Slide 1: Investor Update
INVESTOR U P D AT E DECEMBER 2021 Bear Creek Plant Expansion
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 372 Investment Grade Credit Rating (BBB-/Baa3) 287 Large Market Cap 149 (>$20 billion) High ESG Rating 115 (‘A’ or better from MSCI) Consensus EPS Growth (>5% CAGR 2021-2023E) 1 High Dividend Yield and Dividend Stability (>5%; >25 years without div
Slide 4: Integrated. Reliable. Diversified.
INTEG RATED. RELIABLE. DIVERSIFIED. ◆ Competitively positioned – key asset locations and market share ◆ Approximately 40,000-mile network of natural gas liquids (NGL) and natural gas pipelines ◆ Greater than 10 Bcf/d (or 10%) of U.S. natural gas production is reliant on the utilization of ONEOK’s in
Slide 5: Investment Thesis
INVESTMENT THESIS A PREMIER ENERGY INFRASTRUCTURE COMPANY ONEOK’s Competitive Position Key Priorities Operating Market Share Connectivity Operate safely and environmentally Leverage 1 responsibly Strategic assets in NGL Fully integrated assets Available capacity and Reinvest cash flow in high-return
Slide 6: Proven Growth Through Commodity Cycles
PRO VEN G RO WTH THRO UG H CO MMO DITY CYCLES Sustainable EBITDA Growth ($ in millions) $100 COVID-19 $3,500 $3,375 $75 $3,000 HISTORICAL STRENGTH $2,500 • >10% annual EBITDA growth (2014-2020) WTI(a) $2,000 $50 FUTURE MOMENTUM $1,500 • Significant operating leverage from recently $25 $1,000 complet
Slide 7: Delivering the Energy That Improves Our Lives
DELIVERING THE ENERG Y THAT IMPRO VES O UR LIVES COMMON USES OF NATURAL GAS AND NGLS Natural Gas: The lowest-emission hydrocarbon-based fuel, producing inexpensive, reliable and clean energy. Electricity Generation Heating and Cooking Transportation Fuel Industrial/Manufacturing Natural Gas Liquids
Slide 8: Attractive Dividend Profile
ATTRACTIVE DIVIDEND PRO FILE 1 OF 16 COMPANIES IN THE S&P 500 WITH A DIVIDEND YIELD GREATER THAN 5% S&P 500 Dividend Yield Consistent Returns to Shareholders $3.74 217 163 14% CAGR Dividends Paid 2000 - 2020 109 6% 16 $0.27 0% 0% - 2% 2% - 5% > 5% 2000 2020 Source: NASDAQ market data as of Nov. 28,
Slide 9: Business Segments
BUSINESS SEG MENTS 2021 GUIDANCE Natural Gas Liquids Natural Gas Gathering Natural Gas Pipelines and Processing ~15% ~25% 2021 ADJUSTED ~60% EBITDA GUIDANCE EARNINGS MIX ~90% fee based ~85% fee based >95% fee based(a) CONTRACT Fee-based, bundled service volume Fee contracts with a Fee-based, demand
Slide 10: 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 2021 earnings to be ~90% fee based Primary NGL transportation provider for the Williston Basin/P
Slide 11: Natural Gas Liquids: Regional Volume Update
NATURAL G AS LIQ UIDS REGIONAL VOLUME UPDATE Av e r a g e R a w F e e d T h r o u g h p u t Vo l u m e s (a) ◆ Rocky Mountain (~25 cpg avg. bundled rate(e)) (bpd) ▪ NGL raw feed throughput increased 5% compared with the second quarter 2021. 1,275,000 1,209,000 1,105,000 – ▪ One new third-party natur
Slide 12: Strong Natural Gas Liquids Volume Recovery
STRO NG NATURAL G AS LIQ UIDS VO LUME RECO VERY Rockies Region NGL Raw Feed Throughput (bpd) Capacity Expandable to ~540,000 bpd • Minimal capital needed to further 100,000 expand Elk Creek Pipeline with pump stations to meet future Current Total Capacity ~440,000 bpd customer needs. • Significant o
Slide 13: Global NGL Demand Outlook
G LO BAL NG L DEMAND O UTLO O K DIVERSE USES DRIVE DEMAND GROWTH Global NGL Demand Forecast (Million bpd) LPG Ethane NGL Demand Growth Drivers 20 Ethane Liquified Petroleum Gas (LPG) 16 Petrochemical Demand Residential Transportation Fuel 12 ~20% Growth 2020-2040 Petrochemical Petrochemical Health C
Slide 14: Ethane Recovery Economics
ETHANE RECO VERY ECO NO MICS ONEOK’S NGL INFRASTRUCTURE CONNECTS SUPPLY WITH THE GULF COAST MARKET ◆ Increasing ethane prices drive improving recovery economics. ◆ Incremental ethane opportunity for ONEOK by region(a): ▪ Mid-Continent: ~100,000 bpd ▪ Williston Basin: >125,000 bpd Ethane Recovery Gui
Slide 15: 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 2021 earnings to be ~85% fee based Primarily fee-based contracts 15% 13% 14% ~15% 20% 16% with a POP(a) component Primary natural gas process
Slide 16: Gathering and Processing: Regional Volume Update
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE ◆ Rocky Mountain: G a t h e r e d Vo l u m e s ( M M c f / d ) Rocky Mountain Mid-Continent ▪ 2% increase in processed volumes compared with the second quarter 2021. ▪ Completion of the 200 MMcf/d Bear Creek natural gas processing plant
Slide 17: Williston Basin Production Efficiency
WILLISTO N BASIN PRO DUCTIO N EFFICIENCY Rising Gas-to-Oil Improved Drilling Increased Coordination Between and Completion Producers & Midstream Operators Ratios (GORs) Technologies Driving Higher Gas Capture 3.5 Basin-wide natural gas production has increased 250 ONEOK’s processed volumes have incr
Slide 18: Williston Basin Production
WILLISTO N BASIN PRO DUCTIO N INCREASING GAS-TO-OIL RATIOS (GOR) AND GAS CAPTURE PRESENT OPPORTUNITIES Williston Basin GOR’s have Statewide flaring has decreased from increased >85% since 2016. 36% in 2014 to 6% in September 2021. 3,500 3.00 3,500 Gas Produced (MMcf/d) Gas Produced (MMcf/d) 3,000 Oi
Slide 19: Limited Activity Needed to Maintain Volumes
LIMITED ACTIVITY NEEDED TO MAINTAIN VO LUMES ONEOK Illustrative Williston Basin D e d i c a t e d G r o s s P r o d u c t i o n (a) 1,750 ~45 average well completions per month 1,500 ~35 average well completions per month Flared gas capture ~25 average well completions per month opportunity ~15 aver
Slide 20: Increasing GORs Result in Natural Gas Volume Growth
I N C R E A S I N G G O R S R E S U LT I N N AT U R A L G A S V O L U M E G R O W T H 1,600,000 1.5 MMBOPD Flat 1,400,000 1.4 MMBOPD Flat 1.3 MMBOPD Flat 1,200,000 1.2 MMBOPD Flat ND Oil, BOPD April 2021 Flat Oil Prod. 1,000,000 800,000 600,000 400,000 200,000 0 6,000 1.5 MMBOPD Flat 1.4 MMBOPD Flat
Slide 21: Williston Basin Production
WILLISTO N BASIN PRO DUCTIO N INCREASING PRODUCTION WITH FEWER RIGS AND IMPROVING WELL PERFORMANCE North Dakota Natural Gas Performance North Dakota Crude Oil Performance 600,000 (Average Well Production, Mcf) 250,000 (Average Well Production, Bbl) IP Year IP Year 2020 2020 ~7% improvement 2019 ~11%
Slide 22: 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 2021 earnings to be >95% fee based(a) <5% Connected directly to end-use markets: Local gas distribution companies, electric-generat
Slide 23: 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 24: Increased 2021 Financial Guidance
INCREASED 2021 FINANCIAL G UIDANCE NON-GAAP RECONCILIATION Increased 2021 Guidance Range ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) $ 1,430 - $ 1,550 Interest expense, net of capitalized interest 750 - 730 Depreciation and amortization 630 - 620 Income tax expense
Slide 25: Environmental, Social and Governance (ESG)
E N V I R O N M E N TA L , SOCIAL AND GOVERNANCE (ESG) Arbuckle II Pipeline completed restoration — Oklahoma
Slide 26: ONEOK's Sustainability Journey
O NEO K’S SUSTAINABILITY JO URNEY MILESTONES ON OUR PATH TO CONTINUOUS IMPROVEMENT 2010 2007 2009 2010 2014 2017 2018 2019 2020 2021 Formed ESH 1st ESG report GRI reporting Added Formed new Conducted first Established ESG Renewables team Announced 2030 Leadership published environmental Sustainabili
Slide 27: Promoting Long-Term Business Sustainability
PRO MO TING LO NG -TERM BUSINESS SUSTAINABILITY Environmental Social Governance Providing solutions to Long history of promoting Sustainability reporting reduce flaring in the diversity and inclusion references SASB and TCFD Williston Basin ESG-focused leadership Announced absolute Committed to ongo
Slide 28: Absolute Emissions Reduction Target
ABSOLUTE EMISSIONS REDUCTION TARGET Total 2019 Scope 1 & 2 Emissions (MMT CO2e) Carbon Dioxide Electricity Emissions Reduction Opportunities (CO2e) Consumption Electrification of natural gas 3.1 3.0 30% Reduction compression assets (2.2 MMT) Methane mitigation through best Scope 1 & 2 Emissions mana
Slide 29: Innovation and Infrastructure
INNO VATIO N AND INFRASTRUCTURE PROJECTS TO REDUCE EMISSIONS ONEOK is helping lead efforts The use of electric powered ONEOK interconnects with to reduce natural gas flaring compressors provides an renewable natural gas (RNG) in the Williston Basin, opportunity to reduce GHG facilities including lan
Slide 30: Credit and ESG Ratings
CREDIT AND ESG RATING S Investment Grade Credit Ratings ESG-focused Ratings and Rankings Agency Rating Issued/Affirmed Organization Rating / Ranking BBB Nov. 2020 MSCI ESG Ratings AA rated Fitch Ratings (Stable) Sustainalytics Ranked in the top 20% in Refiners and Pipeline Industry Baa3 Moody’s (Sta
Slide 31: ESG Initiatives and Practices
ESG INITIATIVES AND PRACTICES PROMOTING LONG-TERM BUSINESS SUSTAINABILITY ◆ Effective Governance and Oversight ◆ Committed to Safety ▪ Diverse board of directors – members elected annually, including a ▪ Training – robust protocols and training focused on employee, asset and nonexecutive chairman, l