Slide 1: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS May 2023
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 386 Investment Grade Credit Rating (BBB-/Baa3) 282 Large Market Cap 24 (>$20 billion) High ESG Rating 12 (‘AAA’ from MSCI) Consensus EPS Growth (>10% 2022-2023E) 1 High Dividend Yield and Dividend Stability (~6%; >25 years without a dividend cut) S
Slide 4: Attractive Dividend Profile
ATTRACTIVE DIVIDEND PRO FILE ONE OF THE HIGHEST YIELDS IN THE S&P 500 >25 YEARS OF DIVIDEND STABILITY 187 12% annual growth rate dividends paid (2000 – 2023) $3.82(a) 171 109 5.7% dividend yield 36 $0.31 0% 0% - 2% 2% - 5% > 5% 2000 2023 Source: Bloomberg dividend yield data as of April 24, 2023. (a
Slide 5: Proven Growth Through Commodity Cycles
PRO VEN G RO WTH THRO UG H CO MMO DITY CYCLES Sustainable adjusted EBITDA growth ($ in millions) $4,575(b) midpoint $4,000 $150 Historical Strength $3,000 WTI(a) Nine consecutive years of adjusted EBITDA WTI ($/Bbl) ◆ $100 growth $2,000 ◆ >12% annual EBITDA growth rate (2013-2022) $50 $1,000 ◆ Signi
Slide 6: Key Investment Considerations
KEY INVESTMENT CO NSIDERATIO NS ONEOK’s Competitive Position Capital Allocation Priorities Market share Connectivity Invest in high-return organic projects Strategic assets in NGL-rich Fully integrated assets. 1 Adjacent to existing asset footprint U.S. shale basins. Primary connectivity between key
Slide 7: Disciplined and Intentional Growth
DISCIPLINED AND INTENTIO NAL G RO WTH Executing highly capital efficient projects Organic capex drives adjusted EBITDA growth Return on Invested Capital(a) Adjusted EBITDA Capex ($ in millions) $4,425 – $4,725(b) 14.8% $3,620 $3,380 11.0% $1,202 $1,270 – $1,480 $697 2017 2022 2021 2022 2023G (a) Ret
Slide 8: Business Segment Earnings Growth
BUSINESS SEG MENT EARNING S G RO WTH NATURAL GAS LIQUIDS NATURAL GAS G&P NATURAL GAS PIPELINES Medford Incident Impact $1.18 – $2.80 – $1.26 B $0.49 B $3.00 B(a) $1.04 B $0.45 – $0.48 B $2.10 B $0.34 B $1.15 B $0.52 B 2017 2022 2023G 2017 2022 2023G 2017 2022 2023G Adjusted EBITDA Adjusted EBITDA Ad
Slide 9: Business Segment Performance
BUSINESS SEG MENT PERFO RMANCE Q1 2023 VS. Q4 2022 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids increased ▪ $733 million increase related to the Medford incident, due to the settlement gain of $779 million, offset partially by $46 million of third-party fractionation costs. ▪ $10 million increase
Slide 10: Natural Gas Liquids
NATURAL G AS LIQ UIDS REGIONAL VOLUME UPDATE Average Raw Feed Throughput Volumes(a) ◆ Mid-Continent: Average Bundled Region Fourth Quarter 2022 First Quarter 2023 ▪ 5% increase in NGL raw feed throughput compared Rate (per gallon) with the fourth quarter 2022. Rocky Mountain(b) 333,000 bpd 321,000 b
Slide 11: Natural Gas Gathering and Processing
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE Average Processed Volumes ◆ Rocky Mountain: Region Fourth Quarter 2022 First Quarter 2023 ▪ 149 wells connected in the first quarter 2023. Rocky Mountain 1,321 MMcf/d 1,361 MMcf/d ◇ Expect to connect 475 – 525 in 2023. Mid-Continent 707
Slide 12: Williston Basin Production
WILLISTO N BASIN PRO DUCTIO N RISING GAS-TO-OIL RATIOS (GORS) AND GAS CAPTURE PRESENT OPPORTUNITIES Williston Basin GORs have Statewide flaring has decreased from increased ~80% since 2016. 36% in 2014 to ~5% in February 2023. 3,500 3.00 3,500 Gas Produced (MMcf/d) Gas Produced (MMcf/d) 3,000 Oil Pr
Slide 13: Natural Gas Pipelines – Market Connected
NATURAL G AS PIPELINES – MARKET CO NNECTED Intrastate Pipeline System Interstate Pipeline System ◆ Connectivity between key markets ▪ Bi-directional between Mid-Continent and Permian Basin; Mexico markets; Gulf Coast market through pipeline interconnects ◆ Significant storage position creates reliab
Slide 14: Saguaro Connector Pipeline
SAG UARO CO NNECTO R PIPELINE PROPOSED PROJECT OVERVIEW Transporting natural gas from West Texas to the Mexico Border ◆ Originating at the Waha Hub traversing west connecting at the International Intrastate pipeline originating at the Waha Hub Boundary with a new pipeline under development in Mexico
Slide 15: 2023 Financial Guidance
2023 FINANCIAL G UIDANCE 2023 Guidance Range 2023 Guidance Drivers ($ in millions, except per share amounts) ◆ Higher natural gas and NGL volumes from Net income (a) $ 2,260 – $ 2,560 producer activity Diluted earnings per common share $ 5.03 – $ 5.69 ◆ Higher average fee rates from inflation-based
Slide 16: Non-GAAP Reconciliation
NO N -G AAP RECO NCILIATIO N Non-GAAP Reconciliation ($ in millions) Reconciliation of net income to adjusted EBITDA 2021 2022 2023 Guidance Range Net income(a) (b) $1,500 $1,722 $2,260 - $2,560 Interest expense, net of capitalized interest 733 676 680 - 660 Depreciation and amortization 622 626 700
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