Oneok, Inc. · NYSE:OKE

Oneok — ONEOK Partners — Q1 2016 Earnings Presentation

12 slides from Oneok's earnings presentation, May 3, 2016

  1. Slide 1: First-Quarter 2016 Update

    FIRST-QUARTER 2016 UPDATE May 3, 2016

  2. 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 importa

  3. Slide 3: Index

    INDEX ONEOK Partners’ and ONEOK’s Unique Position and Key Points 4 Natural Gas Liquids Ethane Opportunity and Volume Update 8 Natural Gas Gathering and Processing Volume Update 10 First-Quarter 2016 vs. Fourth-Quarter 2015 Segment Variances 11

  4. Slide 4: ONEOK Partners Uniquely Positioned

    ONEOK PARTNERS UNIQUELY POSITIONED • Natural Gas Liquids segment, the second-largest natural gas liquids gathering and fractionation system in the U.S., uniquely positioned: ~90% – In the Mid-Continent, levered to Cana-Woodford, STACK and SCOOP, as the significant natural gas liquids takeaway provid

  5. Slide 5: ONEOK Partners Strengthening Our Position in Challenging Times

    ONEOK PARTNERS STRENGTHENING OUR POSITION IN CHALLENGING TIMES • Increased expected 2016 fee-based earnings to approximately 85 percent, compared with 66 percent in 2014  Restructured gathering and processing segment’s contracts and expect more than 75 percent fee-based earnings in 2016 compared wi

  6. Slide 6: ONEOK Strengthening Our Position in Challenging Times

    ONEOK STRENGTHENING OUR POSITION IN CHALLENGING TIMES • Enhanced our liquidity and financial flexibility through increased investment in ONEOK Partners  Invested $650 million in the partnership, which increased ownership to 41.2 percent in August 2015  Increased cash flow by more than $100 million

  7. Slide 7: ONEOK and ONEOK Partners Key Points

    ONEOK AND ONEOK PARTNERS KEY POINTS ONEOK • Proven track record of prudent and proactive financial decisions during uncertain times results in financial strength and flexibility – Reduced dividend growth – Retained additional cash – Continued financial support of ONEOK Partners • Stable Cash Flow –

  8. Slide 8: Ethane Recovery by Basin, Incremental Ethane Demand

    ETHANE RECOVERY BY BASIN INCREMENTAL ETHANE DEMAND • Approximately one-third of all U.S. ethane being rejected is on ONEOK Partners’ NGL system • ONEOK Partners’ NGL infrastructure already connects supply to Gulf Coast region ‒ Incremental ethane transported and fractionated volume potential of 175,

  9. Slide 9: Natural Gas Liquids Volume Update

    NATURAL GAS LIQUIDS VOLUME UPDATE Gathered Volume (MBbl/d) • 2016 volume growth weighted toward the second 175-200 half of the year 155 800-870 • First quarter volumes impacted by significantly 769 105 lower spot volumes and higher ethane rejection compared with the fourth quarter 2015 533 • 2016 ex

  10. Slide 10: Natural Gas Gathering and Processing Volume Update

    NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE Gathered Volumes (MMcf/d) 1,700 – 1,800 Rocky Mountain 1,524 1,404 • First-quarter 2016 processed volumes increased 6%, 950–1,000 compared with fourth the quarter 2015 862 – Lonesome Creek completed in November 2015 917 – Bear Creek to be completed

  11. Slide 11: Business Segment Performance Q1 2016 vs. Q4 2015 Variances

    BUSINESS SEGMENT PERFORMANCE Q1 2016 vs. Q4 2015 VARIANCES • Natural gas gathering and processing earnings increased – $21.6 million increase due primarily to restructured contracts resulting in higher average fee rates – $8.9 million increase due to decreased operating costs – $2.0 million increase

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ONEOK Partners — Q1 2016 Earnings Presentation on 6ix