36% in 2014 to ~6% in December 2022. 3,500 3.00 3,500 Gas Produced (MMcf/d) 2.76 Gas Produced (MMcf/d) 3,000
Slide 13: Natural Gas Pipelines
NATURAL G AS PIPELINES CONNECTIVITY TO KEY MARKETS Provides fee-based natural gas transportation and storage services, and direct connectivity to end-use markets Expect 2023 earnings to be >95% fee based Connected directly to end-use markets: Local gas distribution companies, electric-generation fac
Slide 14: 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 15: 2023 Financial Guidance
2023 FINANCIAL G UIDANCE 2023 Guidance Range 2023 Guidance Drivers ($ in millions, except per share amounts) ◆ Higher natural gas and NGL volumes from Net income (a) $ 2,260 – $ 2,560 producer activity Diluted earnings per common share $ 5.03 – $ 5.69 ◆ Higher average fee rates from inflation-based
Slide 16: 2023 Financial Guidance: Non-GAAP Reconciliation
2023 FINANCIAL G UIDANCE NON-GAAP RECONCILIATION 2023 Guidance Ranges ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) (b) $ 2,260 - $ 2,560 Interest expense, net of capitalized interest 680 - 660 Depreciation and amortization 700 - 680 Income tax expense 715 - 805 Nonca
Slide 17: ESG Performance Recognized
ESG PERFO RMANCE RECO G NIZED Sustainalytics ESG Risk Rating Lowest risk quintile, indicating risk ONEOK received an management in the Oil and Gas Storage and MSCI ESG Rating top 20% of the Refiners and Pipelines industry Transportation Industry of AAA Industry Mover As of Feb. 7, 2023 Top 10% As of
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