Slide 1: 2021 Results and 2022 Guidance
2 0 2 1 R E S U LT S A N D 2022 GUIDANCE FEB. 28, 2022 Demicks Lake Plant, North Dakota
Slide 2: Forward-Looking Statements
FO RWARD -LO O KING S TATE M E NTS 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 l
Slide 3: Mission, Vision and Values
MISSIO N, VISIO N AND VALUES We deliver energy products and services vital to an CORE VALUES: Our Compass advancing world. We commit to a zero-incident culture for the well-being of our Safety & employees, contractors and communities and to operate in an MISSION: Environmental environmentally respon
Slide 4: ONEOK vs. S&P 500: A Unique Investment Opportunity
O NEO K VS. S&P 500 A UNIQUE INVESTMENT OPPORTUNITY 373 Investment Grade Credit Rating (BBB-/Baa3) 290 Large Market Cap 167 (>$20 billion) High ESG Rating 139 (‘A’ or better from MSCI) Consensus EPS Growth (>5% CAGR 2022-2024E) 1 High Dividend Yield and Dividend Stability (>5%; >25 years without a d
Slide 5: 2021 Accomplishments
2021 ACCO MPLISHMENTS HIGHLIGHTS COMPARED WITH 2020, UNLESS NOTED OPERATIONAL FINANCIAL Record Rocky Mountain region volumes: NGL volumes +45% Natural gas processed +21% 24% increase in adjusted EBITDA 8 consecutive years of EBITDA growth >320 wells connected in the Rocky Mountain region Bear Creek
Slide 6: ESG Performance
ESG PERFO RMANCE ESG Ratings and Rankings MSCI ESG Ratings Dow Jones CDP Sustainalytics AA rated Sustainability Top 30% Top 10% U.S. and Canada Oil and Gas Recently upgraded from A rating Refiners and Pipeline Industry (Maximum rating of AAA) #4 of 27 industry peers sector (C rated) Additional ESG R
Slide 7: Proven Growth Through Commodity Cycles
PRO VEN G RO WTH THRO UG H CO MMO DITY CYCLES Sustainable EBITDA Growth ($ in millions) $100 $4,000 WTI(a) COVID-19 $3,620 $75 $3,000 HISTORICAL STRENGTH • 8 consecutive years of EBITDA growth • ~13% annual EBITDA growth (2013-2021) $50 $2,000 FUTURE MOMENTUM $25 $1,000 • Significant operating lever
Slide 8: Business Segment Performance
BUSINESS SEG MENT PERFO RMANCE Q4 2021 VS. Q3 2021 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids decreased ▪ $21.1 million decrease in optimization and marketing due primarily to lower earnings on purity NGL sales. ▪ $17.5 million decrease from higher operating costs due primarily to higher outsid
Slide 9: Natural Gas Liquids
NATURAL G AS LIQ UIDS ONE OF THE LARGEST INTEGRATED NGL SERVICE PROVIDERS Provides fee-based gathering, fractionation, transportation, marketing and storage services linking key NGL market centers Expect 2022 earnings to be ~90% fee based Primary NGL transportation provider for the Williston Basin/P
Slide 10: Natural Gas Liquids: Regional Volume Update
NATURAL G AS LIQ UIDS REGIONAL VOLUME UPDATE Average Raw Feed Throughput Volumes(a) Average Bundled Region Third Quarter 2021 Fourth Quarter 2021 ◆ 11% increase in total average NGL volumes compared Rate (per gallon) with 2020. Rocky Mountain(b) 315,000 bpd 335,000 bpd ~ 24 cents(e) Mid-Continent(c)
Slide 11: Strong Natural Gas Liquids Volume Recovery
STRO NG NATURAL G AS LIQ UIDS VO LUME RECO VERY Rockies Region NGL Raw Feed Throughput (bpd) Capacity Expandable to ~540,000 bpd • Minimal capital needed to further 100,000 expand Elk Creek Pipeline with pump stations to meet future Current Total Capacity ~440,000 bpd customer needs. • Significant o
Slide 12: Natural Gas Gathering and Processing
NATURAL G AS G ATHERING AND PRO CESSING SERVING PRODUCERS IN KEY BASINS Provides gathering, compression, treating and processing services to producers. Expect 2022 earnings to be >80% fee based Primarily fee-based contracts 15% 13% 14% 14% 16% <20% with a POP(a) component Primary natural gas process
Slide 13: Natural Gas Gathering and Processing: Regional Volume Update
NATURAL G AS G ATHERING AND PRO CESSING REGIONAL VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) ◆ Rocky Mountain: Rocky Mountain Mid-Continent ▪ 21% increase in processed volumes compared with 2020. 2,065 2,090– 2,370 ▪ 324 wells connected in 2021, expect to connect 375 - 425 in 2022. 1,
Slide 14: Williston Basin Production
WILLISTO N BASIN PRO DUCTIO N RISING GAS-TO-OIL RATIOS (GORS) AND GAS CAPTURE PRESENT OPPORTUNITIES Williston Basin GOR’s have Statewide flaring has decreased from increased >80% since 2016. 36% in 2014 to 7% in December 2021. 3,500 3.00 3,500 Gas Produced (MMcf/d) Gas Produced (MMcf/d) 3,000 Oil Pr
Slide 15: Limited Activity Needed to Maintain Volumes
LIMITED ACTIVITY NEEDED TO MAINTAIN VO LUMES ONEOK Illustrative Williston Basin D e d i c a t e d G r o s s P r o d u c t i o n (a) 1,750 ~45 average well completions per month 1,500 ~35 average well completions per month Flared gas capture ~25 average well completions per month opportunity ~15 aver
Slide 16: Natural Gas Pipelines
NATURAL G AS PIPELINES CONNECTIVITY TO KEY MARKETS Provides fee-based natural gas transportation and storage services, and direct connectivity to end-use markets Expect 2022 earnings to be >95% fee based Connected directly to end-use markets: Local gas distribution companies, electric-generation fac
Slide 17: Absolute Emissions Reduction Target
ABSOLUTE EMISSIONS REDUCTION TARGET Total 2019 Scope 1 & 2 Emissions (MMT CO2e) Carbon Dioxide Electricity Emissions Reduction Opportunities (CO2e) Consumption Electrification of natural gas 3.1 3.0 30% Reduction compression assets (2.2 MMT) Methane mitigation through best Scope 1 & 2 Emissions mana
Slide 18: 2022 Financial Guidance
2022 FINANCIAL G UIDANCE 2022 Guidance Range 2022 Guidance Drivers ($ in millions, except per share amounts) ◆ Higher Rocky Mountain region natural gas Net income $ 1,550 – $ 1,830 and NGL volumes Diluted earnings per common share $ 3.45 – $ 4.07 ◆ Higher Permian/Gulf Coast NGL volumes Adjusted EBIT
Slide 19: Business Segments: 2022 Guidance
BUSINESS SEG MENTS 2022 GUIDANCE N AT U R A L G A S L I Q U I D S N AT U R A L G A S G AT H E R I N G N AT U R A L G A S P I P E L I N E S AND PROCESSING >10% >25% 2022 ADJUSTED ~60% EBITDA GUIDANCE EARNINGS MIX ~90% fee based >80% fee based >95% fee based CONTRACT Fee-based, bundled service volume
Slide 20: 2022 Financial Guidance: Non-GAAP Reconciliation
2022 FINANCIAL G UIDANCE NON-GAAP RECONCILIATION 2022 Guidance Ranges ($ in millions) Reconciliation of net income to adjusted EBITDA Net income(a) $ 1,550 - $ 1,830 Interest expense, net of capitalized interest 705 - 685 Depreciation and amortization 655 - 655 Income tax expense 495 - 575 Noncash c