Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results October 2024
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historica
Slide 3: Diversified. Reliable. Integrated.
Diversified. Reliable. Integrated. • Competitively positioned – key asset locations. • Provides midstream services to producers, processors and downstream customers. • Approximately 50,000-mile network of natural gas liquids (NGL), refined products, natural gas and crude oil pipelines. • Major suppl
Slide 4: Acquisitions to Expand and Extend ONEOK: EnLink & Medallion
Acquisitions to Expand and Extend ONEOK: EnLink & Medallion ONEOK Connects EnLink and Medallion Assets Into ONEOK’s Integrated Platform Establishes fully integrated Permian Basin platform at scale. Expands and extends footprint in Mid- Continent, North Texas and Louisiana. Delivers immediate acc
Slide 5: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights Increased 2024 stand-alone financial guidance • $2.945 billion net income midpoint. Natural Gas • $6.275 billion adjusted EBITDA midpoint. Natural Gas Liquids Gathering and Processing $624 million • $5.02/diluted share EPS midpoint. $318 million Transformative acquisiti
Slide 6: Sustainable Adjusted EBITDA Growth
Sustainable Adjusted EBITDA Growth Proven Growth Through Commodity Cycles (adjusted EBITDA $ in billions) >$8.0(d) $150 $8,000 $7,000 ◆ 10 consecutive years of adjusted EBITDA $6.625(c) Contributions from EnLink and Medallion growth (2013-2023). $6,000 WTI(a) $100 ~$5.2(b) ◆ >15% annual adjusted EBI
Slide 7: Business Segment Performance
Business Segment Performance 3Q 2024 vs. 2Q 2024 Adjusted EBITDA Variances • Natural gas liquids decreased: – $15 million decrease in optimization and marketing due primarily to lower earnings on sales of purity NGLs held in inventory. ONEOK expects an earnings benefit on the forward sales of invent
Slide 8: Natural Gas Liquids
Natural Gas Liquids Segment Update Average Raw Feed Throughput Volumes(a) Average Bundled • Gulf Coast/Permian: Region Second Quarter 2024 Third Quarter 2024 Rate (per gallon) – 7% increase in NGL raw feed throughput vs. 2Q 2024. Rocky Mountain(b) 420,000 bpd 420,000 bpd ~ 30 cents(e) • Growth Proje
Slide 9: Refined Products and Crude
Refined Products and Crude Segment Update Average Throughput Volumes(a) Second Quarter 2024 Third Quarter 2024 • Refined products volumes (3Q 2024 vs. 2Q 2024): Total refined products volume shipped 1,536,000 bpd 1,580,000 bpd – 2% increase in gasoline volume shipped. Gasoline 889,000 bpd 909,000 bp
Slide 10: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Segment Update Average Processed Volumes • Rocky Mountain: Region Second Quarter 2024 Third Quarter 2024 – 2% increase in processed volumes vs. 2Q 2024. Rocky Mountain 1,625 MMcf/d 1,656 MMcf/d – 359 wells connected year-to-date. – Expect to connect 500 – 530 wel
Slide 11: Williston Basin Production
Williston Basin Production Rising gas-to-oil ratios (GORs) and gas capture present opportunities Williston Basin GORs have Statewide flaring has decreased from increased >100% since 2016. 36% in 2014 to ~5% in August 2024. 4,000 3.00 3,500 2.99 3,500 3,000 3,000 2.50 2,500 2.42 2,500 2.04 2,000 2,00
Slide 12: Williston Basin Production Efficiency
Williston Basin Production Efficiency ONEOK’s processed volumes have Longer laterals = fewer well connections needed • Three-mile laterals are increasing; 10% fewer wells needed increased >3x with ~40% fewer well to connect same lateral footage (2024 vs. 2022). connects (2014-2023) 1,520 - 1,750 1,4
Slide 13: Natural Gas Pipelines – Market Connected
Natural Gas Pipelines – Market Connected Intrastate Pipeline System Interstate Pipeline System • Connectivity between key markets: – Bi-directional capability serving Mid-Continent and Permian Basin; Mexico markets; Gulf Coast market through pipeline interconnects. • Significant storage position cre
Slide 14: High-Return Organic Growth Projects
Expanding and Extending Core Infrastructure High-Return Organic Growth Projects 3 Estimated Project Scope Completion West Texas NGL Expands capacity 1 Pipeline Expansion to 740,000 bpd Year-end 2024(a) 4 125,000 bpd in 2 MB-6 Fractionator Mont Belvieu, TX Year-end 2024 Elk Creek NGL Expands capacity
Slide 15: ONEOK vs. S&P 500: A Unique Investment Opportunity
ONEOK vs. S&P 500 A Unique Investment Opportunity INVESTMENT GRADE LARGE MARKET CREDIT RATING CAP STRONG ESG RATING CONSENSUS EPS (Baa3/BBB-) (>$50 billion) CAGR (‘AAA’ MSCI rating) (~10% 2024E-2026E) 1 ATTRACTIVE DIVIDEND YIELD AND 15 DIVIDEND STABILITY OKE Debt Credit Ratings: 22 (>4%; >25 years o
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation ($ in millions) ONEOK Stand-Alone Consolidated 2024 Reconciliation of net income to adjusted EBITDA 2023 Updated 2024 Guidance(a) Guidance(b) Net income(a)(b) $2,659 $2,870 - $3,020 $2,895 - $3,095 Interest expense, net of capitalized interest 866 1,20
Slide 17: October 2024
October 2024