Oneok, Inc. · NYSE:OKE
Oneok — Q1 2021 Earnings Presentation
12 slides from Oneok's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Results
FIRST QUARTER 2 0 2 1 R E S U LT S APRIL 27, 2021
Slide 2: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS Statements contained in this presentation that include company expectations, outlooks 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
Slide 3: First Quarter 2021 – At a Glance
FIRST QUARTER 2021 – AT A GLANCE RESILIENT BUSINESS DRIVES FINANCIAL STRENGTH EPS (Diluted) Growth $0.86 EPS $0.86 vs. $0.69 in Q4’20 $0.70 $0.69 $0.32 17% increase in adjusted EBITDA vs. Q4’20 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Adjusted EBITDA Growth >$245 million ($ in millions) $866.4 DCF in excess
Slide 4: Natural Gas Liquids Volume Update
NATURAL GAS LIQUIDS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled ▪ NGL raw feed throughput increased 4% compared with the Region Fourth Quarter 2020 First Quarter 2021 Rate (per gallon) fourth quarter 2020. Rocky Mountain(b) 244,000 bpd 253,000 bpd ~ 27
Slide 5: Natural Gas Gathering and Processing Volume Update
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 1,937 2,065 1,909 1,850 – 2,110 ◆ 200 MMcf/d Bear Creek natural gas processing plant expansion and related infrastructure expected to be completed in the fourth quarter 2021. 983 827 690 -
Slide 6: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q1 2021 VS. Q4 2020 ADJUSTED EBITDA VARIANCES ◆ Natural gas pipelines increased ▪ $105.0 million increase due primarily to higher average natural gas prices on 5.2 billion cubic feet (Bcf) of natural gas sales in the first quarter 2021 of volumes previously held in inven
Slide 7: Updated 2021 Financial Guidance
UPDATED 2021 FINANCIAL GUIDANCE STRONG VOLUMES EXPECTED TO DRIVE SEGMENT RESULTS 2021 Guidance Range 2021 Earnings Drivers ($ in millions, except per share amounts) ◆ Higher Williston Basin natural gas and NGL Net income $ 1,200 – $ 1,500 volumes Diluted earnings per common share $ 2.69 – $ 3.35 ◆ L
Slide 8: Updated 2021 Financial Guidance: Non-GAAP Reconciliation
UPDATED 2021 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2021 Guidance Range (Millions of dollars) Reconciliation of net income to adjusted EBITDA and distributable cash flow Net income $ 1,200 - $ 1,500 Interest expense, net of capitalized interest 755 - 715 Depreciation and amortization 650 - 630 I
Slide 9: Strong Natural Gas Liquids Volume Recovery
STRONG NATURAL GAS LIQUIDS VOLUME RECOVERY 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 Current Total Capacity ~440,000 bpd stations to meet future customer needs. • Significant operat
Slide 10: Williston Basin: Increasing GOR and Flaring Present Opportunities
WILLISTON BASIN INCREASING GAS-TO-OIL RATIOS (GOR) AND FLARING PRESENT OPPORTUNITIES North Dakota Natural Gas and Crude Oil Produced North Dakota Natural Gas Produced and Flared 3,500 3,500 40% GOR has increased >70% since 2016. 3,137 35% 3,000 3,000 30% 2,704 2,500 2,500 25% 2,000 2,000 20% 2.50 GO
Slide 11: Capturing Flared Production
CAPTURING FLARED PRODUCTION LIMITED WILLISTON BASIN ACTIVITY NEEDED TO MAINTAIN CURRENT VOLUME LEVELS 1,750 O N E O K I l l u s t r a t i v e 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) ONEOK Natural Gas Bear Creek II Processing Capacity online 4Q21 1,500 ~45 average well completions per mon
Slide 12: Non-GAAP Reconciliation
NON-G A A P RECONCILIATION 2020 2021 ($ in Millions) Q2 Q3 Q4 FY Q1 Reconciliation of Net Income to Adjusted EBITDA Net income $ 134 $ 312 $ 309 $ 613 $ 386 Interest expense, net of capitalized interest 219 176 177 713 186 Depreciation and amortization 140 153 154 579 157 Impairment charges - - 3 64