Oneok, Inc. · NYSE:OKE
Oneok — Merger or Acquisition (August 2024)
17 slides from Oneok's merger presentation, Aug 28, 2024
Slide 1: Acquisitions of Medallion and Controlling Interest in EnLink from Global Infrastructure Partners
Acquisitions of Medallion and Controlling Interest in EnLink from Global Infrastructure Partners August 2024
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historica
Slide 3: Acquisitions to Expand and Extend ONEOK: EnLink & Medallion
Acquisitions to Expand and Extend ONEOK: EnLink & Medallion ONEOK Connects EnLink and Medallion Assets Into ONEOK’s Integrated Platform “ONEOK has a longstanding reputation as being intentional in building a premier energy infrastructure company, and today’s transactions further solidify that status
Slide 4: Acquisitions Align With Our Strategic Priorities
Acquisitions Align With Our Strategic Priorities ONEOK Business Mix Evolution Commit to safe, reliable and environmentally responsible operations Gas Gas Gas Pipes Pipes Pipes 9% 10% 13% NGL Produce significant free cash flow with NGL 35% G&P 40% fee-based businesses G&P NGL 22% G&P 29% 30% 57%
Slide 5: Key Transaction Terms
Key Transaction Terms • Acquire GIP’s entire interest in EnLink, consisting of 43% of EnLink’s common units and its managing member interest. • $3.3 billion in cash. Transaction • $14.90 per unit, representing a 12.8% premium to EnLink’s closing price as of • Acquire 100% of Medallion. Overview Augu
Slide 6: Key Financial Highlights
Key Financial Highlights • Acquisitions enhance integrated producer offerings across the oil, natural gas and natural Cash Flow Diversification gas liquids (NGL) value chains in multiple basins. • Increases annual Permian Basin EBITDA by ~$700MM(a), with future growth expected. • Stable revenue prof
Slide 7: Capital Allocation Framework Remains Focused
Capital Allocation Framework Remains Focused Value-driven Framework Illustrative Long-term Cash Allocation(a) • Remain committed to high-return capital-growth opportunities and maintaining a strong balance sheet. Debt reduction / Other – Investment-grade credit ratings. – ~3.5x long-term leverage ta
Slide 8: EnLink and Medallion Identified Synergies…With Upside
EnLink and Medallion Identified Synergies…With Upside Base synergies used to underwrite transactions • Base case annual synergies of $250 million represent less than half of total expected within three years. unrisked identified potential. – Corporate cost savings. – Operational efficiency. – Enhanc
Slide 9: Continued Financial Strength
Continued Financial Strength ONEOK is a premier large cap infrastructure company positioned for resilience across market cycles • Expect to trend toward long- ~3.9x term leverage target of 3.5x 2025E Adjusted EBITDA of >$8 billion during 2026. ~3.5x • Strong investment-grade credit ratings. Stable,
Slide 10: Permian Basin Value Chain
Permian Basin Value Chain • 1.7 Bcf/d of gas gathering and processing and 1.6 MMBbl/d of crude gathering capacity strategically extends NGL and crude sourcing footprint. Acquired Assets with …Drive Expanded Value Chain Offerings Producer Connectivity… and Downstream Synergies • Significant synergies
Slide 11: Fully Integrated Platform: Midland Basin
Fully Integrated Platform: Midland Basin Dawson Borden Scurry • 975 MMcf/d gas processing capacity. Howard Colorado City Hub Andrews Martin • Extensive crude gathering system Mitchell spanning the basin. Midland • Diversified customer base in both crude Hub and G&P. Ector Midland Sterling Glasscock
Slide 12: Fully Integrated Platform: Mid-Continent
Fully Integrated Platform: Mid-Continent • More than doubles Mid-Con gas processing capacity to 2.3 Bcf/d. • Expect to increase reliability of service to customers by optimizing complementary STACK systems. • NGL raw feed with connections to Mont Belvieu and Mid-Continent fractionation. ONEOK Natura
Slide 13: Fully Integrated Platform: North Texas
Fully Integrated Platform: North Texas • 2.1 Bcf/d gathering capacity, ONEOK Natural Gas Liquids 960 MMcf/d operational processing Refined Products Storage Crude Oil capacity and 25 MBbl/d in-basin EnLink fractionation capacity. Natural Gas G&P Natural Gas Liquids Processing Plant Fractionator • NGL
Slide 14: New Position in Louisiana
New Position in Louisiana • 220 MBbl/d NGL fractionation ONEOK Natural Gas Liquids Fractionator capacity is near key petrochemical Refined Products Crude Oil Storage Storage and demand markets. Fractionator EnLink Natural Gas Liquids Fractionator • Adds 4.0 bcf/d of natural gas Natural Gas Pipelines
Slide 15: Shared Sustainability Values and Leadership
Shared Sustainability Values and Leadership Core values shared among ONEOK, EnLink and Medallion: ESG reporting transparency and performance disclosures. Aligned corporate values of safety and health performance. Commitment to promoting an inclusive and diverse workforce. Board engagement an
Slide 16: Strengthens Long-Term Value Proposition
Strengthens Long-Term Value Proposition BAKKEN SHALE WILLISTON BASIN Diverse Free Cash Flow Generation POWDER RIVER BASIN Enhanced Growth Opportunities NIOBRARA SHALE PICEANCE BASIN Industry Leader in Return of Capital STACK ANADARKO BASIN SCOOP WOODFORD CANA- WOODFORD Strong Balance Sheet HAYNESVIL
Slide 17: August 2024
August 2024