Slide 1: 2023 Results and 2024 Guidance
2023 Results and 2024 Guidance February 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: 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-) (>$35 billion) CAGR (‘AA’ or better from MSCI) (~8% 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 18 DIVIDEND STABIL
Slide 4: 2023 Accomplishments and Recent Highlights
2023 Accomplishments and Recent Highlights Compared with 2022, unless noted Financial Operational ESG • 10 consecutive years of EBITDA • Successfully completed acquisition • Received an MSCI ESG Rating of growth. of Magellan Midstream Partners. AAA in 2023. • 3.7% dividend increase. • Record volumes
Slide 5: 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 6: Attractive Dividend Profile
Attractive Dividend Profile ONEOK Dividend Growth Outpaces C-Corp Peers(a) >25 Years of ONEOK Dividend Stability(b) $3.96 150% Percent Change in Annual Dividends 100% 50% 0% -50% $0.31 -100% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2000 2024 ONEOK Peer 1 Peer 2 Peer 3 . (a) Defined as
Slide 7: 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 8: 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 and Crude: Gas Pipes 10% – Stable, demand driv
Slide 9: Business Segment Performance
Business Segment Performance Q4 2023 vs. Q3 2023 Adjusted EBITDA(a) Variances • Natural gas liquids decreased: – $32 million decrease in optimization and marketing due primarily to lower earnings on sales of purity NGLs previously held in inventory. – $15 million decrease from higher operating costs
Slide 10: Synergy Opportunities
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 NGLs or hig
Slide 11: 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/PRB
Slide 12: Natural Gas Liquids
Natural Gas Liquids Regional Volume Update Average Raw Feed Throughput Volumes(a) Average Bundled • Rocky Mountain: Region Third Quarter 2023 Fourth Quarter 2023 Rate (per gallon) – 10% increase in NGL raw feed throughput Rocky Mountain(b) 391,000 bpd 399,000 bpd ~ 28 cents(e) compared with 2022. Mi
Slide 13: 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 14: Refined Products and Crude
Refined Products and Crude Critical Liquids Infrastructure and Fee-Based Business Model Provides refined products transportation, storage, 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% 11% <1
Slide 15: Refined Products and Crude
Refined Products and Crude Average Throughput Volumes (a) Fourth Quarter 2023 Refined Products Total refined products volume shipped 1,547,000 bpd (volumes by product) Gasoline 861,000 bpd Aviation Distillates 586,000 bpd Aviation 100,000 bpd 6% Average refined products tariff rate (per gallon) $0.0
Slide 16: 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 17: Natural Gas Gathering and Processing
Natural Gas Gathering and Processing Regional Volume Update Average Processed Volumes • Rocky Mountain: Region Third Quarter 2023 Fourth Quarter 2023 – 13% increase in processed volumes compared with 2022. Rocky Mountain 1,572 MMcf/d 1,590 MMcf/d – 581 wells connected in 2023, exceeded guidance Mid-
Slide 18: 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 December 2023. 4,000 3.00 3,500 2.77 3,500 3,000 3,000 2.50 2.50 2,500 2,500 2.02 2,000 2,0
Slide 19: 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) 1,635(a) ~70% 93%
Slide 20: 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 faci
Slide 21: 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 22: ESG Performance Recognized
ESG Performance Recognized ONEOK received Morningstar Included in the Oil and Gas an MSCI ESG Sustainalytics ESG FTSE4Good Storage and Risk Rating in the Transportation 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 23: 2024 Financial Guidance
2024 Financial Guidance 2024 Guidance Ranges ($ in millions, except per share amounts) Net income $ 2,610 – $ 3,010 Diluted earnings per common share $ 4.45 – $ 5.14 Adjusted EBITDA(a) $ 5,900 – $ 6,300 Growth capital expenditures $ 1,390 – $ 1,550 Maintenance capital expenditures $ 360 – $ 400 Adju
Slide 24: 2024 Financial Guidance: Non-GAAP Reconciliation
2024 Financial Guidance Non-GAAP Reconciliation 2024 Guidance Ranges ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) $2,610 - $3,010 Interest expense, net of capitalized interest 1,195 - 1,165 Depreciation and amortization 1,090 - 1,060 Income tax expense 830 - 950 Adju
Slide 25: February 2024
February 2024