Slide 1: Second-Quarter 2019 Results
SECOND- QUARTER 2019 RESULTS J U LY 3 0 , 2 0 1 9
Slide 2: Forward-Looking Statements
FORWARD -LOOKING STATEMENTS Statements contained in this presentation that include company expectations 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 is import
Slide 3: Index
INDEX FINANCIAL STRENGTH 4 2020 EARNINGS DRIVERS 5 NATURAL GAS LIQUIDS 6 NATURAL GAS GATHERING AND PROCESSING 7 NATURAL GAS PIPELINES 8 SECOND-QUARTER 2019 VS. FIRST-QUARTER 2019 SEGMENT VARIANCES 9 GROWTH PROJECTS 10 2019 FINANCIAL GUIDANCE 12 NON-GAAP RECONCILIATIONS 13 Elk Creek Pipeline – Wyomin
Slide 4: Financial Strength – A Competitive Advantage
FINANCIAL STRENGTH – A COM PETITIVE ADVANTAGE INCREASING EXCESS CASH Distributable Cash Flow (DCF) in Excess of Dividends Paid ◆ DCF in excess of dividends paid of $183 million, a 20% increase ($ in millions) compared with the first quarter 2019 $183(a) $153 ◆ $2.5 billion of borrowing capacity avai
Slide 5: Earnings Drivers
EARNINGS DRIVERS EXPECTED KEY DRIVERS FEE-BASED SOLUTIONS 2020 OUTLOOK ~850 MMcf/d new capacity NATURAL GAS FLARING >300 MMcf/d on ONEOK dedicated acreage and from ONEOK and third-party processing plants expected to be >500 MMcf/d currently flaring in North Dakota continued strong producer activity
Slide 6: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(a) ◆ NGL raw feed throughput volumes increased 8%, Average Bundled compared with the first quarter 2019 Region/Asset First Quarter 2019 Second Quarter 2019 Rate (per gallon) ▪ Gulf Coast/Permian volume increased approximately
Slide 7: Natural Gas Gathering and Processing
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 1,915 – 2,115 1,937 Expect to connect approximately 620 wells in 2019 1,680 ◆ 1,561 ▪ 259 well connects completed in the first half of 2019 973 925-1,025 781 839 ◆ Second-quarter 2019 natur
Slide 8: Natural Gas Pipelines
NATURAL GAS PIPELINES WELL-POSITIONED AND MARKET-CONNECTED N a t u r a l G a s Tr a n s p o r t a t i o n Capacity Contracted (MDth/d) ◆ Natural gas transportation capacity contracted increased 14% compared with the second quarter 2018 ◆ Recently completed capital-growth projects in the Permian Basi
Slide 9: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q2 2019 VS. Q1 2019 ADJUSTED EBITDA VARIANCES ◆ Natural gas gathering and processing increased ▪ $33.7 million increase due primarily to higher volumes in the Williston Basin and STACK and SCOOP areas. ▪ $6.8 million increase due primarily to lower operating costs. ▪ $5.
Slide 10: Natural Gas Liquids Growth Projects
NATURAL GAS LIQUIDS GROWTH PROJECTS CapEx Expected Project Scope ($ in millions) Completion • 900-mile NGL pipeline from the Williston Basin to the Mid-Continent with capacity of up to 240,000 bpd, and related infrastructure Elk Creek Pipeline project • Supported by long-term contracts, which includ
Slide 11: Gathering and Processing Growth Projects
GATHERING AND PROCESSING GROWTH PROJECTS CapEx Expected Project Scope ($ in millions) Completion • 200 MMcf/d processing plant in the core of the Williston Basin Demicks Lake I plant and • Expected to open full by capturing natural gas currently being flared $400 Q4 2019 infrastructure • Contributes
Slide 12: 2019 Financial Guidance
2019 FINANCIAL GUIDANCE ANNOUNCED FEB. 25, 2019 2019 Guidance Range ($ in millions) Midpoint Net income $ 1,140 $ 1,270 $ 1,400 Adjusted EBITDA 2,500 2,600 2,700 Distributable cash flow 1,820 1,940 2,060 Capital-growth expenditures 2,500 3,100 3,700 Maintenance capital expenditures 160 180 200 Segme
Slide 13: 2019 Financial Guidance Non-GAAP Reconciliation
2019 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2019 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 1,140 - $ 1,400 Interest expense, net of capitalized interest 525 - 475 Depreciation and amortization 490 - 470 Income ta
Slide 14: Non-GAAP Reconciliation
NON-G A A P RECONCILIATION 2017 2018 2019 ($ in Millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Reconciliation of Net Income to Adjusted EBITDA Net income $186 $176 $167 $65 $594 $266 $282 $314 $293 $1,155 $337 $312 Interest expense, net of capitalized interest 116 118 127 125 486 116 113 122 119 470
Slide 15: Non-GAAP Reconciliations
NON-G A A P RECONCILIATIONS ONEOK has disclosed in this presentation adjusted EBITDA, distributable cash flow (DCF) and dividend coverage ratio, which are non-GAAP financial metrics, used to measure ONEOK’s financial performance, and are defined as follows: Adjusted EBITDA is defined as net income f
Slide 16: Elk Creek Pipeline — Kansas
Elk Creek Pipeline — Kansas