Slide 1: Third Quarter 2022 Results
THIRD QUARTER 2022 RESULTS November 1, 2022
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 380 Investment Grade Credit Rating (BBB-/Baa3) 269 Large Market Cap 176 (>$20 billion) High ESG Rating 135 (‘A’ or better from MSCI) Consensus EPS Growth (>5% CAGR 2022-2024E) 1 High Dividend Yield and Dividend Stability (>6%; >25 years without a d
Slide 4: Financial Strength
FINANCIAL STRENG TH DELIVERING LONG-TERM VALUE TO SHAREHOLDERS SOLID RETURNS SUSTAINABLE EBITDA GROWTH >25 YEARS OF DIVIDEND RETURN ON INVESTED CAPITAL(a) STABILITY EBITDA vs. WTI ($ in millions) $4,000 $3,620 13.6% $150 $3.74 WTI(b) $125 $3,000 13% CAGR Dividends Paid $100 2000 - 2021 11.0% $2,000
Slide 5: Third Quarter 2022 Highlights
THIRD Q UARTER 2022 HIG HLIG HTS EPS (Diluted) Growth $0.96 ON TRACK TO ACHIEVE 2022 FINANCIAL GUIDANCE MIDPOINTS $0.92 • Net income, earnings per share (EPS) and adjusted EBITDA increased in Q3. 13% increase • Increase in natural gas and NGL volumes, and higher storage rates. $0.87 since Q4’21 $0.8
Slide 6: Business Segment Performance
BUSINESS SEG MENT PERFO RMANCE Q3 2022 VS. Q2 2022 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids decreased ▪ $44.2 million decrease in optimization and marketing due primarily to lower earnings on sales of purity NGLs held in inventory and narrower location and commodity price differentials. ONEOK
Slide 7: Natural Gas Liquids
NATURAL G AS LIQ UIDS REGIONAL VOLUME UPDATE Average Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled 12% increase in NGL raw feed throughput compared Region Second Quarter 2022 Third Quarter 2022 ▪ Rate (per gallon) with the second quarter 2022. Rocky Mountain(b) 329,000 bpd 370,000
Slide 8: 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. 70,000 • Signif
Slide 9: Natural Gas Gathering and Processing
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) ◆ Rocky Mountain: Rocky Mountain Mid-Continent ▪ 12% increase in processed volumes compared with the second quarter 2022. 2,065 2,090– 2,370 ▪ 244 wells connected year-to-date 1,909 2,030 Expe
Slide 10: 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 >90% since 2016. 36% in 2014 to ~6% in August 2022. 3,500 3.00 3,500 Gas Produced (MMcf/d) Gas Produced (MMcf/d) 2.88 3,000 Oi
Slide 11: 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 12: 2022 Financial Guidance
2022 FINANCIAL G UIDANCE NET INCOME AND ADJUSTED EBITDA MIDPOINTS AFFIRMED Non-GAAP Reconciliation 2022 Guidance Ranges ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) $ 1,550 - $ 1,830 Interest expense, net of capitalized interest 705 - 685 Depreciation and amortizatio