Oneok, Inc. · NYSE:OKE
Oneok — Q1 2019 Earnings Presentation
13 slides from Oneok's earnings presentation, Apr 30, 2019
Slide 1: First-Quarter 2019 Results
F I R S T- Q U A R T E R 2 0 1 9 R E S U LT S APRIL 30, 2019
Slide 2: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS Statements contained in this presentation that include company expectations 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 is import
Slide 3: Index
INDEX FINANCIAL STRENGTH 4 NATURAL GAS LIQUIDS 5 NATURAL GAS GATHERING AND PROCESSING 6 NATURAL GAS PIPELINES 7 FIRST-QUARTER 2019 VS. FOURTH-QUARTER 2018 8 SEGMENT VARIANCES 2019 FINANCIAL GUIDANCE 9 NON-GAAP RECONCILIATIONS 11 Elk Creek Pipeline – Wyoming
Slide 4: Financial Strength – A Competitive Advantage
FINANCIAL STRENGTH – A COM PETITIVE ADVANTAGE INCREASING EXCESS CASH ◆ Total liquidity of $3.25 billion at March 31, 2019, with borrowing capacity of $2.5 billion Adjusted EBITDA Growth available on ONEOK’s credit facility and $750 million available on its three-year ($ in millions) unsecured term l
Slide 5: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE N G L R a w F e e d T h r o u g h p u t Vo l u m e (a) (MBbl/d) Average NGL Raw Feed Throughput Volumes Average Bundled Region/Asset Fourth Quarter 2018 First Quarter 2019 Rate (per gallon) 1,080-1,165 Bakken NGL Pipeline 157,000 bpd 167,000 bpd ~30 cents(c) Mid-Con
Slide 6: Natural Gas Gathering and Processing
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 1,915 – 2,115 1,937 Expect to connect approximately 620 wells in 2019 1,680 ◆ 1,561 ▪ 78 well connects completed in the first quarter 2019 973 925-1,025 781 839 ◆ First quarter 2019 natural
Slide 7: Natural Gas Pipelines
NATURAL GAS PIPELINES WELL-POSITIONED AND MARKET-CONNECTED N a t u r a l G a s Tr a n s p o r t a t i o n Capacity Contracted (MDth/d) ◆ Expect more than 95% fee-based earnings in 2019, and: ▪ Approximately 95% of transportation capacity subscribed ▪ Approximately 65% of natural gas storage capacity
Slide 8: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q1 2019 VS. Q4 2018 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids increased ▪ $46.9 million increase in optimization and marketing due primarily to higher earnings on the sale of purity NGLs held in inventory and increased optimization volumes. ▪ $9.7 million decrease
Slide 9: 2019 Financial Guidance
2019 FINANCIAL GUIDANCE ANNOUNCED FEB. 25, 2019 2019 Guidance Range ($ in millions) Midpoint Net income $ 1,140 $ 1,270 $ 1,400 Adjusted EBITDA 2,500 2,600 2,700 Distributable cash flow 1,820 1,940 2,060 Capital-growth expenditures 2,500 3,100 3,700 Maintenance capital expenditures 160 180 200 Segme
Slide 10: 2019 Financial Guidance – Non-GAAP Reconciliation
2019 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2019 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 1,140 - $ 1,400 Interest expense, net of capitalized interest 525 - 475 Depreciation and amortization 490 - 470 Income ta
Slide 11: Non-GAAP Reconciliation
NON-G A A P RECONCILIATION 2017 2018 2019 ($ in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Reconciliation of Net Income to Adjusted EBITDA Net income $186 $176 $167 $65 $594 $266 $282 $314 $293 $1,155 $337 Interest expense, net of capitalized interest 116 118 127 125 486 116 113 122 119 470 115 Depr
Slide 12: Non-GAAP Reconciliations
NON-G A A P RECONCILIATIONS ONEOK has disclosed in this presentation adjusted EBITDA, distributable cash flow (DCF) and dividend coverage ratio, which are non-GAAP financial metrics, used to measure ONEOK’s financial performance, and are defined as follows: Adjusted EBITDA is defined as net income f
Slide 13: Elk Creek Pipeline — Kansas
Elk Creek Pipeline — Kansas