ONEOK, Inc. · NYSE:OKE
ONEOK — Q4 2018 Earnings Presentation
16 slides from ONEOK's earnings presentation, Feb 25, 2019
Slide 1: Fourth-Quarter and Full-Year 2018 Results
FOURTH-QUARTER AND FULL-YEAR 2 0 1 8 R E S U LT S FEB. 25, 2019
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 import
Slide 3: Index
INDEX FINANCIAL STRENGTH 4 2019 FINANCIAL GUIDANCE 5 NATURAL GAS LIQUIDS 6 ELK CREEK PIPELINE VOLUME EXPECTATIONS 8 NATURAL GAS GATHERING AND PROCESSING 9 NATURAL GAS PIPELINES 11 FOURTH-QUARTER 2018 VS. THIRD-QUARTER 2018 12 SEGMENT VARIANCES NON-GAAP RECONCILIATIONS 13 Elk Creek Pipeline – Wyoming
Slide 4: Financial Strength – A Competitive Advantage
FINANCIAL STRENGTH – A COM PETITIVE ADVANTAGE INCREASING EXCESS CASH ◆ Total liquidity of $3.5 billion at Dec. 31, 2018, with borrowing capacity of $2.5 billion Adjusted EBITDA Growth available on ONEOK’s credit facility and $950 million available on its three-year ($ in billions) unsecured term loa
Slide 5: ONEOK 2019 Financial Guidance
ONEOK 2019 FINANCIAL GUIDANCE 2019 Guidance ($ in millions) Net income $ 1,140 – $ 1,400 Adjusted EBITDA $ 2,500 – $ 2,700 Distributable cash flow $ 1,820 – $ 2,060 Capital-growth expenditures $ 2,500 – $ 3,700 Maintenance capital expenditures $ 160 – $ 200 Segment Adjusted EBITDA: Natural Gas Liqui
Slide 6: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE ◆ NGL volumes gathered increased 12 percent compared with 2017 G a t h e r e d Vo l u m e ( M B b l / d ) ◆ Ethane volumes across ONEOK’s system increased approximately 65,000 bpd compared with 2017 2018 third-party natural gas processing plant connections: 912 ◆ 77
Slide 7: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE New Disclosure NGL Gathered and Fractionated N G L R a w F e e d T h r o u g h p u t Vo l u m e Vo l u m e s ( M B b l / d ) (d)(MBbl/d) 912 770 812 715 586 621 1,080-1,165 895 1,010 836 2016 2017 2018 2016 2017 2018 2019G Gathered Volume Fractionated Volume Full Ye
Slide 8: Elk Creek Pipeline Volume Ramp
ELK CREEK PIPELINE VOLUME RAMP EXPECT TO ACHIEVE FOUR TO SIX TIMES EBITDA MULTIPLE IN FIRST QUARTER 2020 240,000 Current contracted capacity: 170,000 bpd Additional contracted volume: Demicks Lake II and third-party plant connections and expansions (includes Williston Basin flared volume); productio
Slide 9: Natural Gas Gathering and Processing
NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) Rocky Mountain 1,915 – 2,115 1,937 143 well connects completed in fourth quarter 2018; 610 for the full year 2018 1,680 ◆ 1,561 973 925-1,025 ◆ Expect to connect approximately 620 wells in 2019 839 781 ◆
Slide 10: North Dakota Natural Gas Flaring
NORTH DAKOTA NATURAL GAS FLARING CONNECTED MORE THAN 600 WELLS IN 2018 ONEOK Dedicated Gross Production 1,700 1,500 Capacity with Demicks Lake II 1,300 Capacity with Demicks Lake I MMcfd 1,100 Gas Flared Current ONEOK Natural Gas Flared Gas Processing Capacity 900 Gas Captured Gas Captured 700 500 F
Slide 11: Natural Gas Pipelines
NATURAL GAS PIPELINES WELL-POSITIONED AND MARKET-CONNECTED N a t u r a l G a s Tr a n s p o r t a t i o n Capacity Contracted (MDth/d) ◆ Expect more than 95 percent fee-based earnings in 2019, and: ▪ Approximately 95 percent of transportation capacity subscribed ▪ Approximately 65 percent of natural
Slide 12: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q4 2018 VS. Q3 2018 ADJUSTED EBITDA VARIANCES ◆ Natural gas gathering and processing increased ▪ $16.4 million increase due primarily to natural gas volume growth in the STACK and SCOOP areas ▪ $6.7 million increase due to unfavorable contract settlements in the third qu
Slide 13: 2019 Financial Guidance Non-GAAP Reconciliation
2019 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2019 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 1,140 - $ 1,400 Interest expense, net of capitalized interest 525 - 475 Depreciation and amortization 490 - 470 Income ta
Slide 14: Non-GAAP Reconciliation
NON-G A A P RECONCILIATION 2016 2017 2018 ($ in Millions) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Reconciliation of Net Income to Adjusted EBITDA Net income $744 $186 $176 $167 $65 $594 $266 $282 $314 $293 $1,155 Interest expense, net of capitalized interest 470 116 118 127 125 486 116 113 122 119 470 Depr
Slide 15: Non-GAAP Reconciliations
NON-G A A P RECONCILIATIONS ONEOK has disclosed in this presentation adjusted EBITDA, distributable cash flow (DCF) and dividend coverage ratio, which are non-GAAP financial metrics, used to measure ONEOK’s financial performance, and are defined as follows: Adjusted EBITDA is defined as net income f
Slide 16: Elk Creek Pipeline — Kansas
Elk Creek Pipeline — Kansas