Slide 1: First Quarter 2024 Results
First Quarter 2024 Results April 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 and market share. • 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 pipelin
Slide 4: First Quarter 2024 Highlights
First Quarter 2024 Highlights Increases 2024 financial guidance • $2.88 billion net income midpoint. Natural Gas Natural Gas Liquids Gathering and Processing • $6.175 billion adjusted EBITDA midpoint. $588 million $306 million • $4.92/diluted share EPS midpoint. Year-over-year Rockies volume growth
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 Q1 2024 vs. Q4 2023 Adjusted EBITDA Variances Operating costs decreased in the natural gas liquids, natural gas gathering and processing and natural gas pipelines segments due primarily to the lower allocation of corporate costs (now also being allocated to the refined p
Slide 7: Business Segment Performance
Business Segment Performance Q1 2024 vs. Q4 2023 Adjusted EBITDA Variances • Natural gas gathering and processing decreased: – $34 million decrease from lower volumes due primarily to the impact of winter weather. – $9 million increase from lower operating costs. • Natural gas pipelines increased: –
Slide 8: Natural Gas Liquids
Natural Gas Liquids Regional Volume Update Average Raw Feed Throughput Volumes(a) Average Bundled • Rocky Mountain region and Mid-Continent Region Fourth Quarter 2023 First Quarter 2024 Rate (per gallon) volumes impacted by winter weather in the Rocky Mountain(b) 399,000 bpd 359,000 bpd ~ 30 cents(e
Slide 9: Refined Products and Crude
Refined Products and Crude Segment Update Average Throughput Volumes(a) Fourth Quarter 2023 First Quarter 2024 • Growth Projects: Total refined products volume shipped 1,547,000 bpd 1,411,000 bpd – In March 2024, ONEOK purchased an Gasoline 861,000 bpd 789,000 bpd additional 10% interest in the Sadd
Slide 10: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Regional Volume Update Average Processed Volumes • Rocky Mountain: Region Fourth Quarter 2023 First Quarter 2024 – 117 wells connected in the first quarter 2024. Rocky Mountain 1,590 MMcf/d 1,485 MMcf/d – Expect to connect 530 – 600 wells in 2024. • Mid-Continent
Slide 11: 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 ~85% since 2016. 36% in 2014 to ~5% in February 2024. 4,000 3.00 3,500 3,500 2.70 3,000 3,000 2.50 2,500 2.42 2,500 2.04 2,000 2,0
Slide 12: 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 13: Natural Gas Pipelines – Market Connected
Natural Gas Pipelines – Market Connected 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: Expanding Core Infrastructure
Expanding Core Infrastructure High-Return Growth Projects Elk Creek Expansion West Texas NGL Pipeline Expansion MB-6 Fractionator The Elk Creek Pipeline expansion to The West Texas NGL Pipeline 125,000 bpd in Mont Belvieu, TX. 435,000 barrels per day (bpd), will increase expansion to 740,000 bpd wil
Slide 15: ONEOK vs. S&P 500: A Unique Investment Opportunity
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 Updated to adjusted EBITDA 2023 2024 Guidance Net income(a) $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
Slide 17: April 2024
April 2024