Slide 1: Investor Presentation
INVESTOR PRESENTATION April 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 380 Investment Grade Credit Rating (BBB-/Baa3) 271 Large Market Cap 19 (>$20 billion) High ESG Rating 6 (‘AAA’ from MSCI) Consensus EPS Growth (>10% 2022-2023E) 1 High Dividend Yield and Dividend Stability (~6%; >25 years without a dividend cut) So
Slide 4: Financial Strength
FINANCIAL STRENG TH DELIVERING LONG-TERM VALUE TO SHAREHOLDERS SOLID RETURNS SUSTAINABLE EBITDA GROWTH >25 YEARS OF DIVIDEND RETURN ON INVESTED CAPITAL(a) STABILITY EBITDA vs. WTI ($ in millions) $4,575(c) $4,000 $150 $3.82* 14.8% $3,000 12% CAGR Dividends Paid $100 WTI (b) 2000 - 2023 $2,000 11.0%
Slide 5: Fourth-Quarter Highlights and Updates
FO URTH -Q UARTER HIG HLIG HTS AND UPDATES EPS (Diluted) Growth $1.08 ACHIEVED 2022 FINANCIAL GUIDANCE $0.96 24% increase since Q1’22 $0.92 • Net income, earnings per share (EPS) and adjusted EBITDA met or $0.87 surpassed 2022 guidance midpoints. • Driven by increased natural gas and NGL volumes, an
Slide 6: 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 7: 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 8: 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: A lower-emission hydrocarbon-based fuel, producing reliable and cleaner energy, compared with other fossil fuels. Electricity Generation Heating and Cooking Transportation Fuel Industrial/Manufacturing
Slide 9: Business Segments
BUSINESS SEG MENTS 2023 GUIDANCE N AT U R A L G A S N AT U R A L G A S G AT H E R I N G N AT U R A L G A S LIQUIDS AND PROCESSING PIPELINES >10% >25% 2023 ADJUSTED >60% EBITDA GUIDANCE EARNINGS MIX >90% fee based >75% fee based >95% fee based CONTRACT Fee-based, bundled service volume Fee contracts
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 2023 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 Average Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled Region Third Quarter 2022 Fourth Quarter 2022 ▪ 12% increase in volumes compared with 2021 despite Rate (per gallon) multiple weather events. Rocky Mountain(b) 370,000 bpd 333,000 bp
Slide 12: 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 2020-2050 Petrochemical Petrochemical Health C
Slide 13: 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 2023 earnings to be >75% fee based Primarily fee-based contracts 13% 14% 14% 16% with a POP(a) component 22% <25% Primary natural gas process
Slide 14: Natural Gas Gathering and Processing: Regional Volume Update
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE Average Gathered Volumes Average Processed Volumes ◆ Rocky Mountain: Third Quarter Fourth Quarter Third Quarter Fourth Quarter Region 2022 2022 2022 2022 ▪ 4% increase in processed volumes compared with 2021 despite multiple weather even
Slide 15: Williston Basin Production Efficiency
WILLISTO N BASIN PRO DUCTIO N EFFICIENCY Rising Gas-to-Oil Expanding Core Driven by Increased Coordination Between Improved Drilling and Producers & Midstream Operators Ratios (GORs) Completion Technologies Driving Higher Gas Capture 3.5 Basin-wide natural gas production has increased 250 ONEOK’s pr
Slide 16: 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 >80% since 2016. 36% in 2014 to ~5% in January 2023. 3,500 3.00 3,500 Gas Produced (MMcf/d) Gas Produced (MMcf/d) 2.67 3,000 O
Slide 17: 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 1,400,000 1.4 MMBOPD Flat 1.3 MMBOPD Flat 1,200,000 1.2 MMBOPD Flat ND Oil, MMBOPD 1.1 MMBOPD Flat 1,000,000 800,000 600,000 400,000 200,000 - 6,000,000 1.4 MMBOPD Flat 1.3 MMBOPD Flat 5,000,000 1.2 MMBOP
Slide 18: 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 (Average Well Production, Mcf) (Average Well Production, Bbl) 600,000 IP Year 300,000 IP Year 2014 2014 2015 2015 500,000 250,000
Slide 19: 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 2023 earnings to be >95% fee based Connected directly to end-use markets: Local gas distribution companies, electric-generation fac
Slide 20: 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 21: 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 22: 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 23: 2023 Financial Guidance: Non-GAAP Reconciliation
2023 FINANCIAL G UIDANCE NON-GAAP RECONCILIATION 2023 Guidance Ranges ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) (b) $ 2,260 - $ 2,560 Interest expense, net of capitalized interest 680 - 660 Depreciation and amortization 700 - 680 Income tax expense 715 - 805 Nonca
Slide 24: 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 25: Mission, Vision and Values
MISSIO N, VISIO N AND VALUES We deliver energy products and services vital to an CORE VALUES: Our Compass advancing world. We commit to a zero-incident culture for the well-being of our Safety & employees, contractors and communities and to operate in an MISSION: Environmental environmentally respon
Slide 26: ESG Performance Recognized
ESG PERFO RMANCE RECO G NIZED Sustainalytics ESG Risk Rating Lowest risk quintile, indicating risk ONEOK received an management in the Oil and Gas Storage and MSCI ESG Rating top 20% of the Refiners and Pipelines industry Transportation Industry of AAA Industry Mover As of Feb. 7, 2023 Top 10% As of
Slide 27: ONEOK's Sustainability Journey
O NEO K’S SUSTAINABILITY JO URNEY MILESTONES ON OUR PATH TO CONTINUOUS IMPROVEMENT 2010 2009 2010 2014 2017 2018 2019 2020 2021 2022 1st ESG report GRI reporting Added Formed new Conducted first Established ESG Renewables team Announced 2030 Achieved GHG published environmental Sustainability GRI ma
Slide 28: ESG Initiatives and Practices - Highlights
ESG INITIATIVES AND PRACTICES - HIG HLIG HTS COMMITTED TO SAFETY & OUR PEOPLE & EFFECTIVE GOVERNANCE THE ENVIRONMENT COMMUNITIES & OVERSIGHT Absolute emissions reduction target: >$9 million contributed to local Diverse board of directors: Members 2.2 million metric ton reduction of combined communit
Slide 29: Absolute Emissions Reduction Target
ABSOLUTE EMISSIONS REDUCTION TARGET Total 2019 Scope 1 & 2 Emissions Emissions Reduction Opportunities (MMT CO2e) • Electrification of natural gas compression assets. Carbon Dioxide Electricity • Methane emission mitigation through (CO2e) Consumption best management practices. 2.2 MMT Reduction • Sy
Slide 30: 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
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