Oneok, Inc. · NYSE:OKE
Oneok — Q4 2019 Earnings Presentation
15 slides from Oneok's earnings presentation, Feb 24, 2020
Slide 1: Fourth Quarter and Full-Year 2019 Results
FOURTH QUARTER AND FULL-YEAR 2 0 1 9 R E S U LT S FEB. 24, 2020
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 FINANCIAL GUIDANCE 5 2020 EARNINGS DRIVERS 6 EXPANDING CORE INFRASTRUCTURE 7 NATURAL GAS LIQUIDS 8 NATURAL GAS GATHERING AND PROCESSING 9 NATURAL GAS PIPELINES 10 FOURTH QUARTER 2019 VS. THIRD QUARTER 2019 11 SEGMENT VARIANCES NON-GAAP RECONCILIATIONS 12 Arbuckle II P
Slide 4: Financial Strength – A Competitive Advantage
FINANCIAL STRENGTH – A COM PETITIVE ADVANTAGE INCREASING LIQUIDITY Distributable Cash Flow (DCF) in ◆ Significant liquidity from a $2 billion senior notes issuance completed in Excess of Dividends Paid ($ in millions) August 2019 ▪ No borrowings outstanding under ONEOK’s $2.5 billion credit facility
Slide 5: ONEOK 2020 Financial Guidance
ONEOK 2020 FINANCIAL GUIDANCE 2020 Guidance ($ in millions) Net income $ 1,355 – $ 1,605 Diluted earnings per common share $ 3.25 – $ 3.85 Adjusted EBITDA $ 3,100 – $ 3,350 Distributable cash flow $ 2,245 – $ 2,505 Capital-growth expenditures $ 2,250 – $ 2,730 Maintenance capital expenditures $ 200
Slide 6: Earnings Drivers
EARNINGS DRIVERS KEY DRIVERS FEE-BASED SOLUTIONS 2020 GUIDANCE ~300 MMcf/d NATURAL GAS FLARING on ONEOK dedicated acreage and ~850 MMcf/d volume growth from continued strong recent new processing capacity from ~500 MMcf/d currently flaring in North Dakota(a) producer activity ONEOK and third-party p
Slide 7: Expanding Core Infrastructure
E X PA N D I N G C O R E I N F R A S T R U C T U R E PROVIDING ADDITIONAL CONNECTIVITY FROM THE WILLISTON BASIN TO THE GULF COAST Expected to generate 4-6x adjusted EBITDA multiples or better MB-5 fractionator (Q1 2021, $750M) Arbuckle II Pipeline extension (Q1 2021, $240M) Arbuckle II Pipeline expa
Slide 8: Natural Gas Liquids
NATURAL GAS LIQUIDS VOLUME UPDATE Average NGL Raw Feed Throughput Volumes(b) ◆ Rocky Mountain(a) NGL raw reed throughput volume increased approximately 9% compared with the third quarter 2019 Average Bundled Region Third Quarter 2019 Fourth Quarter 2019 Rate (per gallon) ◆ 2019 third-party or ONEOK
Slide 9: 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 2,125–2,405 2,065 526 well connects completed in 2019 1,937 ◆ 1,680 835-945 ◆ Expect to connect approximately 575-625 wells in 2020 973 983 839 ◆ 200 MMcf/d Demicks Lake I natural gas proce
Slide 10: 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 9% compared with the fourth quarter 2018 ◆ Expect more than 95% fee-based earnings in 2020, and: ▪ Approxi
Slide 11: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE Q4 2019 VS. Q3 2019 ADJUSTED EBITDA VARIANCES ◆ Natural gas gathering and processing increased ▪ $15.6 million increase due primarily to higher realized commodity prices, net of hedges. ▪ $4.0 million increase due primarily to contract settlements and lower third-party c
Slide 12: 2020 Financial Guidance Non-GAAP Reconciliation
2020 FINANCIAL GUIDANCE NON-GAAP RECONCILIATION 2020 Guidance Range (Millions of dollars) Reconciliation of net income to adjusted EBITDA and distributable cash flow Net Income $ 1,355 - $ 1,605 Interest expense, net of capitalized interest 670 - 640 Depreciation and amortization 600 - 580 Income ta
Slide 13: Non-GAAP Reconciliation
NON-G A A P RECONCILIATION 2017 2018 2019 ($ in Millions) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Reconciliation of Net Income to Adjusted EBITDA Net income $594 $266 $282 $314 $293 $1,155 $337 $312 $309 $321 $1,279 Interest expense, net of capitalized interest 486 116 113 122 119 470 115 117 130 130 492 D
Slide 14: 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 15: Demicks Lake plant — North Dakota
Demicks Lake plant — North Dakota