Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 2024
Slide 2: Forward-Looking Statements
Forward-Looking 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 legislati
Slide 3: Diversified. Reliable. Integrated.
Diversified. Reliable. Integrated. • Competitively positioned – key asset locations. • Provides midstream services to producers, processors and downstream customers. • Approximately 50,000-mile network of natural gas liquids (NGL), refined products, natural gas and crude oil pipelines. • Major suppl
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Record Rocky Mountain region volumes • 17% increase in NGL volumes vs. 1Q 2024. • 9% increase in natural gas volumes processed vs. 1Q 2024. Natural Gas Natural Gas Liquids Gathering and Processing $635 million $371 million Strategic growth • Completed the acquisition o
Slide 5: Sustainable Adjusted EBITDA Growth
Sustainable Adjusted EBITDA Growth Proven Growth Through Commodity Cycles (adjusted EBITDA $ in billions) $6.175(c) $150 $6,000 ~$5.2(b) ◆ 10 consecutive years of adjusted One-time insurance settlement gain of $5,000 EBITDA growth (2013-2023). ~$630 MM WTI(a) $100 >15% annual adjusted EBITDA growth
Slide 6: Business Segment Performance
Business Segment Performance 2Q 2024 vs. 1Q 2024 Adjusted EBITDA Variances • Natural gas liquids increased: – $58 million increase in exchange services due primarily to higher volumes in the Rocky Mountain and Mid-Continent regions, and lower volumes of unfractionated NGLs in inventory, offset parti
Slide 7: Natural Gas Liquids
Natural Gas Liquids Segment Update Average Raw Feed Throughput Volumes(a) Average Bundled • Rocky Mountain: Region First Quarter 2024 Second Quarter 2024 Rate (per gallon) – 17% increase in NGL raw feed throughput vs. 1Q 2024. Rocky Mountain(b) 359,000 bpd 420,000 bpd ~ 30 cents(e) • Mid-Continent:
Slide 8: Refined Products and Crude
Refined Products and Crude Segment Update Average Throughput Volumes(a) First Quarter 2024 Second Quarter 2024 • Refined products volumes (2Q 2024 vs. 1Q 2024): Total refined products volume shipped 1,411,000 bpd 1,536,000 bpd – 13% increase in gasoline volume shipped. Gasoline 789,000 bpd 889,000 b
Slide 9: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Segment Update Average Processed Volumes • Rocky Mountain: Region First Quarter 2024 Second Quarter 2024 – 9% increase in processed volumes vs. 1Q 2024. Rocky Mountain 1,485 MMcf/d 1,625 MMcf/d – 106 wells connected in the second quarter 2024. – Expect to connect
Slide 10: Williston Basin Production
Williston Basin Production Rising gas-to-oil ratios (GORs) and gas capture present opportunities Williston Basin GORs have Statewide flaring has decreased from increased ~100% since 2016. 36% in 2014 to ~5% in May 2024. 4,000 3.00 3,500 2.93 3,500 3,000 3,000 2.50 2,500 2.42 2,500 2.04 2,000 2,000 2
Slide 11: Williston Basin Production Efficiency
Williston Basin Production Efficiency ONEOK’s processed volumes have Longer laterals = fewer well connections needed • Three-mile laterals are increasing; 10% fewer wells needed increased >3x with ~40% fewer well to connect same lateral footage (2024 vs. 2022). connects (2014-2023) 1,520 - 1,750 1,4
Slide 12: Natural Gas Pipelines – Market Connected
Natural Gas Pipelines – Market Connected Intrastate Pipeline System Interstate Pipeline System • Connectivity between key markets: – Bi-directional capability serving Mid-Continent and Permian Basin; Mexico markets; Gulf Coast market through pipeline interconnects. • Significant storage position cre
Slide 13: Gulf Coast NGL Pipelines Acquisition
Gulf Coast NGL Pipelines Acquisition Accelerates commercial synergies following the Magellan acquisition ~450 miles of NGL pipelines in strategic Gulf Coast market centers for NGLs, refined products and crude oil. Plan to connect ONEOK’s Mont Belvieu and Houston-based assets. Pipeline connectivity t
Slide 14: Expanding Core Infrastructure
Expanding Core Infrastructure High-Return Growth Projects Elk Creek Expansion West Texas NGL Pipeline Expansion The Elk Creek Pipeline expansion Looping pipeline to increase to 435,000 bpd, will increase NGL NGL capacity out of the capacity out of the Rocky Mountain Permian Basin. region to 575,000
Slide 15: ONEOK vs. S&P 500
ONEOK vs. S&P 500 A Unique Investment Opportunity INVESTMENT GRADE LARGE MARKET CREDIT RATING CAP STRONG ESG RATING CONSENSUS EPS (Baa3/BBB-) (>$40 billion) CAGR (‘AA’ or better from MSCI) (~10% 2024E-2026E) 1 O K E : MS C I E S G R a t i n g o f A A A ATTRACTIVE DIVIDEND YIELD AND 16 DIVIDEND STABI
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation ($ in millions) Reconciliation of net income to adjusted EBITDA 2023 2024 Guidance(a) Net income(b) $2,659 $2,730 - $3,030 Interest expense, net of capitalized interest 866 1,195 - 1,165 Depreciation and amortization 769 1,065 - 1,035 Income taxes 838
Slide 17: August 2024
August 2024