Oneok, Inc. · NYSE:OKE

Oneok — Oneok Inc /New/ — Q4 2016 Earnings Presentation

14 slides from Oneok's earnings presentation, Feb 28, 2017

  1. Slide 1: ONEOK Acquisition of ONEOK Partners Transaction Summary; Q4 and Full-Year 2016 Update

    ONEOK ACQUISITION OF ONEOK PARTNERS TRANSACTION SUMMARY; FOURTH-QUARTER AND FULL-YEAR 2016 UPDATE Feb. 27, 2017 > ONEOK | €> 98%,

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS cting statment win he maaig of ar cacao In ard covered ya alr potcton, Words uch a “nti sore ca ear! “ra Santi essay elt ter sng cine ann nut aereloe areee GHEE) and EK ‘pom eu Parnas (ORS) cur ens abu tre event Such oad noig stent nce tt re ratte tema toe ura he rooeed Va

  3. Slide 3: Forward-Looking Statements (Cont'd)

    FORWARD-LOOKING STATEMENTS (CONT’D) cgi ol cin prc repos on lhe Secrtes na Excange Coneaion he SE ‘Thi rzaiaon sla cosine cern Naa an rar ching nn GAAP meas ancl ecrmance fa management beloes te god tl fra us anh ivetmentcommunty nating ot eral praesent ay P ann Oet shaore ean jon mews en pen ORS we

  4. Slide 4: Index

    INDEX ONEOK-ONEOK Partners Transaction Summary ONEOK 2017 Financial Guidance Natural Gas Liquids Volume Update Natural Gas Gathering and Processing Volume Update Fourth-quarter vs. Third-quarter 2016 Segment Variances OKE Non-GAAP Reconciliations Page 4

  5. Slide 5: Transaction Summary

    TRANSACTION SUMMARY CREATES $30 BILLION ENTERPRISE VALUE COMPANY; LOWERS COST OF FUNDING On Feb. 1, 2017, ONEOK and ONEOK Partners announced a definitive agreement under which ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own for $9.3 billion in ONEOK c

  6. Slide 6: Compelling Long-Term Value for OKE Shareholders & OKS Unitholders

    COMPELLING LONG-TERM VALUE FOR OKE SHAREHOLDERS & OKS UNITHOLDERS Expected dividend increase of 21 percent to $0.745, or $2.98 per share on an annualized basis, with expected subsequent dividend growth of 9 to 11 percent annually through 2021 Significant upfront dividend increase and higher dividend

  7. Slide 7: OKE 2017 Financial Guidance Summary

    OKE 2017 FINANCIAL GUIDANCE SUMMARY Net income range*: $575 million — $755 million + Adjusted EBITDA range: $1,870 million - Dividends Paid Per Share Per Year $2,130 million 19% CAGR sinoe 2013 * — Distributable Cash Flow: $1,245 million — $1,505 million — Target dividend coverage ratio of 1.20 time

  8. Slide 8: Natural Gas Liquids Volume Update

    VOLUME UPDATE Gathered Volume (MBb/d) 2017 volume growth expected to be driven by the six new natural gas processing plants connected in 2016 and increased drilling in NGL-tich shale plays, particular sularly the STACK and SCOOP plays and the Permian Basin 2017 expected processing plant connections

  9. Slide 9: Natural Gas Gathering and Processing Volume Update

    Rocky Nan 755 MMefid 780 MMcfid 752 MMefid 756 MMefid Mid-Continent 767 MMcfid. 781 MMecfid 652 MMcfid 653 MMefid Pages NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE Mid-Continent Gathered Volumes (MMct/a) . activity exp i plays 4,524 1,561 1,500 - 1,650 + Approximately i it ity in the b STACK

  10. Slide 10: Business Segment Performance Q4 2016 vs. Q3 2016 Variances

    BUSINESS SEGMENT PERFORMANCE 4 2016 vs. Q3 2016 VARIANCES Natural gas Niquids earnings decreased) — S144 milli ethane rejection due to higher volumes - $8.0 million increase due to contract settlements Williston Basin in December 2016 Natural gas pipelines earnings increased = $3.0 million increase

  11. Slide 11: Non-GAAP Reconciliations

    NON-GAAP RECONCILIATIONS ONEOK, Inc. items. > ONEOK ili Nt

  12. Slide 12: OKE Non-GAAP Reconciliation: Net Income to Adjusted EBITDA and DCF

    OKE NON-GAAP RECONCILIATION NET INCOME TO ADJUSTED EBITDA AND DCF 2017 Guidance Range (Milions of dollars) Re ciliate Net Income to Cash Flow Exclude i Partners Net Income(a) $ 575 $ 755 Interest expense, net of capitalized interest 515 485 Depreciation and amortization 405 415 Income tax expense (a

  13. Slide 13: OKE Non-GAAP Reconciliation: Adjusted EBITDA to Net Income

    OKE NON-GAAP RECONCILIATION ADJUSTED EBITDA TO NET INCOME (Milions of dollars) Reconciliation of Adjusted EBITDA to Net Income Partners ‘Segment Adjusted EBITDA: Natural Gas Liquids $ 14110 - $ 1,310 Natural Gas Gathering and Processing 4450 485 Natural Gas Pipelines 320 - 340 Oth (5) (5) Total 1870

  14. Slide 14: Slide 14

Oneok Inc /New/ — Q4 2016 Earnings Presentation on 6ix