Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results October 2023
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: 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 (BBB-/Baa3) (>$35 billion) GROWTH (‘AA’ or better from MSCI) (>10% 2022-2023E) 1 ATTRACTIVE DIVIDEND YIELD AND 9 DIVIDEND STABILITY 22 (~6%; >25 years of consistent divid
Slide 4: Attractive Dividend Profile
Attractive Dividend Profile $3.82(a) >25 years of dividend stability. Premier infrastructure network generates significant free cash flow. Solid, investment- grade balance sheet. $0.31 2000 2023 Source: Bloomberg dividend yield data as of October 20, 2023. (a) Annualized based on $0.955 per share de
Slide 5: 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 petroleum products, natural gas and crude o
Slide 6: Business Segments
Business Segments • Natural Gas Liquids: – Primary NGL transportation provider for the Williston and Powder River basins and Mid-Continent. E AR N I N G S B Y S E G M E N T (a) – End market connectivity: Williston Basin to Gulf Coast. • Refined Products & Crude: Gas Pipes – Stable, demand driven bus
Slide 7: Business Segment Performance
Business Segment Performance Q3 2023 vs. Q2 2023 Adjusted EBITDA Variances • Natural gas liquids increased: – $54 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. – $37 million
Slide 8: Synergy Opportunities
Synergy Opportunities Immediate to Near-Term (1-4 Years) with Significant Potential Upside BATCHING BLENDING • Liquids pipelines provide • Ability to mix products to obtain the opportunities to move NGLs or higher value. refined products through the same product pipelines. Near-term • Increased unle
Slide 9: Natural Gas Liquids
Natural Gas Liquids Regional Volume Update Average Raw Feed Throughput Volumes(a) Average Bundled Region Second Quarter 2023 Third Quarter 2023 Rate (per gallon) • Rocky Mountain: Rocky Mountain(b) 374,000 bpd 391,000 bpd ~ 28 cents(e) – 5% increase in NGL raw feed throughput compared with the secon
Slide 10: ONEOK's Permian Basin NGL Strategy
ONEOK’s Permian Basin NGL Strategy Capital-efficient project more than doubles ONEOK’s current pipeline capacity out of the Permian Basin. Connecting Permian supplies with Gulf Coast demand • Announced plans to complete the remaining loop of the West Texas NGL Pipeline to connect with ONEOK’s Arbuck
Slide 11: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Regional Volume Update Average Processed Volumes • Rocky Mountain: Region Second Quarter 2023 Third Quarter 2023 – 7% increase in processed volumes compared with the second quarter 2023. Rocky Mountain 1,473 MMcf/d 1,572 MMcf/d – 450 wells connected year-to-date.
Slide 12: 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 ~90% since 2016. 36% in 2014 to <5% in August 2023. 3,500 3.00 3,500 2.71 3,000 3,000 2.48 2.50 2,500 2,500 2,000 2.06 2,000 2.00
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: Saguaro Connector Pipeline
Saguaro Connector Pipeline Proposed Project Overview Transporting natural gas from West Texas to the Mexico Border • Originating at the Waha Hub traversing west connecting at the International Intrastate pipeline originating at the Waha Hub Boundary with a new pipeline under development in Mexico fo
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation ($ in millions) ONEOK Pre-Acquisition Reconciliation of net income Updated 2023 Consolidated 2023 to adjusted EBITDA 2021 2022 Guidance(c) Guidance(d) Net income(a) (b) $1,500 $1,722 $2,560 - $2,660 $2,550 - $2,650 Interest expense, net of capitalized
Slide 16: October 2023
October 2023