Slide 1: 2020 Results and 2021 Guidance
2 0 2 0 R E S U LT S A N D 2021 GUIDANCE FEB. 22, 2021
Slide 2: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS Statements contained in this presentation that include company expectations, outlooks 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
Slide 3: Resilient Business Model – Proven Performance
RESILIENT BUSINESS MODEL – PROVEN PERFORMANCE Financial Strength and Flexibility POSITIONED FOR GROWTH Solid investment-grade balance sheet $100 3500 Adjusted EBITDA CAGR COVID-19 of ~10% 2014 - 2020 Significant Liquidity 3000 Undrawn $2.5 billion credit facility | No debt maturities until 2022 $80
Slide 4: Natural Gas Liquids Volume Update
NATURAL GAS LIQUIDS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(a) ◆ Rocky Mountain: Average Bundled ▪ NGL raw feed throughput increased 13% compared with the Region Third Quarter 2020 Fourth Quarter 2020 Rate (per gallon) third quarter 2020. Rocky Mountain(b) 215,000 bpd 244,000 bpd ~ 28
Slide 5: Natural Gas Gathering and Processing Volume Update
NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) Rocky Mountain 1,937 2,065 1,909 1,850 – 2,110 ◆ Processed volumes increased 16% compared with the third quarter 2020. 305 well connects completed in 2020. 983 827 690 - 800 ◆ 973 ◆ Expect to connect 275-
Slide 6: Strong Natural Gas Liquids Volume Recovery
STRONG NATURAL GAS LIQUIDS VOLUME RECOVERY Rockies Region NGL Raw Feed Throughput (bpd) Capacity Expandable to ~540,000 bpd • Minimal capital needed to further 100,000 expand Elk Creek Pipeline with pump Current Total Capacity ~440,000 bpd stations to meet future customer needs. • Significant operat
Slide 7: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q4 2020 VS. Q3 2020 ADJUSTED EBITDA VARIANCES ◆ Natural gas gathering and processing increased ▪ $30.9 million increase due primarily to higher realized commodity prices impacting fee-based contracts with a percent of proceeds component and a one-time contract settlement
Slide 8: 2021 Financial Guidance
2021 FINANCIAL GUIDANCE STRONG VOLUMES EXPECTED TO DRIVE SEGMENT RESULTS 2021 Guidance Range 2021 Earnings Drivers ($ in millions, except per share amounts) ◆ Higher Williston Basin natural gas and NGL Net income $ 1,075 – $ 1,375 volumes Diluted earnings per common share $ 2.40 – $ 3.08 ◆ Lower thi
Slide 9: Williston Basin: Increasing Gas-to-Oil Ratios and Flaring Opportunities
WILLISTON BASIN INCREASING GAS-TO-OIL RATIOS (GOR) AND FLARING PRESENT OPPORTUNITIES North Dakota Natural Gas and Crude Oil Produced North Dakota Natural Gas Produced and Flared 3,500 3,500 40% GOR has increased >65% since 2016. 3,137 3,000 35% 3,000 2,893 30% 2,500 2,500 25% 2,000 2,000 20% 1,711 1
Slide 10: Capturing Flared Production
CAPTURING FLARED PRODUCTION LIMITED WILLISTON BASIN ACTIVITY NEEDED TO MAINTAIN CURRENT VOLUME LEVELS 1,750 O N E O K I l l u s t r a t i v e D e d i c a t e d G r o s s P r o d u c t i o n (a) 1,500 ~45 average well completions per month ONEOK Natural Gas ~35 average well completions per month Proc
Slide 11: Promoting Long-Term Business Sustainability
PROMOTING LONG -TERM BUSINESS SUSTAINABILITY Environmental Social Governance Providing solutions to Long history of promoting Adoption of SASB reduce flaring in the diversity and inclusion reporting standards Williston Basin ESG-focused leadership Working to reduce Committed to ongoing committees he
Slide 12: 2021 Financial Guidance Non-GAAP Reconciliation
2021 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2021 Guidance Range (Millions of dollars) Reconciliation of net income to adjusted EBITDA and distributable cash flow Net income $ 1,075 - $ 1,375 Interest expense, net of capitalized interest 775 - 735 Depreciation and amortization 655 - 635 Income ta