Oneok, Inc. · NYSE:OKE
Oneok — Q2 2016 Earnings Presentation
9 slides from Oneok's earnings presentation, Aug 2, 2016
Slide 1: Second-Quarter 2016 Update
SECOND-QUARTER 2016 UPDATE August 2, 2016
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 importa
Slide 3: Index
INDEX ONEOK Partners Growth 4 Natural Gas Liquids Volume Update 5 Natural Gas Gathering and Processing Volume Update 6 Natural Gas Pipelines Revenue Overview 7 Second Quarter vs. First Quarter Segment Variances 8 Page 3
Slide 4: OKS Growth: 2006 – 2016
OKS GROWTH: 2006 – 2016 COMPLETED ~$9 BILLION OF GROWTH PROJECTS AND ACQUISITIONS • Significant excess capacity creates room for growth with low capital requirements 1 1. Bakken/Williston Basin 2. Niobrara/Powder River Basin • Plants: Garden Creek I, II and III; Grasslands • Bakken NGL Pipeline and
Slide 5: Natural Gas Liquids Volume Update
NATURAL GAS LIQUIDS VOLUME UPDATE Gathered Volume (MBbl/d) • Approximately one-third of all U.S. ethane being rejected is on ONEOK Partners’ NGL system 175-200 155 • Potential annual earnings uplift from full ethane recovery 800-870 estimated to be approximately $200 million 769 105 • 2016 volume gr
Slide 6: Natural Gas Gathering and Processing Volume and Earnings Update
NATURAL GAS GATHERING AND PROCESSING VOLUME AND EARNINGS UPDATE Gathered Volumes (MMcf/d) 1,700 – 1,800 Increased Earnings Q2 vs Q1 2016 1,524 1,404 • Higher average fee rates on new natural gas volumes in the 950–1,000 Williston Basin 862 • Continued contract restructuring efforts 917 Rocky Mountai
Slide 7: Natural Gas Pipelines: Serving Mostly Investment-Grade Utilities
NATURAL GAS PIPELINES SERVING MOSTLY INVESTMENT–GRADE UTILITIES 2016 Percent of Revenues From Firm, Fee Contracts* 2016 Largest Pipeline Customers* Roadrunner Gas Transmission** ~ 100% AGL Resources Guardian Pipeline ~ 98% Atmos Energy Viking Gas Transmission ~ 97% Comisión Federal de Electricidad**
Slide 8: Business Segment Performance Q2 2016 vs. Q1 2016 Variances
BUSINESS SEGMENT PERFORMANCE Q2 2016 vs. Q1 2016 VARIANCES • Natural gas liquids earnings increased – $15.6 million increase in optimization and marketing activities due primarily to wider marketing product price differentials – $9.8 million increase in fee-based exchange services, due primarily to
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