Oneok, Inc. · NYSE:OKE
Oneok — Investor Presentation (January 2025)
33 slides from Oneok's investor presentation, January 2025
Slide 1: Investor Presentation
Investor Presentation January 2025
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical
Slide 3: Cautionary Statement
Cautionary Statement NO OFFER OR SOLICITATION This presentation is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction
Slide 4: A Premier Energy Infrastructure Leader
A Premier Energy Infrastructure Leader Extensive and Diversified Operations – Strategically located, 50,000+ mile pipeline network transporting natural gas liquids, refined products, crude oil and natural gas. High-Quality, Market-Connected Assets – Integrated value chain services, driving growth an
Slide 5: 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-) (>$60 billion) CAGR (‘AAA’ MSCI rating) (~10% 2024E-2026E) 1 ATTRACTIVE DIVIDEND YIELD AND 15 DIVIDEND STABILITY OKE Debt Credit Ratings: 20 (~4%; >25 years o
Slide 6: Delivering the Energy That Improves Our Lives
Delivering the Energy That Improves Our Lives ONEOK delivers energy products that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. These essential energy products have many
Slide 7: Key Investment Considerations
Key Investment Considerations Scale. Scope. Growth. Resiliency. S&P 500 index member Diversified services, Flexibility to grow at the Strong balance sheet and one of the largest product mix and free cash pace customers need and investment-grade energy infrastructure flow generation with through high
Slide 8: Enhanced Capital Allocation Framework
Enhanced Capital Allocation Framework Value-driven Framework Illustrative Long-term Cash Allocation(a) Debt reduction / • Remain committed to high-return capital-growth Other opportunities and maintaining a strong balance sheet. – Investment-grade credit ratings. Dividends Share – ~3.5x long-term le
Slide 9: Attractive Dividend Profile
Attractive Dividend Profile ONEOK Dividend Growth Outpaces C-Corp Peers(a) >25 Years of ONEOK Dividend Stability 100% $3.96 50% Percent Change in Annual Dividends 0% -50% $0.31 -100% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2000 2024 ONEOK Peer 1 Peer 2 Peer 3 . (a) Defined as the perc
Slide 10: Sustainable Adjusted EBITDA Growth
Sustainable Adjusted EBITDA Growth Proven Growth Through Commodity Cycles (adjusted EBITDA $ in billions) >$8.0(d) $150 $8,000 $7,000 ◆ 10 consecutive years of adjusted EBITDA Contributions from $6.625(c) EnLink and Medallion growth (2013-2023). $6,000 WTI(a) ◆ >15% annual adjusted EBITDA growth rat
Slide 11: Acquisitions Align With Our Strategic Priorities
Acquisitions Align With Our Strategic Priorities ONEOK Business Mix Evolution With EnLink and Medallion(c) >$8 billion EBITDA run-rate Gas Gas Pipes Pipes Gas Pipes G&P NGL NGL G&P NGL G&P Refined Products and Crude Refined Products and Crude Pre-Magellan(a) 2024 guidance(b) ~$4 billion EBITDA $6.27
Slide 12: Acquisitions to Expand and Extend ONEOK: EnLink & Medallion
Acquisitions to Expand and Extend ONEOK: EnLink & Medallion ONEOK Connects EnLink and Medallion Assets Into ONEOK’s Integrated Platform Establishes fully integrated Permian Basin platform at scale. ✓ Expands and extends footprint in Mid- Continent, North Texas and Louisiana. ✓ Delivers immediate acc
Slide 13: EnLink and Medallion Identified Synergies…With Upside
EnLink and Medallion Identified Synergies…With Upside Base synergies used to underwrite transactions • Base case annual synergies of $250 million represent less than half of total expected within three years. unrisked identified potential. – Corporate cost savings. – Operational efficiency. – Enhanc
Slide 14: Magellan Synergy Opportunities
Magellan Synergy Opportunities Immediate to Near-Term (1-4 Years) with Significant Potential Upside Initially Near-term BATCHING BLENDING Risk-weighted Synergy Opportunities (in millions) Assumed Potential • Liquids pipelines provide • Ability to mix products to obtain the opportunities to move NG
Slide 15: 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 16: Expanding and Extending Core Infrastructure
Expanding and Extending Core Infrastructure High-Return Organic Growth Projects 3 Estimated Project Scope Completion West Texas NGL Expands capacity 1 Pipeline Expansion to 740,000 bpd Completed(a) 4 125,000 bpd in 2 MB-6 Fractionator Mont Belvieu, TX Completed Elk Creek NGL Expands capacity 5 3 Pip
Slide 17: Natural Gas Liquids
Natural Gas Liquids One of the Largest Integrated NGL Service Providers Provides fee-based gathering, fractionation, transportation, marketing and storage services linking key NGL market centers. Expect 2024 earnings to be >90% fee based Primary NGL transportation provider for the Williston Basin/PR
Slide 18: Natural Gas Liquids
Natural Gas Liquids Segment Update Average Raw Feed Throughput Volumes(a) • Gulf Coast/Permian: Region Second Quarter 2024 Third Quarter 2024 Average Bundled Rate (per gallon) – 7% increase in NGL raw feed throughput vs. 2Q 2024. Rocky Mountain(b) 420,000 bpd 420,000 bpd ~ 30 cents(e) • Growth Proje
Slide 19: Refined Products and Crude
Refined Products and Crude Critical Liquids Infrastructure and Fee-Based Business Model Provides refined products transportation, storage and distribution, and long-haul crude transportation and storage. Expect 2024 earnings to be >85% fee based Longest refined products pipeline system 8% 6% 7% 8% 1
Slide 20: Refined Products and Crude
Refined Products and Crude Segment Update Average Throughput Volumes(a) Second Quarter 2024 Third Quarter 2024 • Refined products volumes (3Q 2024 vs. 2Q 2024): Total refined products volume shipped 1,536,000 bpd 1,580,000 bpd – 2% increase in gasoline volume shipped. Gasoline 889,000 bpd 909,000 bp
Slide 21: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Serving Producers in Key Basins Provides gathering, compression, treating and processing services to producers. Expect 2024 earnings to be ~85% fee based 13% 14% 14% ~15% Primarily fee-based contracts 22% 20% with a POP(a) component Primary natural gas processer
Slide 22: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Segment Update Average Processed Volumes • Rocky Mountain: Region Second Quarter 2024 Third Quarter 2024 – 2% increase in processed volumes vs. 2Q 2024. Rocky Mountain 1,625 MMcf/d 1,656 MMcf/d – 359 wells connected through 3Q 2024. – Expect to connect 500 – 530
Slide 23: 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 ~6% in October 2024. 4,000 3.00 3,500 2.90 3,500 3,000 3,000 2.50 2,500 2.42 2,500 2.04 2,000 2,0
Slide 24: 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 25: Natural Gas Pipelines
Natural Gas Pipelines Connectivity to Key Markets Provides fee-based natural gas transportation and storage services, and direct connectivity to end-use markets. Expect 2024 earnings to be >95% fee based Connected directly to end-use markets: Local gas distribution companies, electric-generation fac
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation ($ in millions) ONEOK Stand-Alone Consolidated 2024 Reconciliation of net income to adjusted EBITDA 2023 Updated 2024 Guidance(a) Guidance(b) Net income(a)(b) $2,659 $2,870 - $3,020 $2,895 - $3,095 Interest expense, net of capitalized interest 866 1,20
Slide 27: Environmental, Social and Governance (ESG)
New photo? New Environmental, Social and Governance (ESG)
Slide 28: ESG Performance Recognized
ESG Performance Recognized ONEOK received Morningstar Included in the Oil and Gas an MSCI ESG Sustainalytics ESG Storage and FTSE4Good Transportation Risk Rating in the Rating of top 20% of the Index series Industry AAA refiners and Top 15% pipelines industry S&P Global ESG Score 2023 Included in th
Slide 29: ONEOK's Sustainability Journey
ONEOK’s Sustainability Journey Milestones on Our Path to Continuous Improvement Achieved GHG reductions equating to approximately 50% of the 2030 target(a) 1st ESG report Announced 2030 GHG published Emissions Reduction MSCI ESG Rating of Established ESG Council Target AAA Added safety and America’s
Slide 30: ESG Initiatives and Practices - Highlights
ESG Initiatives and Practices - Highlights Committed to Safety Our People and Effective Governance and the Environment Communities and Oversight Absolute emissions reduction target: >$9.5 million contributed to local Diverse board of directors: 2.2 million metric ton reduction of combined communitie
Slide 31: Absolute Emissions Reduction Target
Absolute Emissions Reduction Target Total 2019 Scope 1 & 2 Emissions Emissions Reduction (MMT CO2e) Opportunities • Electrification of natural gas SCOPE 1 SCOPE 2 2.2 MMT Reduction compression assets. Carbon Dioxide Electricity Combined Scope 1 & 2 Emissions by 2030(a) • Methane emission mitigation
Slide 32: Innovation and Infrastructure
Innovation and Infrastructure Projects to Reduce Emissions NATURAL GAS CAPTURE RENEWABLE NATURAL GAS ONEOK is helping lead efforts to reduce ONEOK interconnects with renewable natural gas flaring in the Williston Basin, natural gas (RNG) facilities such as reducing GHG emissions and capturing landfi
Slide 33: January 2025
January 2025