COST: 195 $MM
TULSA, Okla. , Jan. 25, 2021 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the U.S. Capital Advisors Midstream Virtual Corporate Access Day Jan. 25-26, 2021.
ONEOK's latest investor materials are available at www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
Media Contact: | Brad Borror |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-us-capital-advisors-midstream-virtual-corporate-access-day-301213923.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 20, 2021 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 93.5 cents per share, unchanged from the previous quarter, resulting in an annualized dividend of $3.74 per share.
The dividend is payable Feb. 12, 2021, to shareholders of record at the close of business Feb. 1, 2021.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-declares-quarterly-dividend-301211974.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 14, 2021 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release fourth quarter and year-end 2020 earnings after the market closes on Feb. 22, 2021.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 23, 2021. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-458-4121, pass code 6227787, or log on to www.oneok.com.
What: ONEOK fourth quarter and year-end 2020 earnings conference call and webcast
When: 11 a.m. Eastern, Feb. 23, 2021
10 a.m. Central
Where: 1) Phone conference call dial 800-458-4121, pass code 6227787
2) Log on to the webcast at www.oneok.com
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6227787.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-fourth-quarter-and-year-end-2020-conference-call-and-webcast-scheduled-301208829.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 11, 2021 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the UBS Infrastructure and Energy Virtual Conference Jan. 12-13, 2021.
ONEOK's latest investor materials are available at www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-ubs-infrastructure-and-energy-virtual-conference-301205579.html
SOURCE ONEOK, Inc.
TULSA, Okla., Dec. 15, 2020 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) elected Gerald B. Smith as a director to the board, effective Dec. 15, 2020.
Smith, 70, rejoins the ONEOK board. He was originally elected to the ONEOK board in August 2009 and served until May 2013, and also served previously on the board of directors of ONEOK Partners, L.P. from 2006 to 2013. He is the founder, chairman and chief executive officer of Smith, Graham & Company Investment Advisors, a global investment management firm with offices in Houston, Texas, and New York City.
Smith is a former member of the board of trustees of the Charles Schwab Family of Funds, where he served as chairman of the investment oversight committee; current board member of the New York Life Insurance Company and chair of the Investment Committee; and board member and chair of the Audit Committee for Eaton, PLC. He also serves as a board member of the Federal Reserve Bank of Dallas and is chairman of the Texas Southern University Foundation Board, his alma mater.
Smith earned a Bachelor of Business Administration degree in finance and an honorary doctorate degree from Texas Southern University, where he has established the Gerald B. Smith Center for Entrepreneurship and Executive Development.
Gary Parker, 75, will resign from the board effective Dec. 15, 2020, having served on the board since 1991. In accordance with its bylaws and Corporate Governance Guidelines, Parker would have been required to retire from the board immediately prior to ONEOK's 2021 Annual Meeting of Shareholders due to his 75th birthday, which occurred in June 2020.
"We appreciate Gary's long-term commitment and service to our company and wish him well in his next chapter," said John W. Gibson, ONEOK chairman. "We're pleased to welcome Gerald back as a member of our board of directors. Our board and our shareholders will benefit from Gerald's board experiences and proven leadership skills, in addition to his broad knowledge of ONEOK."
"We are pleased to have Gerald return to our board of directors," said Julie Edwards, ONEOK's lead independent director and chair of the Corporate Governance Committee. "He was a valuable member before and will be a great contributor in the future."
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
View original content:http://www.prnewswire.com/news-releases/oneok-announces-board-of-directors-changes-301193452.html
SOURCE ONEOK, Inc.
TULSA, Okla., Dec. 7, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Wells Fargo Virtual Midstream and Utility Symposium Dec. 8-9, 2020.
ONEOK's latest investor materials are available at www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-wells-fargo-virtual-midstream-and-utility-symposium-301187648.html
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 23, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced its inclusion in the Dow Jones Sustainability World Index (DJSI World) and Dow Jones Sustainability North America Index (DJSI North America). Additionally, ONEOK was named the DJSI Industry Leader for Oil and Gas Storage and Transportation.
This marks ONEOK's first inclusion in the DJSI World Index, where it is currently the only North American energy company included in the group of global sustainability leaders. The company was also included in the DJSI North America Index for the second consecutive year.
"The recognition of ONEOK's long history of sustainability performance and first time inclusion in the DJSI World Index are the result of our employees' hard work and dedication to operating safely and responsibly," said Terry K. Spencer, ONEOK president and chief executive officer. "Making ESG a priority throughout our operations has long been an important strategy for ONEOK. While we are proud of the progress we've made and these recognitions from DJSI, our focus remains on continuing to improve our ESG performance."
Founded in 1999, the DJSI was the first global sustainability benchmark and tracks the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The DJSI World Index tracks the performance of the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index (S&P Global BMI). The DJSI North America Index tracks the performance of the top 20% of the largest 600 companies in the S&P Global BMI in the region.
DJSI Industry leaders are the top performing companies in each of the 61 industries represented in the DJSI Indices.
More information about ONEOK's ESG performance can be found in the company's Corporate Sustainability Report on ONEOK's website, www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-included-in-dow-jones-sustainability-world-and-north-america-indices-301178506.html
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 16, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the RBC Capital Markets Midstream and Energy Infrastructure Virtual Conference on Nov. 18, 2020.
ONEOK's latest investor materials are available at www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-rbc-capital-markets-midstream-and-energy-infrastructure-virtual-conference-301173944.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 27, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher third quarter 2020 financial results, higher natural gas liquids (NGL) volumes and updated its 2020 outlook.
Third Quarter 2020 Results, Compared With The Third Quarter 2019:
Third Quarter 2020 Results, Compared With The Second Quarter 2020:
Updated 2020 Outlook:
Given the recovery of curtailed volumes in the regions where ONEOK operates, 2020 net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) are now expected to approach the midpoint of the ranges provided on April 28, 2020, of $500 million to $900 million, and $2,600 million to $3,000 million, respectively.
"Third quarter results were driven by curtailed volume returning to our system resulting in improved earnings," said Terry K. Spencer, ONEOK president and chief executive officer. "NGL volumes across all of our operating areas have exceeded pre-pandemic levels, and natural gas volumes processed in the Rocky Mountain region have exceeded 1.2 billion cubic feet per day. Volumes achieved in September were more in-line with our original pre-pandemic 2020 expectations.
"We remain focused on operating safely and environmentally responsibly," said Spencer. "Reliable service and value creation continue to guide our strategy as we evaluate the opportunities ahead of us."
THIRD QUARTER 2020 FINANCIAL PERFORMANCE
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(Millions of dollars, except per share and dividend | |||||||||||||||
Net income (a) | $ | 312.3 | $ | 309.2 | $ | 304.8 | $ | 958.3 | |||||||
Net income per diluted share (a) | $ | 0.70 | $ | 0.74 | $ | 0.71 | $ | 2.31 | |||||||
Adjusted EBITDA (b) (c) | $ | 747.0 | $ | 649.8 | $ | 1,981.7 | $ | 1,919.7 | |||||||
DCF (b) | $ | 540.9 | $ | 480.9 | $ | 1,363.8 | $ | 1,528.2 | |||||||
DCF in excess of dividends paid (b) | $ | 125.3 | $ | 113.0 | $ | 174.2 | $ | 448.8 | |||||||
Dividend coverage ratio (b) | 1.30 | 1.31 | 1.15 | 1.42 | |||||||||||
Operating income (d) | $ | 550.4 | $ | 482.2 | $ | 822.7 | $ | 1,427.0 | |||||||
Operating costs | $ | 205.0 | $ | 245.1 | $ | 636.5 | $ | 723.6 | |||||||
Depreciation and amortization | $ | 153.2 | $ | 121.4 | $ | 426.0 | $ | 350.6 | |||||||
Equity in net earnings from investments | $ | 38.0 | $ | 37.6 | $ | 108.0 | $ | 115.2 | |||||||
Capital expenditures | $ | 380.0 | $ | 1,019.2 | $ | 1,924.0 | $ | 2,739.3 | |||||||
(a) Amounts for the three and nine months ended Sept. 30, 2020, include benefits of $2.2 million and $22.2 million, respectively, (b) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow (DCF) (c) Amounts for the three and nine months ended Sept. 30, 2020, include benefits of $2.2 million and $22.2 million, respectively, (d) Amount for the nine months ended Sept. 30, 2020, includes noncash impairment charges of $604.0 million. |
ONEOK's operating income and adjusted EBITDA increased 14% and 15%, respectively, compared with the third quarter 2019. Higher results were driven primarily by increased NGL volumes across ONEOK's operations, lower operating costs in all three of ONEOK's business segments, and lower rail transportation and pipeline costs in the natural gas liquids segment due to the completion of ONEOK's Elk Creek Pipeline, compared with the third quarter 2019.
Results were partially offset by higher depreciation expense due to capital-growth projects placed in service, lower earnings from optimization and marketing in the natural gas liquids segment, lower natural gas volumes in the natural gas gathering and processing segment due to natural production declines in the Mid-Continent region and production curtailments in the Williston Basin, and lower interruptible transportation services in the natural gas pipelines segment, compared with the third quarter 2019.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Natural Gas Liquids Segment
The natural gas liquids segment's third quarter 2020 adjusted EBITDA increased 23%, compared with the same period in 2019, due primarily to higher volumes across ONEOK's operations and lower rail transportation and pipeline costs compared with the third quarter 2019. Third quarter 2020 NGL raw feed throughput volumes increased 7%, compared with the same period in 2019.
Through the first nine months of 2020, the segment connected five natural gas processing plants to its system, including ONEOK's Demicks Lake II plant, two third-party plants in the Rocky Mountain region and two third-party plants in the Permian Basin. Two third-party plant connections in the Rocky Mountain region and one third-party plant in the Mid-Continent were also expanded in the first nine months of 2020.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Natural Gas Liquids Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 451.2 | $ | 367.5 | $ | 1,199.8 | $ | 1,091.9 | |||||||
Capital expenditures | $ | 298.9 | $ | 738.0 | $ | 1,504.9 | $ | 1,969.1 |
The increase in third quarter 2020 adjusted EBITDA, compared with the third quarter 2019, primarily reflects:
The increase in adjusted EBITDA for the nine-month 2020 period, compared with the same period last year, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's third quarter 2020 adjusted EBITDA increased 4%, compared with the same period in 2019.
The segment benefited from an average fee rate of 94 cents per Million British thermal units (MMBtu) in the third quarter 2020, compared with 92 cents per MMBtu in the same period in 2019.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 183.1 | $ | 175.3 | $ | 431.5 | $ | 514.2 | |||||||
Capital expenditures | $ | 63.0 | $ | 245.7 | $ | 362.8 | $ | 674.1 |
The increase in third quarter 2020 adjusted EBITDA, compared with the third quarter 2019, primarily reflects:
The decrease in adjusted EBITDA for the nine-month 2020 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 6% in the third quarter 2020, compared with the same period in 2019.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Natural Gas Pipelines Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 109.8 | $ | 103.8 | $ | 332.2 | $ | 311.0 | |||||||
Capital expenditures | $ | 13.0 | $ | 27.8 | $ | 40.5 | $ | 77.9 |
The increase in third quarter 2020 adjusted EBITDA, compared with the third quarter 2019, primarily reflects:
The increase in adjusted EBITDA for the nine-month 2020 period, compared with the same period last year, primarily reflects:
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Oct. 28, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 888-254-3590, pass code 5700571, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5700571.
LINK TO EARNINGS TABLES AND PRESENTATION:
https://ir.oneok.com/financial-information/financial-reports/2020
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
ONEOK's news release issued on April 28, 2020, provided that, given the current environment, continued commodity price and market volatility, and uncertainty surrounding the COVID-19 pandemic, ONEOK was withdrawing its 2020 guidance expectations and 2021 outlook, originally provided on Feb. 24, 2020, as well as its prior dividend guidance, and that previously provided guidance and outlooks should no longer be relied upon.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "will," 'would," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-14-year-over-year-increase-in-third-quarter-2020-operating-income-301160955.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 21, 2020 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 93.5 cents per share, unchanged from the previous quarter, resulting in an annualized dividend of $3.74 per share.
The dividend is payable Nov. 13, 2020, to shareholders of record at the close of business Nov. 2, 2020.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact:
Megan Patterson
918-561-5325
Media Contact:
Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-declares-quarterly-dividend-301157319.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 6, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release third quarter 2020 earnings after the market closes on Oct. 27, 2020.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Oct. 28, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 888-254-3590, pass code 5700571, or log on to www.oneok.com.
What: | ONEOK third quarter 2020 earnings conference call and webcast |
When: | 11 a.m. Eastern, Oct. 28, 2020 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 888-254-3590, pass code 5700571 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5700571.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-third-quarter-2020-conference-call-and-webcast-scheduled-301147053.html
SOURCE ONEOK, Inc.
TULSA, Okla., Sept. 8, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Barclays CEO Energy-Power Virtual Conference Sept. 8-9, 2020.
ONEOK's latest investor materials, including updated volume information, are available at www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
18-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-barclays-ceo-energy-power-virtual-conference-301124731.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 25, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the following upcoming virtual investor conferences:
ONEOK's latest investor materials are available at www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-upcoming-virtual-investor-conferences-301118217.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 13, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced the release of its 12th Corporate Sustainability Report. The report highlights the company's progress and commitment to environmental, social and governance (ESG) performance, and marks ONEOK's adoption of the Sustainability Accounting Standards Board (SASB) reporting standards. View the report on ONEOK's website, www.oneok.com.
2019-2020 Corporate Sustainability Report Highlights:
"Integrating ESG best practices throughout our operations has long been a critical strategy for ONEOK," said Terry K. Spencer, ONEOK president and chief executive officer. "Our culture is one of continuous improvement, and while ESG reporting isn't new for ONEOK, each year we work to identify opportunities to enhance our ESG disclosures and performance.
"COVID-19 and important social issues such as racial inequity have further emphasized the responsibility that corporations have to stakeholders," added Spencer. "We believe our success as a company is not only measured by our financials but also by how we treat our employees, engage with the communities where we operate and balance the environmental impact of our operations with the essential midstream services we provide."
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ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-releases-12th-annual-corporate-sustainability-report-301111596.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 6, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the following virtual investor conferences in August 2020:
ONEOK's latest investor materials are available at www.oneok.com.
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ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-upcoming-virtual-investor-conferences-301107518.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 28, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced second quarter 2020 financial results and updated its 2020 outlook.
Second Quarter 2020 Results:
Updated 2020 Outlook:
Given continued market and industry uncertainty, including recent developments related to crude oil pipeline takeaway in the Williston Basin, ONEOK expects 2020 net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) results to be at the low end of the ranges provided on April 28, 2020.
Total capital expenditures for the second half of 2020 are expected to range from approximately $300 million to $400 million.
"I am proud of the way our employees continue to operate safely and responsibly and remain focused on providing excellent customer service in a challenging environment," said Terry K. Spencer, ONEOK president and chief executive officer. "Second quarter results were interrupted by the pandemic's effect on worldwide crude oil demand, the resulting extensive oil and associated natural gas production curtailments by producers across our operations and low commodity prices. As we return to volumes achieved during early March 2020, we expect our earnings run rate to be in line with our previous expectations.
"The trends we are seeing in all of our operating areas are improving," added Spencer. "Volumes on our systems are sharply increasing as our customers bring production back online with improvements in commodity prices, which is positive for our business in the second half of the year."
SECOND QUARTER 2020 FINANCIAL PERFORMANCE
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(Millions of dollars, except per share and dividend | |||||||||||||||
Net income (loss) (a) | $ | 134.3 | $ | 312.0 | $ | (7.5) | $ | 649.2 | |||||||
Net income (loss) per diluted share (a) | $ | 0.32 | $ | 0.75 | $ | (0.02) | $ | 1.56 | |||||||
Adjusted EBITDA (b) (c) | $ | 533.9 | $ | 632.4 | $ | 1,234.7 | $ | 1,269.9 | |||||||
DCF (b) | $ | 300.5 | $ | 540.5 | $ | 822.9 | $ | 1,047.3 | |||||||
DCF in excess of (less than) dividends paid (b) | $ | (86.8) | $ | 183.2 | $ | 48.9 | $ | 335.8 | |||||||
Dividend coverage ratio (b) | 0.78 | 1.51 | 1.06 | 1.47 | |||||||||||
Operating income (d) | $ | 355.7 | $ | 476.1 | $ | 272.3 | $ | 944.9 | |||||||
Operating costs | $ | 224.4 | $ | 237.7 | $ | 431.4 | $ | 478.4 | |||||||
Depreciation and amortization | $ | 140.4 | $ | 115.0 | $ | 272.8 | $ | 229.1 | |||||||
Equity in net earnings from investments | $ | 25.3 | $ | 34.1 | $ | 70.0 | $ | 77.6 | |||||||
Capital expenditures | $ | 594.3 | $ | 830.5 | $ | 1,544.0 | $ | 1,720.2 | |||||||
(a) Amounts for the three and six months ended June 30, 2020, include benefits of $4.3 million and $20.0 million, respectively, (b) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow (DCF) (c) Amounts for the three and six months ended June 30, 2020, include benefits of $4.3 million and $20.0 million, respectively, (d) Amount for the six months ended June 30, 2020, includes noncash impairment charges of $604.0 million. |
ONEOK reported second quarter 2020 net income and adjusted EBITDA of $134.3 million and $533.9 million, respectively. Results were driven primarily by lower natural gas liquids (NGL) and natural gas volumes due to production curtailments, lower realized commodity prices in the natural gas gathering and processing segment and lower earnings from optimization and marketing in the natural gas liquids segment, compared with the second quarter 2019.
Results benefited from lower rail transportation costs due to the completion of ONEOK's Elk Creek Pipeline and higher Permian Basin average fee rates in the natural gas liquids segment, and higher transportation services in the natural gas pipelines segment, compared with the second quarter 2019.
Second quarter 2020 interest expense increased, compared with the second quarter 2019, due primarily to a $48.3 million impact from the settlement of ONEOK's remaining $1.3 billion of interest-rate swaps used to hedge London Interbank Offered Rate (LIBOR)-based interest payments.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Natural Gas Liquids Segment
The natural gas liquids segment reported second quarter 2020 adjusted EBITDA of $337.6 million, which primarily reflects lower optimization and marketing earnings and lower volumes across ONEOK's operations due to production curtailments, compared with the second quarter 2019.
The segment connected one third-party natural gas processing plant to its system in the Permian Basin in the second quarter 2020 and one existing third-party plant in the Mid-Continent region was expanded.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Natural Gas Liquids Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 337.6 | $ | 346.8 | $ | 748.6 | $ | 724.4 | |||||||
Capital expenditures | $ | 459.8 | $ | 591.8 | $ | 1,206.0 | $ | 1,231.1 |
The decrease in second quarter 2020 adjusted EBITDA, compared with the second quarter 2019, primarily reflects:
The increase in adjusted EBITDA for the six-month 2020 period, compared with the same period last year, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment reported second quarter 2020 adjusted EBITDA of $88.7 million. Production curtailments in the Williston Basin and Mid-Continent region drove lower second quarter 2020 results, compared with the second quarter 2019.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 88.7 | $ | 186.6 | $ | 248.4 | $ | 338.9 | |||||||
Capital expenditures | $ | 118.2 | $ | 213.2 | $ | 299.8 | $ | 428.4 |
The decrease in second quarter 2020 adjusted EBITDA, compared with the second quarter 2019, primarily reflects:
The decrease in adjusted EBITDA for the six-month 2020 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 9% in the second quarter 2020, compared with the same period in 2019, due primarily to higher transportation revenue.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Natural Gas Pipelines Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 109.8 | $ | 100.5 | $ | 222.4 | $ | 207.2 | |||||||
Capital expenditures | $ | 10.9 | $ | 21.4 | $ | 27.5 | $ | 50.1 |
The increase in second quarter 2020 adjusted EBITDA, compared with the second quarter 2019, primarily reflects:
The increase in adjusted EBITDA for the six-month 2020 period, compared with the same period last year, primarily reflects:
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on July 29, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-263-0877, pass code 5528862, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5528862.
LINK TO EARNINGS TABLES AND PRESENTATION:
https://ir.oneok.com/financial-information/financial-reports/2020
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income (loss) or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income (loss). Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income (loss) to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
ONEOK's news release issued on April 28, 2020, provided that, given the current environment, continued commodity price and market volatility, and uncertainty surrounding the COVID-19 pandemic, ONEOK was withdrawing its 2020 guidance expectations and 2021 outlook, originally provided on Feb. 24, 2020, as well as its prior dividend guidance, and that previously provided guidance and outlooks should no longer be relied upon.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "will," 'would," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson 918-561-5325 |
Media Contact: | Brad Borror 918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-second-quarter-2020-earnings-301101562.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 22, 2020 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 93.5 cents per share, unchanged from the previous quarter, resulting in an annualized dividend of $3.74 per share.
The dividend is payable Aug. 14, 2020, to shareholders of record at the close of business Aug. 3, 2020.
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ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-declares-quarterly-dividend-301098277.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 7, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release second quarter 2020 earnings after the market closes on July 28, 2020.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on July 29, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-263-0877, pass code 5528862, or log on to www.oneok.com.
What: | ONEOK second quarter 2020 earnings conference call and webcast |
When: | 11 a.m. Eastern, July 29, 2020 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 800-263-0877, pass code 5528862 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5528862.
-------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-second-quarter-2020-conference-call-and-webcast-scheduled-301089407.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 15, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the J.P. Morgan Energy, Power and Renewables Virtual Conference June 16-17, 2020.
Investor materials will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on June 16, 2020.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-jp-morgan-energy-virtual-conference-301077095.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 11, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it priced its previously announced public offering of 26 million shares of its common stock at a price to the public of $32.00 per share. ONEOK expects gross proceeds from the offering, before deducting underwriting discounts and offering expenses, will total approximately $832.0 million.
ONEOK also granted the underwriters a 30-day over-allotment option to purchase up to 3.9 million additional shares.
ONEOK expects to use the net proceeds from the offering for general corporate purposes, which may include the repayment of existing indebtedness and the funding of capital expenditures.
Barclays, J.P. Morgan and Citigroup are acting as lead book-running managers for the offering.
BofA Securities, Credit Suisse and Wells Fargo Securities are also acting as book-running managers for the offering. Goldman Sachs & Co. LLC, Morgan Stanley, PNC Capital Markets LLC, SMBC Nikko, SunTrust Robinson Humphrey and Tudor, Pickering, Holt & Co. are acting as co-managers in the offering.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No assurance can be made that the offering will be consummated on its proposed terms or at all.
A registration statement relating to the common stock was previously filed with, and became effective under the rules of, the Securities and Exchange Commission ("SEC"). ONEOK offered the common stock to the public by means of a prospectus and prospectus supplement, which are part of the registration statement. A preliminary prospectus supplement relating to the offering has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus, and the final prospectus supplement, when available, may be obtained by visiting the SEC's website at www.sec.gov or from:
Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Email: Barclaysprospectus@broadridge.com
Phone: 888-603-5847
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
Attention: Prospectus Department
1155 Long Island Avenue
Edgewood, NY 11717
Phone: 866-803-9204
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Phone: 800-831-9146
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and in our other filings that we make with the SEC, which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
View original content:http://www.prnewswire.com/news-releases/oneok-announces-pricing-of-common-stock-offering-301074869.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 11, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced an underwritten public offering of 26 million shares of its common stock. ONEOK expects to grant to the underwriters a 30-day over-allotment option to purchase up to 3.9 million additional shares.
ONEOK expects to use the net proceeds from the offering for general corporate purposes, which may include the repayment of existing indebtedness and the funding of capital expenditures.
Barclays, J.P. Morgan and Citigroup are acting as lead book-running managers in the offering.
BofA Securities, Credit Suisse and Wells Fargo Securities are also acting as book-running managers for the offering.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No assurance can be made that the offering will be consummated on its proposed terms or at all.
The common stock will be offered and sold pursuant to an effective shelf registration statement on Form S-3 filed by ONEOK with the Securities and Exchange Commission (the "SEC") and only by means of a prospectus supplement and accompanying prospectus included in the registration statement. A preliminary prospectus supplement relating to the offering has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus, and the final prospectus supplement, when available, may be obtained by visiting the SEC's website at www.sec.gov or from:
Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Email: Barclaysprospectus@broadridge.com
Phone: 888-603-5847
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
Attention: Prospectus Department
1155 Long Island Avenue
Edgewood, NY 11717
Phone: 866-803-9204
Citigroup
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Phone: 800-831-9146
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and in our other filings that we make with the SEC, which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-public-offering-of-common-stock-301074345.html
SOURCE ONEOK, Inc.
TULSA, Okla., May 26, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Bernstein Strategic Decisions Virtual Conference on May 27-28, 2020.
Investor materials are accessible on ONEOK's website, www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-bernstein-strategic-decisions-virtual-conference-301065187.html
SOURCE ONEOK, Inc.
TULSA, Okla., May 11, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Citi Global Energy and Utilities Virtual Conference on May 12-13, 2020.
Investor materials will be accessible on ONEOK's website, www.oneok.com, beginning at 9 a.m. Eastern Daylight Time (8 a.m. Central Daylight Time) on May 12, 2020.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-citi-global-energy-and-utilities-virtual-conference-301056749.html
SOURCE ONEOK, Inc.
TULSA, Okla., May 4, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has priced an offering to sell $1.5 billion of senior notes, consisting of $600 million of 5-year senior notes at a coupon of 5.85%, $600 million of 10-year senior notes at a coupon of 6.35% and $300 million of 30-year senior notes at a coupon of 7.15%.
The net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, are expected to be $1.48 billion. ONEOK expects to use the net proceeds to repay the outstanding borrowings under its term loan facility and for general corporate purposes, which may include the repayment of other existing indebtedness and the funding of capital expenditures. ONEOK expects the notes offering to close on or about May 7, 2020, subject to the satisfaction of customary closing conditions.
Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for the offering. Tudor, Pickering, Holt & Co. Securities, LLC is the co-manager for the offering.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A registration statement relating to the notes was previously filed with, and became effective under the rules of, the Securities and Exchange Commission. ONEOK offered the notes to the public by means of a prospectus and prospectus supplement, which are part of the registration statement.
A copy of the prospectus and prospectus supplement may be obtained by contacting the joint book-running managers as follows:
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Phone: 800-831-9146
E-mail: prospectus@citi.com
BofA Securities, Inc.
200 North College Street
NC1-004-03-43
Charlotte, North Carolina 28255-0001
Attention: Prospectus Department
Toll-free: 800-294-1322
E-mail: dg.prospectus_requests@bofa.com
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Attn: Investment Grade Syndicate Desk– 3rd floor
Phone: 212-834-4533
Fax: 212-834-6081
Morgan Stanley & Co. LLC
180 Varick Street
New York, New York 10014
Attention: Prospectus Department
Phone: 866-718-1649
E-mail: prospectus@morganstanley.com
Wells Fargo Securities, LLC
608 2nd Avenue South, Suite 1000
Minneapolis, Minnesota 55402
Attention: WFS Customer Service
Toll-free: 800-645-3751
E-mail: wfscustomerservice@wellsfargo.com
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson | |
Media Contact: | Brad Borror |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-1-5-billion-notes-offering-301052412.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 28, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced first quarter 2020 financial results, provided a 2020 outlook and reduced 2020 capital expenditures.
First Quarter 2020 Results, Compared With The First Quarter 2019:
2020 Outlook:
Given the current industry and economic environment, it is impractical for ONEOK to provide traditional financial guidance for 2020 and beyond at this time. Providing specific volume and commodity price guidance would not be appropriate for ONEOK due to the number of potential variations of outcomes that are possible for price forecasts, curtailment quantities and the duration and pace of economic recovery on a worldwide basis among other factors. ONEOK has performed a scenario analysis, and based on currently available information, believes the range of possible 2020 net income results will likely be between $500 million and $900 million, which includes the $641.8 million impact of first quarter impairment charges, and 2020 adjusted EBITDA results will likely be between $2,600 million and $3,000 million.
Additionally, growth capital expenditures have been further reduced from the March 11, 2020, decrease of $500 million, and are now expected to range from $1,400 million to $1,800 million, including more than $900 million spent in the first quarter 2020.
ONEOK has paused the majority of construction activities on the following projects, which can be restarted quickly when drilling activity resumes:
"In response to COVID-19, we continue to prioritize the health and safety of our employees and stakeholders while remaining focused on operating responsibly and providing the essential services that our customers rely on us for," said Terry K. Spencer, ONEOK president and chief executive officer.
"Given the uncertainty around the global pandemic and its impact on commodity prices and global energy demand, the company's 2020 financial guidance published on February 24, 2020, is not reflective of the prevailing economic downturn and its potential duration," added Spencer. "The company's 2020 outlook better reflects a wider range of current and potential actions by producers, customers and energy markets. While the near-term view of the world is changing every day, the long-term fundamentals of our strategic businesses remain strong and financially well-positioned to continue growth when global energy demand recovers."
FIRST QUARTER 2020 FINANCIAL PERFORMANCE:
Three Months Ended | |||||||
March 31, | |||||||
2020 | 2019 | ||||||
(Millions of dollars, except per | |||||||
Net income (loss) (a) | $ | (141.9) | $ | 337.2 | |||
Net income (loss) per diluted share (a) | $ | (0.34) | $ | 0.81 | |||
Adjusted EBITDA (b) (c) | $ | 700.8 | $ | 637.5 | |||
DCF (b) | $ | 522.3 | $ | 506.8 | |||
DCF in excess of dividends paid (b) | $ | 135.7 | $ | 152.6 | |||
Dividend coverage ratio (b) | 1.35 | 1.43 | |||||
Operating income (loss) (d) | $ | (83.5) | $ | 468.7 | |||
Operating costs | $ | 207.1 | $ | 240.8 | |||
Depreciation and amortization | $ | 132.4 | $ | 114.2 | |||
Equity in net earnings from investments | $ | 44.6 | $ | 43.5 | |||
Capital expenditures | $ | 949.7 | $ | 889.7 |
(a) Amounts for the three months ended March 31, 2020, include noncash charges of $641.8 million, or $1.17 per diluted share after-tax, related primarily to impairments in the natural gas gathering and processing segment. Amounts also include benefits of $18.8 million, or 3 cents per diluted share after-tax, related to the mark-to-market of ONEOK's share-based deferred compensation plan and $15.8 million, or 3 cents per diluted share after-tax, related to a gain on extinguishment of debt. |
(b) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow (DCF) and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are included in this news release. |
(c) Amount for the three months ended March 31, 2020, includes a $15.8 million gain on extinguishment of debt. |
(d) Amount for the three months ended March 31, 2020, includes noncash impairment charges of $604.0 million. |
ONEOK reported a net loss of $141.9 million in the first quarter 2020, which includes noncash impairment charges of $641.8 million. The impairment charges relate primarily to goodwill and long-lived assets in western Oklahoma, Kansas and the Powder River Basin in ONEOK's natural gas gathering and processing segment.
Adjusted EBITDA increased 10%, compared with the same period in 2019. Higher results were due primarily to natural gas liquids (NGL) and natural gas volume growth, higher average fee rates, primarily in the Permian Basin, in the natural gas liquids segment and increased transportation services in the natural gas pipelines segment, compared with the first quarter 2019. Results were partially offset by lower earnings from optimization and marketing in the natural gas liquids segment and lower realized commodity prices in the natural gas gathering and processing segment.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Natural Gas Liquids Segment
The natural gas liquids segment's first quarter 2020 adjusted EBITDA increased 9%, compared with the first quarter 2019, due primarily to higher volumes in the Rocky Mountain region and the Permian Basin. First quarter 2020 NGL raw feed throughput volumes increased 6%, compared with the same period in 2019.
The segment connected ONEOK's Demicks Lake II natural gas processing facility and one third-party natural gas processing plant in the Permian Basin to its system in the first quarter 2020. Two existing third-party plant connections in the Rocky Mountain region were also expanded during the quarter.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Liquids Segment | 2020 | 2019 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ | 410.9 | $ | 377.6 | |||
Capital expenditures | $ | 746.2 | $ | 639.3 |
The increase in first quarter 2020 adjusted EBITDA, compared with the first quarter 2019, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's first quarter 2020 adjusted EBITDA increased 5%, compared with the same period in 2019. Continued volume growth in the Williston Basin drove higher first quarter 2020 results, including a 5% increase in total natural gas volumes processed, compared with the first quarter 2019.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Gathering and Processing Segment | 2020 | 2019 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ | 159.6 | $ | 152.2 | |||
Capital expenditures | $ | 181.6 | $ | 215.1 |
First quarter 2020 adjusted EBITDA increased, compared with the first quarter 2019, which primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 6% in the first quarter 2020, compared with the same period in 2019, due primarily to higher firm transportation capacity contracted due to completed expansion projects in 2019 and higher firm transportation rates.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Pipelines Segment | 2020 | 2019 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA | $ | 112.5 | $ | 106.6 | |||
Capital expenditures | $ | 16.6 | $ | 28.7 |
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on April 29, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-458-4121, pass code 8831658, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8831658.
LINK TO EARNINGS TABLES AND PRESENTATION:
https://ir.oneok.com/financial-information/financial-reports/2020
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income (loss) or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income (loss). Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income (loss) to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Given the current environment, continued commodity price and market volatility, and uncertainty surrounding the COVID-19 pandemic, ONEOK is withdrawing its 2020 guidance expectations and 2021 outlook, originally provided on Feb. 24, 2020, as well as its prior dividend guidance. Previously provided guidance and outlooks should no longer be relied upon.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "will," 'would," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson 918-561-5325 |
Media Contact: | Brad Borror 918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-first-quarter-2020-earnings-301048771.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 27, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will hold its 2020 Annual Meeting of Shareholders as a virtual meeting only due to public health concerns related to COVID-19. The meeting will be held online, accessible through a live webcast at 9 a.m. Central Daylight Time (CDT) on May 20, 2020.
The record date for determining shareholders entitled to receive notice of the meeting and to vote was March 23, 2020. Shareholders will not be able to attend the meeting in person but will be able to vote at the virtual meeting if they were shareholders on the record date or if they hold a legal proxy.
What: | ONEOK, Inc. 2020 Virtual Annual Meeting of Shareholders |
When: | 9 a.m. CDT, May 20, 2020 |
Where: | Shareholders can attend online directly at: https://web.lumiagm.com/205564060. |
How: | Enter the control number from the proxy card. |
Guests may join the virtual 2020 Annual Meeting in a listen-only mode. No control number is required.
To learn more about accessing and participating in the virtual meeting, please refer to ONEOK's Notice of Change of Location of Annual Meeting of Shareholders or visit www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-virtual-annual-meeting-of-shareholders-301047781.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 16, 2020 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 93.5 cents per share, unchanged from the previous quarter, resulting in an annualized dividend of $3.74 per share. The dividend is payable May 14, 2020, to shareholders of record at the close of business April 27, 2020.
"ONEOK's dividend payout is supported by our strong balance sheet and healthy dividend coverage," said Terry K. Spencer, ONEOK president and chief executive officer. "Holding the dividend at its current level is the prudent financial decision for ONEOK during this time of market uncertainty. Our integrated and extensive assets and financial strength position us well for an industry recovery once energy markets stabilize."
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-declares-quarterly-dividend-301042262.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 7, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the SunTrust Robinson Humphrey Power, Utilities and Midstream Summit virtual conference on April 7, 2020.
Investor materials are accessible on ONEOK's website, www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-suntrust-power-utilities-and-midstream-summit-301036438.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 6, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release first quarter 2020 earnings after the market closes on April 28, 2020.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on April 29, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-458-4121, pass code 8831658, or log on to www.oneok.com.
What: | ONEOK first quarter 2020 earnings conference call and webcast |
When: | 11 a.m. Eastern, April 29, 2020 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 800-458-4121, pass code 8831658 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8831658.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-first-quarter-2020-conference-call-and-webcast-scheduled-301036014.html
SOURCE ONEOK, Inc.
TULSA, Okla., March 30, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Mizuho Energy Summit audio conference on March 30, 2020.
Investor materials will be accessible on ONEOK's website, www.oneok.com, beginning at 9 a.m. Eastern Daylight Time (8 a.m. Central Daylight Time) on March 30, 2020.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-mizuho-energy-summit-301031274.html
SOURCE ONEOK, Inc.
TULSA, Okla., March 11, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced a decrease in its 2020 growth capital guidance due to the current commodity price environment. ONEOK now expects capital-growth expenditures in the range of $1.60 billion to $2.40 billion with a midpoint of $2.0 billion, a decrease of approximately $500 million compared with the previously announced midpoint. This updated range provides ONEOK with the flexibility to adjust accordingly based on expected producer activity.
"Given the significant inventory of flared natural gas in the Williston Basin and fully contracted growth in the Permian Basin, and factoring in the current commodity price environment and assumed rig reductions, we expect our 2020 results to be within our previously announced guidance ranges," said Terry K. Spencer, ONEOK president and chief executive officer. "We are working with our producers on any updates to their drilling plans and evaluating the impact on our future volume expectations, and we will make adjustments to financial guidance if appropriate."
"Break-even prices for our well-capitalized producer customers have improved significantly over the last several years, which gives us the confidence that the Williston Basin is expected to remain a competitive producing region through this volatile and uncertain commodity price environment," continued Spencer. "The potential for ethane recovery to meet downstream pipeline BTU specifications also provides a tailwind to our natural gas liquids volume expectations."
"Despite the volatile commodity price environment in recent days, ONEOK's financial flexibility, significant dividend coverage and investment-grade balance sheet position ONEOK well to weather these challenging market conditions," said Spencer. "We recently completed a $1.75 billion debt offering enabling us to repay all of our commercial paper, leaving us with the full borrowing capacity available on our $2.5 billion credit agreement and approximately $600 million of cash on hand, demonstrating our strong financial position."
ONEOK has made adjustments for planned capital expenditures and is suspending the following announced expansion projects:
"The planning and work we have already completed allow us to quickly resume these suspended capital-growth projects when the environment improves and our customers require these services," said Spencer.
"We will remain focused on operating our assets safely, reliably and environmentally responsibly," continued Spencer. "We have uniquely positioned strategic assets and a long, rich history of our dedicated and experienced employees providing quality service to and creating value for our customers, communities and shareholders."
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-500-million-decrease-in-2020-capital-spending-301021824.html
SOURCE ONEOK, Inc.
TULSA, Okla., March 5, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has priced an offering to sell $1.65 billion of senior notes, consisting of $400 million of 5-year senior notes at a coupon of 2.20%, $850 million of 10-year senior notes at a coupon of 3.10% and $400 million of 30-year senior notes at a coupon of 4.50%.
The net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, are expected to be $1.63 billion. ONEOK expects to use the net proceeds to repay all amounts outstanding under its commercial paper program and for general corporate purposes, which may include repayment of existing indebtedness and funding of capital expenditures. ONEOK expects the notes offering to close on or about March 10, 2020, subject to the satisfaction of customary closing conditions.
Barclays Capital Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. Regions Securities LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., Siebert Williams Shank & Co., LLC and Tuohy Brothers Investment Research Inc. are the co-managers for the offering.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A registration statement relating to the notes was previously filed with, and became effective under the rules of, the Securities and Exchange Commission. ONEOK offered the notes to the public by means of a prospectus and prospectus supplement, which are part of the registration statement.
A copy of the prospectus and prospectus supplement may be obtained by contacting the joint book-running managers as follows:
Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Email: barclaysprospectus@broadridge.com
Phone: 1-888-603-5847
Deutsche Bank Securities Inc.
Attn: Prospectus Group
60 Wall Street
New York, New York 10005
Email: prospectus.cpdg@db.com
Phone: 800-503-4611
Mizuho Securities USA LLC
Attn: Debt Capital Markets
1271 Avenue of the Americas
New York, NY 10022
Phone: 1-866-271-7403
TD Securities (USA) LLC
Attn: Transaction Management Group
31 W. 52nd Street, 2nd Floor
New York, NY 10019
Email: ustmg@tdsecurities.com
Phone: 855-495-9846
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-1-65-billion-notes-offering-301018726.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 26, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will hold its 2020 annual meeting of shareholders at 9 a.m. Central Daylight Time (CDT) on May 20, 2020. The meeting also will be audio webcast on ONEOK's website, www.oneok.com.
The record date for determining shareholders entitled to receive notice of the meeting and to vote is March 23, 2020.
What: | ONEOK, Inc. 2020 Annual Meeting of Shareholders |
When: | 9 a.m. CDT, May 20, 2020 |
Where: | ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma |
How: | Log on to the webcast at www.oneok.com |
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-schedules-2020-annual-meeting-of-shareholders-sets-record-date-301011890.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 27, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in investor meetings at the U.S. Capital Advisors Midstream Corporate Access Day on Jan. 28, 2020, in Houston, Texas.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Jan. 28, 2020.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-us-capital-advisors-midstream-corporate-access-day-300993530.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 21, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release fourth quarter and year-end 2019 earnings after the market closes on Feb. 24, 2020.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 25, 2020. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-367-2403, pass code 9753816, or log on to www.oneok.com.
What: | ONEOK fourth quarter and year-end 2019 earnings conference call and webcast |
When: | 11 a.m. Eastern, Feb. 25, 2020 |
Where: | 1) Phone conference call dial 800-367-2403, pass code 9753816 |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 9753816.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-fourth-quarter-and-year-end-2019-conference-call-and-webcast-scheduled-300990652.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 15, 2020 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 2 cents per share to 93.5 cents per share. This increase results in an annualized dividend of $3.74 per share.
The dividend is payable Feb. 14, 2020, to shareholders of record at the close of business Jan. 27, 2020.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300987723.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 9, 2020 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the UBS Midstream, MLP and Utilities Conference Jan. 13-14, 2020, in Park City, Utah.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 2:15 p.m. Mountain Standard Time (3:15 p.m. Central Standard Time) on Jan. 13, 2020.
---------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-ubs-midstream-mlp-and-utilities-conference-300984495.html
SOURCE ONEOK, Inc.
TULSA, Okla., Dec. 11, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced the completion of its Elk Creek Pipeline. Natural gas liquids (NGL) volume is now flowing on the fully completed 900-mile pipeline, which extends from the Williston Basin to ONEOK's existing Mid-Continent NGL facilities in Bushton, Kansas.
Elk Creek has the capacity to transport up to 240,000 barrels per day (bpd) of unfractionated NGLs and the capability to be expanded to 400,000 bpd with additional pump facilities. ONEOK expects total Rocky Mountain NGL volume transported on the Elk Creek and Bakken NGL pipelines to reach more than 240,000 bpd by the end of the first quarter 2020.
"The completion of Elk Creek provides critical NGL transportation to producers in the highly productive Williston, Powder River and Denver-Julesburg basins," said Terry K. Spencer, ONEOK president and chief executive officer. "Elk Creek, combined with ONEOK's investments in additional natural gas processing infrastructure in the region, will help producers significantly reduce natural gas currently flaring in North Dakota."
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects (including dates for expected completion of growth projects) and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions, volume expectations and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "will," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, growth projects, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-completion-of-the-elk-creek-pipeline-300973559.html
SOURCE ONEOK, Inc.
TULSA, Okla., Dec. 9, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Wells Fargo Midstream and Utility Symposium Dec. 11-12, 2019, in New York City.
ONEOK management will present at the conference at 4:45 p.m. Eastern Standard Time (3:45 p.m. Central Standard Time) on Wednesday, Dec. 11.
The presentation will be webcast and accessible on ONEOK's website, www.oneok.com. A replay of the webcast will be archived for 30 days.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 4:30 p.m. Eastern Standard Time (3:30 p.m. Central Standard Time) on Dec. 11, 2019.
---------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-present-at-wells-fargo-midstream-and-utility-symposium-300971530.html
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 18, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the RBC Capital Markets Midstream Conference on Nov. 20, 2019, in Dallas, Texas.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 5 p.m. Eastern Standard Time (4 p.m. Central Standard Time) on Nov. 19, 2019.
---------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-rbc-capital-markets-midstream-conference-300960180.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 29, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced third quarter 2019 financial results and updated 2019 financial guidance.
Third Quarter 2019 Results:
Updated 2019 Guidance:
THIRD QUARTER 2019 FINANCIAL HIGHLIGHTS
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Millions of dollars, except per share and dividend coverage ratio amounts) | |||||||||||||||
Net income | $ | 309.2 | $ | 313.9 | $ | 958.3 | $ | 862.1 | |||||||
Net income per diluted share | $ | 0.74 | $ | 0.75 | $ | 2.31 | $ | 2.07 | |||||||
Adjusted EBITDA (a) | $ | 649.8 | $ | 650.2 | $ | 1,919.7 | $ | 1,822.4 | |||||||
DCF (a) | $ | 480.9 | $ | 472.1 | $ | 1,528.2 | $ | 1,357.7 | |||||||
DCF in excess of dividends paid (a) | $ | 113.0 | $ | 132.6 | $ | 448.8 | $ | 374.6 | |||||||
Dividend coverage ratio (a) | 1.31 | 1.39 | 1.42 | 1.38 | |||||||||||
Operating income | $ | 482.2 | $ | 495.5 | $ | 1,427.0 | $ | 1,363.6 | |||||||
Operating costs | $ | 245.1 | $ | 230.4 | $ | 723.6 | $ | 670.7 | |||||||
Depreciation and amortization | $ | 121.4 | $ | 107.4 | $ | 350.6 | $ | 317.9 | |||||||
Equity in net earnings from investments | $ | 37.6 | $ | 39.3 | $ | 115.2 | $ | 116.1 | |||||||
Capital expenditures | $ | 1,019.2 | $ | 694.3 | $ | 2,739.3 | $ | 1,309.7 |
(a) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow (DCF) and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are included in this news release. |
"Growth across our business segments continues to drive strong results, providing another year of increased companywide earnings in 2019," said Terry K. Spencer, ONEOK president and chief executive officer. "Our outlook for greater than 20% earnings growth in 2020 is supported by the upcoming completion of critical ONEOK natural gas and NGL infrastructure, including assets to help significantly reduce natural gas flaring in the Williston Basin. These projects will provide immediate earnings and volume uplift in 2020 and stable fee-based growth for years to come.
"Our capital-growth projects remain on, or ahead of schedule. We recently completed the Demicks Lake I plant in the Williston Basin, expect line fill activities to begin on the northern section of the Elk Creek NGL pipeline in November 2019 and expect a portion of our MB-4 fractionator in Mont Belvieu to be completed in the fourth quarter 2019," added Spencer.
THIRD QUARTER AND YEAR-TO-DATE 2019 FINANCIAL PERFORMANCE
ONEOK's net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) were $309.2 million and $649.8 million, respectively, in the third quarter 2019. Results were driven primarily by natural gas liquids (NGL) and natural gas volume growth, higher average fee rates in the natural gas liquids segment and increased transportation services in the natural gas pipelines segment, compared with the third quarter 2018. Results were primarily offset by lower earnings from optimization and marketing due to wide location price differentials in the third quarter 2018, lower Mid-Continent NGL volumes due primarily to increased ethane rejection and the timing of exchange services earnings due to higher unfractionated NGLs in inventory, all in the natural gas liquids segment. Higher operating costs and depreciation expense due to the growth of ONEOK's operations also impacted third quarter 2019 results.
ONEOK's year-to-date 2019 net income and adjusted EBITDA increased 11% and 5%, respectively, compared with the same period in 2018. Higher results were primarily driven by fee-based volume growth across ONEOK's operations.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Natural Gas Liquids Segment
Third quarter 2019 NGL raw feed throughput volumes increased 3%, compared with the same period in 2018, driven by higher volumes in the Rocky Mountain region and the Permian Basin.
The segment connected seven third-party natural gas processing plants to its system in the first nine months of 2019, including five in the Mid-Continent region, one in the Permian Basin and one in the Williston Basin. Five existing third-party plant connections were also expanded in the first nine months of 2019, including two in the Mid-Continent region, two in the Permian Basin and one in the Williston Basin.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Natural Gas Liquids Segment | 2019 | 2018 | 2019 | 2018 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 367.5 | $ | 399.0 | $ | 1,091.9 | $ | 1,093.2 | |||||||
Capital expenditures | $ | 738.0 | $ | 444.8 | $ | 1,969.1 | $ | 786.6 |
The decrease in third quarter 2019 adjusted EBITDA, compared with the third quarter 2018, primarily reflects:
Adjusted EBITDA for the nine-month 2019 period was relatively unchanged, compared with the same period last year, due to:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's third quarter 2019 adjusted EBITDA increased 10%, compared with the same period in 2018.
Volume growth in the Williston Basin and STACK and SCOOP areas of the Mid-Continent contributed to a 7% increase in natural gas volumes processed compared with the same period in 2018.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment | 2019 | 2018 | 2019 | 2018 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 175.3 | $ | 159.6 | $ | 514.2 | $ | 457.0 | |||||||
Capital expenditures | $ | 245.7 | $ | 213.0 | $ | 674.1 | $ | 433.6 |
Third quarter 2019 adjusted EBITDA increased, compared with the third quarter 2018, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2019 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 15% in the third quarter 2019, compared with the same period in 2018, due primarily to higher firm transportation capacity contracted due to completed expansion projects.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Natural Gas Pipelines Segment | 2019 | 2018 | 2019 | 2018 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 103.8 | $ | 90.1 | $ | 311.0 | $ | 269.1 | |||||||
Capital expenditures | $ | 27.8 | $ | 31.5 | $ | 77.9 | $ | 71.9 |
The increase in adjusted EBITDA for the third quarter 2019, compared with the third quarter 2018, primarily reflects:
The increase in adjusted EBITDA for the nine-month 2019 period, compared with the same period last year, primarily reflects:
UPDATED 2019 FINANCIAL GUIDANCE
ONEOK's full-year 2019 net income is expected to be in the range of $1,220 million to $1,330 million, compared with the range of $1,140 million to $1,400 million announced Feb. 25, 2019. ONEOK's adjusted EBITDA is expected to be in the range of $2,560 million to $2,640 million, compared with its previously announced range of $2,500 million to $2,700 million.
Growth capital expenditures are expected to range from $3,515 million to $3,695 million. Maintenance capital expenditures are expected to range from $185 million to $205 million.
Additional guidance information can be found in the tables.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Oct. 30, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-367-2403, pass code 1608886, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 1608886.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR-V2/financial-reports/2019/q3-2019-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare ONEOK's financial performance with the performance of other companies within ONEOK's industry. Adjusted EBITDA, distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and dividend coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our future capital-growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-third-quarter-2019-earnings-updates-2019-financial-guidance-and-maintains-2020-outlook-300947553.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 23, 2019 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 2.5 cents per share to 91.5 cents per share. This increase results in an annualized dividend of $3.66 per share.
The dividend is payable Nov. 14, 2019, to shareholders of record at the close of business Nov. 4, 2019.
------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300944236.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 8, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release third-quarter 2019 earnings after the market closes on Oct. 29, 2019.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Oct. 30, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-367-2403, pass code 1608886, or log on to www.oneok.com.
What: | ONEOK third-quarter 2019 earnings conference call and webcast |
When: | 11 a.m. Eastern, Oct. 30, 2019 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 800-367-2403, pass code 1608886 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 1608886.
-------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-third-quarter-2019-conference-call-and-webcast-scheduled-300934155.html
SOURCE ONEOK, Inc.
TULSA, Okla., Sept. 23, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced its inclusion in the Dow Jones Sustainability North America Index (DJSI North America), which recognizes companies for industry-leading environmental, social and governance (ESG) performance. ONEOK is the only U.S.-based midstream energy company included in the index.
"ONEOK's inclusion in the DJSI underscores our commitment to operating safely and responsibly," said Terry K. Spencer, ONEOK president and chief executive officer. "For ONEOK, sustainability is a continuous commitment. We've made tremendous strides in the area of ESG, but work remains to be done to achieve long-term success."
Founded in 1999, the DJSI was the first global sustainability benchmark and tracks the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The DJSI North America tracks the performance of the top 20% of the largest 600 companies in the S&P Global Broad Market Index in the region.
More information about ONEOK's ESG performance can be found in the company's Corporate Sustainability Report on ONEOK's website, www.oneok.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson | |
918-561-5325 | ||
Media Contact: | Brad Borror | |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-included-in-dow-jones-sustainability-north-america-index-300923490.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 29, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Barclays CEO Energy Conference Sept. 3-4, 2019, in New York City.
ONEOK management will present at the conference at 9:05 a.m. Eastern Daylight Time (8:05 a.m. Central Daylight Time) on Wednesday, Sept. 4.
The presentation will be webcast and accessible on ONEOK's website, www.oneok.com. A replay of the webcast will be archived for 30 days.
Materials used at the conference will be accessible on ONEOK's website beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Tuesday, Sept. 3.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-present-at-barclays-ceo-energy-conference-300909247.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 13, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Citi Midstream/Energy Infrastructure Conference Aug. 14-15, 2019, in Las Vegas, Nevada.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 5 a.m. Pacific Daylight Time (7 a.m. Central Daylight Time) on Aug. 14, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-citi-midstream-infrastructure-conference-300900929.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 12, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has priced an offering to sell $2.0 billion of senior notes, consisting of $500 million of 5-year senior notes at a coupon of 2.75%, $750 million of 10-year senior notes at a coupon of 3.40% and $750 million of 30-year senior notes at a coupon of 4.45%.
The net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, are expected to be $1.97 billion. ONEOK expects to use the net proceeds to repay the $300 million principal amount of senior notes due March 2020 and for general corporate purposes, which may include repayment of existing indebtedness and funding of capital expenditures. ONEOK expects the notes offering to close on or about Aug. 15, 2019, subject to the satisfaction of customary closing conditions.
J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. BOK Financial Securities, Inc., RBC Capital Markets, LLC, Siebert Cisneros Shank & Co., L.L.C., Tuohy Brothers Investment Research, Inc., and The Williams Capital Group, L.P. are the co-managers for the offering.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Nothing in this press release constitutes a notice of redemption or an obligation to issue a notice of redemption for the senior notes due March 2020 and the completion of the offering will not obligate us to issue a notice of redemption for the senior notes due March 2020.
A registration statement relating to the notes was previously filed with, and became effective under the rules of, the Securities and Exchange Commission. ONEOK offered the notes to the public by means of a prospectus and prospectus supplement, which are part of the registration statement.
A copy of the prospectus and prospectus supplement may be obtained by contacting the joint book-running managers as follows:
J.P. Morgan Securities LLC
Attn: Investment Grade Syndicate Desk
383 Madison Avenue
New York, New York 10179
Phone: (212) 834-4533
Fax: (212) 834-6081
BofA Securities, Inc.
Attention: High Grade Transaction Management/Legal
50 Rockefeller Plaza
NY1-050-12-01
NY, NY 10020
Email: dg.prospectus_requests@baml.com
Phone: 800-294-1322
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Toll-free: 800-831-9146
Email: prospectus@citi.com
Goldman Sachs & Co. LLC
Attn: Prospectus Department
200 West Street
New York, New York 10282
Email: Prospectus-ny@ny.email.gs.com
Phone: 1-866-471-2526
Fax: 212-902-9316
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-2-0-billion-notes-offering-300900359.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 5, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Tuohy Brothers 10th Annual Energy Conference on Wednesday, Aug. 7, 2019, in New York City.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Aug. 6, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-tuohy-brothers-annual-energy-conference-300896543.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 30, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher second-quarter 2019 financial results, compared with the second quarter 2018, and maintained 2019 financial guidance.
Higher Second-quarter 2019 Results, Compared With the Second Quarter 2018:
SECOND-QUARTER 2019 FINANCIAL HIGHLIGHTS
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Millions of dollars, except per share and dividend coverage ratio amounts) | |||||||||||||||
Net income | $ | 312.0 | $ | 282.2 | $ | 649.2 | $ | 548.2 | |||||||
Net income per diluted share | $ | 0.75 | $ | 0.68 | $ | 1.56 | $ | 1.32 | |||||||
Adjusted EBITDA (a) | $ | 632.4 | $ | 601.8 | $ | 1,269.9 | $ | 1,172.2 | |||||||
DCF (a) | $ | 540.5 | $ | 453.5 | $ | 1,047.3 | $ | 885.5 | |||||||
DCF in excess of dividends paid (a) | $ | 183.2 | $ | 126.5 | $ | 335.8 | $ | 242.0 | |||||||
Dividend coverage ratio (a) | 1.51 | 1.39 | 1.47 | 1.38 | |||||||||||
Operating income | $ | 476.1 | $ | 448.4 | $ | 944.9 | $ | 868.1 | |||||||
Operating costs | $ | 237.7 | $ | 230.2 | $ | 478.4 | $ | 440.4 | |||||||
Depreciation and amortization | $ | 115.0 | $ | 106.3 | $ | 229.1 | $ | 210.5 | |||||||
Equity in net earnings from investments | $ | 34.1 | $ | 36.6 | $ | 77.6 | $ | 76.8 | |||||||
Capital expenditures | $ | 830.5 | $ | 350.9 | $ | 1,720.2 | $ | 615.4 |
(a) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow (DCF) and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are included in this news release. |
"The southern section of our Elk Creek NGL Pipeline is now complete, and we expect it to provide a significant earnings uplift in the second half of 2019," said Terry K. Spencer, ONEOK president and chief executive officer.
"Our capital-growth program remains on schedule and on budget, including multiple projects that will add critical natural gas and NGL infrastructure to significantly reduce flaring in the Williston Basin," added Spencer. "With solid results and volumes so far in 2019 and the benefit of additional projects still being placed in service this year, we feel confident in achieving our 2019 financial guidance and our positioning for strong growth in 2020."
SECOND-QUARTER 2019 FINANCIAL PERFORMANCE
ONEOK's net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased 11% and 5%, respectively, in the second quarter 2019, compared with the second quarter 2018. Higher results were driven primarily by natural gas liquids (NGL) and natural gas volume growth, higher average fee rates in both the natural gas liquids and natural gas gathering and processing segments and increased transportation services in the natural gas pipelines segment. Net income also increased due to higher allowance for equity funds used during construction (AFUDC) related to ONEOK's capital-growth projects.
Results were offset partially by lower earnings from optimization and marketing due to narrower location price differentials, and higher rail transportation and third-party fractionation costs in the natural gas liquids segment and higher employee-related costs due to the growth of ONEOK's operations. Net income also was offset partially by increased depreciation expense due to capital-growth projects being placed in service.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Natural Gas Liquids Segment
Second-quarter 2019 NGL raw feed throughput volumes increased 11%, compared with the same period in 2018, driven primarily by higher volumes in the Rocky Mountain region, STACK and SCOOP areas and the Permian Basin.
The segment connected three third-party natural gas processing plants to its system in the second quarter 2019, two in the Mid-Continent region and one in the Permian Basin.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Natural Gas Liquids Segment | 2019 | 2018 | 2019 | 2018 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 346.8 | $ | 352.1 | $ | 724.4 | $ | 694.1 | |||||||
Capital expenditures | $ | 591.8 | $ | 216.9 | $ | 1,231.1 | $ | 341.9 |
The decrease in second-quarter 2019 adjusted EBITDA, compared with the second quarter 2018, primarily reflects:
The increase in adjusted EBITDA for the six-month 2019 period, compared with the same period last year, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's second-quarter 2019 adjusted EBITDA increased 12%, compared with the same period in 2018.
Volume growth in the Williston Basin and STACK and SCOOP areas of the Mid-Continent contributed to an 8% increase in natural gas volumes processed compared with the same period in 2018.
The segment also continues to benefit from higher fee-based earnings, with an average fee rate of 93 cents per Million British thermal units (MMBtu) in the second quarter 2019, compared with 89 cents per MMBtu in the second quarter 2018.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment | 2019 | 2018 | 2019 | 2018 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 186.6 | $ | 166.9 | $ | 338.9 | $ | 297.4 | |||||||
Capital expenditures | $ | 213.2 | $ | 108.8 | $ | 428.4 | $ | 220.6 |
Second-quarter 2019 adjusted EBITDA increased, compared with the second quarter 2018, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2019 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 18% in the second quarter 2019, compared with the same period in 2018, due primarily to higher firm transportation capacity contracted due to completed expansion projects.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Natural Gas Pipelines Segment | 2019 | 2018 | 2019 | 2018 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 100.5 | $ | 85.4 | $ | 207.2 | $ | 179.0 | |||||||
Capital expenditures | $ | 21.4 | $ | 20.5 | $ | 50.1 | $ | 40.4 |
The increase in adjusted EBITDA for the second quarter 2019, compared with the second quarter 2018, primarily reflects:
The increase in adjusted EBITDA for the six-month 2019 period, compared with the same period last year, primarily reflects:
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on July 31, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-353-6461, pass code 3421896, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 3421896.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2019/q2-2019-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare ONEOK's financial performance with the performance of other companies within ONEOK's industry. Adjusted EBITDA, distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and dividend coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our future capital-growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-11-increase-in-second-quarter-2019-net-income-300893488.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 25, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to expand its natural gas and natural gas liquids (NGL) infrastructure between now and 2021, including:
These projects are expected to be financed with cash generated from operations and short- and long-term borrowings. ONEOK continues to expect no equity issuances.
"These low-cost, capital-efficient expansions with attractive returns continue to demonstrate ONEOK's ability to incrementally grow with our customers to meet their needs," said Terry K. Spencer, ONEOK president and chief executive officer.
"The Bear Creek plant expansion in North Dakota will provide needed processing capacity for producers actively developing the high-growth area of Dunn County while also helping to address natural gas flaring in the state," added Spencer. "Continuing to expand our West Texas LPG pipeline system underscores ONEOK's Permian Basin strategy to provide needed NGL transportation capacity to producers in the highly productive Delaware and Midland basins."
Bear Creek plant and related infrastructure:
The Bear Creek natural gas processing facility expansion and related infrastructure in Dunn County, North Dakota, are expected to cost a total of approximately $405 million and be completed in the first quarter 2021. The expansion is supported by acreage dedications with primarily fee-based contracts.
ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day following the completion of the Bear Creek expansion. The expansion is expected to produce approximately 25,000 bpd of NGLs in ethane rejection, resulting in 225,000 bpd of raw feed contracted since the announcement of the Elk Creek Pipeline.
NGL Projects:
The West Texas LPG pipeline expansion is expected to cost approximately $145 million and be completed in the first quarter 2021. The expansion is supported by long-term dedicated NGL production from third-party natural gas processing plants in the Permian Basin that are expected to produce up to 45,000 bpd of NGLs.
Since October 2017, ONEOK has announced expansions totaling 160,000 bpd on the West Texas LPG pipeline system, with previous announcements including a 40,000 bpd expansion that was placed in service in the fourth quarter 2018 and an additional 80,000 bpd expansion that is expected to be completed in the first quarter 2020.
The expansions to ONEOK's Mid-Continent NGL fractionation facilities are expected to cost approximately $150 million, with 15,000 bpd expected to be completed in the third quarter 2020 and 50,000 bpd expected to be completed in the first quarter 2021. In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects (including dates for expected completion of growth projects) and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions, volume expectations and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "will," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, growth projects, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-expansions-to-natural-gas-and-ngl-infrastructure-300891337.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 24, 2019 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 2.5 cents per share to 89 cents per share. This increase results in an annualized dividend of $3.56 per share.
The dividend is payable Aug. 14, 2019, to shareholders of record at the close of business Aug. 6, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300890482.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 9, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release second-quarter 2019 earnings after the market closes on July 30, 2019.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on July 31, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-353-6461, pass code 3421896, or log on to www.oneok.com.
What: | ONEOK second-quarter 2019 earnings conference call and webcast |
When: | 11 a.m. Eastern, July 31, 2019 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 800-353-6461, pass code 3421896 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 3421896.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
For information about ONEOK, visit the website: www.oneok.com.
ONEOK is a Fortune 500 company and is included in the S&P 500. For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-second-quarter-2019-conference-call-and-webcast-scheduled-300882027.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 17, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the J.P. Morgan Energy Conference June 18-19, 2019, in New York City.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on June 18, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Megan Washbourne |
918-588-7572 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-jp-morgan-energy-conference-300869603.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 6, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that ONEOK and the ONEOK Foundation will contribute a total of $1,000,000 for eastern Oklahoma disaster and flood relief efforts, which consists of an immediate donation of $500,000 to the American Red Cross that is providing immediate needs for those affected by the weather-related events statewide.
The remaining amount will be available to meet the needs of local communities as cleanup efforts continue, and to match contributions made by employees, retirees and members of the company's board of directors to agencies assisting with flood relief efforts, including the American Red Cross, the Tulsa Community Foundation and Tulsa Area United Way Disaster Relief Fund, and ONEOK's employee-led charitable organization already created to help ONEOK employees in times of personal crisis.
"The recent storms, heavy rains and flooding have impacted our employees, our neighbors and the eastern Oklahoma community," said Terry K. Spencer, ONEOK president and chief executive officer. "Many have sustained significant damage to their homes or have been displaced. Many families in eastern Oklahoma communities will be facing challenges during the cleanup and restoration process. Our hearts and thoughts go out to everyone impacted by the effects of these powerful storms and flooding."
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: | Andrew Ziola |
918-588-7683 | |
Media Contact: | Becky Carver |
918-591-5114 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-donate-1-000-000-for-eastern-oklahoma-disaster-and-flood-relief-300863334.html
SOURCE ONEOK, Inc.
TULSA, Okla., May 13, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Citi Global Energy and Utilities Conference May 14-15, 2019, in Boston, Massachusetts.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on May 14, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-citi-global-energy-and-utilities-conference-300849071.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 25, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to invest approximately $100 million to construct a 75-mile natural gas liquids (NGL) pipeline lateral connecting the northern portion of the Bakken NGL Pipeline with a third-party natural gas processing plant in eastern Williams County, North Dakota.
The lateral is expected to be complete in the fourth quarter 2020 and is supported by long-term dedicated NGL production, including a minimum volume commitment, which will provide NGLs to ONEOK's Elk Creek Pipeline. ONEOK continues discussions with producers and processors in the area for additional potential volume commitments.
The lateral will provide access to raw feed NGL pipeline takeaway in an area of Williams County with historically limited transportation options, and will provide connectivity with key NGL market centers.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-bakken-ngl-pipeline-extension-to-support-new-third-party-ngl-volume-300838041.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 18, 2019 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 0.5 cents per share to 86.5 cents per share, a 9% increase compared with its dividend announced in April 2018. This increase results in an annualized dividend of $3.46 per share.
The dividend is payable May 15, 2019, to shareholders of record at the close of business April 29, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a Fortune 500 company and is included in the S&P 500.
For the latest news about ONEOK, find us at www.oneok.com or on LinkedIn, Facebook, Twitter and Instagram.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300834714.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 9, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release first-quarter 2019 earnings after the market closes on April 30, 2019.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 1, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 877-260-1479, pass code 8381319, or log on to www.oneok.com.
What: | ONEOK first-quarter 2019 earnings conference call and webcast |
When: | 11 a.m. Eastern, May 1, 2019 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 877-260-1479, pass code 8381319 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8381319.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
For information about ONEOK, visit the website: www.oneok.com.
ONEOK is a Fortune 500 company and is included in the S&P 500. For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-first-quarter-2019-conference-call-and-webcast-scheduled-300828129.html
SOURCE ONEOK, Inc.
TULSA, Okla., March 29, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in investor meetings at the Mizuho Energy Summit April 1-2, 2019, in Napa, California.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 5 a.m. Pacific Daylight Time (7 a.m. Central Daylight Time) on April 1, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-mizuho-energy-summit-300821029.html
SOURCE ONEOK, Inc.
TULSA, Okla., March 11, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has priced an offering to sell $1.25 billion of senior notes, consisting of $700 million of 10-year senior notes at a coupon of 4.35 percent and $550 million of 5.20 percent senior notes due 2048 through an add-on to its existing issue.
The new 2048 senior notes are being offered as additional senior notes under an indenture pursuant to which ONEOK issued 5.20 percent senior notes due 2048 on July 2, 2018. The terms of the new 2048 senior notes (other than settlement date and issue price) are identical to the terms of the previously issued 2048 senior notes, and all of the 2048 notes will be treated under the governing indenture as a single class of debt securities.
The net proceeds from the offering, after deducting underwriting discounts and commissions, are expected to be $1.23 billion. ONEOK expects to use the net proceeds for general corporate purposes, which may include repayment of existing indebtedness and funding of capital expenditures. ONEOK expects the notes offering to close on or about March 13, 2019, subject to the satisfaction of customary closing conditions.
Barclays Capital Inc., Goldman Sachs & Co. LLC, MUFG, TD Securities, BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities, PNC Capital Markets LLC, Scotiabank, RBC Capital Markets, US Bancorp and Wells Fargo Securities are acting as joint book-running managers for the offering. BB&T Capital Markets, Deutsche Bank Securities, J.P. Morgan, Morgan Stanley, Credit Suisse, Regions Securities LLC, SMBC Nikko and The Williams Capital Group, L.P. are the co-managers for the offering.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A registration statement relating to the notes was previously filed with, and became effective under the rules of, the Securities and Exchange Commission. ONEOK offered the notes to the public by means of a prospectus and prospectus supplement, which are part of the registration statement.
A copy of the prospectus and prospectus supplement may be obtained by contacting the joint book-running managers as follows:
Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Email: barclaysprospectus@broadridge.com
Phone: 888-603-5847
Fax: 646-834-8133
Goldman Sachs & Co. LLC
Attn: Prospectus Department
200 West Street
New York, New York 10282
Email: Prospectus-ny@ny.email.gs.com
Phone: 866-471-2526
Fax: 212-902-9316
MUFG Securities Americas Inc.
Attn: Capital Markets Group
1221 Avenue of the Americas, 6th Floor
New York, New York 10020
Phone: 877-649-6848
Fax: 646-434-3455
TD Securities (USA) LLC
Attn: Transaction Management Group
31 West 52nd Street, 2nd Floor
New York, New York 10019
Email: ustmg@tdsecurities.com
Phone: 855-495-9846
---------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-1-25-billion-notes-offering-300810417.html
SOURCE ONEOK, Inc.
DALLAS, March 1, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to constituents of The Cushing® MLP High Income Index (the "Index"). On October 9, 2018, Index constituent Antero Midstream Partners LP (NYSE: AM) entered into a Simplification Agreement with Antero Midstream GP LP (NYSE: AMGP) and affiliated entities wherein AMGP would acquire AM, subject to the approval of AM unitholders and AMGP shareholders. Special meetings of AM unitholders and AMGP shareholders are scheduled for March 8, 2019, for the purpose of voting on the Simplification Agreement and related matters. Per the Index's methodology guide, after the market closes on March 8, 2019, and effective on March 11, 2019, ONEOK, Inc. (NYSE: OKE) will replace AM as a constituent of the Index at AM's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 higher-yielding publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents are chosen according to a three-tiered proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing® Asset Management, LP, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-MLPY
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-a-constituent-change-to-the-cushing-mlp-high-income-index-300804776.html
SOURCE Cushing® Asset Management, LP and Swank Capital, LLC
TULSA, Okla., Feb. 27, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will hold its 2019 annual meeting of shareholders at 9 a.m. Central Daylight Time (CDT) on May 22, 2019. The meeting also will be audio webcast on ONEOK's website, www.oneok.com.
The record date for determining shareholders entitled to receive notice of the meeting and to vote is March 25, 2019.
What: | ONEOK, Inc. 2019 Annual Meeting of Shareholders | |
When: | 9 a.m. CDT, May 22, 2019 | |
Where: | ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma | |
How: | Log on to the webcast at www.oneok.com |
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson | |
918-561-5325 | ||
Media Contact: | Stephanie Higgins | |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-schedules-2019-annual-meeting-of-shareholders-sets-record-date-300803514.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 25, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher fourth-quarter and full-year 2018 results, compared with the same periods in 2017, and announced 2019 financial guidance and a 2020 outlook.
Higher Full Year 2018 Results, Compared With The Full Year 2017:
Higher 2019 Financial Guidance, Compared With Full Year 2018 Results:
FOURTH-QUARTER AND FULL-YEAR 2018 FINANCIAL HIGHLIGHTS
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK (a) | $ | 292.9 | $ | 63.0 | $ | 1,151.7 | $ | 387.8 | |||||||
Net income per diluted share (a) | $ | 0.70 | $ | 0.16 | $ | 2.78 | $ | 1.29 | |||||||
Adjusted EBITDA (b) | $ | 625.2 | $ | 547.7 | $ | 2,447.5 | $ | 1,986.9 | |||||||
DCF (b) | $ | 464.7 | $ | 366.0 | $ | 1,822.4 | $ | 1,384.7 | |||||||
Dividend coverage ratio (b) | 1.32 | 1.28 | 1.37 | 1.34 | |||||||||||
Operating income | $ | 471.9 | $ | 400.6 | $ | 1,835.5 | $ | 1,391.8 | |||||||
Operating costs | $ | 236.3 | $ | 214.1 | $ | 907.0 | $ | 822.7 | |||||||
Depreciation and amortization | $ | 110.6 | $ | 103.8 | $ | 428.6 | $ | 406.3 | |||||||
Equity in net earnings from investments | $ | 42.3 | $ | 40.3 | $ | 158.4 | $ | 159.3 | |||||||
Capital expenditures | $ | 831.8 | $ | 182.0 | $ | 2,141.5 | $ | 512.4 |
(a) Three-month and full-year periods ending Dec. 31, 2017, include one-time noncash charges of $141.3 million, or 36 cents per diluted share and 47 cents per diluted share, respectively, related to the enactment of the Tax Cuts and Jobs Act. The full-year ending Dec. 31, 2017, also includes noncash impairment charges of approximately $20.2 million, or 4 cents per diluted share, and approximately $50 million, or 10 cents per diluted share, in one-time and ONEOK and ONEOK Partners merger transaction-related costs. | |||||||||||||||
(b) Adjusted EBITDA; distributable cash flow (DCF); and dividend coverage ratio are non-GAAP measures. Full-year 2017 amounts include pretax cash costs associated with the ONEOK and ONEOK Partners merger transaction of approximately $30 million, or 0.04 times dividend coverage. Reconciliations to relevant GAAP measures are included in this news release. |
"2018 was an exceptional year for ONEOK, with continued volume growth across our operations and the announcement of more than $5.5 billion of capital-growth projects that will help meet customer needs and the increasing demand for natural gas and NGLs in the U.S. and abroad," said Terry K. Spencer, ONEOK president and chief executive officer. "We ended the year with a strong balance sheet and the financial capability to fund these projects with no expected equity needs in 2019.
"As we look ahead, 2019 will be a year of project execution, positioning ONEOK for strong earnings growth in 2020," added Spencer. "With continued production improvements and a large inventory of flared natural gas in the Williston Basin, we expect to immediately benefit from the completion of the Demicks Lake I natural gas processing plant, which we anticipate will start operations nearly full in the fourth quarter 2019. We expect volume to reach approximately 100,000 bpd on our Elk Creek Pipeline in the first quarter of 2020 from Demicks Lake I, third-party processing plants and NGLs currently being railed from the basin.
"The projects we're placing in service this year and in early 2020 will provide much needed natural gas processing and NGL takeaway capacity, and are expected to drive volume and earnings growth," said Spencer.
FOURTH-QUARTER AND FULL-YEAR 2018 FINANCIAL PERFORMANCE
ONEOK's operating income increased 18 percent in the fourth quarter 2018 and 32 percent for the full-year 2018, compared with the same periods in 2017. Higher 2018 results were driven primarily by natural gas and natural gas liquids volume growth across its operations, and higher optimization and marketing earnings in the natural gas liquids segment.
Results were offset partially by higher employee-related costs in all three segments, higher operating costs associated with the growth of ONEOK's operations in the natural gas gathering and processing segment and routine maintenance projects in the natural gas liquids and natural gas pipelines segments.
HIGHLIGHTS:
2019 FINANCIAL GUIDANCE:
2019 Guidance Range | ||||||||
(Millions of dollars) | ||||||||
ONEOK, Inc. | ||||||||
Net income | $ | 1,140 | - | $ | 1,400 | |||
Adjusted EBITDA (a) | $ | 2,500 | - | $ | 2,700 | |||
Distributable cash flow (a) | $ | 1,820 | - | $ | 2,060 | |||
Capital-growth expenditures | $ | 2,500 | - | $ | 3,700 | |||
Maintenance capital expenditures | $ | 160 | - | $ | 200 | |||
Segment Adjusted EBITDA: | ||||||||
Natural Gas Liquids | $ | 1,520 | - | $ | 1,620 | |||
Natural Gas Gathering and Processing | $ | 620 | - | $ | 680 | |||
Natural Gas Pipelines | $ | 360 | - | $ | 390 | |||
Other | $ | — | - | $ | 10 |
(a) Adjusted EBITDA and distributable cash flow are non-GAAP measures. Reconciliations to relevant GAAP measures are included in this news release. |
2019 Guidance Range | |||||||
Summary of 2019 Volume Guidance | |||||||
Natural Gas Liquids Raw Feed Throughput (MBbl/d) (a) | 1,080 | - | 1,165 | ||||
Natural Gas Gathered (MMcf/d) | 1,915 | - | 2,115 | ||||
Natural Gas Processed (MMcf/d) | 1,800 | - | 2,000 | ||||
Commodity Price Assumptions (average unhedged prices) (b): | |||||||
Natural Gas ($/MMBtu, NYMEX) | $ | 2.81 | |||||
Crude Oil ($/barrel, WTI-NYMEX) | $ | 54.55 | |||||
Average Conway-to-Mont Belvieu OPIS price differential - ethane in ethane/propane mix ($/gallon) | $ | 0.10 |
(a) Represents physical raw feed volumes on which ONEOK charges a fee for transportation and/or fractionation services. | |||||||
(b) Commodity price assumptions as of Feb. 7, 2019. |
2019 Performance Drivers:
Natural Gas Liquids
Natural Gas Gathering and Processing
Natural Gas Pipelines
Additional guidance information can be found in the tables and in supplemental materials found on ONEOK's website, www.oneok.com.
2020 OUTLOOK:
ONEOK expects a greater than 20 percent increase in adjusted EBITDA in 2020, compared with 2019. More than $4.4 billion of capital-growth projects expected to be completed in 2019 and in the first quarter 2020 will provide a foundation for significant earnings growth in 2020. ONEOK continues to contract additional volumes on these projects with construction underway, on time and on budget.
Primary contributors to 2020 earnings growth are expected to include a faster than anticipated volume ramp on ONEOK's Elk Creek Pipeline, its Demicks Lake I natural gas processing plant beginning operations nearly full in the fourth quarter 2019 and its MB-4 NGL fractionator exiting 2020 full. Elk Creek Pipeline is expected to reach its initial contracted capacity of 100,000 bpd in the first quarter of 2020, generating its targeted adjusted EBITDA multiple of four to six times within its first few months of operation. Elk Creek volumes are expected to continue to increase throughout 2020. Additionally, ONEOK expects to benefit from higher producer activity in the Powder River Basin, volume growth in the Permian Basin, increased rates on the West Texas LPG Pipeline system and the completion of the Arbuckle II NGL pipeline, which will provide additional connectivity with Gulf Coast markets.
2018 BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's fourth-quarter and full-year 2018 adjusted EBITDA increased 12 and 25 percent, respectively, compared with the same periods in 2017. Higher volumes in the STACK and SCOOP areas, and the Williston and Permian basins, and higher earnings from optimization and marketing activities contributed to the increases.
NGL volumes gathered during the fourth quarter and full year 2018 increased 8 and 12 percent, respectively, compared with 2017. Fourth-quarter and full-year 2018 NGLs fractionated increased 9 and 15 percent respectively, compared with the same periods in 2017, due primarily to higher volumes gathered and an expansion of ONEOK's Mid-Continent fractionation capacity.
Ethane volumes across ONEOK's system increased approximately 65,000 bpd in 2018, compared with 2017, due to supply growth, increased NGL export demand and petrochemical facility expansion projects. ONEOK expects ethane production levels across its system to continue to fluctuate until the completion of its announced NGL pipeline and fractionation capital-growth projects, which are expected to help alleviate current system constraints.
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Natural Gas Liquids Segment | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 347.4 | $ | 309.4 | $ | 1,440.6 | $ | 1,154.9 | |||||||
Capital expenditures | $ | 519.7 | $ | 54.5 | $ | 1,306.3 | $ | 114.3 |
The increase in fourth-quarter 2018 adjusted EBITDA, compared with the fourth quarter 2017, primarily reflects:
The increase in adjusted EBITDA for the full year 2018, compared with 2017, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's fourth-quarter and full-year 2018 adjusted EBITDA increased 21 and 22 percent, respectively, compared with the same periods in 2017, due to continued volume growth across ONEOK's operating basins.
Natural gas volumes processed increased 9 and 16 percent in the fourth quarter and full year 2018, respectively, compared with the same periods in 2017.
The segment also continues to benefit from higher fee-based earnings, with an average fee rate of 90 cents per MMBtu for the full-year 2018, compared with 86 cents per MMBtu in 2017.
Three Months Ended | Years Ended | ||||||||||||||
Natural Gas Gathering and Processing Segment | December 31, | December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 174.6 | $ | 144.3 | $ | 631.6 | $ | 518.5 | |||||||
Capital expenditures | $ | 261.0 | $ | 98.5 | $ | 694.6 | $ | 284.2 |
Fourth-quarter 2018 adjusted EBITDA increased, compared with the fourth quarter 2017, which primarily reflects:
The increase in adjusted EBITDA for the full year 2018, compared with 2017, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's fourth-quarter and full-year 2018 adjusted EBITDA increased 10 percent and 8 percent, respectively, compared with the same periods in 2017 due primarily to increased interruptible volumes and firm transportation capacity contracted.
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Natural Gas Pipelines Segment | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA | $ | 97.2 | $ | 88.7 | $ | 366.3 | $ | 339.8 | |||||||
Capital expenditures | $ | 47.3 | $ | 24.9 | $ | 119.2 | $ | 95.6 |
Fourth-quarter 2018 adjusted EBITDA increased, compared with the fourth quarter 2017, which primarily reflects:
The increase in adjusted EBITDA for the full year 2018, compared with 2017, primarily reflects:
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 26, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 855-710-4182, pass code 9871790, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 9871790.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2019/q4-2018-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "estimates," "believes," "expects," "intends," "plans," "projects," "will," "would," "should," "could," "may," "continues," "forecasts," "guidance," "goal," "might," "potential," "scheduled," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: | Megan Patterson 918-561-5325 |
Media Contact: | Stephanie Higgins 918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-32-percent-increase-in-2018-operating-income--announces-2019-financial-guidance-and-2020-outlook-300801560.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 21, 2019 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) has elected Mark W. Helderman to its board, effective Feb. 19, 2019.
With this election, the ONEOK board of directors now has 11 members, nine of whom are independent.
"Mark is a valuable addition to the ONEOK board of directors," said John W. Gibson, ONEOK chairman. "His experience and expertise will further strengthen our board and benefit our shareholders."
Helderman, 60, held positions of increasing responsibility at Sasco Capital Inc., an independent, institutional investment firm, focused primarily on corporate turnarounds, restructurings and transformations, where he was employed since 1997. Helderman retired from his position at Sasco Capital as managing director and co-portfolio manager on Jan. 31, 2019.
Helderman has more than 30 years of experience in the U.S. equities markets, including engagement with senior management teams to develop a deep understanding of their corporate vision, value creation philosophy, commitment to long-term sustainable value and shareholder alignment.
In addition to his portfolio management role, Helderman has been an analyst with broad experience in the commodity, energy, industrial and utility sectors for more than 20 years.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/mark-w-helderman-joins-oneok-board-of-directors-300800034.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 22, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release fourth-quarter and year-end 2018 earnings after the market closes on Feb. 25, 2019.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 26, 2019. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 855-710-4182, pass code 9871790, or log on to www.oneok.com.
What: | ONEOK fourth-quarter and year-end 2018 earnings conference call and webcast |
When: | 11 a.m. Eastern, Feb. 26, 2019 |
10 a.m. Central | |
Where: | 1) Phone conference call dial 855-710-4182, pass code 9871790 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 9871790.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-fourth-quarter-and-year-end-2018-conference-call-and-webcast-scheduled-300782267.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 21, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in investor meetings at the U.S. Capital Advisors Midstream Corporate Access Day on Tuesday, Jan. 22, 2019, in Houston, Texas.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Jan. 22, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-us-capital-advisors-midstream-corporate-access-day-300781395.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 16, 2019 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 0.5 cents per share to 86 cents per share, a 12 percent increase compared with its dividend announced in January 2018. This increase results in an annualized dividend of $3.44 per share.
The dividend is payable Feb. 14, 2019, to shareholders of record at the close of business Jan. 28, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300779655.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 10, 2019 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the UBS Midstream, MLP and Utilities Conference Jan. 14-15, 2019, in Park City, Utah.
Terry K. Spencer, ONEOK president and chief executive officer; Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; and Kevin L. Burdick, ONEOK executive vice president and chief operating officer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 3 p.m. Mountain Standard Time (4 p.m. Central Standard Time) on Jan. 14, 2019.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-ubs-midstream-mlp-and-utilities-conference-300776449.html
SOURCE ONEOK, Inc.
TULSA, Okla., Dec. 4, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Wells Fargo Midstream and Utility Symposium Dec. 5-6, 2018, in New York City.
Terry K. Spencer, ONEOK president and chief executive officer, will present at the conference at 3:25 p.m. Eastern Standard Time (2:25 p.m. Central Standard Time) on Wednesday, Dec. 5.
Spencer, along with Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; and Kevin L. Burdick, ONEOK executive vice president and chief operating officer; will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The presentation at the conference will be webcast and accessible on ONEOK's website, www.oneok.com. A replay of the webcast will be archived for 30 days.
Materials used at the conference will be accessible on ONEOK's website beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Dec. 5, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Analyst Contact: | Megan Patterson | |
918-561-5325 | ||
Media Contact: | Stephanie Higgins | |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-present-at-wells-fargo-midstream-and-utility-symposium-300760033.html
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 19, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has entered into a $1.5 billion three-year unsecured term loan agreement that will be used for general corporate purposes, which may include repayment of existing indebtedness and funding of capital expenditures. This term loan was upsized to $1.5 billion from $1.25 billion as a result of strong demand.
"As we execute on our more than $6 billion of capital-growth projects announced and more under development, this term loan and our $2.5 billion credit facility, which supports our commercial paper program, enhances ONEOK's liquidity," said Terry K. Spencer, president and chief executive officer of ONEOK.
"This term loan along with our free cash flow generation, further strengthens our financial flexibility," said Spencer. "The strong relationships we have with our banks and their continued support of our business and growth strategies are highlighted through the financial commitments received under this agreement."
The term loan is unsecured and includes a floating interest rate calculated based on ONEOK's credit rating, which is currently 112.5 basis points, or 1.125 percent, over the London Interbank Offered Rate (LIBOR). The loan includes a delayed draw feature that allows ONEOK the flexibility to draw on it for up to 180 days from Nov. 19, 2018. The loan is prepayable in whole or in part at any time without penalty and includes two, one-year extension options, subject to lender approval. The term loan contains substantially the same covenants as those contained in ONEOK's existing revolving credit facility.
Mizuho Bank, Ltd. serves as the administrative agent for the term loan agreement.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering, our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-enters-into-1-5-billion-term-loan-agreement-300753174.html
SOURCE ONEOK, Inc.
DALLAS, Nov. 2, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® 30 MLP Index (the "Index"). Per the Index's methodology guide, a constituent change due to a distribution cut will take place on the latter of the distribution ex-date or the last business day of the week that is at least five business days after the day on which the announcement is made. Due to the November 2, 2018, distribution cut announcement by Buckeye Partners, L.P. (NYSE: BPL), after the market closes on November 9, 2018, (the distribution ex-date) and effective on November 12, 2018, ONEOK, Inc. (NYSE: OKE) will replace BPL as a constituent of the Index at BPL's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® 30 MLP INDEX
The Cushing® 30 MLP Index tracks the performance of 30 publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents of the Index are selected by using a formula-based proprietary valuation model developed by Cushing® Asset Management, LP to rank Midstream Companies for potential inclusion in the Index. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPX".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® 30 MLP Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-MLPX
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-a-constituent-change-to-the-cushing-30-mlp-index-300743111.html
SOURCE Swank Capital, LLC and Cushing® Asset Management, LP
TULSA, Okla., Oct. 24, 2018 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 3 cents per share, or 4 percent compared with its prior dividend, to 85.5 cents per share, in line with previous guidance announced February 2017. This increase results in an annualized dividend of $3.42 per share. The dividend is payable Nov. 14, 2018, to shareholders of record at the close of business Nov. 5, 2018.
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ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300737269.html
SOURCE ONEOK, Inc.
TULSA, Okla., Sept. 13, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the J.P. Morgan U.S. All Stars Conference on Monday, Sept. 17, 2018, in London.
Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 6 p.m. British Summer Time (noon Central Daylight Time) on Sept. 16, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-jp-morgan-us-all-stars-conference-300712450.html
SOURCE ONEOK, Inc.
TULSA, Okla., Sept. 10, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to invest approximately $295 million to expand its West Texas LPG Limited Partnership (West Texas LPG) pipeline system, which provides natural gas liquids (NGL) takeaway capacity for Permian Basin producers.
The expansion project, which is expected to be completed in the first quarter 2020, is supported by long-term dedicated NGL production from six third-party natural gas processing plants in the Permian Basin that are expected to produce up to 60,000 barrels per day (bpd) of NGLs.
The expansion includes the construction of:
"This second expansion of the West Texas LPG Pipeline system will serve continued growth in the Permian Basin and positions ONEOK for additional future expansion opportunities in the Permian," said Terry K. Spencer, ONEOK president and chief executive officer.
Based on the initial contracted volume, the expansion project is expected to generate an adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) multiple of four to six times. ONEOK continues discussions with producers and processors in the region for additional potential volume commitments.
ONEOK's previously announced 110,000 bpd pipeline lateral extension of the West Texas LPG system into the Delaware Basin and expansion of the existing mainline system is currently under construction and expected to be in service this month.
The West Texas LPG Pipeline is an NGL pipeline system that provides takeaway capacity to Permian Basin producers and consists of approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release forward-looking estimates for adjusted EBITDA expected to be generated by the announced capital-growth projects. Adjusted EBITDA is a non-GAAP financial metric used to measure the company's financial performance. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, allowance for equity funds used during construction (equity AFUDC), and other noncash items.
Adjusted EBITDA is useful to investors because it and similar measures, are used by many companies in the industry as a measure of financial performance and commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare the financial performance of ONEOK with the performance of other companies within its industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP. Additionally, this calculation may not be comparable with similarly titled measures of other companies.
A reconciliation of estimated adjusted EBITDA to GAAP net income is not provided because the GAAP net income generated by the projects is not available without unreasonable efforts.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-second-expansion-of-the-west-texas-lpg-pipeline-system-300709803.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 30, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Barclays CEO Energy Conference Sept. 4-5, 2018, in New York City.
Terry K. Spencer, ONEOK president and chief executive officer, will present at the conference at 9:05 a.m. Eastern Daylight Time (8:05 a.m. Central Daylight Time) on Wednesday, Sept. 5.
Spencer, along with Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs, and Kevin L. Burdick, ONEOK executive vice president and chief operating officer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The conference will be webcast and accessible on ONEOK's website, www.oneok.com. A replay of the webcast will be archived for 30 days.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Tuesday, Sept. 4.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter.
Analyst Contact: |
Megan Patterson |
|
918-561-5325 |
||
Media Contact: |
Stephanie Higgins |
|
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-present-at-barclays-ceo-energy-conference-300705071.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 14, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Citi One-on-One Master Limited Partnership/Midstream Infrastructure Conference Aug. 15-16, 2018, in Las Vegas, Nevada.
Terry K. Spencer, ONEOK president and chief executive officer; Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; Kevin L. Burdick, ONEOK executive vice president and chief operating officer; Sheridan C. Swords, ONEOK senior vice president, natural gas liquids; and Charles M. Kelley, ONEOK senior vice president, natural gas, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 5 a.m. Pacific Daylight Time (7 a.m. Central Daylight Time) on Aug. 15, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: |
Megan Patterson |
|
918-561-5325 |
||
Media Contact: |
Stephanie Higgins |
|
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-citi-midstream-infrastructure-conference-300697054.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 6, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Tuohy Brothers Ninth Annual Energy Conference on Wednesday, Aug. 8, 2018, in New York City.
Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs, and Kevin L. Burdick, ONEOK executive vice president and chief operating officer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Aug. 7, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-tuohy-brothers-annual-energy-conference-300692530.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 31, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher second-quarter 2018 financial results, compared with the second quarter 2017, and updated 2018 financial guidance. Results primarily benefited from natural gas volume growth in the STACK and SCOOP areas and the Williston Basin, natural gas liquids (NGL) volume growth in the STACK and SCOOP areas and Permian Basin, and higher optimization and marketing activities in the natural gas liquids segment.
SUMMARY
SECOND-QUARTER 2018 FINANCIAL HIGHLIGHTS
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(Millions of dollars, except per share and dividend | |||||||||||||||
Net income attributable to ONEOK (a) |
$ |
281.0 |
$ |
71.7 |
$ |
545.6 |
$ |
159.1 |
|||||||
Net income per diluted share (a) |
$ |
0.68 |
$ |
0.33 |
$ |
1.32 |
$ |
0.74 |
|||||||
Adjusted EBITDA (b) |
$ |
601.8 |
$ |
462.3 |
$ |
1,172.2 |
$ |
921.9 |
|||||||
DCF (b) |
$ |
453.5 |
$ |
330.1 |
$ |
885.5 |
$ |
654.2 |
|||||||
DCF in excess of dividends paid |
$ |
126.5 |
$ |
64.9 |
$ |
242.0 |
$ |
124.0 |
|||||||
Dividend coverage ratio (b) |
1.39 |
1.50 |
1.38 |
1.48 |
|||||||||||
Operating income |
$ |
448.4 |
$ |
319.5 |
$ |
868.1 |
$ |
636.6 |
|||||||
Operating costs |
$ |
230.2 |
$ |
215.1 |
$ |
440.4 |
$ |
404.2 |
|||||||
Depreciation and amortization |
$ |
106.3 |
$ |
100.8 |
$ |
210.5 |
$ |
200.3 |
|||||||
Equity in net earnings from investments |
$ |
36.6 |
$ |
39.4 |
$ |
76.8 |
$ |
78.9 |
|||||||
Capital expenditures |
$ |
350.9 |
$ |
82.5 |
$ |
615.4 |
$ |
195.2 |
(a) The three- and six-month periods ending June 30, 2017, include nonrecurring pretax cash and noncash charges of approximately $43 million, or 12 cents per diluted share, and approximately $50 million, or 15 cents per diluted share, respectively. | |||||||||||||||
(b) Adjusted EBITDA; DCF; and dividend coverage ratio are non-GAAP measures. Three- and six-month 2017 amounts include pretax cash costs associated with the ONEOK and ONEOK Partners merger transaction of approximately $23 million, or 0.18 times dividend coverage, and approximately $30 million, or 0.11 times dividend coverage, respectively. Reconciliations to relevant GAAP measures are included in this news release. |
"ONEOK's second quarter natural gas and NGL volume growth continues to demonstrate the consistent long-term productivity of the basins in which our facilities safely and reliably operate," said Terry K. Spencer, ONEOK president and chief executive officer. "We continue to return value to our shareholders and have increased our dividend by 11 percent since July 2017.
"Our more than $4 billion of organic growth projects are progressing as planned, and we expect the West Texas LPG expansion in the Delaware Basin and our Sterling III pipeline expansion projects to be completed later this year," he added. "These projects, and others we've announced in the past year, will provide critical takeaway capacity for our customers in some of the country's most active basins."
SECOND-QUARTER 2018 FINANCIAL PERFORMANCE
ONEOK's operating income and adjusted EBITDA increased 40 and 30 percent, respectively, in the second quarter 2018, compared with the second quarter 2017. Higher results were driven primarily by natural gas and NGL volume growth and increased optimization and marketing activities due primarily to wider location price differentials.
Results were offset partially by higher operating costs associated with the growth of ONEOK's operations in the natural gas gathering and processing segment, higher employee-related costs in all three segments, and higher property taxes in the natural gas liquids segment. Operating income for the second quarter 2018 also was impacted by higher noncash share-based compensation expense associated with ONEOK's increased share price in 2018, and higher depreciation expense due to capital-growth projects placed in service, compared with the second quarter 2017.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the second-quarter 2018 conference call is accessible on ONEOK's website, www.oneok.com, or from the links below.
FINANCIAL HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's second-quarter 2018 adjusted EBITDA increased 29 percent, compared with the same period in 2017, due primarily to higher earnings from optimization and marketing activities, and increased volumes gathered in the Mid-Continent region, primarily in the STACK and SCOOP areas, and the Permian Basin. Second-quarter 2018 NGLs gathered and fractionated each increased 12 percent, compared with the same period in 2017.
The segment connected two third-party natural gas processing plants in the STACK and SCOOP areas to its system in the second quarter 2018.
Ethane volumes on ONEOK's system increased 60,000 barrels per day (bpd) in the second quarter 2018, compared with the same period in 2017. Ethane rejection levels on ONEOK's system averaged more than 140,000 bpd in the second quarter 2018, compared with more than 150,000 bpd in the second quarter 2017, despite an increase in overall NGL volumes. ONEOK expects ethane rejection levels across its system to continue to fluctuate during the second half of the year as petrochemical companies complete expansion projects and NGL exports increase.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Liquids Segment |
2018 |
2017 |
2018 |
2017 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
352.1 |
$ |
273.3 |
$ |
694.1 |
$ |
551.5 |
|||||||
Capital expenditures |
$ |
216.9 |
$ |
12.3 |
$ |
341.9 |
$ |
32.8 |
The increase in second-quarter 2018 adjusted EBITDA, compared with the second quarter 2017, primarily reflects:
The increase in adjusted EBITDA for the six-month 2018 period, compared with the same period last year, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's second-quarter 2018 adjusted EBITDA increased 30 percent, compared with the same period in 2017, primarily from higher volumes due to continued drilling activity across ONEOK's significant asset footprint and improved producer efficiencies.
Volume growth in the Williston Basin and STACK and SCOOP areas contributed to a 19 percent increase in natural gas volumes processed in the second quarter 2018, compared with the same period in 2017.
The segment also continues to benefit from higher fee-based earnings, with an average fee rate of 89 cents per Million British thermal units (MMBtu) in the second quarter 2018, compared with 87 cents per MMBtu in the second quarter 2017.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2018 |
2017 |
2018 |
2017 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
166.9 |
$ |
128.3 |
$ |
297.4 |
$ |
232.2 |
|||||||
Capital expenditures |
$ |
108.8 |
$ |
37.0 |
$ |
220.6 |
$ |
100.2 |
Second-quarter 2018 adjusted EBITDA increased, compared with the second quarter 2017, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2018 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 6 percent in the second quarter 2018, compared with the same period in 2017, primarily due to increased interruptible transportation volumes.
In June 2018, the segment announced plans to expand its natural gas pipeline infrastructure to provide additional takeaway capacity in the Permian Basin and STACK and SCOOP areas by up to 1.7 billion cubic feet per day (Bcf/d).
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2018 |
2017 |
2018 |
2017 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
85.4 |
$ |
80.7 |
$ |
179.0 |
$ |
163.6 |
|||||||
Capital expenditures |
$ |
20.5 |
$ |
26.8 |
$ |
40.4 |
$ |
51.9 |
The increase in adjusted EBITDA for the second quarter 2018, compared with the second quarter 2017, primarily reflects:
The increase in adjusted EBITDA for the six-month 2018 period, compared with the same period last year, primarily reflects:
CAPITAL-GROWTH ACTIVITIES:
Since June 2017, ONEOK has announced more than $4.3 billion of organic capital-growth projects to support increasing production across ONEOK's operating footprint. These projects are backed by a combination of long-term fee-based contracts, volume commitments or acreage dedications. The natural gas liquids and natural gas gathering and processing projects are expected to generate adjusted EBITDA multiples of four to six times.
Since June 2017, the natural gas liquids segment has announced approximately $3.7 billion of capital-growth projects, which include the following:
Project |
Scope |
Approximate Cost |
Expected |
West Texas LPG Pipeline expansion |
120-mile pipeline lateral extension with 110,000 bpd of capacity in the Delaware Basin |
$200 (a) |
Third quarter |
Sterling III expansion |
60,000 bpd pipeline expansion from the Mid-Continent to the Gulf Coast, which increases capacity to 250,000 bpd |
$130 |
Fourth quarter |
Elk Creek Pipeline project |
900-mile pipeline from the Williston Basin to the Mid-Continent with initial capacity up to 240,000 bpd |
$1,400 |
Fourth quarter |
Arbuckle II Pipeline |
530-mile pipeline from the Mid-Continent to the Gulf Coast with initial capacity of 400,000 bpd |
$1,360 |
First quarter |
MB-4 fractionator |
125,000 bpd fractionator and related infrastructure in Mont Belvieu, Texas |
$575 |
First quarter |
(a) Reflects total project cost. On July 31, 2018, ONEOK acquired the remaining 20 percent interest in the West Texas LPG Pipeline Limited Partnership. | |||
(b) ONEOK expects the southern section of the pipeline to be in service as early as the third quarter 2019. |
Since June 2017, the natural gas gathering and processing segment has announced approximately $600 million of capital-growth projects, which include the following:
Project |
Scope |
Approximate Cost |
Expected |
Additional STACK processing capacity |
200 million cubic feet per day (MMcf/d) processing capacity through a long-term processing services agreement with a third party |
$40 |
In service |
Canadian Valley expansion |
200 MMcf/d processing plant expansion in the STACK, which increases capacity to more than 400 MMcf/d |
$160 |
Fourth quarter |
Demicks Lake plant and infrastructure |
200 MMcf/d processing plant and related infrastructure in the core of the Williston Basin |
$400 |
Fourth quarter |
In June 2018, the natural gas pipelines segment announced the following projects:
Project |
Scope |
Expected |
ONEOK Gas Transportation (OGT) westbound expansion |
100 MMcf/d westbound expansion from the STACK area to multiple western Oklahoma interstate pipeline delivery points, could increase up to 300 MMcf/d dependent upon open season results |
Fourth quarter |
OGT eastbound expansion |
150 MMcf/d eastbound expansion from the STACK and SCOOP areas to an eastern Oklahoma interstate pipeline delivery point |
First quarter |
ONEOK WesTex Transmission expansion |
150 MMcf/d expansion from the Permian Basin to interstate pipeline delivery points in the Texas Panhandle, could increase up to 450 MMcf/d dependent upon open season results |
First quarter |
Roadrunner Gas Transmission bidirectional project (50 percent owned) |
750 MMcf/d of eastbound transportation capacity from the Delaware Basin to the Waha area |
First quarter |
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Aug. 1, 2018. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 877-260-1479, pass code 1138733, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 1138733.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2018/q2-2018-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow, dividend coverage ratio and projected adjusted EBITDA multiples, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare ONEOK's financial performance with the performance of other companies within ONEOK's industry. Adjusted EBITDA, distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income, earnings per share or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and dividend coverage ratio are included in the tables. A reconciliation of estimated adjusted EBITDA multiples to GAAP net income is not provided because the GAAP net income generated by the projects is not available without unreasonable efforts.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to ONEOK's anticipated financial performance (including projected operating income, net income, capital expenditures, cash flows and projected levels of dividends), liquidity, management's plans and objectives for ONEOK's future capital-growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), ONEOK's business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. ONEOK makes these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of ONEOK's operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause ONEOK's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect ONEOK's operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause ONEOK's actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-higher-second-quarter-2018-financial-results-and-updates-2018-financial-guidance-300689568.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 25, 2018 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 3 cents per share, or 4 percent compared with its prior dividend, to 82.5 cents per share, in line with previous guidance announced February 2017. This increase results in an annualized dividend of $3.30 per share. The dividend is payable Aug. 14, 2018, to shareholders of record at the close of business Aug. 6, 2018.
ONEOK expects approximately 90 to 95 percent of this dividend to be a return of capital. Additional information regarding return of capital distributions is available at ONEOK's investor relations website, ir.oneok.com, under Stock Information.
ONEOK has increased its dividend by 34 percent since June 2017.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
The foregoing discussion of the tax treatment of the dividend is not intended as tax advice. Each shareholder is strongly encouraged to consult a financial and tax advisor regarding the appropriate treatment of the dividend and the corresponding tax consequences.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), tax characterization of our quarterly dividends, liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300686617.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 25, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced it has entered into an agreement with Martin Midstream Partners L.P. (Martin Midstream) to acquire its 20 percent interest in the West Texas LPG Pipeline Limited Partnership (West Texas LPG) for $195 million. With this acquisition, ONEOK will become the sole owner of West Texas LPG. ONEOK completed the acquisition of its initial 80 percent interest in West Texas LPG in December 2014.
"Acquiring the remaining interest in West Texas LPG is a strategic step in our broader Permian Basin strategy," said Terry K. Spencer, ONEOK president and chief executive officer. "A wholly owned West Texas LPG allows ONEOK to more effectively integrate it into the rest of our extensive NGL system, positioning us for future expansion opportunities currently under development."
This transaction is expected to close on July 31, 2018, and be funded with cash on hand.
The West Texas LPG Pipeline is a natural gas liquids (NGL) pipeline system that provides takeaway capacity to Permian Basin producers and consists of approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-acquire-remaining-interest-in-west-texas-lpg-pipeline-system-300686629.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 10, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release second-quarter 2018 earnings after the market closes on July 31, 2018.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Aug. 1, 2018. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 877-260-1479, pass code 1138733, or log on to www.oneok.com.
What: |
ONEOK second-quarter 2018 earnings conference call and webcast |
When: |
11 a.m. Eastern, Aug. 1, 2018 |
10 a.m. Central | |
Where: |
1) Phone conference call dial 877-260-1479, pass code 1138733 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 1138733.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-second-quarter-2018-conference-call-and-webcast-scheduled-300678817.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 27, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to expand its natural gas pipeline infrastructure in the Permian Basin and Oklahoma by up to a total of 1.7 billion cubic feet per day (Bcf/d) to provide additional natural gas takeaway capacity in two of the country's most active production areas.
The projects include:
"These capital-efficient expansions, primarily through the addition of compression facilities, will quickly create critical takeaway capacity and offer additional optionality for natural gas producers and processors in the Permian Basin and Oklahoma," said Terry K. Spencer, ONEOK president and chief executive officer. "We also continue active discussions with shippers in these areas regarding additional natural gas takeaway solutions that ONEOK could provide."
The projects are backed by multiple firm transportation commitments. Total annual average adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) from these projects when completed could be as high as $40 million with successful open seasons.
The westbound expansion of ONEOK Gas Transportation is expected to be complete in the fourth quarter 2018. The ONEOK WesTex Transmission expansion, the eastbound expansion of ONEOK Gas Transportation and the Roadrunner bidirectional project are expected to be complete in the first quarter 2019.
ONEOK WesTex Transmission is an intrastate natural gas pipeline system operating within Texas, consisting of approximately 2,200 miles of pipeline.
ONEOK Gas Transportation is an intrastate natural gas pipeline system in Oklahoma, consisting of approximately 2,470 miles of transmission pipelines. In May 2018, ONEOK completed a 100 MMcf/d westbound expansion of ONEOK Gas Transportation to serve growth in the STACK area.
Roadrunner, a 50-50 joint venture between ONEOK and Fermaca Infrastructure B.V. (Fermaca), is a Texas intrastate pipeline system transporting natural gas from the Waha natural gas market hub to El Paso markets and to the U.S. and Mexico border.
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release forward-looking estimates for adjusted EBITDA expected to be generated by the announced capital-growth projects. Adjusted EBITDA is a non-GAAP financial metric used to measure the company's financial performance. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, allowance for equity funds used during construction (equity AFUDC), and other noncash items.
Adjusted EBITDA is useful to investors because it and similar measures, are used by many companies in the industry as a measure of financial performance and commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare the financial performance of ONEOK with the performance of other companies within its industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP. Additionally, this calculation may not be comparable with similarly titled measures of other companies.
A reconciliation of estimated adjusted EBITDA to GAAP net income is not provided because the GAAP net income generated by the projects is not available without unreasonable efforts.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-1-7-bcfd-of-natural-gas-infrastructure-expansions-in-the-permian-basin-and-oklahoma-300673224.html
SOURCE ONEOK, Inc.
TULSA, Okla., May 14, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Citi Global Energy and Utilities Conference May 15-16, 2018, in Boston, Massachusetts.
Terry K. Spencer, ONEOK president and chief executive officer; Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; and Kevin L. Burdick, ONEOK executive vice president and chief operating officer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on May 14, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in the S&P 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-citi-global-energy-and-utilities-conference-300647590.html
SOURCE ONEOK, Inc.
TULSA, Okla., May 1, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher first-quarter 2018 financial results, compared with the first quarter 2017. Results primarily benefited from volume growth in the STACK and SCOOP areas and the Williston and Permian basins, and higher optimization and marketing activities in the natural gas liquids segment.
SUMMARY
FIRST-QUARTER 2018 FINANCIAL HIGHLIGHTS
Three Months Ended | |||||
March 31, | |||||
2018 |
2017 | ||||
(Millions of dollars, except per share | |||||
Net income attributable to ONEOK |
$ |
264.5 |
$ |
87.4 | |
Net income per diluted share |
$ |
0.64 |
$ |
0.41 | |
Adjusted EBITDA (a) |
$ |
570.3 |
$ |
459.6 | |
DCF (a) |
$ |
432.0 |
$ |
324.2 | |
Dividend coverage ratio (a) |
1.37 |
1.46 | |||
Operating income |
$ |
419.7 |
$ |
317.1 | |
Operating costs |
$ |
210.3 |
$ |
189.3 | |
Depreciation and amortization |
$ |
104.2 |
$ |
99.4 | |
Equity in net earnings from investments |
$ |
40.2 |
$ |
39.6 | |
Capital expenditures |
$ |
264.5 |
$ |
112.7 |
(a) Adjusted EBITDA; distributable cash flow (DCF); and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are included in this news release. |
"Increased producer activity and drilling efficiencies across our operating footprint drove volume growth and higher financial results in the first quarter 2018, compared with the first quarter 2017," said Terry K. Spencer, ONEOK president and chief executive officer.
"Our focus for 2018 continues to be executing on our more than $4 billion of announced capital-growth projects to provide the services our customers need, and maintaining our strong balance sheet," Spencer added. "We continue to return value to shareholders through our recent dividend increase while achieving a dividend coverage ratio of nearly 1.4 times for the quarter."
FIRST-QUARTER 2018 FINANCIAL PERFORMANCE
ONEOK's operating income and adjusted EBITDA increased 32 percent and 24 percent, respectively, in the first quarter 2018, compared with the first quarter 2017. Higher results were driven primarily by natural gas and NGL volume growth in ONEOK's natural gas gathering and processing and natural gas liquids segments, higher optimization and marketing activities in the natural gas liquids segment and the impact of $7 million in costs related to the ONEOK and ONEOK Partners merger transaction in the first quarter 2017.
Results were offset partially by higher operating costs associated with employee-related costs in all three segments, the growth of ONEOK's operations in the natural gas gathering and processing segment and the timing of routine maintenance projects in the natural gas liquids segment. Operating income was also impacted by higher depreciation expense in the first quarter 2018, compared with the first quarter 2017, due to projects placed in service.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the first-quarter 2018 conference call is accessible on ONEOK's website, www.oneok.com, or from the links below.
FINANCIAL HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's first-quarter 2018 adjusted EBITDA increased 23 percent, compared with the same period in 2017, due primarily to increased volumes, including higher ethane recovery, in the STACK and SCOOP areas, and increased volumes in the Williston and Permian Basins, and higher earnings from optimization and marketing activities.
First-quarter 2018 NGLs gathered and fractionated increased 12 percent and 21 percent respectively, compared with the same period in 2017.
As total NGL volumes increased on ONEOK's system, ethane volumes also increased approximately 50,000 barrels per day (bpd) in the first quarter 2018, compared with the same period in 2017. Ethane rejection levels on ONEOK's system averaged more than 140,000 bpd in the first quarter 2018, compared with more than 150,000 bpd in the first quarter 2017, despite an increase in overall NGL volumes. ONEOK expects ethane rejection levels on its system to decrease to approximately 70,000 bpd by the end of 2018 as world-scale petrochemical facilities continue to come online and NGL exporters increase volumes.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Liquids Segment |
2018 |
2017 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
342.1 |
$ |
278.2 |
|||
Capital expenditures |
$ |
124.9 |
$ |
20.5 |
The increase in first-quarter 2018 adjusted EBITDA, compared with the first quarter 2017, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's first-quarter 2018 adjusted EBITDA increased 26 percent, compared with the same period in 2017, primarily from higher volumes due to increased drilling activity and improved producer efficiencies.
Volume growth due to new supply in the Williston Basin and STACK and SCOOP areas contributed to a 23 percent increase in natural gas volumes processed in the first quarter 2018, compared with the same period in 2017. Volume growth was partially offset by natural production declines on existing wells.
The segment also continues to benefit from higher fee-based earnings, with an average fee rate of 88 cents per Million British thermal units (MMBtu) in the first quarter 2018, compared with 83 cents per MMBtu in the first quarter 2017.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Gathering and Processing Segment |
2018 |
2017 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
130.6 |
$ |
104.0 |
|||
Capital expenditures |
$ |
111.7 |
$ |
63.2 |
First-quarter 2018 adjusted EBITDA increased, compared with the first quarter 2017, which primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's first-quarter 2018 adjusted EBITDA increased 13 percent, compared with the same period in 2017. Increased transportation and storage services contributed to the segment's results.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Pipelines Segment |
2018 |
2017 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
93.6 |
$ |
83.0 |
|||
Capital expenditures |
$ |
19.9 |
$ |
25.0 |
The increase in adjusted EBITDA for the first quarter 2018, compared with the first quarter 2017, primarily reflects:
CAPITAL-GROWTH ACTIVITIES:
Since June 2017, ONEOK has announced approximately $4.2 billion of organic capital-growth projects to support increasing production across ONEOK's operating footprint. These projects are expected to generate adjusted EBITDA multiples of four to six times and are backed by a combination of long-term fee-based contracts, volume commitments or acreage dedications.
Since June 2017, the natural gas liquids segment has announced more than $3.6 billion of capital-growth projects, which include the following:
Project |
Scope |
Approximate Cost |
Expected |
West Texas LPG Pipeline expansion |
120-mile pipeline lateral extension with 110,000 bpd of capacity in the Delaware Basin |
$160 (a) |
Third quarter |
Sterling III expansion |
60,000 bpd pipeline expansion from the Mid-Continent to the Gulf Coast, which increases capacity to 250,000 bpd |
$130 |
Fourth quarter |
Elk Creek Pipeline project |
900-mile pipeline from the Williston Basin to the Mid-Continent with initial capacity up to 240,000 bpd |
$1,400 |
Fourth quarter |
Arbuckle II Pipeline |
530-mile pipeline from the Mid-Continent to the Gulf Coast with initial capacity of 400,000 bpd |
$1,360 |
First quarter |
MB-4 fractionator |
125,000 bpd fractionator and related infrastructure in Mont Belvieu, Texas |
$575 |
First quarter |
(a) Represents ONEOK's 80 percent ownership interest |
Since June 2017, the natural gas gathering and processing segment has announced approximately $560 million of capital-growth projects, which include the following:
Project |
Scope |
Approximate Cost |
Expected Completion |
Canadian Valley expansion |
200 million cubic feet per day (MMcf/d) processing plant expansion in the STACK, which increases capacity to more than 400 MMcf/d |
$160 |
Fourth quarter |
Demicks Lake plant and infrastructure |
200 MMcf/d processing plant and related infrastructure in the core of the Williston Basin |
$400 |
Fourth quarter |
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 2, 2018. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 888-481-2845, pass code 5361276, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5361276.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2018/q1-2018-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow, dividend coverage ratio and projected adjusted EBITDA multiples, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, distributable cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income, earnings per share or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and dividend coverage ratio are included in the tables. A reconciliation of estimated adjusted EBITDA multiples to GAAP net income is not provided because the GAAP net income generated by the projects is not available without unreasonable efforts.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Stephanie Higgins 918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-higher-first-quarter-2018-financial-results-300640451.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 19, 2018 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 2.5 cents per share, or 3 percent compared with its prior dividend, to 79.5 cents per share, resulting in an annualized dividend of $3.18 per share. The dividend is payable May 15, 2018, to shareholders of record at the close of business April 30, 2018.
ONEOK maintains its previously announced dividend guidance and expects approximately 90 to 95 percent of this dividend to be a return of capital. Additional information regarding return of capital distributions is available at ONEOK's investor relations website, ir.oneok.com, under Stock Information.
ONEOK has increased its dividend by 29 percent since the close of the ONEOK and ONEOK Partners merger transaction in June 2017.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
The foregoing discussion of the tax treatment of the dividend is not intended as tax advice. Each shareholder is strongly encouraged to consult a financial and tax advisor regarding the appropriate treatment of the dividend and the corresponding tax consequences.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), tax characterization of our quarterly dividends, liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300633079.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 5, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Mizuho Energy Summit April 9-10, 2018, in Napa, California.
Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs, and Kevin L. Burdick, ONEOK executive vice president and chief operating officer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on April 9, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-mizuho-energy-summit-300625310.html
SOURCE ONEOK, Inc.
TULSA, Okla., April 3, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) announced today as a purely precautionary step for its interstate natural gas pipelines that it has temporarily disabled service with a third-party Electronic Data Interchange (EDI) services provider utilized by some of its customers, which was a target of an apparent cyberattack.
The EDI system provides a platform to conduct business through an exchange of documents with customers.
Media outlets misinterpreted the company's notification to customers as a reaction to an attack on ONEOK's system. There were no operational interruptions on ONEOK's natural gas pipelines. Affected customers have been advised to use one of the alternative methods of communications available to them for gas scheduling purposes.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook and Twitter.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-natural-gas-pipelines-operating-normally-300623980.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 26, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher fourth-quarter and full-year 2017 operating income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), compared with the same periods in 2016. Results primarily benefited from natural gas and natural gas liquids (NGL) volume growth in the Williston and Permian basins and STACK and SCOOP areas, and higher average fee rates in the natural gas gathering and processing segment.
SUMMARY
FOURTH-QUARTER AND FULL-YEAR 2017 FINANCIAL HIGHLIGHTS
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(Millions of dollars, except per share and coverage | |||||||||||||||
Net income attributable to ONEOK (a) |
$ |
63.0 |
$ |
90.5 |
$ |
387.8 |
$ |
352.0 |
|||||||
Net income per diluted share (a) |
$ |
0.16 |
$ |
0.43 |
$ |
1.29 |
$ |
1.66 |
|||||||
Adjusted EBITDA (b) |
$ |
547.7 |
$ |
474.1 |
$ |
1,986.9 |
$ |
1,849.9 |
|||||||
DCF (b) |
$ |
366.0 |
$ |
318.3 |
$ |
1,384.7 |
$ |
1,322.3 |
|||||||
Dividend coverage ratio (b) |
1.28 |
1.41 |
1.34 |
1.51 |
|||||||||||
Operating income |
$ |
397.8 |
$ |
329.6 |
$ |
1,380.9 |
$ |
1,285.7 |
|||||||
Operating costs |
$ |
216.8 |
$ |
204.1 |
$ |
833.6 |
$ |
757.1 |
|||||||
Depreciation and amortization |
$ |
103.8 |
$ |
99.3 |
$ |
406.3 |
$ |
391.6 |
|||||||
Equity in net earnings from investments |
$ |
40.3 |
$ |
39.2 |
$ |
159.3 |
$ |
139.7 |
|||||||
Capital expenditures |
$ |
182.0 |
$ |
133.1 |
$ |
512.4 |
$ |
624.6 |
(a) Three-month and full-year periods ending Dec. 31, 2017, include one-time noncash charges of $141.3 million, or 36 cents per diluted share and 47 cents per diluted share, respectively, related to the enactment of the Tax Cuts and Jobs Act. The full-year ending Dec. 31, 2017, also includes noncash impairment charges of approximately $20.2 million, or 4 cents per diluted share, and approximately $50 million, or 10 cents per diluted share, in one-time and ONEOK and ONEOK Partners merger transaction-related costs. (b) Adjusted EBITDA; distributable cash flow (DCF); and dividend coverage ratio are non-GAAP measures. Full-year 2017 amounts include transaction-related pretax cash costs of approximately $30 million, or 0.04 times dividend coverage, associated with the ONEOK and ONEOK Partners merger transaction. Reconciliations to relevant GAAP measures are included in this news release. |
"Producer activity and production results increased across ONEOK's operating footprint in 2017, driving volume growth and adjusted EBITDA increases compared with 2016," said Terry K. Spencer, ONEOK president and chief executive officer. "We continue to see production growth, largely driven by improved producer drilling economics and higher rig efficiencies.
"ONEOK is investing in our systems to grow with our customers and address their needs for additional capacity," Spencer added. "We've announced approximately $4.2 billion of organic capital-growth projects with attractive returns since June 2017 that will be highly accretive, complement our existing assets and provide essential services in high-producing regions."
FOURTH-QUARTER AND FULL-YEAR 2017 FINANCIAL PERFORMANCE
ONEOK's operating income increased 21 percent in the fourth quarter 2017 and 7 percent for the full-year 2017, compared with the same periods in 2016. Adjusted EBITDA increased 16 percent in the fourth quarter 2017 and 7 percent for the full-year 2017, compared with the same periods in 2016. Higher 2017 results were driven primarily by natural gas and natural gas liquids volume growth in ONEOK's natural gas gathering and processing and natural gas liquids segments, offset partially by higher operating costs associated with the growth of ONEOK's operations and routine maintenance projects.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the fourth-quarter and year-end 2017 conference call is accessible on ONEOK's website, www.oneok.com, or from the links below.
FINANCIAL HIGHLIGHTS:
CAPITAL-GROWTH ACTIVITIES:
Since June 2017, ONEOK has announced approximately $4.2 billion of organic capital-growth projects to support increasing production across ONEOK's operating footprint. These projects are expected to generate adjusted EBITDA multiples of four to six times and are backed by a combination of long-term fee-based contracts, volume commitments or acreage dedications.
Based on recent project announcements, ONEOK's 2018 capital-growth expenditures are now expected to range from $1,950 million to $2,300 million, compared with the previously announced range of $1,270 million to $1,530 million. Maintenance capital expenditures of $140 million to $180 million are expected to remain unchanged from ONEOK's original 2018 financial guidance announced on Jan. 22, 2018.
Since June 2017, the natural gas liquids segment has announced more than $3.6 billion of capital-growth projects, which include the following:
Project |
Scope |
Approximate Cost |
Expected |
West Texas LPG |
120-mile pipeline lateral extension with 110,000 barrels |
$160 |
Third quarter |
Sterling III expansion |
60,000 bpd pipeline extension from the Mid-Continent to |
$130 |
Fourth quarter |
Elk Creek Pipeline |
900-mile pipeline from the Williston Basin to the Mid- |
$1,400 |
Year-end 2019 |
Arbuckle II Pipeline |
530-mile pipeline from the Mid-Continent to the Gulf |
$1,360 |
First quarter |
MB-4 fractionator |
125,000 bpd fractionator and related infrastructure in Mont |
$575 |
First quarter |
Since June 2017, the natural gas gathering and processing segment has announced approximately $560 million of capital-growth projects, which include the following:
Project |
Scope |
Approximate Cost |
Expected |
Canadian Valley |
200 million cubic feet per day (MMcf/d) processing |
$160 |
Fourth quarter |
Demicks Lake plant |
200 MMcf/d processing plant and related infrastructure |
$400 |
Fourth quarter |
In December 2017, the segment completed a 30-mile natural gas gathering pipeline and related infrastructure to connect with an existing third-party natural gas processing plant in Oklahoma, providing ONEOK access to 200 MMcf/d of additional processing capacity.
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's fourth-quarter and full-year 2017 adjusted EBITDA increased 22 and 7 percent, respectively, compared with the same periods in 2016. Volume growth across ONEOK's system from increased supply and increased ethane recovery contributed to higher NGL volumes gathered during the fourth quarter and full year 2017, compared with 2016. Fourth-quarter and full-year 2017 NGLs fractionated increased 18 percent and 6 percent respectively, compared with the same periods in 2016.
As total NGL production increased in 2017, ethane rejection levels on ONEOK's system decreased to an average of more than 150,000 bpd in 2017, compared with approximately 175,000 bpd in 2016. ONEOK expects ethane rejection levels on its system to decrease to approximately 70,000 bpd by the end of 2018 as world-scale petrochemical facilities come online and NGL exporters increase volumes.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Liquids Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
309.4 |
$ |
253.6 |
$ |
1,154.9 |
$ |
1,079.6 |
|||||||
Capital expenditures |
$ |
54.5 |
$ |
20.4 |
$ |
114.3 |
$ |
105.9 |
The increase in fourth-quarter 2017 adjusted EBITDA, compared with the fourth quarter 2016, primarily reflects:
The increase in adjusted EBITDA for the full year 2017, compared with 2016, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's fourth-quarter and full-year 2017 adjusted EBITDA increased 14 and 16 percent, respectively, compared with the same periods in 2016.
Volume growth due to increased drilling activity, enhanced producer efficiencies and the completion of growth projects contributed to increases in natural gas volumes processed of 20 percent and 9 percent in the fourth quarter and full year 2017, respectively, compared with the same periods in 2016. Volume growth for the full year 2017 was offset partially by natural production declines on existing wells and the impact of severe winter weather in the first quarter 2017.
This segment also continues to benefit from higher fee-based earnings, with an average fee rate of 86 cents per MMBtu in 2017, compared with 76 cents per MMBtu in 2016, a 13 percent increase.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
144.3 |
$ |
126.6 |
$ |
518.5 |
$ |
446.8 |
|||||||
Capital expenditures |
$ |
98.5 |
$ |
84.7 |
$ |
284.2 |
$ |
410.5 |
Fourth-quarter 2017 adjusted EBITDA increased, compared with the fourth quarter 2016, which primarily reflects:
The increase in adjusted EBITDA for the full year 2017, compared with 2016, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's full-year 2017 adjusted EBITDA increased 9 percent, compared with the same period in 2016. Higher fee-based earnings and increased transportation capacity contracted, primarily from the 2016 completion of the WesTex pipeline expansion, contributed to the segment's results.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Pipelines Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
88.7 |
$ |
89.9 |
$ |
339.8 |
$ |
313.1 |
|||||||
Capital expenditures |
$ |
24.9 |
$ |
24.6 |
$ |
95.6 |
$ |
96.3 |
Fourth-quarter 2017 adjusted EBITDA was relatively unchanged, compared with the fourth quarter 2016, which primarily reflects increased operating costs due to routine maintenance projects and higher employee-related costs, and lower net retained fuel; offset by higher transportation services and storage revenues.
The increase in adjusted EBITDA for the full year 2017, compared with 2016, primarily reflects:
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 27, 2018. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 866-531-8880, pass code 1603660, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 1603660.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2018/q4-2017-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-higher-fourth-quarter-and-full-year-2017-operating-income-and-adjusted-ebitda-300604394.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 22, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will hold its 2018 annual meeting of shareholders at 9 a.m. Central Daylight Time on May 23, 2018. The meeting also will be audio webcast on ONEOK's website, www.oneok.com.
The record date for determining shareholders entitled to receive notice of the meeting and to vote is March 26, 2018.
What: |
ONEOK, Inc. 2018 Annual Meeting of Shareholders |
When: |
9 a.m. CDT, May 23, 2018 |
Where: |
ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma |
How: |
Log on to the webcast at www.oneok.com |
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-schedules-2018-annual-meeting-of-shareholders-sets-record-date-300603064.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 21, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to invest approximately $2.3 billion between now and 2020 to construct:
"With more than $4 billion of announced capital-growth projects since June 2017, we continue to build off of our significant asset footprint," said Terry K. Spencer, ONEOK president and chief executive officer.
"The Arbuckle II Pipeline and MB-4 fractionator will help meet the needs of NGL producers in all of the basins where we operate, including the STACK and SCOOP areas and the Denver-Julesburg, Powder River, Williston and Permian basins," said Spencer. "These strategic projects complement our recently announced Elk Creek pipeline, increasing ONEOK's ability to deliver NGLs from the Rocky Mountain region to growing markets in the Gulf Coast.
"The Demicks Lake plant will provide critical natural gas processing capacity to accommodate increasing Williston Basin production, helping producers meet natural gas capture targets in North Dakota," added Spencer.
These projects are expected to generate adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) multiples of four to six times. Following ONEOK's recently completed equity issuances totaling approximately $1.6 billion, project funding is expected to come from cash generated from operations and short- and long-term borrowings. ONEOK does not expect to issue additional equity in 2018 and well into 2019.
Arbuckle II Pipeline and MB-4:
The approximately 530-mile, 24- and 30-inch diameter Arbuckle II Pipeline is expected to cost approximately $1.36 billion and will have an initial capacity to transport up to 400,000 bpd of unfractionated NGLs originating across ONEOK's supply basins and extensive NGL gathering system to the company's storage and fractionation facilities at Mont Belvieu. The Arbuckle II Pipeline is expected to be completed in the first quarter 2020. The pipeline will have the capability to be expanded up to 1 million bpd with additional pump facilities, which could more than double ONEOK's current capacity between the Mid-Continent and Gulf Coast.
The new MB-4 fractionator and related infrastructure, which includes additional NGL storage capacity in Mont Belvieu, are expected to cost approximately $575 million and be completed in the first quarter 2020. ONEOK's total NGL fractionation capacity will increase to 965,000 bpd following the completion of MB-4.
The initial capacity of the Arbuckle II Pipeline is more than 50 percent contracted, and MB-4 is fully contracted. Both are anchored by long-term contracts with terms ranging between 10 to 20 years. Adjusted EBITDA multiples for these projects are based only from these commitments but additional supply agreements continue to be negotiated.
Demicks Lake plant and related infrastructure:
The Demicks Lake natural gas processing plant and related field infrastructure are expected to cost a total of approximately $400 million and be completed during the fourth quarter 2019. The Demicks Lake plant will be built in McKenzie County, North Dakota, which is in the core area of the Williston Basin. The plant is supported by acreage dedications with primarily fee-based contracts.
The Demicks Lake plant is expected to contribute additional NGL volumes to ONEOK's NGL gathering system and natural gas volumes to ONEOK's 50 percent-owned Northern Border Pipeline.
ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.2 billion cubic feet per day following the completion of the Demicks Lake plant.
EDITOR'S NOTE:
View a map of the proposed projects.
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release forward-looking estimates for projected adjusted EBITDA multiples expected to be generated by the announced capital-growth projects. Adjusted EBITDA is a non-GAAP financial metric used to measure the company's financial performance. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, allowance for equity funds used during construction (equity AFUDC), and other noncash items. Adjusted EBITDA multiples for the announced capital-growth projects reflect the expected adjusted EBITDA to be generated by the projects relative to the capital investment being made.
Adjusted EBITDA and adjusted EBITDA multiples are useful to investors because these and similar measures, are used by many companies in the industry as a measure of financial performance and commonly employed by financial analysts and others to evaluate ONEOK's financial performance and of its capital-growth projects and to compare the financial performance of ONEOK with the performance of other companies within its industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP. Additionally, this calculation may not be comparable with similarly titled measures of other companies.
A reconciliation of estimated adjusted EBITDA to GAAP net income is not provided because the GAAP net income generated by the projects is not available without unreasonable efforts.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2017, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise. Projects are subject to approvals from state and regulatory agencies.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-invest-23-billion-for-additional-ngl-and-natural-gas-infrastructure-300602354.html
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 15, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that 2017 tax packages for ONEOK Partners, including a final Schedule K-1, will be available online beginning Friday, March 2, 2018, and may be accessed through the ONEOK website at www.oneok.com or directly from this link. The ONEOK Partners 2017 tax packages are expected to begin mailing by Monday, March 5, 2018.
For additional information, former ONEOK Partners unitholders may call the tax package support staff toll free at 800-371-2188.
On June 30, 2017, ONEOK completed a merger transaction with ONEOK Partners. Under the terms of the merger agreement, ONEOK acquired all of the 171.5 million outstanding units of ONEOK Partners it did not already own at a fixed exchange ratio of 0.985 of a share of ONEOK common stock for each public unit of ONEOK Partners. ONEOK Partners common units are no longer publicly traded on the New York Stock Exchange.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-posts-schedule-k-1-online-300599675.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 22, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced 2018 financial and volume guidance. Earnings and volume growth expectations for the year are driven primarily by anticipated natural gas and natural gas liquids (NGL) volume increases in the STACK and SCOOP areas and Williston and Permian basins, and increased ethane recovery.
2018 Guidance Range | ||||||||
(millions of dollars) | ||||||||
ONEOK, Inc. |
||||||||
Net income |
$ |
955 |
- |
$ |
1,155 |
|||
Adjusted EBITDA (a) |
$ |
2,215 |
- |
$ |
2,415 |
|||
Distributable cash flow (a) |
$ |
1,615 |
- |
$ |
1,815 |
|||
Capital-growth expenditures |
$ |
1,270 |
- |
$ |
1,530 |
|||
Maintenance capital expenditures |
$ |
140 |
- |
$ |
180 |
(a) Adjusted EBITDA and distributable cash flow are non-GAAP measures. Reconciliations to relevant GAAP measures are included in this news release. |
"We expect to grow volumes and earnings in 2018 by continuing to provide needed services to our customers as they increase production in the basins where we operate," said Terry K. Spencer, ONEOK president and chief executive officer. "Sustained producer drilling activity and increased drilling efficiencies, combined with increased demand for ethane from petrochemical facilities and exports, are expected to drive volume growth across our systems in 2018.
"As we continue to bring new volumes onto our systems, we also expect to announce additional capital investments to address the current and future needs of our customers by continuing to expand our extensive 38,000-mile integrated network of natural gas and NGL pipelines," said Spencer.
FINANCIAL GUIDANCE:
ONEOK's full-year 2018 net income is expected to be in the range of $955 million to $1.155 billion. Adjusted EBITDA for 2018 is expected to be in the range of $2.215 billion to $2.415 billion, a nearly 20 percent increase compared with its previously announced 2017 guidance that was affirmed on Oct. 31, 2017.
ONEOK continues to expect average annual dividend growth of 9 to 11 percent through 2021 and annual dividend coverage greater than 1.2 times. ONEOK expects approximately 85 to 95 percent of its 2018 dividend payments to investors to be a return of capital.
Approximately $2 billion of potential capital-growth projects are in the late stages of development and are expected to be announced when sufficient supply commitments are secured. ONEOK previously announced the successful completion of approximately $1.6 billion of total equity issued in 2017 and early 2018, which was used to retire indebtedness and to pre-fund capital-growth expenditures. ONEOK does not expect to issue additional equity in 2018 and well into 2019. Additional capital-growth projects are expected to be funded with cash generated from operations and short- and long-term borrowings.
BUSINESS-SEGMENT GUIDANCE:
Natural Gas Liquids Segment
The natural gas liquids segment expects full-year 2018 adjusted EBITDA between $1.30 billion to $1.43 billion, an approximately 15 percent increase compared with 2017 guidance.
NGLs gathered are expected to average 850,000 to 1 million barrels per day (bpd) and NGLs fractionated are expected to average 650,000 to 725,000 bpd in 2018, representing increases of approximately 10 percent and 15 percent, respectively, compared with 2017 guidance.
Volume growth in 2018 is expected to be driven primarily by increased producer activity in the STACK and SCOOP areas and increased ethane recovery in the Mid-Continent. Ethane rejection on ONEOK's system is expected to decrease to approximately 70,000 bpd by the end of 2018, resulting in approximately $100 million of incremental adjusted EBITDA during the year compared with 2017.
In 2018, the segment expects to connect between six and nine new third-party natural gas processing plants to its NGL system.
The extension of ONEOK's West Texas LPG Pipeline into the Delaware Basin and the expansion of its Sterling III Pipeline from the Mid-Continent to the Gulf Coast are currently under construction and are expected to be complete in the third and fourth quarters of 2018, respectively. Additionally, construction is expected to begin on the recently announced Elk Creek Pipeline project out of the Williston Basin in the second half of 2018 and is expected to be complete by year-end 2019.
The natural gas liquids segment's earnings are expected to be approximately 90 percent fee based in 2018.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment expects full-year 2018 adjusted EBITDA between $575 million to $625 million, a 25 percent increase compared with 2017 guidance.
Natural gas processed is expected to average 1,750 to 1,900 million cubic feet per day (MMcf/d), and natural gas gathered is expected to average 1,840 to 2,050 MMcf/d in 2018, representing increases of approximately 20 percent compared with 2017 guidance.
The segment's fee rate is expected to average approximately 80 cents per Million British thermal units (MMBtu) in 2018 compared with approximately 85 cents per MMBtu in 2017, due primarily to increased Mid-Continent volumes.
Increased natural gas volumes from the STACK and SCOOP plays in Oklahoma are expected to be the largest driver of the segment's 2018 volume growth. ONEOK added an additional 200 MMcf/d of natural gas processing capacity in the area at the end of 2017 through a long-term third-party processing services agreement and expects to add an additional 200 MMcf/d of capacity by the end of 2018 with the expansion of its Canadian Valley natural gas processing plant.
Williston Basin volumes also are expected to increase in 2018 from continued strong producer results in the core of the basin where ONEOK has more than 1 million acres dedicated. Approximately 350 to 400 drilled but uncompleted wells remain on ONEOK's acreage dedications, providing a backlog of high-return well connection inventory.
The segment's earnings are expected to be approximately 80 percent fee based in 2018.
Natural Gas Pipelines Segment
The natural gas pipelines segment expects full-year 2018 adjusted EBITDA of $335 million to $355 million.
Earnings in the segment are expected to remain more than 95 percent fee-based in 2018, with approximately 95 percent of its transportation capacity and 65 percent of its natural gas storage capacity contracted under firm fee-based (take-or-pay) commitments.
The 100 MMcf/d westbound expansion of the ONEOK Gas Transmission Pipeline out of the STACK play in Oklahoma is on schedule for an expected completion in the second quarter of 2018.
FEDERAL INCOME TAXES:
The recent Tax Cuts and Jobs Act includes provisions that, beginning in 2018, reduce the U.S. corporate tax rate to 21 percent from 35 percent and introduce a capital investment deduction. ONEOK views the aggregate of these changes as positive to its businesses and continues to expect it will not pay federal cash income taxes through at least 2021. The reduction in the federal corporate tax rate is expected to result in one-time noncash charges to net income in the fourth quarter 2017 to revalue ONEOK's deferred tax assets, but future income tax expense is expected to be lower as reflected in 2018 guidance.
2018 COMMODITY PRICE ASSUMPTIONS:
The average unhedged prices assumed in ONEOK's 2018 guidance are 47 cents per gallon for composite natural gas liquids (32 cents per gallon for ethane and 64 cents per gallon for propane at Mont Belvieu); $2.90 per million British thermal units (MMBtu) for NYMEX natural gas; and $52 per barrel for WTI-NYMEX crude oil.
LINK TO FINANCIAL TABLES:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2018/oneok-2018-earnings-guidance.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
The foregoing discussion of the tax treatment of dividends is not intended as tax advice. Each shareholder is strongly encouraged to consult a financial and tax advisor regarding the appropriate treatment of dividends and the corresponding tax consequences.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Brad Borror 918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-2018-financial-guidance-300586200.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 18, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the U.S. Capital Advisors Midstream Corporate Access Day on Tuesday, Jan. 23, 2018, in Houston, Texas.
Terry K. Spencer, ONEOK president and chief executive officer; Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; Kevin L. Burdick, ONEOK executive vice president and chief operating officer; and Charles M. Kelley, ONEOK senior vice president, natural gas gathering and processing, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Jan. 23, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-us-capital-advisors-midstream-corporate-access-day-300584820.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 17, 2018 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 2.5 cents per share, or 3 percent compared with its prior dividend, to 77 cents per share, resulting in an annualized dividend of $3.08 per share. The dividend is payable Feb. 14, 2018, to shareholders of record at the close of business Jan. 29, 2018.
ONEOK expects approximately 90 to 95 percent of this dividend to be a return of capital. Additional information regarding return of capital distributions is available at ONEOK's investor relations website, ir.oneok.com, under Stock Information.
As previously announced, ONEOK expects annual dividend growth of approximately 9 to 11 percent through 2021.
ONEOK has increased its dividend by 25 percent since the close of the ONEOK and ONEOK Partners merger transaction in June 2017.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
The foregoing discussion of the tax treatment of the dividend is not intended as tax advice. Each shareholder is strongly encouraged to consult a financial and tax advisor regarding the appropriate treatment of the dividend and the corresponding tax consequences.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), tax characterization of our quarterly dividends, liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-increases-quarterly-dividend-300584164.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 8, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the UBS Midstream and MLP Conference Jan. 9-10, 2018, in Park City, Utah.
Terry K. Spencer, ONEOK president and chief executive officer; Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; and Sheridan C. Swords, ONEOK senior vice president, natural gas liquids, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
Materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Jan. 9, 2018.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-ubs-midstream-and-mlp-conference-300579240.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 4, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it priced its previously announced public offering of 19 million shares of its common stock. ONEOK expects gross proceeds from the offering, before deducting offering expenses, will total approximately $1.0355 billion.
ONEOK also granted the underwriters a 30-day over-allotment option to purchase up to 2.85 million additional shares.
ONEOK expects to use the net proceeds from the offering to fund capital expenditures, including a portion of its recently announced natural gas liquids growth projects, to pre-fund additional projects which are in the late stages of development, and for general corporate purposes, which may include repaying a portion of outstanding indebtedness.
Credit Suisse, Barclays, Goldman Sachs & Co. LLC, Morgan Stanley and Wells Fargo Securities are acting as joint book-running managers for the offering. BofA Merrill Lynch, BB&T Capital Markets, Deutsche Bank Securities, PNC Capital Markets LLC and J.P. Morgan are acting as co-managers in the offering.
The underwriters intend to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
This offering is being made pursuant to an effective shelf registration statement, including a base prospectus and preliminary prospectus supplement, relating to these securities, which is on file with and has been declared effective by the Securities and Exchange Commission. A copy of the prospectus and prospectus supplement may be obtained from the underwriters:
Credit Suisse Securities (USA) LLC
Attn: Prospectus Department
Eleven Madison Avenue
New York, NY 10010
Phone: 800-221-1037
Email: newyork.prospectus@credit-suisse.com
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed in the prospectus supplement for the common stock offering under the heading "Cautionary Statement Regarding Forward-Looking Statements."
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in the prospectus supplement for the common stock offering, the accompanying base prospectus filed with the SEC, our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-pricing-of-common-stock-offering-300578041.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 4, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced an underwritten public offering of 19 million shares of its common stock, subject to market and other conditions. ONEOK expects to grant to the underwriters a 30-day over-allotment option to purchase up to 2.85 million additional shares.
ONEOK expects to use the net proceeds from the offering to fund capital expenditures, including a portion of its recently announced natural gas liquids growth projects, to pre-fund additional projects which are in the late stages of development, and for general corporate purposes, which may include repaying a portion of outstanding indebtedness.
Credit Suisse Securities (USA) LLC is acting as lead book-running manager in the offering.
The underwriters intend to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
This offering is being made pursuant to an effective shelf registration statement, including a base prospectus and preliminary prospectus supplement, relating to these securities, which is on file with and has been declared effective by the Securities and Exchange Commission. A copy of the prospectus and prospectus supplement may also be obtained from the underwriter:
Credit Suisse Securities (USA) LLC
Attn: Prospectus Department
Eleven Madison Avenue
New York, NY 10010
Phone: 800-221-1037
Email: newyork.prospectus@credit-suisse.com
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed in the prospectus supplement for the common stock offering under the heading "Cautionary Statement Regarding Forward-Looking Statements."
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in the prospectus supplement for the common stock offering, the accompanying base prospectus filed with the SEC, our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-public-offering-of-common-stock-300577920.html
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 4, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to invest approximately $1.4 billion to construct a new pipeline, and related infrastructure, to transport natural gas liquids (NGLs) from the Rocky Mountain region to the company's existing Mid-Continent NGL facilities.
The Elk Creek Pipeline – an approximately 900-mile, 20-inch diameter pipeline that is expected to be completed by the end of 2019 – will have the capacity to transport up to 240,000 barrels per day (bpd) of unfractionated NGLs from near the company's Riverview terminal in eastern Montana to Bushton, Kansas. The Elk Creek Pipeline is expected to cost approximately $1.2 billion, with related infrastructure costs expected to total approximately $200 million. The pipeline will have the capability to be expanded to 400,000 bpd with additional pump facilities.
"The existing Bakken NGL and Overland Pass Pipelines are operating at full capacity. Additional NGL takeaway capacity is critical to meeting the needs of producers who are increasing production and are required to meet natural gas capture targets in the Williston Basin," said Terry K. Spencer, ONEOK president and chief executive officer. "The Elk Creek Pipeline will strengthen ONEOK's position in the high-production areas of the Bakken, Powder River and Denver-Julesburg regions and also provide additional reliability and redundancy on our NGL system."
The Elk Creek Pipeline is anchored by long-term contracts with terms ranging between 10 to 15 years totaling approximately 100,000 bpd, which is supported primarily by minimum volume commitments. In the aggregate, and based on these contracts for 100,000 bpd, this project is expected to generate adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) multiples of four to six times.
ONEOK expects to finance the Elk Creek Pipeline with a combination of new equity, including approximately $450 million of net proceeds received from common stock issued during 2017 under its "at-the-market" equity program, with cash from operations in excess of dividends and short- and long-term borrowings.
This project is part of ONEOK's $3.0 billion to $3.5 billion of potential capital-growth projects. Additional projects that are expected to have similar adjusted EBITDA multiples to this project, which are in the late stages of development, are expected to be announced when sufficient supply commitments are secured. ONEOK expects to finance its additional capital-growth projects in 2018 and well into 2019 with cash generated from operations and short- and long-term borrowings.
EDITOR'S NOTE:
View a map of the proposed pipeline.
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release forward-looking estimates for projected adjusted EBITDA multiples expected to be generated by the announced capital-growth project. Adjusted EBITDA is a non-GAAP financial metric used to measure the company's financial performance. Adjusted EBITDA is defined as net income from continuing operations adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, allowance for equity funds used during construction (equity AFUDC), and other noncash items. Adjusted EBITDA multiples for the announced capital-growth projects reflect the expected adjusted EBITDA to be generated by the projects relative to the capital investment being made.
Adjusted EBITDA and adjusted EBITDA multiples are useful to investors because these and similar measures, are used by many companies in the industry as a measure of financial performance and commonly employed by financial analysts and others to evaluate ONEOK's financial performance and of its capital-growth projects and to compare the financial performance of ONEOK with the performance of other companies within its industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP. Additionally, this calculation may not be comparable with similarly titled measures of other companies.
A reconciliation of estimated adjusted EBITDA to GAAP net income is not provided because the GAAP net income generated by the project is not available without unreasonable efforts.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Some of the statements contained herein are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained herein identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
You should not place undue reliance on the forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, those factors listed under "Forward-looking Statements" in our Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2017, and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016 and in our other filings that we make with the SEC, which are available via the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-plans-to-increase-natural-gas-liquids-takeaway-capacity-out-of-the-rocky-mountain-region-300577899.html
SOURCE ONEOK, Inc.
DALLAS, Jan. 3, 2018 /PRNewswire/ -- Alerian announced today the real-time launch of the Alerian Energy Infrastructure Capital Strength Select Index, a composite of North American midstream, refining, and utility companies chosen for their ownership of pipeline transportation assets, leverage profile, and above-market dividend payments. The index is disseminated real-time on a price-return basis (AMCS) and on a total-return basis (AMCST).
"The AMCS was designed with the understanding that the portion of the North American energy value chain from midstream to distribution has become increasingly integrated," said Alerian President and CEO Kenny Feng. "The composition of this index also seeks to address growing investor focus on strengthening balance sheets and improving corporate governance."
Constituents as of January 2, 2018
Name |
Ticker |
AltaGas Ltd |
ALA |
Antero Midstream Partners LP |
AM |
Andeavor |
ANDV |
Buckeye Partners LP |
BPL |
Boardwalk Pipeline Partners LP |
BWP |
CenterPoint Energy Inc |
CNP |
Cheniere Energy Partners LP Holdings LLC |
CQH |
Dominion Energy Inc |
D |
Enbridge Inc |
ENB |
EnLink Midstream LLC |
ENLC |
Enterprise Products Partners LP |
EPD |
EQT GP Holdings LP |
EQGP |
Gibson Energy Inc |
GEI |
HollyFrontier Corp |
HFC |
Inter Pipeline Ltd |
IPL |
Keyera Corp |
KEY |
Kinder Morgan Inc |
KMI |
Macquarie Infrastructure Corp |
MIC |
Magellan Midstream Partners LP |
MMP |
Marathon Petroleum Corp |
MPC |
OGE Energy Corp |
OGE |
ONEOK Inc |
OKE |
Plains GP Holdings LP |
PAGP |
Pembina Pipeline Corp |
PPL |
Phillips 66 |
PSX |
Sempra Energy |
SRE |
Tallgrass Energy GP LP |
TEGP |
TransCanada Corp |
TRP |
Valero Energy Corp |
VLO |
Western Gas Equity Partners LP |
WGP |
The Williams Companies Inc |
WMB |
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2017, over $16 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-announces-real-time-launch-of-the-alerian-energy-infrastructure-capital-strength-select-index-300576838.html
SOURCE Alerian
TULSA, Okla., Dec. 4, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Wells Fargo Energy Symposium Dec. 6-7, 2017, in New York City.
Terry K. Spencer, ONEOK president and chief executive officer, will present at the conference at 3:15 p.m. Eastern Standard Time (2:15 p.m. Central Standard Time) on Wednesday, Dec. 6.
Spencer, along with Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; and Sheridan C. Swords, ONEOK senior vice president, natural gas liquids, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The conference will be webcast and accessible on ONEOK's website, www.oneok.com. A replay of the webcast will be archived for 30 days.
Materials used at the conference will be accessible on ONEOK's website beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Wednesday, Dec. 6.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-present-at-wells-fargo-energy-symposium-300565893.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 31, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced higher third-quarter 2017 financial results primarily benefiting from natural gas and natural gas liquids (NGL) volume growth in the Williston Basin and STACK and SCOOP areas, higher average fee rates in the natural gas gathering and processing segment and higher fee-based transportation services in the natural gas pipelines segment.
SUMMARY
THIRD-QUARTER AND YEAR-TO-DATE 2017 FINANCIAL HIGHLIGHTS
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK (a) |
$ |
165.7 |
$ |
92.1 |
$ |
324.8 |
$ |
261.5 |
|||||||
Net income per diluted share (a) |
$ |
0.43 |
$ |
0.43 |
$ |
1.20 |
$ |
1.23 |
|||||||
Adjusted EBITDA (b) |
$ |
517.2 |
$ |
469.7 |
$ |
1,439.1 |
$ |
1,375.9 |
|||||||
DCF (b) |
$ |
364.4 |
$ |
331.5 |
$ |
1,018.6 |
$ |
1,004.0 |
|||||||
Dividend coverage ratio (b) |
1.29 |
1.52 |
1.42 |
1.54 |
|||||||||||
(a) Three- and nine-month periods ending Sept. 30, 2017, include noncash impairment charges of approximately $20.2 million, or 3 cents per diluted share and 5 cents per diluted share, respectively. The nine-month period also includes approximately $50 million, or 11 cents per diluted share, in one-time and ONEOK and ONEOK Partners transaction-related costs. | |||||||||||||||
(b) Adjusted EBITDA; distributable cash flow (DCF); and dividend coverage ratio are non-GAAP measures. Nine-month 2017 amounts include transaction-related pretax cash costs of approximately $30 million, or 0.05 times dividend coverage, associated with the recently closed ONEOK and ONEOK Partners merger transaction. Reconciliations to relevant GAAP measures are included in this news release. |
"Third-quarter financial results reflect increases in both adjusted EBITDA and distributable cash flow, compared with 2016, driven by natural gas and natural gas liquids volume growth," said Terry K. Spencer, ONEOK president and chief executive officer. "Solid volume performance through the first nine months of the year has ONEOK well-positioned to achieve 2017 financial guidance.
"ONEOK was impacted by the effects of Hurricane Harvey during the quarter, but I couldn't be more proud of the way our employees responded," said Spencer. "They worked tirelessly to keep our assets running safely and to provide needed services to our customers, all while having to deal personally with the effects of the hurricane.
"We've announced approximately $490 million in capital-growth projects since June 2017, including the recently announced expansion of our West Texas LPG Pipeline into the heart of the Delaware Basin. We are developing more potential opportunities that further expand our existing assets, which continue to create our highest returns on capital invested," added Spencer.
THIRD-QUARTER AND YEAR-TO-DATE 2017 FINANCIAL PERFORMANCE
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
351.9 |
$ |
329.4 |
$ |
983.1 |
$ |
956.1 |
|||||||
Operating costs |
$ |
207.0 |
$ |
184.1 |
$ |
616.7 |
$ |
553.0 |
|||||||
Depreciation and amortization |
$ |
102.3 |
$ |
98.5 |
$ |
302.6 |
$ |
292.2 |
|||||||
Equity in net earnings from investments |
$ |
40.1 |
$ |
35.2 |
$ |
119.0 |
$ |
100.4 |
|||||||
Adjusted EBITDA |
$ |
517.2 |
$ |
469.7 |
$ |
1,439.1 |
$ |
1,375.9 |
|||||||
Capital expenditures |
$ |
135.2 |
$ |
158.3 |
$ |
330.4 |
$ |
491.5 |
ONEOK's operating income increased for the three- and nine-month periods in 2017, compared with the same periods in 2016, but higher results were offset partially by noncash impairment charges in the third quarter 2017 and one-time charges associated with the ONEOK and ONEOK Partners merger transaction during the first and second quarters of 2017. Noncash charges in the third quarter 2017 totaled approximately $20.2 million, or 3 cents per diluted share.
Operating costs increased in the three- and nine-month periods in 2017, compared with the same periods in 2016, due primarily to higher labor and employee-related costs associated with benefit plans and the growth of ONEOK's operations, and routine maintenance projects.
In September and October 2017, ONEOK issued 3.3 million common shares through its "at-the-market" equity program, resulting in net proceeds of $184 million. Proceeds were used for general corporate purposes, including the repayment of outstanding debt and to fund capital-growth projects.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the third-quarter 2017 conference call is accessible on ONEOK's website, www.oneok.com, or from the links below.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's adjusted EBITDA increased 5 percent in the third quarter 2017, compared with the same period in 2016, benefiting from increased NGL volumes gathered from the Williston Basin and STACK and SCOOP areas.
The segment connected one new third-party natural gas processing plant in the Permian Basin during the third quarter 2017, in addition to the five third-party plant connections added to its system in the first half of 2017.
Even with higher NGL volumes gathered during the third quarter 2017, compared with the second quarter 2017, ethane rejection levels on ONEOK's system remained relatively unchanged, continuing to average more than 150,000 barrels per day (bpd).
During August and September 2017, disruptions from Hurricane Harvey caused lower NGL volumes and higher operating costs at some of ONEOK's Gulf Coast and Mid-Continent area assets, adversely impacting adjusted EBITDA in the segment by an estimated $4.5 million.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Liquids Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
293.9 |
$ |
279.3 |
$ |
845.5 |
$ |
826.0 |
|||||||
Capital expenditures |
$ |
27.0 |
$ |
30.5 |
$ |
59.8 |
$ |
85.5 |
The increase in third-quarter 2017 adjusted EBITDA, compared with the third quarter 2016, primarily reflects:
The increase in adjusted EBITDA for the nine-month 2017 period, compared with the same period last year, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's adjusted EBITDA increased 29 percent in the third quarter 2017 and 17 percent through the first nine months of 2017, compared with the same periods in 2016. Producer activity remained steady on ONEOK's dedicated acreage in the Williston Basin and STACK and SCOOP areas, contributing to a 16 percent increase in natural gas volumes processed, compared with the third quarter 2016.
Higher fee-based earnings also continue to benefit the segment, with the third quarter 2017 fee rate averaging 86 cents per MMBtu, compared with 76 cents per MMBtu in the third quarter 2016, a 13 percent increase.
During the third quarter 2017, the gathering and processing segment recorded $20.2 million of noncash impairment charges related to nonstrategic assets and equity investments located in North Dakota and Oklahoma, respectively.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
142.0 |
$ |
109.8 |
$ |
374.2 |
$ |
320.2 |
|||||||
Capital expenditures |
$ |
85.5 |
$ |
99.6 |
$ |
185.7 |
$ |
325.8 |
Third-quarter 2017 adjusted EBITDA increased, compared with the third quarter 2016, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2017 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 9 percent in the third quarter 2017 and 13 percent through the first nine months of 2017, compared with the same periods in 2016. Higher fee-based earnings and increased transportation capacity contracted, primarily from the 2016 WesTex pipeline expansion, contributed to the segment's results.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
87.5 |
$ |
80.3 |
$ |
251.1 |
$ |
223.2 |
|||||||
Capital expenditures |
$ |
18.8 |
$ |
24.5 |
$ |
70.7 |
$ |
71.7 |
Third-quarter 2017 adjusted EBITDA increased, compared with the third quarter 2016, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2017 period, compared with the same period last year, primarily reflects:
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Nov. 1, 2017. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 888-312-9849, pass code 2687557, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 2687557.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2017/q3-2017-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measure of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson 918-561-5325 | |
Media Contact: |
Stephanie Higgins 918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-higher-third-quarter-2017-financial-results-maintains-2017-financial-guidance-300546760.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 25, 2017 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 74.5 cents per share, resulting in an annualized dividend of $2.98 per share. The dividend is payable Nov. 14, 2017, to shareholders of record at the close of business Nov. 6, 2017.
The dividend remains unchanged from the previous quarter when it was increased 13 cents per share, or 21 percent, following the close of the ONEOK and ONEOK Partners merger transaction.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-declares-quarterly-dividend-300543234.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 23, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that the West Texas LPG Pipeline Limited Partnership, a joint venture between ONEOK, which is the operator and owns 80 percent, and Martin Midstream Partners L.P., which owns 20 percent, plans to invest approximately $200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin.
This project, which is expected to be completed in the third quarter of 2018, is supported by long-term dedicated NGL production from two planned third-party natural gas processing plants in northern Reeves County, which we estimate will produce up to 40,000 barrels per day (bpd).
The Delaware Basin extension includes:
"Extending the West Texas LPG Pipeline into the core of the Delaware Basin, one of the fastest growing plays in the U.S., positions the West Texas LPG system for significant future NGL volume growth," said Terry K. Spencer, ONEOK president and chief executive officer.
West Texas LPG Pipeline is an NGL pipeline system that consists of approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.
EDITOR'S NOTE:
View map showing the location of the new pipeline lateral.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-west-texas-lpg-system-expansion-into-the-delaware-basin-300541280.html
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 10, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release third-quarter 2017 earnings after the market closes on Oct. 31, 2017.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Nov. 1, 2017. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 888-312-9849, pass code 2687557, or log on to www.oneok.com.
What: |
ONEOK third-quarter 2017 earnings conference call and webcast |
When: |
11 a.m. Eastern, Nov. 1, 2017 |
Where: |
1) Phone conference call dial 888-312-9849, pass code 2687557 |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 2687557.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Analyst Contact: |
Megan Patterson |
Media Contact: |
Stephanie Higgins |
View original content:http://www.prnewswire.com/news-releases/oneok-third-quarter-2017-conference-call-and-webcast-scheduled-300534216.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 31, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Barclays CEO Energy Conference Sept. 5-6, 2017, in New York City.
Terry K. Spencer, ONEOK president and chief executive officer; Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs; and Kevin L. Burdick, ONEOK executive vice president and chief operating officer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Tuesday, Sept. 5.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-barclays-ceo-energy-conference-300512454.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 31, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that the ONEOK Foundation will contribute $500,000 for Hurricane Harvey relief efforts, which consists of an immediate donation of $300,000 to the American Red Cross of Greater Houston.
The remaining $200,000 will be committed to support ONEOK's employee-led charitable organization already created to help ONEOK employees in times of personal crisis, and for other Mont Belvieu area agencies assisting with Hurricane Harvey relief efforts. This employee-led organization will be focused on our employees and their families directly affected by Hurricane Harvey. Donations to this organization from employees, retirees and members of the company's board of directors will be matched on a two-for-one basis by the ONEOK Foundation.
"Hurricane Harvey has impacted our employees directly," said Terry K. Spencer, ONEOK president and chief executive officer. "Many have sustained significant damage to their homes or have been displaced during this historic flood. We are grateful that everyone is safe and accounted for, but many employees, their families and the surrounding communities will be facing challenges ahead. Our hearts and thoughts go out to everyone impacted by the devastating effects of these powerful storms."
ONEOK will continue to monitor the needs for recovery in the region.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Andrew Ziola |
918-588-7683 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-donate-500000-for-hurricane-harvey-relief-efforts-300512300.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 30, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that its Mont Belvieu, Texas, complex is operational and has not experienced significant damage from the impact of Hurricane Harvey. All ONEOK employees located in the Gulf Coast area are safe and accounted for.
Some ONEOK assets in the area are operating at reduced volumes primarily due to temporary refinery and petrochemical facility outages and restraints on its customers' ability to receive natural gas liquids (NGL) products. Currently, upstream volumes from ONEOK's producer customers have not been significantly impacted. With the help of other companies in the industry, ONEOK is working to best serve the needs of customers as NGL markets recover and return to pre-hurricane levels. As volumes and customer operations recover, ONEOK is prepared to resume normal operations at all Mont Belvieu area facilities.
"Our hearts and thoughts go out to everyone impacted by the devastating effects of Hurricane Harvey," said Terry K. Spencer, ONEOK president and chief executive officer. "Many ONEOK employees live and work in the areas impacted and have experienced the devastation firsthand. I'd like to thank our employees for their remarkable efforts during this difficult time and for their many hours working to keep our assets operating safely. As we work together to resume normal operations, our focus remains on the safety of our employees and their families, the safe operation of our assets and our commitment to continue operating reliably for our customers."
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-reports-status-of-operations-following-hurricane-harvey-300511820.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 16, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Citi One-on-One Master Limited Partnership/Midstream Infrastructure Conference on Thursday, Aug. 17, 2017, in Las Vegas, Nevada.
Terry K. Spencer, ONEOK president and chief executive officer, and Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, beginning at 5 a.m. Pacific Daylight Time (7 a.m. Central Daylight Time) on Thursday, Aug. 17.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-citi-midstream-infrastructure-conference-300505407.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 8, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the Tuohy Brothers Eighth Annual Energy Conference on Wednesday, Aug. 9, 2017, in New York City.
Walter S. Hulse III, ONEOK chief financial officer and executive vice president, strategic planning and corporate affairs, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on ONEOK's website, www.oneok.com, on Tuesday, Aug. 8, beginning at 5 p.m. Eastern Daylight Time (4 p.m. Central Daylight Time).
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOK.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-to-participate-in-the-tuohy-brothers-annual-energy-conference-300501342.html
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 1, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced second-quarter 2017 financial results and 2017 financial guidance to reflect the ONEOK and ONEOK Partners merger transaction. ONEOK's second-quarter 2017 results benefited from higher revenues from natural gas and natural gas liquids (NGL) volume growth in the Williston Basin and STACK and SCOOP areas, higher average fee rates in the natural gas gathering and processing segment and higher fee-based transportation services in the natural gas pipelines segment.
SUMMARY
SECOND-QUARTER 2017 FINANCIAL HIGHLIGHTS
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK (a) |
$ |
71.7 |
$ |
85.9 |
$ |
159.1 |
$ |
169.4 |
|||||||
Net income per diluted share (a) |
$ |
0.33 |
$ |
0.40 |
$ |
0.74 |
$ |
0.80 |
|||||||
Adjusted EBITDA (b) |
$ |
462.3 |
$ |
460.2 |
$ |
921.9 |
$ |
906.2 |
|||||||
DCF (b) |
$ |
330.1 |
$ |
345.4 |
$ |
654.2 |
$ |
672.5 |
|||||||
Dividend coverage ratio (b) |
1.50 |
1.62 |
1.48 |
1.55 |
(a) The three- and six-month periods ending June 30, 2017, include nonrecurring pretax cash and noncash charges of approximately $43 million, or 12 cents per diluted share, and approximately $50 million, or 15 cents per diluted share, respectively.
(b) Adjusted EBITDA; distributable cash flow (DCF); and dividend coverage ratio are non-GAAP measures. Three- and six-month 2017 amounts include transaction-related pretax cash costs of approximately $23 million, or 0.18 times dividend coverage, and approximately $30 million, or 0.11 times dividend coverage, respectively. Reconciliations to relevant GAAP measures are included in this news release. |
"Solid second-quarter financial results were led by strong volume growth in our natural gas gathering and processing segment in both the Williston Basin and the STACK and SCOOP areas," said Terry K. Spencer, ONEOK president and chief executive officer. "Producer activity remains strong in the STACK and SCOOP and in the core areas of the Permian and Williston basins.
"We continue to expect to benefit from ethane recovery in the second half of 2017 and into 2018 as large petrochemical facilities are completed and increase the demand for ethane," Spencer added.
"Following the recently completed merger transaction, ONEOK is in an even stronger position to execute on our ongoing organic growth strategy," said Spencer. "We are confident that ONEOK will continue growing as one of the nation's largest midstream service providers while enhancing value for our customers and investors."
SECOND-QUARTER 2017 PERFORMANCE
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
316.7 |
$ |
315.3 |
$ |
631.2 |
$ |
626.7 |
|||||||
Operating costs |
$ |
217.9 |
$ |
191.9 |
$ |
409.6 |
$ |
368.9 |
|||||||
Depreciation and amortization |
$ |
100.8 |
$ |
99.2 |
$ |
200.3 |
$ |
193.7 |
|||||||
Equity in net earnings from investments |
$ |
39.4 |
$ |
32.4 |
$ |
78.9 |
$ |
65.3 |
|||||||
Adjusted EBITDA |
$ |
462.3 |
$ |
460.2 |
$ |
921.9 |
$ |
906.2 |
|||||||
Capital expenditures |
$ |
82.5 |
$ |
136.8 |
$ |
195.2 |
$ |
333.3 |
ONEOK's operating income for the three- and six-month periods in 2017 increased compared with the same periods in 2016, but higher operating results were offset partially by transaction-related charges.
Operating costs increased in the three- and six-month periods in 2017 compared with the same periods in 2016, due to one-time charges associated with the ONEOK and ONEOK Partners merger transaction, the timing of routine maintenance projects in the natural gas liquids and natural gas pipelines segments and higher employee-related costs. Nonrecurring and transaction-related charges totaled approximately $43 million, or 12 cents per diluted share, in the second quarter 2017, and approximately $50 million, or 15 cents per diluted share, through the first half of 2017.
Capital expenditures decreased in the three- and six-month periods in 2017, compared with the same periods in 2016, due primarily to capital-growth projects placed in service in 2016.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the second-quarter 2017 conference call is accessible on ONEOK's website, www.oneok.com, or from the links below.
HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from increased NGL volumes gathered from the Williston Basin and STACK and SCOOP areas, which were offset by decreased volumes in the Granite Wash and Barnett Shale.
The segment connected two new third-party natural gas processing plants in the STACK and SCOOP areas to its system during the second quarter 2017, in addition to the three third-party plant connections in the first quarter 2017.
Ethane rejection levels on ONEOK's NGL system remained relatively unchanged in the second quarter 2017, averaging more than 150,000 bpd.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Liquids Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
273.3 |
$ |
276.6 |
$ |
551.5 |
$ |
546.8 |
|||||||
Capital expenditures |
$ |
12.3 |
$ |
20.8 |
$ |
32.8 |
$ |
55.0 |
The decrease in second-quarter 2017 adjusted EBITDA, compared with the second quarter 2016, primarily reflects:
The increase in adjusted EBITDA for the six-month 2017 period, compared with the same period last year, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's adjusted EBITDA increased 16 percent in the second quarter 2017, compared with the same period in 2016, due primarily to increased producer activity in the Williston Basin and STACK and SCOOP areas, and higher fee-based revenues from restructured contracts. Second-quarter 2017 natural gas volumes gathered increased 7 percent and natural gas volumes processed increased 6 percent, compared with the second quarter 2016.
The segment's average fee rate for the second quarter 2017 was 87 cents per MMBtu, compared with 76 cents per MMBtu in the second quarter 2016, a 14 percent increase.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
128.3 |
$ |
110.3 |
$ |
232.2 |
$ |
210.3 |
|||||||
Capital expenditures |
$ |
37.0 |
$ |
84.7 |
$ |
100.2 |
$ |
226.2 |
Second-quarter 2017 adjusted EBITDA increased, compared with the second quarter 2016, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2017 period, compared with the same period last year, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment's adjusted EBITDA increased 18 percent in the second quarter 2017, compared with the same period in 2016. Increased results were primarily driven by higher fee-based earnings from increased firm demand charge transportation services, and increased equity in net earnings from investments due to higher revenues on ONEOK's joint venture Roadrunner Gas Transmission Pipeline (Roadrunner).
The segment's contracted transportation capacity and fee-based earnings have increased since the October 2016 completion of the WesTex Transmission Pipeline expansion, which increased capacity on the pipeline by 260 MMcf/d.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2017 |
2016 |
2017 |
2016 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
80.7 |
$ |
68.5 |
$ |
163.6 |
$ |
142.9 |
|||||||
Capital expenditures |
$ |
26.8 |
$ |
29.3 |
$ |
51.9 |
$ |
47.2 |
Second-quarter 2017 adjusted EBITDA increased, compared with the second quarter 2016, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2017 period, compared with the same period last year, primarily reflects:
UPDATED 2017 GUIDANCE
ONEOK's full-year 2017 net income is expected to be in the range of $635 million to $795 million, compared with its previously announced range of $575 million to $755 million. The updated guidance reflects the completed merger transaction with ONEOK Partners and nonrecurring and transaction-related charges, which were not included in ONEOK's financial guidance provided on Feb. 1, 2017.
ONEOK narrowed its adjusted EBITDA guidance to a range of $1.89 billion to $2.06 billion, compared with its previously announced range of $1.87 billion to $2.13 billion.
The natural gas liquids segment expects full-year 2017 adjusted EBITDA of $1.14 billion to $1.24 billion, compared with the previously announced range of $1.11 billion to $1.31 billion. NGLs gathered are expected to average 800,000 to 850,000 bpd, compared with the previously announced range of 800,000 to 900,000 bpd, and NGLs fractionated remain unchanged from the previously announced range of 575,000 to 635,000 bpd. These volume updates primarily reflect the timing of expected volume increases from recently connected third-party natural gas processing plants.
The natural gas gathering and processing segment increased its full-year 2017 adjusted EBITDA guidance to $460 million to $500 million, compared with the previously announced range of $445 million to $485 million. The increase in the segment's financial guidance is primarily due to higher than expected volumes in the Williston Basin and STACK and SCOOP areas, and continued strong producer activity expected through the second half of the year. Natural gas processed is expected to average 1,475 to 1,580 MMcf/d, compared with the previously announced range of 1,400 to 1,550 MMcf/d, and natural gas gathered is expected to average 1,575 to 1,680 MMcf/d, compared to the previously announced range of 1,500 to 1,650 MMcf/d.
The natural gas pipelines segment increased its full-year 2017 adjusted EBITDA guidance to $330 million to $350 million, compared with the previously announced range of $320 million to $340 million. The increase primarily reflects the expectation for continued fee-based earnings growth from increased firm demand charge transportation services.
Growth capital expenditures are expected to range from $450 million to $550 million, compared with the previously announced range of $380 million to $480 million. Maintenance capital expenditures are expected to range from $130 million to $150 million, compared with the previously announced range of $140 million to $160 million.
Additional guidance information can be found in the tables.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Aug. 2, 2017. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-449-5865, pass code 2669312, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 2669312.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2017/q2-1aug2017-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted EBITDA, distributable cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they, and similar measures, are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK distributable cash flow and coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, distributable cash flow and coverage ratio are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the US., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Stephanie Higgins 918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-second-quarter-2017-financial-results-300497809.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 31, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to expand its Canadian Valley natural gas processing facility in the STACK play of western Oklahoma to 400 million cubic feet per day (MMcf/d) from 200 MMcf/d to support increasing production growth.
The Canadian Valley II project in Canadian County, Oklahoma, is anticipated to be completed by the end of 2018. The expansion and related infrastructure is expected to cost approximately $155 million to $165 million and is supported by more than 200,000 acres of dedication, primarily fee-based contracts and minimum volume commitments.
"The doubling of processing capacity at Canadian Valley is needed to capture rapidly increasing customer production in the STACK play," said Terry K. Spencer, ONEOK president and chief executive officer. "The expansion will provide producers in the area with essential natural gas processing capacity."
The expansion of Canadian Valley, in conjunction with the recently announced 200 MMcf/d firm offload agreement to a third-party processor, will bring ONEOK's total natural gas processing capacity in Oklahoma to approximately 1.1 billion cubic feet per day (Bcf/d) by 2019.
Additionally, NGLs produced from the expansion are expected to add approximately 20,000 barrels per day of additional volumes to ONEOK's existing Oklahoma NGL gathering system.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-expansion-of-canadian-valley-natural-gas-processing-facility-to-accommodate-stack-production-growth-300496768.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 26, 2017 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today increased ONEOK's quarterly dividend 13 cents per share, or 21 percent, to 74.5 cents per share, resulting in an annualized dividend of $2.98 per share. The dividend is payable Aug. 14, 2017, to shareholders of record at the close of business Aug. 7, 2017.
"We are pleased to announce this substantial increase to ONEOK's dividend, which is just one of the benefits of the ONEOK and ONEOK Partners merger transaction," said Terry K. Spencer, president and chief executive officer of ONEOK. "As a now larger, stand-alone operating company, ONEOK is well-positioned to increase its distributable cash flow available for dividends and reinvestment into the business."
On June 30, 2017, ONEOK completed a merger transaction with ONEOK Partners. Under the terms of the merger agreement, ONEOK acquired all of the 171.5 million outstanding units of ONEOK Partners it did not already own at a fixed exchange ratio of 0.985 of a share of ONEOK common stock for each public unit of ONEOK Partners. ONEOK Partners common units are no longer publicly traded on the New York Stock Exchange.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
|
Media Contact: |
Stephanie Higgins |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-21-percent-quarterly-dividend-increase-300494797.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 18, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced the retirement of Stephen W. Lake, senior vice president, general counsel and assistant secretary effective July 21, 2017. Stephen B. Allen, ONEOK vice president and associate general counsel, has assumed Lake's responsibilities.
"We wish Steve well in his pursuit of new opportunities and thank him for his many contributions during his time at ONEOK," said Terry K. Spencer, ONEOK president and chief executive officer. "But most importantly, we thank him for the high integrity and professionalism he demonstrated each and every day."
Lake joined ONEOK in 2011 after serving as executive vice president and general counsel of McJunkin Red Man Corporation. He began his career in 1991 as an associate with GableGotwals, a Tulsa law firm, where he was a shareholder for 10 years and a member of the firm's board of directors from 2005 until 2008. He is a member of the American Bar Association, the Oklahoma Bar Association and the Tulsa County Bar Association.
Steve Allen was previously responsible for the management of ONEOK legal matters regarding mergers and acquisitions, major construction projects and commercial contracts including the recent natural gas gathering and processing contract restructuring efforts.
"This new role is a reflection of Steve Allen's excellent leadership, extensive knowledge of our businesses, outstanding performance and nearly 20 years of legal experience," added Spencer.
Allen was a shareholder at GableGotwals before joining ONEOK in 2006. He is a member of the American Bar Association, the Oklahoma Bar Association and the Tulsa County Bar Association.
He currently serves as the chairman of the Oklahoma Baptist University (OBU) board of trustees and is a board member of the Oklahoma Water Resources Board.
A native of Massachusetts, Allen earned a Bachelor of Arts degree in political science from OBU in Shawnee and a Juris Doctorate from Vanderbilt University School of Law in Nashville, Tennessee.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Analyst Contact: |
Andrew Ziola |
918-588-7683 | |
Media Contact: |
Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-lake-retirement-allen-assumes-responsibilities-300490234.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 12, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will release second-quarter 2017 earnings after the market closes on Aug. 1, 2017.
ONEOK's executive management will participate in a conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Aug. 2, 2017. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-449-5865, pass code 2669312, or log on to www.oneok.com.
What: |
ONEOK second-quarter 2017 earnings conference call and webcast |
When: |
11 a.m. Eastern, Aug. 2, 2017 |
10 a.m. Central | |
Where: |
1) Phone conference call dial 800-449-5865, pass code 2669312 |
2) Log on to the webcast at www.oneok.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 2669312.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
View original content:http://www.prnewswire.com/news-releases/oneok-second-quarter-2017-conference-call-and-webcast-scheduled-300487178.html
SOURCE ONEOK, Inc.
TULSA, Okla., July 10, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has priced an offering to sell $1.2 billion of senior notes, consisting of $500 million of 10-year senior notes at a coupon of 4.0 percent and $700 million of 30-year senior notes at a coupon of 4.95 percent. The notes will be issued under ONEOK's existing shelf registration statement previously filed with the Securities and Exchange Commission.
The net proceeds, after deducting underwriting discounts and commissions, are expected to be $1.18 billion. ONEOK expects to use the proceeds for general corporate purposes, which may include repayment of existing indebtedness and capital expenditures.
Citigroup, Barclays, BofA Merrill Lynch, Mizuho Securities, Credit Suisse, Goldman Sachs & Co., J.P. Morgan, Morgan Stanley, MUFG, PNC Capital Markets LLC, SMBC Nikko, TD Securities, US Bancorp and Wells Fargo Securities are acting as joint book-running managers for the offering. BB&T Capital Markets, BOK Financial Securities, Inc. and Regions Securities LLC are the co-managers for the offering. ONEOK expects the notes offering to close on July 13, 2017.
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A registration statement relating to the notes was previously filed with, and became effective under the rules of, the Securities and Exchange Commission. ONEOK offered the notes to the public by means of a prospectus and prospectus supplement, which are part of the registration statement.
A copy of the prospectus and prospectus supplement may be obtained by contacting the joint book-running managers as follows:
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Toll-free: 1-800-831-9146
Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Toll-free: 1-888-603-5847
Merrill Lynch, Pierce, Fenner & Smith Incorporated
200 North College Street
NC1-004-03-43
Charlotte, NC 28255-0001
Attention: Prospectus Department
Toll-free: 1-800-294-1322
Mizuho Securities USA LLC
320 Park Avenue, 12th floor
New York, NY 10022
Attention: Debt Capital Markets
Toll-free: 1-866-271-7403
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.
Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
View original content:http://www.prnewswire.com/news-releases/oneok-announces-12-billion-notes-offering-300485489.html
SOURCE ONEOK, Inc.
TULSA, Okla., June 30, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has closed the acquisition of all outstanding common units of ONEOK Partners, L.P. (NYSE: OKS) it did not previously own, and the merger of ONEOK Partners with a subsidiary of ONEOK will be effective at the end of today. As a result of the acquisition, ONEOK Partners common units will no longer be publicly traded on the New York Stock Exchange.
At separate special meetings held earlier today, ONEOK shareholders and ONEOK Partners unitholders voted in favor of their respective proposals related to the previously announced merger transaction.
Approximately 98 percent of the ONEOK shares voted approved the ONEOK stock issuance proposal in connection with the merger transaction.
Approximately 96 percent of the ONEOK shares voted, representing approximately 86 percent of the outstanding shares, approved the proposal to increase the number of authorized shares of ONEOK common stock to 1.2 billion from 600 million.
Approximately 98 percent of the ONEOK Partners units voted, representing approximately 75 percent of the outstanding units, approved the merger proposal.
"The support for this transaction by both ONEOK shareholders and ONEOK Partners unitholders was evident today," said Terry K. Spencer, president and chief executive officer of ONEOK. "This investor support underscores our decision to create a larger, stand-alone operating company, resulting in solid dividend coverage and a lower cost of funding, enhancing our ability to execute on our long-term growth strategy as one of the country's leading midstream energy companies. We believe this transaction positions our businesses well for continued growth and provides ONEOK shareholders with long-term value through an expected higher dividend growth rate and an even stronger balance sheet."
MERGER TRANSACTION HIGHLIGHTS
Under the terms of the merger agreement, ONEOK has acquired all of the 171.5 million outstanding units of ONEOK Partners it did not already own at a fixed exchange ratio of 0.985 of a share of ONEOK common stock for each public unit of ONEOK Partners.
ONEOK expects:
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is one of the largest energy midstream service providers in the U.S., connecting prolific supply basins with key market centers. It owns and operates one of the nation's premier natural gas liquids (NGL) systems and is a leader in the gathering, processing, storage and transportation of natural gas. ONEOK's operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook or Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK, Inc.
TULSA, Okla., June 22, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) today announced that two leading proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis & Co., have recommended votes in favor of the proposed merger transaction between ONEOK and ONEOK Partners.
Under the proposed merger transaction announced Feb. 1, 2017, ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own.
A special committee of the ONEOK board of directors, the ONEOK Partners conflicts committee and the ONEOK Partners board of directors have each unanimously approved the merger agreement, and shareholder and unitholder voting related to the transaction is currently underway. Separate special meetings of ONEOK shareholders and ONEOK Partners unitholders will be held at 9 a.m. CDT and 10 a.m. CDT, respectively, on June 30, 2017, to vote on the proposed merger transaction. Shareholders and unitholders of record at the close of business May 19, 2017, are entitled to vote at their respective special meeting.
"The support of these two leading advisory firms underscores the value this transaction is expected to provide to both ONEOK shareholders and ONEOK Partners unitholders," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "The transaction represents a great opportunity for current investors in both companies to benefit from future growth across our extensive and integrated asset footprint. We encourage all current shareholders and unitholders to vote in favor of the proposed merger, and we look forward to the anticipated closing of the transaction."
Completion of the transaction, which is expected to occur on June 30, 2017, or early in the third quarter 2017, is subject to the satisfaction of customary conditions, including receipt of requisite approvals of ONEOK shareholders and ONEOK Partners unitholders.
MERGER TRANSACTION HIGHLIGHTS
Under the terms of the merger agreement, ONEOK will acquire all of the 171.5 million outstanding units of ONEOK Partners it does not already own at a fixed exchange ratio of 0.985 of a share of ONEOK common stock for each public unit of ONEOK Partners. ONEOK Partners units will no longer be publicly traded following the closing of the transaction.
Following the close of the merger transaction, ONEOK expects:
For additional information on the proposed merger transaction and the special meetings of ONEOK shareholders and ONEOK Partners unitholders, visit www.oneok.com or www.oneokpartners.com.
-------------------------------------------------------------------------------------------------------------------
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, as amended (the "Form S-4") which includes a prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. The Form S-4 was declared effective by the SEC on May 11, 2017, and the definitive joint proxy statement/prospectus was filed with the SEC by both ONEOK and ONEOK Partners on May 19, 2017. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. The definitive joint proxy statement/prospectus was mailed to ONEOK stockholders and ONEOK Partners unitholders on or about May 25, 2017. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the Form S-4 and any other relevant documents filed with the SEC, including the definitive joint proxy statement/prospectus that is part of the Form S-4, because they contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., June 19, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced plans to expand its Mid-Continent natural gas liquids (NGL) gathering system and its existing Sterling III Pipeline. The expansions, which are backed by a long-term contract with a subsidiary of EnLink Midstream Partners, LP and EnLink Midstream, LLC (EnLink), will help accommodate expected volume growth from current and certain future EnLink natural gas processing plants in the STACK play in western Oklahoma along with expected growth from other customers in the region.
"Producers continue to accelerate their investments in the STACK due to the higher-return economics driven by strong crude oil and NGL-rich natural gas production rates," said Terry K. Spencer, ONEOK president and chief executive officer. "This expansion of our NGL gathering system further underscores our ability to meet the NGL service needs of STACK-area natural gas processors and demonstrates our continued commitment to providing reliable high-quality service to our customers."
Expansions include increasing capacity on the Sterling III Pipeline to 250,000 barrels per day (bpd) from 190,000 bpd and connecting ONEOK's Arbuckle Pipeline to EnLink's Cajun-Sibon Pipeline in southeast Texas. ONEOK's Sterling III Pipeline transports either unfractionated NGLs or NGL purity products between ONEOK's Mid-Continent NGL infrastructure and similar facilities on the Gulf Coast in Mont Belvieu, Texas.
ONEOK expects to invest approximately $130 million for these projects, which are expected to be complete by the end of 2018.
ONEOK's natural gas liquids segment currently gathers 150,000 to 200,000 bpd of NGLs out of the STACK and SCOOP plays and is connected to more than 100 third-party natural gas processing plants in the Mid-Continent. The NGL volumes from the EnLink plant connections and other production are part of an incremental 100,000 bpd of expected NGL supply out of the STACK and SCOOP plays that ONEOK expects to add to its system by the end of 2018.
In addition, to support the increasing producer activity in the STACK and SCOOP on dedicated acreage in the natural gas gathering and processing segment, ONEOK has entered into a long-term processing services agreement with a third party to gain access to an additional 200 million cubic feet per day (MMcf/d) of natural gas processing capacity in this region.
"This agreement provides an attractive option for timely access to existing natural gas processing capacity to better serve the rapid growth occurring on our dedicated acreage," Spencer added.
ONEOK plans to connect its extensive natural gas gathering system to the existing third-party natural gas processing facility in northern Oklahoma by constructing a nearly 30-mile natural gas gathering pipeline and related infrastructure through the core of the STACK play in Blaine County, Oklahoma. The pipeline is expected to cost approximately $40 million and be completed by the end of 2017.
This third-party plant already is connected to ONEOK's existing NGL gathering system and is expected to provide incremental NGL volumes as natural gas processing volumes increase.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK, Inc.
TULSA, Okla., June 12, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced it will redeem all of its outstanding 6.5 percent senior notes due 2028 for approximately $87 million, the outstanding aggregate principal amount of the notes.
The formal notice of redemption was sent June 12, 2017, to the trustee and holders of the notes. ONEOK will redeem the notes July 12, 2017, using cash on hand, at a redemption price equal to the principal amount, plus accrued and unpaid interest in accordance with the indenture governing the notes.
Questions regarding the redemption should be directed to:
The Bank of New York Mellon Trust Company, N.A.
c/o The Bank of New York Mellon
Attn: CT Ops, Redemption Unit
111 Sanders Creek Pkwy
East Syracuse, NY 13057
Phone: 713-483-6674
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of dividends), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 25, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) have announced organizational changes.
Walter S. Hulse III, 53, currently executive vice president, strategic planning and corporate affairs, becomes chief financial officer and executive vice president, strategic planning and corporate affairs. He will continue to report to Terry K. Spencer, ONEOK president and chief executive officer.
Kevin L. Burdick, 52, currently executive vice president and chief commercial officer, becomes executive vice president and chief operating officer. He will continue to report to Spencer. Wes Christensen, senior vice president, operations, will report to Burdick. Burdick's commercial responsibilities will remain the same.
Derek S. Reiners, 46, currently senior vice president, chief financial officer and treasurer, becomes senior vice president, finance, and treasurer. He will report to Hulse.
"These changes consolidate key reporting responsibilities to me and are a reflection of the exceptional leadership and industry knowledge these individuals have demonstrated in their current roles, and I'm confident those attributes will aid them in their new roles," said Spencer. "Each of these individuals has made a substantial impact in their time with the company, and I expect these new responsibilities will provide even more opportunities to lead and develop their teams."
Hulse joined ONEOK in 2015 from Spinnaker Strategic Advisory Services, LLC, which provided consulting services to mid-cap and large-cap publicly traded companies, including the review of merger and/or acquisition opportunities, debt and equity markets, corporate restructuring and potential divestitures. Hulse also served as a consultant to ONEOK for many years and assisted with its separation from ONE Gas.
Previously, Hulse was vice chairman of the Investment Banking Department, managing director and head of the business development group at UBS Investment Bank where he oversaw the identification, evaluation and execution of new business initiatives across the three UBS business lines. Prior to that, he was head of the Global Utility Group at UBS Investment Bank.
Before joining UBS at the time of its merger with PaineWebber Incorporated, Hulse was director of the mergers and acquisition department at PaineWebber and held various roles there previously. He also led the Global Energy and Mergers and Acquisitions group at J.P. Morgan.
Hulse graduated from the Wharton School at the University of Pennsylvania with a Bachelor of Science in Economics.
Burdick has served in his current role since March 2017 and prior to that, since February 2016, he served as senior vice president of natural gas gathering and processing. Burdick's previous roles in the company included vice president, natural gas gathering and processing; and vice president and chief information officer.
Burdick joined ONEOK in 2007 as manager of information technology design integration and served in roles of increasing responsibility. He began his career at CITGO Petroleum in the information technology field.
Burdick earned a Bachelor of Science in mathematics from the University of Oklahoma and a Master of Business Administration from Oklahoma State University.
Reiners has served in his current role since 2012 and prior to that, he served as senior vice president and chief accounting officer since his hiring in 2009.
Previously, he worked for Grant Thornton LLP in Tulsa and Dallas, Texas, where he was a partner and served as the north Texas energy industry practice leader. He also worked for Arthur Andersen LLP in various roles with increasing levels of responsibility.
A certified public accountant and a member of the American Institute of Certified Public Accountants, Reiners earned a Bachelor of Science degree in business administration in 1993 from Oklahoma State University in Stillwater with majors in finance and economics. He earned a master's degree in accounting in 1999 from Oklahoma State University.
Editor's note: Photos of Hulse, Burdick and Reiners are available.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Megan Washbourne |
918-588-7572 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., May 24, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) President and Chief Executive Officer Terry K. Spencer today provided an update on the company's business operations at the company's annual meeting of shareholders.
Spencer discussed the previously announced ONEOK and ONEOK Partners (NYSE: OKS) merger transaction and the long-term value it will create for shareholders.
"This acquisition of the balance of ONEOK Partners underscores the strategic value we place on the business we have successfully built since we ventured into the midstream space nearly 20 years ago," said Spencer. "A broad asset footprint, stable cash flows and attractive growth prospects remain core to our long-term growth strategy. Through the acquisition of the 60 percent of the limited partner interests in ONEOK Partners that ONEOK does not already own, ONEOK becomes a standalone operating company with a lower cost of funding and stronger cash flow generation."
Spencer touted the company's earnings growth during 2016 with net income attributable to ONEOK and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increasing 44 and 17 percent, respectively, compared with 2015.
"Increased fee-based earnings drove double-digit adjusted EBITDA growth in all three of our business segments," he said. "Multi-service capability in growing basins was a key driver of this growth. We have significantly increased our fee-based earnings since 2015 as a result of our contract restructuring efforts in the natural gas gathering and processing segment; increased fee-based natural gas liquids gathered and fractionated volumes in the natural gas liquids segment; and completed fee-based projects in the natural gas pipelines segment.
"With this line of sight into growth opportunities and improving market fundamentals, we have many future potential growth projects in the development phase," he continued.
Spencer also discussed continued growth opportunities for the remainder of 2017 and beyond.
"Our 2017 financial guidance reflects continued growth across our asset footprint as market fundamentals continue to improve and producer customers are increasing their activity in the NGL-rich shale plays where ONEOK is well-positioned," he said.
Spencer also noted that ONEOK's natural gas liquids segment is positioned to benefit from the growing petrochemical demand for ethane over the next two to three years as additional ethane cracking facilities are completed, without significant capital costs to the partnership.
Spencer thanked and recognized the company's employees for the company's continued success.
"The safe, reliable and environmentally responsible operation of our assets is dependent upon our workforce, which is our greatest resource," he said. "Their hard work and commitment delivered solid results for the company, our customers and our investors."
Shareholders approved the following proposals at today's annual meeting:
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, as amended (the "Form S-4") which includes a prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. The Form S-4 was declared effective by the SEC on May 11, 2017, and the definitive joint proxy statement/prospectus was filed with the SEC by both ONEOK and ONEOK Partners on May 19, 2017. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. The definitive joint proxy statement/prospectus was mailed to ONEOK stockholders and ONEOK Partners unitholders on or about May 25, 2017. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the Form S-4 and any other relevant documents filed with the SEC, including the definitive joint proxy statement/prospectus that is part of the Form S-4, because they contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 16, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate in the Wells Fargo "Kick the Tires" Fixed-income Conference on Wednesday, May 17, 2017, in Houston and the MUFG Oil & Gas Conference on Thursday, May 18, in New York City.
Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, will present at the Wells Fargo conference in Houston.
At the MUFG conference in New York City, Reiners will conduct a series of one-on-one meetings with investment-community representatives.
The materials used at the conferences are accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 9, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) today announced that separate special meetings of ONEOK shareholders and ONEOK Partners unitholders will be held June 30, 2017, to vote on the previously announced merger transaction between the two companies.
Shareholders and unitholders of record at the close of business May 19, 2017, will be entitled to vote at their respective special meeting.
SPECIAL MEETING OF ONEOK, INC. SHAREHOLDERS: | |
When: |
9 a.m. CDT, June 30, 2017 |
Where: |
ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma |
SPECIAL MEETING OF ONEOK PARTNERS UNITHOLDERS: | |
When: |
10 a.m. CDT, June 30, 2017 |
Where: |
ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma |
Under the transaction agreement, each outstanding common unit of ONEOK Partners that ONEOK does not already own will be converted into 0.985 shares of ONEOK common stock, representing a 22.4 percent premium to the ONEOK Partners closing price on Jan. 27, 2017.
Completion of the transaction, which is expected to occur the same date, or soon after the date of the special meetings, is subject to the satisfaction of customary conditions, including receipt of requisite approvals of ONEOK shareholders and ONEOK Partners unitholders.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, on March 7, 2017, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, as amended on April 21, 2017, and May 4, 2017, (the "Form S-4") which includes a preliminary prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. These materials are not yet final and will be amended. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and ONEOK Partners will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the registration statement, including the preliminary joint proxy statement/prospectus that is a part of the registration statement, and the definitive joint proxy statement/prospectus and other relevant materials filed and to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they contain or will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction are set forth in the preliminary joint proxy statement/prospectus filed with the SEC on March 7, 2017, as amended on April 21, 2017, and May 4, 2017, and will be set forth in the definitive joint proxy statement/prospectus when it becomes available. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 6, 2017. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 28, 2017. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and the other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information above.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 8, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate in the Deutsche Bank MLP, Midstream and Natural Gas Conference on Tuesday, May 9, 2017, in New York City, and the Citi Global Energy and Utilities Conference on Wednesday, May 10, in Boston, Massachusetts.
Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer; Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president, strategic planning and corporate affairs; Kevin L. Burdick, ONEOK and ONEOK Partners executive vice president and chief commercial officer; and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, will conduct a series of one-on-one meetings with investment-community representatives at the conferences.
The materials used at the conferences will be accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Tuesday, May 9, 2017.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 2, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced first-quarter 2017 financial results.
SUMMARY
FIRST-QUARTER 2017 FINANCIAL HIGHLIGHTS
Three Months Ended | |||||||
March 31, | |||||||
ONEOK |
2017 |
2016 | |||||
(Millions of dollars, except per | |||||||
Net income attributable to ONEOK |
$ |
87.4 |
$ |
83.4 |
|||
Net income per diluted share |
$ |
0.41 |
$ |
0.40 |
|||
Adjusted EBITDA (a) |
$ |
459.6 |
$ |
441.6 |
|||
Cash flow available for dividends (a) (b) |
$ |
164.2 |
$ |
169.3 |
|||
Dividend coverage ratio (a) |
1.27 |
1.31 |
|||||
(a) Adjusted EBITDA; cash flow available for dividends and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. | |||||||
(b) Distributable cash flow (DCF), as calculated per 2017 guidance, would total $324.2 million and $322.8 million for the first quarter 2017 and first quarter 2016, respectively. DCF is a non-GAAP measure. A reconciliation to the relevant GAAP measure is attached to this news release. |
"All three of ONEOK Partners' business segments reported higher first-quarter adjusted EBITDA compared with the same period last year, driven by increased fee-based services across the partnership's footprint," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "Our performance through the first three months of 2017 and the increased drilling rig activity in the basins we serve has us well-positioned to achieve 2017 financial guidance expectations. Severe winter weather in January impacted first-quarter 2017 volumes, primarily in the Williston Basin, but was taken into consideration when setting 2017 financial expectations. Since January, volumes have recovered and are now averaging above November 2016 levels.
"We've seen increased activity across our footprint as producers continue to move drilling rigs into highly productive areas such as the STACK and SCOOP plays in Oklahoma and the Williston and Permian basins," Spencer said. "The partnership holds strong asset positions in all of these areas, where continued growth benefits all three of our business segments.
"The announced merger transaction with ONEOK Partners positions our businesses for continued growth," Spencer added. "This transaction represents a great opportunity for current ONEOK shareholders and ONEOK Partners unitholders, who will benefit from a long runway of future development opportunities across our footprint."
FIRST-QUARTER 2017 FINANCIAL PERFORMANCE
ONEOK's first-quarter 2017 results benefited from higher average fee rates in the natural gas gathering and processing segment, higher fee-based transportation services in the natural gas pipelines segment, and increased transportation and exchange service volumes and wider location and product price differentials in the natural gas liquids segment. Severe winter weather in January, primarily in the Williston Basin, impacted the natural gas gathering and processing segment's volumes during the quarter.
Recently completed capital-growth projects in the natural gas pipelines segment, including the joint venture Roadrunner Gas Transmission Pipeline and the WesTex intrastate pipeline expansion, both in the Permian Basin, provided additional fee-based earnings during the quarter.
Ethane rejection levels on the partnership's NGL system decreased to an average of more than 150,000 barrels per day (bpd) in the first quarter 2017, compared with an average of more than 175,000 bpd during the first quarter of 2016. The partnership expects ethane recovery levels to fluctuate but generally increase for the remainder of 2017, as ethane supply and demand begin to balance.
Three Months Ended | |||||||
March 31, | |||||||
ONEOK |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Operating income |
$ |
314.4 |
$ |
311.4 |
|||
Operating costs |
$ |
192.0 |
$ |
177.1 |
|||
Depreciation and amortization |
$ |
99.4 |
$ |
94.5 |
|||
Equity in net earnings from investments |
$ |
39.6 |
$ |
32.9 |
|||
Adjusted EBITDA |
$ |
459.6 |
$ |
441.6 |
|||
Capital expenditures |
$ |
112.7 |
$ |
196.4 |
Higher first-quarter 2017 results primarily benefited from:
Operating costs increased in the first quarter 2017 compared with the first quarter 2016 due primarily to increased property taxes in the natural gas liquids and natural gas pipelines segments and higher labor and employee-related costs. ONEOK's first-quarter 2017 results also include approximately $7 million in costs associated with the proposed ONEOK and ONEOK Partners merger transaction.
Capital expenditures decreased in the first three months of 2017 compared with the same period in 2016 due primarily to projects placed in service in 2016 and fewer well connections in the natural gas gathering and processing segment due to the impact of severe winter weather in the Williston Basin in the first quarter 2017.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the first-quarter 2017 conference call is accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, or from the links below.
ONEOK AND ONEOK PARTNERS HIGHLIGHTS:
ONEOK:
ONEOK Partners:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's first-quarter 2017 adjusted EBITDA increased 3 percent compared with the first quarter 2016, primarily benefiting from increased optimization and marketing from wider location price differentials. Recent natural gas processing plant connections, wider product price differentials and increased ethane recovery also contributed to the increase. The segment connected three new third-party natural gas processing plants - one each in the Permian Basin, Mid-Continent and Rocky Mountain region - to its system during the quarter.
NGLs fractionated increased 4 percent and NGLs transported on gathering lines increased 2 percent in the first quarter 2017, compared with the same period in 2016, primarily benefiting from new processing plant connections in the Williston Basin, increased ethane recovery and increased Mid-Continent volumes gathered from the STACK and SCOOP areas.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Liquids Segment |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
278.2 |
$ |
270.2 |
|||
Capital expenditures |
$ |
20.5 |
$ |
34.2 |
The increase in first-quarter 2017 adjusted EBITDA, compared with the first quarter 2016, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's first-quarter 2017 adjusted EBITDA increased 4 percent compared with the first quarter 2016 due primarily to higher fee-based revenues from restructured contracts.
The segment's average fee rate for the first quarter 2017 was 83 cents, compared with 68 cents in the first quarter 2016, a 22 percent increase.
Severe winter weather and natural production declines on existing wells impacted natural gas volumes in the first quarter 2017. Natural gas volumes processed decreased approximately 4 percent compared with the same period last year.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Gathering and Processing Segment |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
104.0 |
$ |
100.0 |
|||
Capital expenditures |
$ |
63.2 |
$ |
141.5 |
First-quarter 2017 adjusted EBITDA increased, compared with the first quarter 2016, which primarily reflects:
The following table contains equity-volume information for the periods indicated:
Three Months Ended | |||||
March 31, | |||||
Equity-Volume Information (a) |
2017 |
2016 | |||
NGL sales - including ethane (MBbl/d) |
9.8 |
16.4 |
|||
Condensate sales (MBbl/d) |
3.1 |
2.7 |
|||
Residue natural gas sales (BBtu/d) |
71.1 |
83.8 |
|||
(a) - Includes volumes for consolidated entities only. |
The partnership's equity NGL and natural gas volumes decreased in the first quarter 2017, compared with the first quarter 2016, due to contract restructuring efforts and the impact of severe winter weather in the first quarter 2017.
Natural Gas Pipelines Segment
The natural gas pipelines segment's first-quarter 2017 adjusted EBITDA increased 12 percent, compared with the same period in 2016, driven by higher fee-based earnings from transportation services due to increased firm demand charge contracted capacity. Recently completed capital-growth projects including the partnership's joint venture Roadrunner Gas Transmission Pipeline and the WesTex intrastate pipeline expansion, both in the Permian Basin, provide additional fee-based earnings and expand the partnership's connectivity of producers with end-use markets in one of the most active basins in the country.
Construction is in progress on a 100 million cubic feet per day (MMcf/d) westbound expansion of the partnership's ONEOK Gas Transmission (OGT) Pipeline out of the STACK play in Oklahoma and on a 22-mile, 55 MMcf/d OGT pipeline that will provide transportation and storage services to a third-party electric generation plant near Oklahoma City, Oklahoma. The electric generation plant connection project is expected to be complete in the third quarter 2017 and the OGT expansion is expected to be complete in the second quarter 2018. Both projects are supported by long-term, firm fee-based agreements.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Pipelines Segment |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
83.0 |
$ |
74.3 |
|||
Capital expenditures |
$ |
25.0 |
$ |
17.9 |
First-quarter 2017 adjusted EBITDA increased, compared with the first quarter 2016, which primarily reflects:
Capital expenditures increased in the first quarter 2017 compared with the same period in 2016 due primarily to the timing of maintenance projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK and ONEOK Partners executive management will conduct a joint conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 3, 2017. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 800-210-9066, pass code 6861498, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6861498.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2017/q1-3may2017-earnings-results-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release adjusted EBITDA, cash flow available for dividends, distributable cash flow, free cash flow, dividend coverage ratio and distribution coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they and similar measures are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK cash flow available for dividends, free cash flow, distributable cash flow and coverage ratios should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of net income to adjusted EBITDA, cash flow available for dividends, free cash flow to net income, distributable cash flow and coverage ratios are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2017, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which includes a preliminary prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. These materials are not yet final and will be amended. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the registration statement, including the preliminary joint proxy statement/prospectus that is a part of the registration statement, and the definitive joint proxy statement/prospectus, and other relevant materials filed and to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they contain or will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction are set forth in the preliminary joint proxy statement/prospectus filed with the SEC on March 7, 2017 and will be set forth in the definitive joint proxy statement/prospectus when it becomes available. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 6, 2017. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 28, 2017. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and the other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information above.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Stephanie Higgins 918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 2, 2017 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced first-quarter 2017 financial results.
SUMMARY
FIRST-QUARTER 2017 FINANCIAL HIGHLIGHTS
Three Months Ended | |||||||
March 31, | |||||||
ONEOK Partners |
2017 |
2016 | |||||
(Millions of dollars, except per unit | |||||||
Net income attributable to ONEOK Partners |
$ |
269.1 |
$ |
253.5 |
|||
Net income per limited partner unit |
$ |
0.57 |
$ |
0.52 |
|||
Adjusted EBITDA (a) |
$ |
464.2 |
$ |
444.6 |
|||
DCF (a) |
$ |
355.4 |
$ |
347.6 |
|||
Distribution coverage ratio (a) |
1.10 |
1.06 |
(a) Adjusted EBITDA; distributable cash flow (DCF); and distribution coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"All three of our business segments reported higher first-quarter adjusted EBITDA compared with the same period last year, driven by increased fee-based services across the partnership's footprint," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "Our performance through the first three months of 2017 and the increased drilling rig activity in the basins we serve has us well-positioned for the remainder of 2017. Severe winter weather in January impacted first-quarter 2017 volumes, primarily in the Williston Basin, but was taken into consideration when setting 2017 expectations. Since January, volumes have recovered and are now averaging above November 2016 levels.
"We've seen increased activity across our footprint as producers continue to move drilling rigs into highly productive areas such as the STACK and SCOOP plays in Oklahoma and the Williston and Permian basins," Spencer said. "ONEOK Partners holds strong asset positions in all of these areas, where continued growth benefits all three of our business segments.
"We connected three new third-party processing plants to our NGL systems in the first quarter of the year and continue to connect additional wells to our natural gas gathering and processing systems. As these connections ramp up with increasing producer activity, we expect volume increases in the second half of 2017," added Spencer. "We also expect ethane throughput on our NGL system to increase as demand increases in the second half of the year as new ethane consuming petrochemical plants come online and export facilities increase capacity utilization, providing an even greater impact on 2018 volumes.
"The announced merger transaction with ONEOK positions our businesses for continued growth," Spencer added. "This transaction represents a great opportunity for current ONEOK shareholders and ONEOK Partners unitholders, who will benefit from a long runway of future development opportunities across our footprint."
FIRST-QUARTER 2017 FINANCIAL PERFORMANCE
First-quarter 2017 combined operating income and equity in net earnings from investments increased 4 percent compared with the same period in 2016, benefiting from higher average fee rates in the natural gas gathering and processing segment, higher fee-based transportation services in the natural gas pipelines segment, and increased transportation and exchange service volumes and wider location and product price differentials in the natural gas liquids segment. Severe winter weather in January, primarily in the Williston Basin, impacted the natural gas gathering and processing segment's volumes during the quarter.
Recently completed capital-growth projects in the natural gas pipelines segment, including the joint venture Roadrunner Gas Transmission Pipeline and the WesTex intrastate pipeline expansion, both in the Permian Basin, provided additional fee-based earnings during the quarter.
Ethane rejection levels on the partnership's NGL system decreased to an average of more than 150,000 barrels per day (bpd) in the first quarter 2017, compared with an average of more than 175,000 bpd during the first quarter of 2016. The partnership expects ethane recovery levels to fluctuate but generally increase for the remainder of 2017, as ethane supply and demand begin to balance.
Three Months Ended | |||||||
March 31, | |||||||
ONEOK Partners |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Operating income |
$ |
324.4 |
$ |
318.2 |
|||
Operating costs |
$ |
182.3 |
$ |
170.4 |
|||
Depreciation and amortization |
$ |
98.6 |
$ |
93.7 |
|||
Equity in net earnings from investments |
$ |
39.6 |
$ |
32.9 |
|||
Adjusted EBITDA |
$ |
464.2 |
$ |
444.6 |
|||
Capital expenditures |
$ |
112.6 |
$ |
195.9 |
Higher first-quarter 2017 results primarily benefited from:
Operating costs increased in the first quarter 2017 compared with the first quarter 2016 due primarily to increased property taxes in the natural gas liquids and natural gas pipelines segments and higher labor and employee-related costs. ONEOK Partners' first-quarter 2017 results also include approximately $1.1 million in costs associated with the proposed ONEOK and ONEOK Partners merger transaction.
Capital expenditures decreased in the first three months of 2017 compared with the same period in 2016 due primarily to projects placed in service in 2016 and fewer well connections in the natural gas gathering and processing segment due to the impact of severe winter weather in the Williston Basin in the first quarter 2017.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the first-quarter 2017 conference call is accessible on ONEOK Partners' website, www.oneokpartners.com, or from the links below.
ONEOK PARTNERS HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's first-quarter 2017 adjusted EBITDA increased 3 percent compared with the first quarter 2016, primarily benefiting from increased optimization and marketing from wider location price differentials. Recent natural gas processing plant connections, wider product price differentials and increased ethane recovery also contributed to the increase. The segment connected three new third-party natural gas processing plants - one each in the Permian Basin, Mid-Continent and Rocky Mountain region - to its system during the quarter.
NGLs fractionated increased 4 percent and NGLs transported on gathering lines increased 2 percent in the first quarter 2017, compared with the same period in 2016, primarily benefiting from new processing plant connections in the Williston Basin, increased ethane recovery and increased Mid-Continent volumes gathered from the STACK and SCOOP areas.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Liquids Segment |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
278.2 |
$ |
270.2 |
|||
Capital expenditures |
$ |
20.5 |
$ |
34.2 |
The increase in first-quarter 2017 adjusted EBITDA, compared with the first quarter 2016, primarily reflects:
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's first-quarter 2017 adjusted EBITDA increased 4 percent compared with the first quarter 2016 due primarily to higher fee-based revenues from restructured contracts.
The segment's average fee rate for the first quarter 2017 was 83 cents, compared with 68 cents in the first quarter 2016, a 22 percent increase.
Severe winter weather and natural production declines on existing wells impacted natural gas volumes in the first quarter 2017. Natural gas volumes processed decreased approximately 4 percent compared with the same period last year.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Gathering and Processing Segment |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
104.0 |
$ |
100.0 |
|||
Capital expenditures |
$ |
63.2 |
$ |
141.5 |
First-quarter 2017 adjusted EBITDA increased, compared with the first quarter 2016, which primarily reflects:
The following table contains equity-volume information for the periods indicated:
Three Months Ended | |||||
March 31, | |||||
Equity-Volume Information (a) |
2017 |
2016 | |||
NGL sales - including ethane (MBbl/d) |
9.8 |
16.4 |
|||
Condensate sales (MBbl/d) |
3.1 |
2.7 |
|||
Residue natural gas sales (BBtu/d) |
71.1 |
83.8 |
|||
(a) - Includes volumes for consolidated entities only. |
The partnership's equity NGL and natural gas volumes decreased in the first quarter 2017, compared with the first quarter 2016, due to contract restructuring efforts and the impact of severe winter weather in the first quarter 2017.
Natural Gas Pipelines Segment
The natural gas pipelines segment's first-quarter 2017 adjusted EBITDA increased 12 percent, compared with the same period in 2016, driven by higher fee-based earnings from transportation services due to increased firm demand charge contracted capacity. Recently completed capital-growth projects including the partnership's joint venture Roadrunner Gas Transmission Pipeline and the WesTex intrastate pipeline expansion, both in the Permian Basin, provide additional fee-based earnings and expand the partnership's connectivity of producers with end-use markets in one of the most active basins in the country.
Construction is in progress on a 100 million cubic feet per day (MMcf/d) westbound expansion of the partnership's ONEOK Gas Transmission (OGT) Pipeline out of the STACK play in Oklahoma and on a 22-mile, 55 MMcf/d OGT pipeline that will provide transportation and storage services to a third-party electric generation plant near Oklahoma City, Oklahoma. The electric generation plant connection project is expected to be complete in the third quarter 2017, and the OGT expansion is expected to be complete in the second quarter 2018. Both projects are supported by long-term, firm fee-based agreements.
Three Months Ended | |||||||
March 31, | |||||||
Natural Gas Pipelines Segment |
2017 |
2016 | |||||
(Millions of dollars) | |||||||
Adjusted EBITDA |
$ |
83.0 |
$ |
74.3 |
|||
Capital expenditures |
$ |
25.0 |
$ |
17.9 |
First-quarter 2017 adjusted EBITDA increased, compared with the first quarter 2016, which primarily reflects:
Capital expenditures increased in the first quarter 2017 compared with the same period in 2016 due primarily to the timing of maintenance projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK Partners and ONEOK executive management will conduct a joint conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 3, 2017. The call also will be carried live on ONEOK Partners' and ONEOK's websites.
To participate in the telephone conference call, dial 800-210-9066, pass code 6861498, or log on to www.oneokpartners.com or www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners' website, www.oneokpartners.com, and ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6861498.
LINKS TO EARNINGS TABLES AND PRESENTATION:
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK Partners has disclosed in this news release adjusted EBITDA, DCF, distributable cash flow to limited partners per limited partner unit and distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership's financial performance and are defined as follows:
The partnership believes the non-GAAP financial measures described above are useful to investors because they and similar measures are used by many companies in its industry to measure financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA, DCF, distributable cash flow to limited partners and distribution coverage ratio per limited partner unit should not be considered alternatives to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for distributions or that is planned to be distributed in a given period, nor do they equate to available cash as defined in the partnership agreement. Reconciliations of adjusted EBITDA, distributable cash flow and distribution coverage ratio to net income are included in the tables.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of March 31, 2017.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which includes a preliminary prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. These materials are not yet final and will be amended. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the registration statement, including the preliminary joint proxy statement/prospectus that is a part of the registration statement, and the definitive joint proxy statement/prospectus, and other relevant materials filed and to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they contain or will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction are set forth in the preliminary joint proxy statement/prospectus filed with the SEC on March 7, 2017 and will be set forth in the definitive joint proxy statement/prospectus when it becomes available. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 6, 2017. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 28, 2017. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and the other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information above.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Brad Borror 918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., April 20, 2017 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 61.5 cents per share, resulting in an annualized dividend of $2.46 per share. The dividend is payable May 15, 2017, to shareholders of record at the close of business May 1, 2017.
On Feb. 1, 2017, ONEOK and ONEOK Partners (NYSE: OKS) announced an agreement under which ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own. Completion of the transaction is expected to occur in the second quarter of 2017.
ONEOK expects to increase its first quarterly dividend following the close of the transaction to 74.5 cents per share, or $2.98 on an annualized basis, a 21 percent increase compared with the first-quarter 2017 dividend. Following the initial increase, subsequent annual dividend increases of approximately 9 to 11 percent are expected through 2021.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "expects," "intends," "plans," "projects," "will," "would," "should," "may," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which includes a preliminary prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. These materials are not yet final and will be amended. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the registration statement, including the preliminary joint proxy statement/prospectus that is a part of the registration statement, and the definitive joint proxy statement/prospectus, and other relevant materials filed and to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they contain or will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction are set forth in the preliminary joint proxy statement/prospectus filed with the SEC on March 7, 2017 and will be set forth in the definitive joint proxy statement/prospectus when it becomes available. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 6, 2017. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 28, 2017. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and the other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information below.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., April 20, 2017 /PRNewswire/ -- The board of directors of the general partner of ONEOK Partners, L.P. (NYSE: OKS) today declared a quarterly cash distribution of 79 cents per unit, effective for the first quarter 2017, payable May 15, 2017, to unitholders of record at the close of business May 1, 2017.
On Feb. 1, 2017, ONEOK, Inc. (NYSE: OKE) and ONEOK Partners announced an agreement under which ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own. Under the agreement, each outstanding common unit of ONEOK Partners will be converted into .985 of a share of ONEOK common stock. Completion of the transaction is expected to occur in the second quarter of 2017.
ONEOK expects to increase its first quarterly dividend following the close of the transaction to 74.5 cents per share, or $2.98 on an annualized basis, a 21 percent increase compared with its first-quarter 2017 dividend. Following the initial increase, subsequent annual dividend increases of approximately 9 to 11 percent are expected through 2021.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "expects," "intends," "plans," "projects," "will," "would," "should," "may," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which includes a preliminary prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. These materials are not yet final and will be amended. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the registration statement, including the preliminary joint proxy statement/prospectus that is a part of the registration statement, and the definitive joint proxy statement/prospectus, and other relevant materials filed and to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they contain or will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction are set forth in the preliminary joint proxy statement/prospectus filed with the SEC on March 7, 2017 and will be set forth in the definitive joint proxy statement/prospectus when it becomes available. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 6, 2017. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 28, 2017. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and the other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information below.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., April 18, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced a new $2.5 billion, five-year senior unsecured revolving credit facility, to replace the existing ONEOK and ONEOK Partners, L.P. (NYSE: OKS) credit facilities.
The new facility will be available upon the completion of the previously announced merger transaction in which ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own and the termination of the existing ONEOK and ONEOK Partners credit facilities. Completion of the transaction is expected to occur in the second quarter of 2017.
A syndicate of 22 banks, led by Citibank, N.A., Bank of America, N.A., Barclays Bank PLC, JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., Morgan Stanley Bank, N.A., and Wells Fargo Bank, National Association, committed to ONEOK's new facility.
"The high level of interest and quality of participation we received in ONEOK's new credit facility demonstrates the strong support from our bank syndicate group following the announcement of the ONEOK and ONEOK Partners merger transaction," said Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer. "The commitments to this facility are another positive step toward moving forward as one standalone company, with a continued focus on executing our long-term strategy."
The new credit facility will replace the existing $300 million and $2.4 billion revolving credit facilities at ONEOK and ONEOK Partners, respectively. The facility includes options to request an increase in the size of the facility to $3.5 billion and two one-year extensions, subject to lender approvals. The facility will be available for working capital, capital expenditures, acquisitions, the issuance of letters of credit and for other general corporate purposes.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK filed with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which includes a preliminary prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. These materials are not yet final and will be amended. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the registration statement, including the preliminary joint proxy statement/prospectus that is a part of the registration statement, and the definitive joint proxy statement/prospectus, and other relevant materials filed and to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they contain or will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction are set forth in the preliminary joint proxy statement/prospectus filed with the SEC on March 7, 2017 and will be set forth in the definitive joint proxy statement/prospectus when it becomes available. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 6, 2017. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 28, 2017. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and the other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information above.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., April 17, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will release their first-quarter 2017 earnings after the market closes on May 2, 2017.
ONEOK's and ONEOK Partners' executive management will participate in a joint conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 3, 2017. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 800-210-9006, pass code 6861498, or log on to www.oneok.com or www.oneokpartners.com.
What: |
ONEOK and ONEOK Partners first-quarter 2017 earnings conference call and webcast |
When: |
11 a.m. Eastern, May 3, 2017 |
10 a.m. Central | |
Where: |
1) Phone conference call dial 800-210-9006, pass code 6861498 |
2) Log on to the webcast at www.oneok.com | |
3) Log on to the webcast at www.oneokpartners.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6861498.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., March 7, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) has announced organizational changes.
Kevin L. Burdick, 52, currently senior vice president, natural gas gathering and processing, has been promoted to executive vice president and chief commercial officer, a new role, with responsibility for all of ONEOK's business segment commercial activities. He will continue to report to Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer.
"Kevin has served in a number of key leadership roles and performed at a high level," said Spencer. "I have no doubt that his exceptional leadership skills and experience will continue to serve the company well in his new role."
Michael A. Fitzgibbons, 58, currently vice president, commercial, natural gas gathering and processing, has been promoted to senior vice president, natural gas gathering and processing, responsible for commercial activities in the natural gas gathering and processing segment. He will report to Burdick.
"Mike also brings strong leadership and knowledge to his new role," Spencer said. "His valued contributions to our company and the natural gas gathering and processing business are many, and we are confident he will continue to be an outstanding leader for his business unit."
Burdick joined ONEOK in 2007 as manager of information technology design integration and has since served in roles of increasing responsibility. He began his career at CITGO Petroleum in the information technology field.
Burdick earned a Bachelor of Science in mathematics from the University of Oklahoma and a Master of Business Administration from Oklahoma State University.
Fitzgibbons joined ONEOK Partners in 2007 as director, natural gas supply acquisition, Rocky Mountain region, natural gas gathering and processing.
Fitzgibbons began his career with Phillips Petroleum Company and held various positions of increasing responsibility in natural gas gathering and processing. In 2000, he became managing director of the New Mexico region of Duke Energy Field Services, which later became DCP Midstream.
Fitzgibbons earned a Bachelor of Science in chemical engineering from Northwestern University in Evanston, Illinois.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., Feb. 27, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced fourth-quarter and full-year 2016 financial results.
SUMMARY
FOURTH-QUARTER AND FULL-YEAR 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK (a) |
$ |
90.5 |
$ |
25.5 |
$ |
352.0 |
$ |
245.0 |
|||||||
Net income per diluted share (a) |
$ |
0.43 |
$ |
0.12 |
$ |
1.66 |
$ |
1.16 |
|||||||
Adjusted EBITDA (b) |
$ |
469.0 |
$ |
448.4 |
$ |
1,828.7 |
$ |
1,560.3 |
|||||||
Distributions declared from ONEOK Partners |
$ |
197.5 |
$ |
197.5 |
$ |
790.0 |
$ |
735.3 |
|||||||
Cash flow available for dividends (b) |
$ |
171.1 |
$ |
166.6 |
$ |
680.0 |
$ |
641.3 |
|||||||
Dividend coverage ratio (b) |
1.32 |
1.29 |
1.31 |
1.26 |
|||||||||||
(a) Amounts include noncash impairment charges at ONEOK Partners of $264.3 million, or 33 cents per diluted share, in the fourth quarter 2015. (b) Adjusted EBITDA; cash flow available for dividends and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK reported strong 2016 financial performance as a result of ONEOK Partners' adjusted EBITDA increasing nearly 18 percent compared with 2015, driven by higher fee-based earnings in all three business segments," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "ONEOK maintained its healthy dividend coverage throughout 2016, ending with full-year coverage of 1.31 times and approximately $250 million in cash.
"The natural gas gathering and processing segment's 2016 adjusted EBITDA increased 40 percent compared with 2015, driven by higher average fee rates from contract restructuring efforts primarily completed in 2015 and benefiting 2016 earnings," continued Spencer. "The natural gas liquids and natural gas pipelines segments also reported higher full-year 2016 results, largely from increased fee-based exchange and transportation services, respectively. Higher natural gas volumes processed and higher natural gas liquids (NGL) volumes fractioned also helped increase full-year 2016 earnings.
"We experienced lower than expected natural gas and NGL volumes in the fourth quarter primarily due to increased ethane rejection and severe winter weather in the Williston Basin and Mid-Continent in December, impacting 2016 results by an estimated $15 million," he continued. "However, despite weather impacts, natural gas volumes processed continued to increase in the fourth quarter, compared with the third quarter 2016. While heavy snowfall and severe weather in the Williston Basin impacted our operations early in the first quarter of 2017, February volumes have rebounded significantly.
"Looking ahead to the remainder of 2017, we are well-positioned to capture future increases in NGL transportation and fractionation volumes due to increased demand from the petrochemical industry and NGL export activity without significant capital spending," said Spencer. "ONEOK's 2017 guidance expectations already take into account the weather impacts experienced in late 2016 and in early 2017.
"Increased producer activity across our operating footprint is expected to benefit all three business segments in 2017," Spencer continued. "Our natural gas gathering and processing and natural gas liquids segments are well-positioned to capture anticipated increases in volumes from the highly productive STACK and SCOOP areas in Oklahoma, and the Permian Basin in West Texas.
"The recently announced transaction with ONEOK Partners, which we expect to close in the second quarter of 2017, positions our businesses for continued growth," Spencer concluded. "As a company with access to a more liquid equity market, ONEOK will be better able to fund its future capital needs over the long-term as we continue expanding our footprint in the active basins we serve and continue growing as one of North America's largest midstream service providers."
FOURTH-QUARTER AND FULL-YEAR 2016 FINANCIAL PERFORMANCE
ONEOK Partners' (NYSE: OKS) integrated asset footprint across multiple NGL-rich shale plays continues to drive growth across all three business segments. Producer activity continued to increase during the fourth quarter 2016, specifically in the STACK and SCOOP plays in Oklahoma and in the Williston and Permian basins, where ONEOK Partners has a strong natural gas and NGL asset position.
ONEOK's fourth-quarter and full-year 2016 operating income increased 36 and 29 percent, respectively, compared with the same periods in 2015, benefiting from higher NGL and natural gas volumes from completed capital-growth projects, new natural gas processing plant connections to the partnership's natural gas liquids system and higher average fee rates in the natural gas gathering and processing segment.
All three business segments reported higher full-year 2016 adjusted EBITDA, compared with 2015, primarily from increased fee-based services across the partnership's footprint.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
329.6 |
$ |
242.0 |
$ |
1,285.7 |
$ |
996.2 |
|||||||
Operating costs |
$ |
204.1 |
$ |
184.8 |
$ |
757.1 |
$ |
693.3 |
|||||||
Depreciation and amortization |
$ |
(99.3) |
$ |
(93.4) |
$ |
(391.6) |
$ |
(354.6) |
|||||||
Impairment of long-lived assets |
$ |
— |
$ |
(83.7) |
$ |
— |
$ |
(83.7) |
|||||||
Equity in net earnings from investments |
$ |
39.2 |
$ |
32.1 |
$ |
139.7 |
$ |
125.3 |
|||||||
Impairment of equity investments |
$ |
— |
$ |
(180.6) |
$ |
— |
$ |
(180.6) |
|||||||
Adjusted EBITDA |
$ |
469.0 |
$ |
448.4 |
$ |
1,828.7 |
$ |
1,560.3 |
|||||||
Capital expenditures |
$ |
133.1 |
$ |
258.0 |
$ |
624.6 |
$ |
1,188.3 |
Higher fourth-quarter and full-year 2016 results primarily benefited from:
Operating costs increased in the three-month and full-year 2016 periods, compared with the same periods in 2015, due primarily to higher labor costs associated with the growth of ONEOK Partners' operations, higher employee-related costs associated with incentive and medical benefit plans and higher costs associated with noncash mark-to-market of a share-based deferred compensation plan due to the increase in ONEOK's share price.
Capital expenditures decreased in the three-month and full-year 2016 periods, compared with the same periods in 2015, due to projects placed in service and proactive spending reductions to align with customer needs.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the fourth-quarter and year-end 2016 conference call is accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, or by selecting the links below.
ONEOK AND ONEOK PARTNERS HIGHLIGHTS:
ONEOK:
ONEOK Partners:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's full-year 2016 adjusted EBITDA increased 11 percent compared with 2015, benefiting from new natural gas processing plant connections and increased ethane recovery. The segment connected six new natural gas processing plants to its system during the year, including the partnership's Bear Creek plant in the Williston Basin and five third-party connections - two each in the Williston Basin and Mid-Continent and one in the Permian Basin. Growing producer activity in these basins continues to increase the need for NGL takeaway options, particularly in the Permian Basin and in the STACK play in Oklahoma where the partnership is well-positioned as the primary NGL transportation provider.
Full-year 2016 NGLs fractionated increased 6 percent, compared with 2015 due to increased volumes from new plant connections, increased ethane recovery and increased Mid-Continent volumes gathered in the STACK and SCOOP areas. Fourth-quarter 2016 NGLs fractionated remained relatively unchanged compared with the fourth quarter 2015. NGLs transported on gathering lines decreased 7 percent in the fourth quarter 2016 compared with the fourth quarter 2015 and full-year 2016 volumes gathered remained essentially unchanged compared with 2015 due to decreased volumes on the West Texas LPG pipeline system and decreased Mid-Continent volumes gathered from the Barnett Shale due to lower short-term contracted volumes and the impact of severe weather on gathered volumes.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
253.6 |
$ |
279.3 |
$ |
1,079.6 |
$ |
972.3 |
|||||||
Capital expenditures |
$ |
20.4 |
$ |
40.7 |
$ |
105.9 |
$ |
226.1 |
The decrease in fourth-quarter 2016 adjusted EBITDA, compared with the fourth quarter 2015, primarily reflects:
The increase in adjusted EBITDA for the full-year 2016, compared with 2015, primarily reflects:
Capital expenditures decreased for the three-month and full-year 2016 periods, compared with the same periods in 2015, due primarily to projects placed in service and proactive spending reductions to align with customer needs.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's fourth-quarter and full-year 2016 adjusted EBITDA increased 30 and 40 percent, respectively, compared with the same periods in 2015. The segment's strong financial results were driven by higher average fee rates from contract restructuring efforts and continued volume growth in the Rocky Mountain region from recently completed capital-growth projects.
The segment's average fee rate for the fourth quarter 2016 was 84 cents, compared with 55 cents in the fourth quarter 2015. The full-year 2016 fee rate averaged 76 cents, compared with 44 cents in 2015.
Fourth-quarter and full-year 2016 natural gas volumes processed increased 2 and 12 percent, respectively, compared with the same periods in 2015, primarily due to recently completed capital-growth projects in the Rocky Mountain region. Volume growth was offset partially by natural production declines in the Mid-Continent and the impact of weather in the Williston Basin in December 2016.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
126.6 |
$ |
97.3 |
$ |
446.8 |
$ |
318.6 |
|||||||
Capital expenditures |
$ |
84.7 |
$ |
195.3 |
$ |
410.5 |
$ |
887.9 |
Fourth-quarter 2016 adjusted EBITDA increased, compared with the fourth quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the full-year 2016, compared with 2015, primarily reflects:
Capital expenditures decreased for the three-month and full-year 2016 periods, compared with the same periods in 2015, due to projects placed in service and proactive spending reductions to align with customer needs in 2016.
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Years Ended | ||||||||||
December 31, |
December 31, | ||||||||||
Equity-Volume Information (a) |
2016 |
2015 |
2016 |
2015 | |||||||
NGL sales - including ethane (MBbl/d) |
12.5 |
20.5 |
14.6 |
20.9 |
|||||||
Condensate sales (MBbl/d) |
2.4 |
2.4 |
2.4 |
2.8 |
|||||||
Residue natural gas sales (BBtu/d) |
76.1 |
120.3 |
80.0 |
136.2 |
|||||||
(a) - Includes volumes for consolidated entities only. |
The natural gas gathering and processing segment has restructured a portion of its percent-of-proceeds with fee contracts to include significantly higher fees, which reduced its 2016 equity volumes and the related commodity price exposure compared with 2015.
Natural Gas Pipelines Segment
The natural gas pipelines segment's fourth-quarter and full-year 2016 adjusted EBITDA increased 22 and 14 percent, respectively, compared with the same periods in 2015. The segment continues to benefit from higher fee-based earnings driven by increased firm demand charge contracted capacity and capital-growth projects placed in service.
The segment recently announced an expansion of the ONEOK Gas Transmission Pipeline which consists of adding compressor facilities to allow for additional takeaway out of the STACK play in Oklahoma. The partnership has secured a firm commitment for 100 MMcf/d of capacity on the pipeline with the potential for additional producer commitments. The expansion is expected to be complete in the second quarter 2018.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
89.9 |
$ |
73.9 |
$ |
313.1 |
$ |
275.0 |
|||||||
Capital expenditures |
$ |
24.6 |
$ |
18.3 |
$ |
96.3 |
$ |
58.2 |
Fourth-quarter 2016 adjusted EBITDA increased, compared with the fourth quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the full-year 2016, compared with 2015, primarily reflects:
Capital expenditures increased in the three-month and full-year 2016 periods, compared with the same periods in 2015, due primarily to pipeline expansion projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK and ONEOK Partners executive management will conduct a joint conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 28, 2017. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-297-0339, pass code 8270677, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8270677.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/events-presentation/q4-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release adjusted EBITDA, cash flow available for dividends, free cash flow and dividend coverage ratio, and ONEOK Partners distributable cash flow and distribution coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA, ONEOK cash flow available for dividends, free cash flow and dividend coverage ratio, and ONEOK Partners distributable cash flow and distribution coverage ratio, should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of adjusted EBITDA, cash flow available for dividends and free cash flow to net income, and ONEOK Partners adjusted EBITDA, distributable cash flow and cash distribution coverage ratio to ONEOK Partners net income, are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK will file with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which will include a prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 5, 2016. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 23, 2016. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information above.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Stephanie Higgins 918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 27, 2017 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced fourth-quarter and full-year 2016 financial results.
SUMMARY
FOURTH-QUARTER AND FULL-YEAR 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK Partners |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars, except per unit and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK Partners (a) |
$ |
277.5 |
$ |
7.2 |
$ |
1,066.8 |
$ |
589.5 |
|||||||
Net income (loss) per limited partner unit (a) |
$ |
0.60 |
$ |
(0.33) |
$ |
2.25 |
$ |
0.73 |
|||||||
Adjusted EBITDA (b) |
$ |
470.5 |
$ |
450.2 |
$ |
1,840.3 |
$ |
1,565.5 |
|||||||
DCF (b) |
$ |
339.5 |
$ |
339.8 |
$ |
1,412.9 |
$ |
1,136.7 |
|||||||
Cash distribution coverage ratio (b) |
1.03 |
1.03 |
1.09 |
0.86 |
(a) Amounts include noncash impairment charges of $264.3 million, or 91 cents per unit, in the fourth quarter 2015. | |||||||||||||||
(b) Adjusted EBITDA; distributable cash flow (DCF); and cash distribution coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK Partners reported strong 2016 financial performance as adjusted EBITDA increased nearly 18 percent compared with 2015, driven by higher fee-based earnings in all three business segments," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "The partnership's full-year distribution coverage of 1.09 times improved substantially compared with 2015.
"The natural gas gathering and processing segment's 2016 adjusted EBITDA increased 40 percent compared with 2015, driven by higher average fee rates from contract restructuring efforts primarily completed in 2015 and benefiting 2016 earnings," Spencer continued. "The natural gas liquids and natural gas pipelines segments also reported higher full-year 2016 results, largely from increased fee-based exchange and transportation services, respectively. Higher natural gas volumes processed and higher natural gas liquids (NGL) volumes fractioned also helped increase full-year 2016 earnings.
"We experienced lower than expected natural gas and NGL volumes in the fourth quarter, due primarily to increased ethane rejection and severe winter weather in the Williston Basin and Mid-Continent in December, impacting 2016 results by an estimated $15 million," he continued. "However, despite weather impacts, natural gas volumes processed continued to increase in the fourth quarter, compared with the third quarter 2016. While heavy snowfall and severe weather in the Williston Basin impacted our operations early in the first quarter of 2017, February volumes have rebounded significantly.
"The recently announced transaction with ONEOK, which we expect to close in the second quarter of 2017, positions our businesses for continued growth," Spencer added. "As a company with access to a more liquid equity market, ONEOK will be better able to fund its future capital needs over the long term as we continue expanding our footprint in the active basins we serve and continue growing as one of North America's largest midstream service providers."
FOURTH-QUARTER AND FULL-YEAR 2016 FINANCIAL PERFORMANCE
ONEOK Partners' integrated asset footprint across multiple NGL-rich shale plays continues to drive growth across all three business segments. Producer activity continued to increase during the fourth quarter 2016, specifically in the STACK and SCOOP plays in Oklahoma and in the Williston and Permian basins, where ONEOK Partners has a strong natural gas and NGL asset position.
Fourth-quarter and full-year 2016 operating income increased 39 and 32 percent, respectively, compared with the same periods in 2015, benefiting from higher NGL and natural gas volumes from completed capital-growth projects, new natural gas processing plant connections to the partnership's natural gas liquids system and higher average fee rates in the natural gas gathering and processing segment.
All three business segments reported higher full-year 2016 adjusted EBITDA, compared with 2015, primarily from increased fee-based services across the partnership's footprint.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK Partners |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
335.9 |
$ |
241.9 |
$ |
1,316.1 |
$ |
998.1 |
|||||||
Operating costs |
$ |
198.1 |
$ |
185.3 |
$ |
727.6 |
$ |
692.1 |
|||||||
Depreciation and amortization |
$ |
98.5 |
$ |
92.6 |
$ |
388.6 |
$ |
352.2 |
|||||||
Impairment of long-lived assets |
$ |
— |
$ |
(83.7) |
$ |
— |
$ |
(83.7) |
|||||||
Equity in net earnings from investments |
$ |
39.2 |
$ |
32.1 |
$ |
139.7 |
$ |
125.3 |
|||||||
Impairment of equity investments |
$ |
— |
$ |
(180.6) |
$ |
— |
$ |
(180.6) |
|||||||
Adjusted EBITDA |
$ |
470.5 |
$ |
450.2 |
$ |
1,840.3 |
$ |
1,565.5 |
|||||||
Capital expenditures |
$ |
132.3 |
$ |
257.2 |
$ |
621.7 |
$ |
1,186.1 |
Higher fourth-quarter and full-year 2016 results primarily benefited from:
Operating costs increased in the three-month and full-year 2016 periods, compared with the same periods in 2015, due primarily to higher labor costs associated with the growth of the partnership's operations and higher employee-related costs associated with incentive and medical benefit plans.
Capital expenditures decreased in the three-month and full-year 2016 periods, compared with the same periods in 2015, due to projects placed in service and proactive spending reductions to align with customer needs.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the fourth-quarter and full-year 2016 conference call is accessible on ONEOK Partners' website, www.oneokpartners.com, or by selecting the links below.
ONEOK PARTNERS HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment's full-year 2016 adjusted EBITDA increased 11 percent compared with 2015, benefiting from new natural gas processing plant connections and increased ethane recovery. The segment connected six new natural gas processing plants to its system during the year, including the partnership's Bear Creek plant in the Williston Basin and five third-party connections - two each in the Williston Basin and Mid-Continent and one in the Permian Basin. Growing producer activity in these basins continues to increase the need for NGL takeaway options, particularly in the Permian Basin and in the STACK play in Oklahoma where the partnership is well-positioned as the primary NGL transportation provider.
Full-year 2016 NGLs fractionated increased 6 percent, compared with 2015 due to increased volumes from new plant connections, increased ethane recovery and increased Mid-Continent volumes gathered in the STACK and SCOOP areas. Fourth-quarter 2016 NGLs fractionated remained relatively unchanged compared with the fourth quarter 2015. NGLs transported on gathering lines decreased 7 percent in the fourth quarter 2016 compared with the fourth quarter 2015 and full-year 2016 volumes gathered remained essentially unchanged compared with 2015 due to decreased volumes on the West Texas LPG pipeline system and decreased Mid-Continent volumes gathered from the Barnett Shale due to lower short-term contracted volumes and the impact of severe weather on gathered volumes.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
253.6 |
$ |
279.3 |
$ |
1,079.6 |
$ |
972.3 |
|||||||
Capital expenditures |
$ |
20.4 |
$ |
40.7 |
$ |
105.9 |
$ |
226.1 |
The decrease in fourth-quarter 2016 adjusted EBITDA, compared with the fourth quarter 2015, primarily reflects:
The increase in adjusted EBITDA for the full-year 2016, compared with 2015, primarily reflects:
Capital expenditures decreased for the three-month and full-year 2016 periods, compared with the same periods in 2015, due primarily to projects placed in service and proactive spending reductions to align with customer needs.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's fourth-quarter and full-year 2016 adjusted EBITDA increased 30 and 40 percent, respectively, compared with the same periods in 2015. The segment's strong financial results were driven by higher average fee rates from contract restructuring efforts and continued volume growth in the Rocky Mountain region from recently completed capital-growth projects.
The segment's average fee rate for the fourth quarter 2016 was 84 cents, compared with 55 cents in the fourth quarter 2015. The full-year 2016 fee rate averaged 76 cents, compared with 44 cents in 2015.
Fourth-quarter and full-year 2016 natural gas volumes processed increased 2 and 12 percent, respectively, compared with the same periods in 2015, primarily due to recently completed capital-growth projects in the Rocky Mountain region. Volume growth was offset partially by natural production declines in the Mid-Continent and the impact of weather in the Williston Basin in December 2016.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
126.6 |
$ |
97.3 |
$ |
446.8 |
$ |
318.6 |
|||||||
Capital expenditures |
$ |
84.7 |
$ |
195.3 |
$ |
410.5 |
$ |
887.9 |
Fourth-quarter 2016 adjusted EBITDA increased, compared with the fourth quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the full-year 2016, compared with 2015, primarily reflects:
Capital expenditures decreased for the three-month and full-year 2016 periods, compared with the same periods in 2015, due to projects placed in service and proactive spending reductions to align with customer needs in 2016.
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Years Ended | ||||||||||
December 31, |
December 31, | ||||||||||
Equity-Volume Information (a) |
2016 |
2015 |
2016 |
2015 | |||||||
NGL sales - including ethane (MBbl/d) |
12.5 |
20.5 |
14.6 |
20.9 |
|||||||
Condensate sales (MBbl/d) |
2.4 |
2.4 |
2.4 |
2.8 |
|||||||
Residue natural gas sales (BBtu/d) |
76.1 |
120.3 |
80.0 |
136.2 |
|||||||
(a) - Includes volumes for consolidated entities only. |
The natural gas gathering and processing segment has restructured a portion of its percent-of-proceeds with fee contracts to include significantly higher fees, which reduced its 2016 equity volumes and the related commodity price exposure compared with 2015.
Natural Gas Pipelines Segment
The natural gas pipelines segment's fourth-quarter and full-year 2016 adjusted EBITDA increased 22 and 14 percent, respectively, compared with the same periods in 2015. The segment continues to benefit from higher fee-based earnings driven by increased firm demand charge contracted capacity and capital-growth projects placed in service.
The segment recently announced an expansion of the ONEOK Gas Transmission Pipeline which consists of adding compressor facilities to allow for additional takeaway out of the STACK play in Oklahoma. The partnership has secured a firm commitment for 100 MMcf/d of capacity on the pipeline with the potential for additional producer commitments. The expansion is expected to be complete in the second quarter 2018.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
89.9 |
$ |
73.9 |
$ |
313.1 |
$ |
275.0 |
|||||||
Capital expenditures |
$ |
24.6 |
$ |
18.3 |
$ |
96.3 |
$ |
58.2 |
Fourth-quarter 2016 adjusted EBITDA increased, compared with the fourth quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the full-year 2016, compared with 2015, primarily reflects:
Capital expenditures increased in the three-month and full-year 2016 periods, compared with the same periods in 2015, due primarily to pipeline expansion projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK Partners and ONEOK executive management will conduct a joint conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 28, 2017. The call also will be carried live on ONEOK Partners' and ONEOK's websites.
To participate in the telephone conference call, dial 888-297-0339, pass code 8270677, or log on to www.oneokpartners.com or www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners' website, www.oneokpartners.com, and ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8270677.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneokpartners.com/~/media/Files/O/OneOK-Partners-IR/events-presentation/q4-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK Partners has disclosed in this news release adjusted EBITDA, DCF, distributable cash flow to limited partners per limited partner unit and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership's financial performance and are defined as follows:
The partnership believes the non-GAAP financial measures described above are useful to investors because they are used by many companies in its industry to measure financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA, DCF, distributable cash flow to limited partners and cash distribution coverage ratio per limited partner unit should not be considered alternatives to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for distributions or that is planned to be distributed in a given period, nor do they equate to available cash as defined in the partnership agreement. Reconciliations of adjusted EBITDA, distributable cash flow and cash distribution coverage ratio to net income are included in the tables.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect ONEOK's and ONEOK Partners' current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving ONEOK and ONEOK Partners, including future financial and operating results, ONEOK's and ONEOK Partners' plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither ONEOK nor ONEOK Partners undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK and ONEOK Partners on file with the SEC. ONEOK's and ONEOK Partners' SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any ONEOK stockholder or ONEOK Partners unitholder. In connection with the proposed transaction, ONEOK will file with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which will include a prospectus of ONEOK and a joint proxy statement of ONEOK and ONEOK Partners. Each of ONEOK and ONEOK Partners may also file other documents with the SEC regarding the proposed transaction. ONEOK and ONEOK Partners will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which ONEOK or ONEOK Partners may file with the SEC in connection with the proposed transaction. ONEOK and ONEOK Partners urge investors and their respective stockholders and unitholders to read the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from ONEOK's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from ONEOK Partners' website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
ONEOK, ONEOK Partners and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ONEOK stockholders and ONEOK Partners unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of ONEOK stockholders and ONEOK Partners unitholders in connection with the proposed transaction will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. You can find information about ONEOK's executive officers and directors in its definitive proxy statement filed with the SEC on April 5, 2016. You can find information about ONEOK Partners' executive officers and directors in its annual report on Form 10-K filed with the SEC on February 23, 2016. Additional information about ONEOK's executive officers and directors and ONEOK Partners' executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from ONEOK and ONEOK Partners using the contact information above.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Brad Borror 918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Feb. 23, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will hold its 2017 annual meeting of shareholders at 9 a.m. Central Daylight Time on May 24, 2017. The meeting also will be audio webcast on ONEOK's website, www.oneok.com.
The record date for determining shareholders entitled to receive notice of the meeting and to vote is March 27, 2017.
What: |
ONEOK, Inc. 2017 Annual Meeting of Shareholders |
When: |
9 a.m. CDT, May 24, 2017 |
Where: |
ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma |
How: |
Log on to the webcast at www.oneok.com |
In addition to the annual meeting described above, separate meetings for each of the ONEOK shareholders and the ONEOK Partners (NYSE: OKS) unitholders will be held on a different day to vote on the previously announced merger transaction. Details of these meetings will be announced at a later date.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 7, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will release their fourth-quarter and year-end 2016 earnings after the market closes on Feb. 27, 2017.
ONEOK's and ONEOK Partners' executive management will participate in a joint conference call the following day at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 28, 2017. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-297-0339, pass code 8270677, or log on to www.oneok.com or www.oneokpartners.com.
What: |
ONEOK and ONEOK Partners fourth-quarter and year-end 2016 earnings conference call and webcast |
When: |
11 a.m. Eastern, Feb. 28, 2017 |
10 a.m. Central | |
Where: |
1) Phone conference call dial 888-297-0339, pass code 8270677 |
2) Log on to the webcast at www.oneok.com | |
3) Log on to the webcast at www.oneokpartners.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8270677.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., Feb. 1, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced 2017 financial and volume guidance.
In a separate news release today, ONEOK and ONEOK Partners also 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 common stock. Under the agreement, each outstanding common unit of ONEOK Partners that ONEOK does not already own will be converted into .985 shares of ONEOK common stock, representing a 22.4 percent premium to the ONEOK Partners closing price on Jan. 27, 2017.
2017 | |||
Guidance Range | |||
(millions of dollars) | |||
ONEOK, Inc. |
|||
Net income (a) (b) |
$ 575 |
- |
$ 755 |
Adjusted EBITDA (a) (c) |
$ 1,870 |
- |
$ 2,130 |
Distributable cash flow (a) (c) |
$ 1,245 |
- |
$ 1,505 |
Capital-growth expenditures |
$ 380 |
- |
$ 480 |
Maintenance capital expenditures |
$ 140 |
- |
$ 160 |
(a) Excludes one-time transaction fees associated with the acquisition of ONEOK Partners. | |||
"We expect 2017 to provide continued growth across our asset footprint as market fundamentals continue to improve and producer customers are increasing their activity in the NGL-rich shale plays where ONEOK is positioned," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "ONEOK's strong asset position, integrated operations and diverse basin footprint will continue to drive results and provide opportunities for growth. A lower cost of funding will enhance our ability to grow with our customers, which continues to provide a competitive advantage in today's industry environment.
"Lower breakeven economics are driving increased producer activity in the STACK and SCOOP plays in Oklahoma, and the Williston and Permian basins, which is expected to benefit all three of our business segments," continued Spencer. "We anticipate NGL volume growth over the coming year as six new third-party natural gas processing plants are connected to our natural gas liquids system and as we begin to see benefits from increased ethane recovery, with systemwide ethane rejection dropping to approximately 120,000 to 140,000 barrels per day in late 2017," said Spencer. "Available NGL gathering capacity between the Mid-Continent and Gulf Coast also provides valuable service for producers in the STACK and SCOOP.
"The natural gas gathering and processing segment is expected to benefit as producer activity continues ramping up on the more than 3.4 million acres we have dedicated across our footprint," continued Spencer. "The segment has 300 million cubic feet per day (MMcf/d) of natural gas processing capacity available to accommodate increased activity in the core of the Williston Basin and STACK play.
"Increased drilling is also providing an exciting growth opportunity for our natural gas pipelines segment as producers pursue additional takeaway solutions for increased natural gas production," said Spencer. "Our natural gas pipelines segment is well-positioned in the Delaware and Midland basins and the STACK and SCOOP plays to compete for the additional takeaway opportunities.
"With an expected lower cost of funding as a result of the proposed acquisition of ONEOK Partners and the approximately $9 billion of investments made over the past decade, ONEOK is in a position to fund a significant portion of its capital needs with retained cash flow, allowing us to be opportunistic when accessing the capital markets," said Spencer.
"ONEOK shareholders will benefit from an expected quarterly dividend increase following the close of the transaction, which is anticipated to occur in the second quarter of 2017, and from expected dividend growth of 9 to 11 percent annually," continued Spencer. "By proactively combining our companies, we're providing clear value to investors and positioning ONEOK to continue growing as one of the country's premier midstream service providers."
> View ONEOK's non-GAAP tables.
2017 COMMODITY PRICE ASSUMPTIONS:
The average unhedged prices assumed in ONEOK's 2017 guidance are 51 cents per gallon for composite natural gas liquids; $3.00 per million British thermal units (MMBtu) for NYMEX natural gas; and $45 per barrel for WTI-NYMEX crude oil.
BUSINESS-SEGMENT GUIDANCE:
Natural Gas Liquids Segment
The natural gas liquids segment expects full-year 2017 adjusted EBITDA of $1.11 billion to $1.31 billion.
NGLs gathered are expected to average 800,000 to 900,000 barrels per day (bpd) and NGLs fractionated are expected to average 575,000 to 635,000 bpd in 2017.
Volume growth in 2017 is expected to be driven primarily by a full-year volume benefit from the six new natural gas processing plants connected in 2016, including five third-party plants and ONEOK's Bear Creek plant in the Williston Basin, and from increased drilling activity in NGL-rich shale plays, particularly the STACK and SCOOP plays in Oklahoma and the Permian Basin.
In 2017, the segment expects to connect to six additional third-party natural gas processing plants – one in the Rocky Mountain region, three in the Mid-Continent and two in the Permian Basin – increasing the partnership's total third-party plant connections to more than 195.
Ethane recovery remains a strong expected driver of volume growth in 2017. ONEOK continues to expect increased ethane recovery by its natural gas processing plant customers will begin in the second half of 2017 as world-scale petrochemical facilities begin operations and new export facilities increase capacity utilization, providing a greater impact on 2018 NGL volumes.
The segment's fee-based earnings are expected to be approximately 90 percent in 2017.
Natural Gas Pipelines Segment
The natural gas pipelines segment expects full-year 2017 adjusted EBITDA of $320 million to $340 million.
Earnings in the segment are expected to remain more than 95 percent fee-based in 2017, with approximately 93 percent of its transportation capacity and more than 60 percent of its natural gas storage capacity contracted under firm fee-based (take-or-pay) commitments.
In 2017, the segment is expected to benefit from a full year of operations on its Roadrunner Gas Transmission Pipeline joint venture. The first phase of the pipeline, which added 170 MMcf/d of capacity, was completed in March 2016, and the second phase, which increased capacity to 570 MMcf/d, was completed in October 2016. The project is fully subscribed under 25-year firm fee-based (take-or-pay) commitments.
The segment also is expected to benefit in 2017 from a full year of operations on its ONEOK WesTex Pipeline expansion, which increased capacity by 260 MMcf/d, and its Midwestern Gas Transmission expansion, which increased capacity by 170 MMcf/d. Both projects are fully subscribed under long-term, firm fee-based (take-or-pay) commitments.
The 100 MMcf/d westbound expansion of the ONEOK Gas Transmission Pipeline out of the STACK play in Oklahoma will begin construction in 2017, with an expected completion in the second quarter of 2018. Ongoing discussions with producers could potentially increase the expansion volume.
Increased drilling activity in the STACK and SCOOP plays and Permian Basin continue to drive discussions surrounding natural gas takeaway options out of these basins where ONEOK's natural gas pipelines segment is already well-positioned.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment expects full-year 2017 adjusted EBITDA of $445 million to $485 million.
Natural gas processed is expected to average 1,400 to 1,550 MMcf/d and natural gas gathered is expected to average 1,500 to 1,650 MMcf/d in 2017.
Mid-Continent volumes are expected to increase throughout 2017 due to increased producer activity in the prolific STACK and SCOOP plays in Oklahoma, where production results from ONEOK's producer customers continue to improve. Volumes are expected to be weighted more towards the second half of 2017, as producers continue to move additional rigs into the area during the first half of the year. ONEOK has approximately 200,000 acres dedicated in the core of the STACK play and 100 MMcf/d of natural gas processing capacity available to accommodate volumes from increased drilling activity in the area.
ONEOK's Williston Basin volumes are expected to benefit from increased well completion activity, rigs moving back into the basin and the continued ramp up of projects completed in 2016, including the Bear Creek natural gas processing plant. The segment has approximately 3 million acres dedicated in the basin, including 1 million acres in the core, and 200 MMcf/d of available natural gas processing capacity on its system in the area. Approximately 300 drilled but uncompleted wells remain on ONEOK's acreage dedications, which provide a backlog of volume growth opportunities in 2017 requiring minimal capital while rigs continue to increase throughout the year.
The segment's fee-based earnings are expected to be more than 75 percent in 2017.
CONFERENCE CALL AND WEBCAST
ONEOK will conduct a conference call at 8:30 a.m. Eastern Standard Time (7:30 a.m. Central Standard Time) on Feb. 1, 2017, to discuss the transaction and 2017 guidance. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-753-0420, pass code 6859965, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6859965.
LINK TO NON-GAAP TABLES:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/financial-reports/2016/oneok-2017-earnings-guidance.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release expected 2017 adjusted EBITDA and distributable cash flow (DCF), which are non-GAAP financial metrics, used to measure ONEOK's financial performance, and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. Adjusted EBITDA and DCF and should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for dividends or that is planned to be distributed in a given period.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect OKE's and OKS's current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving OKE and OKS, including future financial and operating results, OKE's and OKS's plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither OKE nor OKS undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of OKE and OKS on file with the SEC. OKE's and OKS's SEC filings are available publicly on the SEC's website at www.sec.gov.
This news release also contains certain historical and forward-looking non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating our overall financial performance. These non-GAAP measures are broadly used to value and compare companies in our industry and are attached to this news release.
Additional Information and Where to Find It
This communication is not a solicitation of any vote, approval, or proxy from any OKE stockholder or OKS unitholder. In connection with the proposed transaction, OKE will file with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which will include a prospectus of OKE and a joint proxy statement of OKE and OKS. Each of OKE and OKS may also file other documents with the SEC regarding the proposed transaction. OKE and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which OKE or OKS may file with the SEC in connection with the proposed transaction. OKE and OKS urge investors and their respective stockholders and unitholders to read the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from OKE's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings
Participants in the Solicitation
OKE, OKS and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from OKE stockholders and OKS unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of OKE stockholders and OKS unitholders in connection with the proposed transaction will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. You can find information about OKE's executive officers and directors in its definitive proxy statement filed with the SEC on April 5, 2016. You can find information about OKS's executive officers and directors in its annual report on Form 10-K filed with the SEC on February 23, 2016. Additional information about OKE's executive officers and directors and OKS's executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from OKE and OKS using the contact information above.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Brad Borror |
918-588-7582 | |
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 1, 2017 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) today 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 common stock.
Under the agreement, each outstanding common unit of ONEOK Partners that ONEOK does not already own will be converted into .985 shares of ONEOK common stock, representing a 22.4 percent premium to the ONEOK Partners closing price on Jan. 27, 2017.
Completion of the transaction is expected to occur in the second quarter of 2017. As a result of the transaction, ONEOK's annual DCF is expected to approximately double. Consequently, management intends to recommend to the ONEOK Board of Directors a 21 percent increase in the first quarterly dividend following the completion of the transaction and expects a 9 to 11 percent annual dividend growth rate through 2021. Following the close of the transaction, ONEOK is expected to have a more than $30 billion enterprise value and will continue to operate as a leading diversified midstream service provider with an integrated 37,000-mile network of natural gas liquids and natural gas pipelines, processing plants, fractionators and storage facilities located in the Williston Basin, Mid-Continent, Permian Basin, Midwest and Gulf Coast. Shareholders in ONEOK and unitholders of ONEOK Partners are expected to benefit from the larger size of the combined entity, significantly enhanced financial strength and a lower cost of funding for future growth.
Upon completion of the transaction, ONEOK does not expect to pay cash income taxes through at least 2021.
"This acquisition of the balance of ONEOK Partners underscores the strategic value we place on the business we have successfully built since we ventured into the midstream space nearly 20 years ago," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "A broad asset footprint, stable cash flows and attractive growth prospects remain core to our long-term growth strategy. Through the acquisition of the 60 percent of the limited partner interests in ONEOK Partners that ONEOK does not already own, ONEOK becomes a standalone operating company with a lower cost of funding and stronger cash flow generation.
"Shareholders of ONEOK are expected to benefit from an increased dividend and higher dividend growth rate," said Spencer. "We also anticipate the transaction will provide ONEOK enhanced access to the broader capital markets to support and fund future growth to meet the needs of our customers.
"The transaction will not impact our employees or their day-to-day responsibilities," continued Spencer. "The merger of our companies will enhance future opportunities for our businesses and employees, allowing us to continue growing as one of North America's largest midstream service providers."
CREDIT RATINGS
ONEOK has reviewed the proposed transaction with the rating agencies and expects the combined entity to receive investment-grade credit ratings. ONEOK expects significant retained cash flow and earnings growth to continue its progress toward improved credit metrics.
ADDITIONAL TRANSACTION TERMS AND DETAILS
Under the terms of the merger agreement, ONEOK will acquire all of the 171.5 million outstanding units of ONEOK Partners it does not already own at a fixed exchange ratio of .985 ONEOK shares for each public unit of ONEOK Partners. ONEOK Partners units will no longer be publicly traded. In aggregate, ONEOK will issue 168.9 million shares in connection with the proposed transaction, representing approximately 44.5 percent of the total shares outstanding of the pro forma combined entity. Following completion of the transaction, all senior notes of ONEOK and ONEOK Partners will remain outstanding. ONEOK intends to execute cross-guarantees among and between the entities to be effective upon closing of the transaction in order to eliminate the structural subordination. Since ONEOK Partners will be wholly owned by ONEOK, the incentive distribution rights of ONEOK will be effectively terminated.
ONEOK Partners L.P. was represented in negotiations by its general partner's Conflicts Committee, which is comprised of independent members of its general partner's board of directors. The ONEOK Partners Conflicts Committee recommended approval of the transaction to the board of directors of the general partner of ONEOK Partners.
The completion of the merger is subject to the satisfaction of customary conditions, including receipt of requisite approvals of ONEOK shareholders and ONEOK Partners unitholders.
ADVISORS
J.P. Morgan Securities LLC is acting as lead financial advisor; Morgan Stanley & Co. LLC is acting as financial advisor; and Skadden Arps, Slate, Meagher & Flom LLP is acting as legal advisor to ONEOK on the transaction. Barclays is acting as financial advisor and Andrews Kurth Kenyon LLP is acting as legal advisor to the ONEOK Partners Conflicts Committee.
CONFERENCE CALL AND WEBCAST
In a separate news release issued today, ONEOK provided 2017 financial guidance.
ONEOK and ONEOK Partners will conduct a conference call at 8:30 a.m. Eastern Standard Time (7:30 a.m. Central Daylight Time) on Feb. 1, 2017, to discuss the transaction and 2017 guidance. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 800-753-0420, pass code 6859965, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6859965.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes," "expects", "intends", "plans", "projects", "will", "would", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect OKE's and OKS's current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction involving OKE and OKS, including future financial and operating results, OKE's and OKS's plans, objectives, expectations and intentions, the expected timing of completion of the transaction, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
performance of contractual obligations by our customers, service providers, contractors and shippers;
the timely receipt of approval by applicable governmental entities for construction and operation of our pipeline and other projects and required regulatory clearances;
our ability to acquire all necessary permits, consents or other approvals in a timely manner, to promptly obtain all necessary materials and supplies required for construction, and to construct gathering, processing, storage, fractionation and transportation facilities without labor or contractor problems;
the mechanical integrity of facilities operated;
demand for our services in the proximity of our facilities;
our ability to control operating costs;
acts of nature, sabotage, terrorism or other similar acts that cause damage to our facilities or our suppliers' or shippers' facilities;
economic climate and growth in the geographic areas in which we do business;
the risk of a prolonged slowdown in growth or decline in the United States or international economies, including liquidity risks in United States or foreign credit markets;
the impact of recently issued and future accounting updates and other changes in accounting policies;
the possibility of future terrorist attacks or the possibility or occurrence of an outbreak of, or changes in, hostilities or changes in the political conditions in the Middle East and elsewhere;
the risk of increased costs for insurance premiums, security or other items as a consequence of terrorist attacks;
risks associated with pending or possible acquisitions and dispositions, including our ability to finance or integrate any such acquisitions and any regulatory delay or conditions imposed by regulatory bodies in connection with any such acquisitions and dispositions;
the impact of uncontracted capacity in our assets being greater or less than expected;
the ability to recover operating costs and amounts equivalent to income taxes, costs of property, plant and equipment and regulatory assets in our state and FERC-regulated rates;
the composition and quality of the natural gas and NGLs we gather and process in our plants and transport on our pipelines;
the efficiency of our plants in processing natural gas and extracting and fractionating NGLs;
the impact of potential impairment charges;
the risk inherent in the use of information systems in our respective businesses, implementation of new software and hardware, and the impact on the timeliness of information for financial reporting;
our ability to control construction costs and completion schedules of our pipelines and other projects; and
the ability of management to execute its plans to meet its goals and other risks inherent in our businesses that are discussed in OKE's and OKS's most recent annual reports on Form 10-K, respectively, and in other OKE and OKS reports on file with the Securities and Exchange Commission (the "SEC").
These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither OKE nor OKS undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of OKE and OKS on file with the SEC. OKE's and OKS's SEC filings are available publicly on the SEC's website at www.sec.gov.
Additional Information And Where To Find It
This communication is not a solicitation of any vote, approval, or proxy from any OKE stockholder or OKS unitholder. In connection with the proposed transaction, OKE will file with the Securities and Exchange Commission ("SEC") a registration statement on Form S-4, which will include a prospectus of OKE and a joint proxy statement of OKE and OKS. Each of OKE and OKS may also file other documents with the SEC regarding the proposed transaction. OKE and OKS will each mail the joint proxy statement/prospectus to their respective stockholders and unitholders. This document is not a substitute for any prospectus, proxy statement or any other document which OKE or OKS may file with the SEC in connection with the proposed transaction. OKE and OKS urge investors and their respective stockholders and unitholders to read the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when they become available, as well as other documents filed with the SEC, because they will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction (when they become available), free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from OKE's website (www.oneok.com) under the tab "Investors" and then under the heading "SEC Filings." You may also obtain these documents, free of charge, from OKS's website (www.oneokpartners.com) under the tab "Investors" and then under the heading "SEC Filings."
Participants In The Solicitation
OKE, OKS and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from OKE stockholders and OKS unitholders in favor of the proposed transaction and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of OKE stockholders and OKS unitholders in connection with the proposed transaction will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. You can find information about OKE's executive officers and directors in its definitive proxy statement filed with the SEC on April 5, 2016. You can find information about OKS's executive officers and directors in its annual report on Form 10-K filed with the SEC on February 23, 2016. Additional information about OKE's executive officers and directors and OKS's executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 and other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from OKE and OKS using the contact information above.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 18, 2017 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 61.5 cents per share, effective for the fourth quarter 2016, resulting in an annualized dividend of $2.46 per share. The dividend is payable Feb. 14, 2017, to shareholders of record at the close of business Jan. 30, 2017.
ONEOK has increased its dividend by 54 percent since becoming the pure-play general partner of ONEOK Partners in February 2014.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 18, 2017 /PRNewswire/ -- The board of directors of the general partner of ONEOK Partners, L.P. (NYSE: OKS) today declared a quarterly cash distribution of 79 cents per unit, effective for the fourth quarter 2016, payable Feb. 14, 2017, to unitholders of record as of Jan. 30, 2017.
ONEOK Partners has increased its distribution by 98 percent since April 2006, when a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE) became the sole general partner.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Sept. 30, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
This news release serves as qualified notice to nominees as provided for under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that ONEOK Partners, L.P.'s quarterly cash distributions are treated as partnership distributions for federal income tax purposes and that 100 percent of these distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of ONEOK Partners, L.P.'s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not ONEOK Partners, L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Jan. 9, 2017 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) will participate in the UBS MLP One-on-One Conference Jan. 10-11, 2017, in Park City, Utah.
Terry K. Spencer, ONEOK Partners president and chief executive officer; Walter S. Hulse III, ONEOK Partners executive vice president, strategic planning and corporate affairs; and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be posted on ONEOK Partners' website, www.oneokpartners.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Jan. 10, 2017.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Sept. 30, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Jan. 5, 2017 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced it will participate in the Evercore ISI Utility CEO Conference on Thursday and Friday, Jan. 12-13, 2017, in Palm Beach, Fla.
Pierce H. Norton II, president and chief executive officer, and Curtis Dinan, senior vice president, chief financial officer and treasurer, will be conducting a series of meetings with members of the investment community.
The materials utilized at the conference will be accessible on the ONE Gas website, www.onegas.com, on Jan. 12, 2017, beginning at 9 a.m. Eastern Standard Time (8 a.m. Central Standard Time).
ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On January 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.
ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and the third largest in Texas, in terms of customers.
Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.
For more information, visit the website at http://www.ONEGas.com.
Analyst Contact: |
Andrew Ziola |
918-947-7163 | |
Media Contact: |
Jennifer Rector |
918-947-7571 |
SOURCE ONE Gas, Inc.
TULSA, Okla., Dec. 5, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will present at the Wells Fargo Energy Symposium in New York City, Dec. 6, 2016.
Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer, will present at the conference at 1:55 p.m. Eastern Standard Time (12:55 p.m. Central Standard Time).
Spencer, along with Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president of strategic planning and corporate affairs, and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, also will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The conference will be webcast and will be accessible on both ONEOK's and ONEOK Partners' websites, www.oneok.com and www.oneokpartners.com. A replay of the webcast will be archived for 30 days.
The materials used at the conference will be accessible on the ONEOK and ONEOK Partners websites beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Dec. 6, 2016.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 28, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate in the Jefferies Global Energy Conference on Tuesday, Nov. 29, 2016, in Houston, Texas.
Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president of strategic planning and corporate affairs and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, on Tuesday, Nov. 29, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time).
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 1, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced third-quarter 2016 financial results.
SUMMARY
THIRD-QUARTER AND YEAR-TO-DATE 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
ONEOK |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK |
$ |
92.1 |
$ |
82.2 |
$ |
261.5 |
$ |
219.5 |
|||||||
Net income per diluted share |
$ |
0.43 |
$ |
0.39 |
$ |
1.23 |
$ |
1.04 |
|||||||
Adjusted EBITDA (a) |
$ |
465.3 |
$ |
405.9 |
$ |
1,359.6 |
$ |
1,111.9 |
|||||||
Distributions declared from ONEOK Partners |
$ |
197.5 |
$ |
197.5 |
$ |
592.5 |
$ |
537.8 |
|||||||
Cash flow available for dividends (a) |
$ |
167.8 |
$ |
173.0 |
$ |
508.9 |
$ |
474.7 |
|||||||
Dividend coverage ratio (a) |
1.30 |
1.34 |
1.31 |
1.24 |
|||||||||||
(a) Adjusted EBITDA; cash flow available for dividends and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK continues to benefit from ONEOK Partners' well-positioned assets and resulting volume growth from recently completed capital-growth projects," said Terry K. Spencer, president and chief executive officer of ONEOK.
"The partnership's competitive asset position in active shale plays, such as the STACK and SCOOP plays in Oklahoma, is expected to help drive NGL and natural gas volume growth into 2017 as producer drilling increases in these plays through the remainder of 2016," said Spencer. "Through October, we've seen the completion of large multi-well pads in the Mid-Continent, specifically in the STACK play, supporting our expectation for a year-end volume ramp up and setting the stage for additional volume growth in 2017. We also continue to expect a favorable impact from ethane recovery across our system as new petrochemical facilities come online during 2017.
"The partnership recently completed several capital-growth projects including the Bear Creek natural gas processing plant in the Williston Basin and related NGL gathering infrastructure, and the second phase of the Roadrunner Gas Transmission pipeline and complementary ONEOK WesTex expansion project in the natural gas pipelines segment," Spencer added. "All of these projects are expected to contribute primarily fee-based earnings and stable growth to the partnership as we exit 2016.
"ONEOK continues to maintain a healthy balance sheet and dividend coverage ratio and expects to finish 2016 in line with financial guidance," Spencer added.
THIRD-QUARTER AND YEAR-TO-DATE 2016 FINANCIAL PERFORMANCE
Recently completed capital-growth projects in all three ONEOK Partners (NYSE: OKS) business segments continue to result in higher volumes and increased fee-based earnings compared with 2015.
ONEOK's third-quarter 2016 operating income and adjusted EBITDA increased 16 and 15 percent, respectively, compared with the third quarter 2015. Through the first nine months of 2016, operating income increased 27 percent and adjusted EBITDA increased 22 percent, compared with the same periods in 2015.
Financial results benefited from higher natural gas volumes gathered and processed, higher NGL volumes fractionated and sustained higher average fee rates in the natural gas gathering and processing segment.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
ONEOK |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
329.4 |
$ |
284.9 |
$ |
956.1 |
$ |
754.1 |
|||||||
Operating costs |
$ |
184.1 |
$ |
164.2 |
$ |
553.0 |
$ |
508.6 |
|||||||
Depreciation and amortization |
$ |
98.5 |
$ |
88.3 |
$ |
292.2 |
$ |
261.2 |
|||||||
Equity in net earnings from investments |
$ |
35.2 |
$ |
32.2 |
$ |
100.4 |
$ |
93.2 |
|||||||
Adjusted EBITDA |
$ |
465.3 |
$ |
405.9 |
$ |
1,359.6 |
$ |
1,111.9 |
|||||||
Capital expenditures |
$ |
158.3 |
$ |
300.9 |
$ |
491.5 |
$ |
930.3 |
Higher third-quarter 2016 results primarily benefited from:
Operating costs increased in the three- and nine-month 2016 periods, compared with the same periods in 2015, due primarily to higher costs associated with the growth of ONEOK Partners' operations, higher employee-related costs associated with incentive and medical benefit plans and higher costs associated with the impact of the noncash mark-to-market of a share-based deferred compensation plan.
Capital expenditures decreased in the three- and nine-month 2016 periods, compared with the same periods in 2015, due to projects placed in service in 2015 and proactive spending reductions in 2016 to align with customer needs.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the third-quarter 2016 conference call is accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, or by selecting the links below.
ONEOK AND ONEOK PARTNERS HIGHLIGHTS:
ONEOK:
ONEOK Partners:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
Through the first nine months of 2016, the natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated, primarily due to recent Williston Basin and Mid-Continent natural gas processing plant connections. In addition to two new third-party plant connections in the third quarter, the partnership also completed its NGL gathering infrastructure and connection to its Bear Creek natural gas processing plant in the Williston Basin.
NGLs fractionated increased 9 percent, and NGLs transported on gathering lines increased 3 percent in the first nine months of 2016, compared with the same period in 2015. NGLs gathered in the third quarter 2016 decreased slightly compared with the third quarter 2015 due to decreased volumes on the West Texas LPG pipeline system, decreased Mid-Continent volumes gathered from the Barnett Shale and lower short-term contracted volumes. NGLs fractionated in the third quarter 2016 increased 3 percent compared with the same period last year.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
279.3 |
$ |
255.7 |
$ |
826.0 |
$ |
693.0 |
|||||||
Capital expenditures |
$ |
30.5 |
$ |
52.8 |
$ |
85.5 |
$ |
185.4 |
The increase in third-quarter 2016 adjusted EBITDA, compared with the third quarter 2015, primarily reflects:
The increase in adjusted EBITDA for the nine-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures decreased for the three- and nine-month 2016 periods, compared with the same periods in 2015, due primarily to proactive spending reductions to align with customer needs.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's adjusted EBITDA through the first nine months of 2016 increased 45 percent, compared with the same period in 2015, driven by continued volume growth in the Williston Basin from recently completed capital-growth projects including the 80 MMcf/d Bear Creek natural gas processing plant completed in August and the ramp up of the 200 MMcf/d Lonesome Creek natural gas processing plant completed in November 2015.
Third-quarter and year-to-date 2016 natural gas volumes processed increased 13 percent and 15 percent, respectively, compared with the same periods in 2015. Natural gas volumes gathered increased 4 percent in the third quarter and 9 percent through the first nine months of 2016 compared with the same periods in 2015.
The segment continues to realize positive impacts from contract restructuring efforts, maintaining an average fee rate of 76 cents in the third quarter 2016, unchanged from the second quarter 2016 and up 33 cents compared with the third quarter 2015.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
109.8 |
$ |
82.7 |
$ |
320.2 |
$ |
221.3 |
|||||||
Capital expenditures |
$ |
99.6 |
$ |
231.8 |
$ |
325.8 |
$ |
692.6 |
Third-quarter 2016 adjusted EBITDA increased, compared with the third quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures decreased for the three- and nine-month 2016 periods, compared with the same periods in 2015, due to projects placed in service in 2015 and proactive spending reductions to align with customer needs in 2016.
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Nine Months Ended | ||||||||||
September 30, |
September 30, | ||||||||||
Equity-Volume Information (a) |
2016 |
2015 |
2016 |
2015 | |||||||
NGL sales - including ethane (MBbl/d) |
13.6 |
24.9 |
15.3 |
21.0 |
|||||||
Condensate sales (MBbl/d) |
2.2 |
2.7 |
2.5 |
3.0 |
|||||||
Residue natural gas sales (BBtu/d) |
82.3 |
136.3 |
81.3 |
141.6 |
|||||||
(a) - Includes volumes for consolidated entities only. |
The natural gas gathering and processing segment has restructured a portion of its percent-of-proceeds with fee contracts to include significantly higher fees, which reduced its 2016 equity volumes and the related commodity price exposure compared with 2015. The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, isobutane and natural gasoline only. The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Three Months Ending December 31, 2016 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.8 |
$ |
0.48 |
/ gallon |
83% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
58.68 |
/ Bbl |
79% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
77.8 |
$ |
2.82 |
/ MMBtu |
93% | ||||
Year Ending December 31, 2017 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.0 |
$ |
0.51 |
/ gallon |
67% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
44.88 |
/ Bbl |
74% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
73.1 |
$ |
2.66 |
/ MMBtu |
74% | ||||
Year Ending December 31, 2018 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
Natural gas (BBtu/d) - NYMEX and basis |
25.9 |
$ |
2.83 |
/ MMBtu |
32% | ||||
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of NGLs, natural gas and crude oil as of Sept. 30, 2016, including the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
Natural Gas Pipelines Segment
The natural gas pipelines segment's third-quarter 2016 adjusted EBITDA increased 23 percent compared with the third quarter 2015 primarily driven by higher firm demand charge volumes contracted from customers serving end-user markets.
In October, the natural gas pipelines segment completed the 260 MMcf/d WesTex Transmission Pipeline expansion and the second phase of its joint venture Roadrunner Gas Transmission Pipeline, which adds an additional 400 MMcf/d of capacity to the pipeline. Both projects were completed ahead of original schedules and below cost estimates, and are fully subscribed under long-term, firm fee-based (take-or-pay) commitments.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
80.3 |
$ |
65.2 |
$ |
223.2 |
$ |
201.1 |
|||||||
Capital expenditures |
$ |
24.5 |
$ |
14.7 |
$ |
71.7 |
$ |
39.9 |
Third-quarter 2016 adjusted EBITDA increased, compared with the third quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures increased in the three- and nine-month 2016 periods, compared with the same periods in 2015, due primarily to the WesTex Transmission Pipeline expansion and other expansion projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK and ONEOK Partners executive management will conduct a joint conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Nov. 2, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-430-8694, passcode 6586269, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, passcode 6586269.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/events-presentation/q3-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release adjusted EBITDA, cash flow available for dividends, free cash flow and dividend coverage ratio, and ONEOK Partners distributable cash flow and distribution coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. ONEOK cash flow available for dividends, free cash flow and dividend coverage ratio, and ONEOK Partners distributable cash flow and distribution coverage ratio, should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Reconciliations of adjusted EBITDA, cash flow available for dividends and free cash flow to net income are included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of dividends and distributions, and coverage ratios), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this Quarterly Report identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson 918-561-5325 |
Media Contact: |
Stephanie Higgins 918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Nov. 1, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced third-quarter 2016 financial results.
SUMMARY
THIRD-QUARTER AND YEAR-TO-DATE 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
ONEOK Partners |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars, except per unit and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK Partners |
$ |
274.3 |
$ |
227.0 |
$ |
789.3 |
$ |
582.3 |
|||||||
Net income per limited partner unit |
$ |
0.59 |
$ |
0.45 |
$ |
1.65 |
$ |
1.10 |
|||||||
Adjusted EBITDA (a) |
$ |
469.4 |
$ |
403.7 |
$ |
1,369.7 |
$ |
1,115.3 |
|||||||
DCF (a) |
$ |
358.6 |
$ |
302.8 |
$ |
1,073.4 |
$ |
796.9 |
|||||||
Cash distribution coverage ratio (a) |
1.11 |
0.91 |
1.11 |
0.80 |
(a) Adjusted EBITDA; distributable cash flow (DCF); and cash distribution coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK Partners continues to post strong financial results and expects to finish 2016 in line with financial guidance," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "Third-quarter 2016 results benefited from increased natural gas volumes gathered and processed and higher NGL volumes fractionated from recently connected natural gas processing plants and increased ethane recovery compared with last year.
"The natural gas liquids segment expects to benefit from a ramp up in volumes at the five third-party natural gas processing plants connected to our system in 2016 and from the segment's competitive asset position in active shale plays such as the STACK and SCOOP plays in Oklahoma," Spencer said. "We expect increased producer drilling in these plays through the remainder of the year and into 2017, and continue to expect a favorable impact from ethane recovery across our system as new petrochemical facilities come online during the year.
"Our Bear Creek natural gas processing plant was completed in August and is currently 50 percent utilized, contributing to expected fourth-quarter Williston Basin volume growth in the natural gas gathering and processing segment," said Spencer. "Through October 2016, we've seen the completion of large multi-well pads in the Mid-Continent, specifically in the STACK play, supporting our expectation for a year-end volume ramp up in the segment and setting the stage for additional volume growth in 2017.
"In our natural gas pipelines segment, we've been successful in our strategy to move markets closer to supply," continued Spencer. "In October, we completed the second phase of the joint venture Roadrunner Gas Transmission Pipeline and the complementary ONEOK WesTex expansion project, connecting markets in Mexico with upstream supply basins in West Texas and the Mid-Continent. Both projects were completed ahead of original schedules and below cost estimates and are expected to provide the partnership with stable, long-term fee-based earnings."
"The partnership's balance sheet remains healthy and we continue to reduce our leverage position," added Spencer. "Financially and operationally, we're in a strong position, and we have the flexibility to take advantage of opportunities to create additional shareholder value."
THIRD-QUARTER AND YEAR-TO-DATE 2016 FINANCIAL PERFORMANCE
Recently completed capital-growth projects in all three business segments continue to drive higher volumes and increased fee-based earnings across the partnership's integrated asset footprint compared with 2015.
Third-quarter 2016 operating income and adjusted EBITDA increased 17 and 16 percent, respectively, compared with the third quarter 2015. Through the first nine months of 2016, operating income increased 30 percent and adjusted EBITDA increased 23 percent, compared with the same periods in 2015.
Financial results benefited from higher natural gas volumes gathered and processed, higher NGL volumes fractionated and sustained higher average fee rates in the natural gas gathering and processing segment.
ONEOK Partners' maintenance capital expenditures for the full-year 2016 are expected to be approximately $110 million, compared with original guidance of approximately $140 million provided in December 2015. The update primarily reflects lower than expected vendor and contractor costs, the delay of an NGL pipeline relocation project and the timing of discretionary information technology application upgrades. The partnership's expected 2016 capital-growth expenditures remain approximately $460 million.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
ONEOK Partners |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
336.3 |
$ |
287.6 |
$ |
980.2 |
$ |
756.2 |
|||||||
Operating costs |
$ |
177.4 |
$ |
162.1 |
$ |
529.5 |
$ |
506.9 |
|||||||
Depreciation and amortization |
$ |
97.8 |
$ |
87.5 |
$ |
290.0 |
$ |
259.5 |
|||||||
Equity in net earnings from investments |
$ |
35.2 |
$ |
32.2 |
$ |
100.4 |
$ |
93.2 |
|||||||
Adjusted EBITDA |
$ |
469.4 |
$ |
403.7 |
$ |
1,369.7 |
$ |
1,115.3 |
|||||||
Capital expenditures |
$ |
157.1 |
$ |
300.5 |
$ |
489.4 |
$ |
928.9 |
Higher third-quarter 2016 results primarily benefited from:
Operating costs increased in the three- and nine-month 2016 periods, compared with the same periods in 2015, due primarily to higher costs associated with the growth of the partnership's operations and higher employee-related costs associated with incentive and medical benefit plans.
Capital expenditures decreased in the three- and nine-month 2016 periods, compared with the same periods in 2015, due to projects placed in service in 2015 and proactive spending reductions in 2016 to align with customer needs.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the third-quarter conference call is accessible on ONEOK Partners' website, www.oneokpartners.com, or by selecting the links below.
ONEOK PARTNERS HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
Through the first nine months of 2016, the natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated, primarily due to recent Williston Basin and Mid-Continent natural gas processing plant connections. In addition to two new third-party plant connections in the third quarter, the partnership also completed its NGL gathering infrastructure and connection to its Bear Creek natural gas processing plant in the Williston Basin.
NGLs fractionated increased 9 percent, and NGLs transported on gathering lines increased 3 percent in the first nine months of 2016, compared with the same period in 2015. NGLs gathered in the third quarter 2016 decreased slightly compared with the third quarter 2015 due to decreased volumes on the West Texas LPG pipeline system, decreased Mid-Continent volumes gathered from the Barnett Shale and lower short-term contracted volumes. NGLs fractionated in the third quarter 2016 increased 3 percent compared with the same period last year.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
279.3 |
$ |
255.7 |
$ |
826.0 |
$ |
693.0 |
|||||||
Capital expenditures |
$ |
30.5 |
$ |
52.8 |
$ |
85.5 |
$ |
185.4 |
The increase in third-quarter 2016 adjusted EBITDA, compared with the third quarter 2015, primarily reflects:
The increase in adjusted EBITDA for the nine-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures decreased for the three- and nine-month 2016 periods, compared with the same periods in 2015, due primarily to proactive spending reductions to align with customer needs.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's adjusted EBITDA through the first nine months of 2016 increased 45 percent, compared with the same period in 2015, driven by continued volume growth in the Williston Basin from recently completed capital-growth projects including the 80 MMcf/d Bear Creek natural gas processing plant completed in August and the ramp up of the 200 MMcf/d Lonesome Creek natural gas processing plant completed in November 2015.
Third-quarter and year-to-date 2016 natural gas volumes processed increased 13 percent and 15 percent, respectively, compared with the same periods in 2015. Natural gas volumes gathered increased 4 percent in the third quarter and 9 percent through the first nine months of 2016 compared with the same periods in 2015.
The segment continues to realize positive impacts from contract restructuring efforts, maintaining an average fee rate of 76 cents in the third quarter 2016, unchanged from the second quarter 2016 and up 33 cents compared with the third quarter 2015.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
109.8 |
$ |
82.7 |
$ |
320.2 |
$ |
221.3 |
|||||||
Capital expenditures |
$ |
99.6 |
$ |
231.8 |
$ |
325.8 |
$ |
692.6 |
Third-quarter 2016 adjusted EBITDA increased, compared with the third quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures decreased for the three- and nine-month 2016 periods, compared with the same periods in 2015, due to projects placed in service in 2015 and proactive spending reductions to align with customer needs in 2016.
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Nine Months Ended | ||||||||||
September 30, |
September 30, | ||||||||||
Equity-Volume Information (a) |
2016 |
2015 |
2016 |
2015 | |||||||
NGL sales - including ethane (MBbl/d) |
13.6 |
24.9 |
15.3 |
21.0 |
|||||||
Condensate sales (MBbl/d) |
2.2 |
2.7 |
2.5 |
3.0 |
|||||||
Residue natural gas sales (BBtu/d) |
82.3 |
136.3 |
81.3 |
141.6 |
|||||||
(a) - Includes volumes for consolidated entities only. |
The natural gas gathering and processing segment has restructured a portion of its percent-of-proceeds with fee contracts to include significantly higher fees, which reduced its 2016 equity volumes and the related commodity price exposure compared with 2015. The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, isobutane and natural gasoline only. The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Three Months Ending December 31, 2016 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.8 |
$ |
0.48 |
/ gallon |
83% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
58.68 |
/ Bbl |
79% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
77.8 |
$ |
2.82 |
/ MMBtu |
93% |
Year Ending December 31, 2017 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.0 |
$ |
0.51 |
/ gallon |
67% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
44.88 |
/ Bbl |
74% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
73.1 |
$ |
2.66 |
/ MMBtu |
74% |
Year Ending December 31, 2018 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
Natural gas (BBtu/d) - NYMEX and basis |
25.9 |
$ |
2.83 |
/ MMBtu |
32% | ||||
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of NGLs, natural gas and crude oil as of Sept. 30, 2016, including the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
Natural Gas Pipelines Segment
The natural gas pipelines segment's third-quarter 2016 adjusted EBITDA increased 23 percent compared with the third quarter 2015 primarily driven by higher firm demand charge volumes contracted from customers serving end-user markets.
In October, the natural gas pipelines segment completed the 260 MMcf/d WesTex Transmission Pipeline expansion and the second phase of its joint venture Roadrunner Gas Transmission Pipeline, which adds an additional 400 MMcf/d of capacity to the pipeline. Both projects were completed ahead of original schedules and below cost estimates, and are fully subscribed under long-term, firm fee-based (take-or-pay) commitments.
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
80.3 |
$ |
65.2 |
$ |
223.2 |
$ |
201.1 |
|||||||
Capital expenditures |
$ |
24.5 |
$ |
14.7 |
$ |
71.7 |
$ |
39.9 |
Third-quarter 2016 adjusted EBITDA increased, compared with the third quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the nine-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures increased in the three- and nine-month 2016 periods, compared with the same periods in 2015, due primarily to the WesTex Transmission Pipeline expansion and other expansion projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK Partners and ONEOK executive management will conduct a joint conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Nov. 2, 2016. The call also will be carried live on ONEOK Partners' and ONEOK's websites.
To participate in the telephone conference call, dial 888-430-8694, pass code 6586269, or log on to www.oneokpartners.com or www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners' website, www.oneokpartners.com, and ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6586269.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneokpartners.com/~/media/Files/O/OneOK-Partners-IR/events-presentation/q3-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK Partners has disclosed in this news release adjusted EBITDA, DCF, distributable cash flow to limited partners per limited partner unit and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership's financial performance and are defined as follows:
The partnership believes the non-GAAP financial measures described above are useful to investors because they are used by many companies in its industry to measure financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA, DCF, distributable cash flow to limited partners and cash distribution coverage ratio per limited partner unit should not be considered alternatives to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for distributions or that is planned to be distributed in a given period, nor do they equate to available cash as defined in the partnership agreement. Reconciliations of adjusted EBITDA, distributable cash flow and cash distribution coverage ratio to net income are included in the tables.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of September 30, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of distributions, and coverage ratio), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part I, Item 1A, Risk Factors, in our most recent Annual Report on form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneokpartners.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson 918-561-5325 | ||
Media Contact: |
Brad Borror 918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Oct. 19, 2016 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 61.5 cents per share, effective for the third quarter 2016, resulting in an annualized dividend of $2.46 per share. The dividend is payable Nov. 14, 2016, to shareholders of record at the close of business Oct. 31, 2016.
ONEOK has increased its dividend by 54 percent since becoming the pure-play general partner of ONEOK Partners in February 2014.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of June 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Oct. 19, 2016 /PRNewswire/ -- The board of directors of the general partner of ONEOK Partners, L.P. (NYSE: OKS) today declared a quarterly cash distribution of 79 cents per unit, effective for the third quarter 2016, payable Nov. 14, 2016, to unitholders of record as of Oct. 31, 2016.
ONEOK Partners has increased its distribution by 98 percent since April 2006, when a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE) became the sole general partner.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of June 30, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
This news release serves as qualified notice to nominees as provided for under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that ONEOK Partners, L.P.'s quarterly cash distributions are treated as partnership distributions for federal income tax purposes and that 100 percent of these distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of ONEOK Partners, L.P.'s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not ONEOK Partners, L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Oct. 13, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will release third-quarter 2016 earnings after the market closes on Nov. 1, 2016.
ONEOK's and ONEOK Partners' executive management will participate in a joint conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on Nov. 2, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-430-8694, pass code 6586269, or log on to www.oneok.com or www.oneokpartners.com.
What: |
ONEOK and ONEOK Partners third-quarter 2016 earnings conference call and webcast |
When: |
11 a.m. Eastern, Nov. 2, 2016 |
10 a.m. Central | |
Where: |
1) Phone conference call: dial 888-430-8694, pass code 6586269 |
2) Log on to the webcast at www.oneok.com | |
3) Log on to the webcast at www.oneokpartners.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 6586269.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of June 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., Sept. 1, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate at the Barclays CEO Energy Conference Sept. 6-7, 2016, in New York City.
Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer, will present at the conference at 11:45 a.m. Eastern Daylight Time (10:45 a.m. Central Daylight Time) on Tuesday, Sept. 6.
Spencer, along with Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president of strategic planning and corporate affairs and Derek Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, also will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The conference will be webcast and accessible on both ONEOK's and ONEOK Partners' websites, www.oneok.com and www.oneokpartners.com. A replay of the webcast will be archived for 30 days.
The materials used at the conference will be posted on the websites beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time) on Tuesday, Sept. 6.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of June 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 16, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) will participate in the Citi One-on-One Master Limited Partnership/Midstream Infrastructure Conference on Wednesday and Thursday, Aug. 17-18, 2016, in Las Vegas, Nevada.
Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer; Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president of strategic planning and corporate affairs; and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on ONEOK Partners' website, www.oneokpartners.com, beginning at 5 a.m. Pacific Daylight Time (7 a.m. Central Daylight Time) on Wednesday, Aug. 17.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of June 30, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Aug. 8, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate in the Tuohy Brothers Seventh Annual "All-in-One" Energy Conference on Tuesday, Aug. 9, 2016, in New York City.
Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president of strategic planning and corporate affairs and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, on Tuesday, Aug. 9, beginning at 8 a.m. Eastern Daylight Time (7 a.m. Central Daylight Time).
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of June 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 2, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced second-quarter 2016 financial results.
SUMMARY
SECOND-QUARTER 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
ONEOK |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK |
$ |
86.0 |
$ |
76.5 |
$ |
169.4 |
$ |
137.3 |
|||||||
Net income per diluted share |
$ |
0.40 |
$ |
0.36 |
$ |
0.80 |
$ |
0.65 |
|||||||
Adjusted EBITDA (a) |
$ |
452.7 |
$ |
385.7 |
$ |
894.3 |
$ |
706.1 |
|||||||
Distributions declared from ONEOK Partners |
$ |
197.5 |
$ |
171.2 |
$ |
395.0 |
$ |
340.3 |
|||||||
Cash flow available for dividends (a) |
$ |
171.8 |
$ |
149.6 |
$ |
341.1 |
$ |
301.7 |
|||||||
Dividend coverage ratio (a) |
1.33 |
1.18 |
1.32 |
1.19 |
|||||||||||
(a) Adjusted EBITDA; cash flow available for dividends and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK continues to benefit from natural gas and natural gas liquids volume growth across all three ONEOK Partners business segments year over year," said Terry K. Spencer, president and chief executive officer of ONEOK.
"The natural gas liquids segment continues to be a key driver of fee-based growth for the partnership, with segment operating income and adjusted EBITDA in the first half of 2016 increasing more than 25 percent compared with the same period last year," Spencer said. "We have observed intermittent periods of higher ethane recovery on parts of our system this year and continue to expect a significant benefit from ethane recovery beginning in 2017.
"The partnership's natural gas gathering and processing segment also recorded increased volumes in the first half of 2016 and continues to benefit from contract restructuring efforts that began in 2015," Spencer said. "Our continuing contract restructuring efforts contributed to higher fee-based earnings in the quarter.
"ONEOK's and ONEOK Partners' proactive approach to financial decision-making, increased fee-based earnings and continued natural gas and natural gas liquids volume growth have positioned us well for the remainder of 2016," Spencer concluded.
SECOND-QUARTER 2016 FINANCIAL PERFORMANCE
Second-quarter 2016 results benefited from higher NGL volumes gathered and fractionated and higher natural gas volumes gathered and processed at ONEOK Partners (NYSE: OKS), compared with the same period in 2015, as well as increased fee-based earnings in the natural gas gathering and processing segment. Higher volumes and fee rates drove up ONEOK's second-quarter 2016 operating income 16 percent and adjusted EBITDA 17 percent, compared with the same period in 2015.
Ethane rejection continues across the partnership's system; however some natural gas processors are intermittently alternating between ethane recovery and rejection. Ethane rejection levels on the partnership's natural gas liquids gathering system decreased to approximately 150,000 barrels per day (bpd) in the second quarter 2016, compared with an average of more than 175,000 bpd during the second half of 2015 and first quarter of 2016, primarily related to natural gas processing plants in the Mid-Continent moving in and out of ethane recovery. The partnership expects ethane rejection levels to continue to fluctuate for the remainder of 2016.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
ONEOK |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
315.3 |
$ |
272.7 |
$ |
626.7 |
$ |
469.2 |
|||||||
Operating costs |
$ |
191.9 |
$ |
165.4 |
$ |
368.9 |
$ |
344.4 |
|||||||
Depreciation and amortization |
$ |
99.2 |
$ |
87.0 |
$ |
193.7 |
$ |
172.9 |
|||||||
Equity in net earnings from investments |
$ |
32.4 |
$ |
30.0 |
$ |
65.3 |
$ |
61.0 |
|||||||
Adjusted EBITDA |
$ |
452.7 |
$ |
385.7 |
$ |
894.3 |
$ |
706.1 |
|||||||
Capital expenditures |
$ |
136.8 |
$ |
285.6 |
$ |
333.3 |
$ |
629.4 |
Higher second-quarter 2016 results primarily benefited from:
Operating costs increased in the three- and six-month 2016 periods, compared with the same periods in 2015, due primarily to higher costs associated with the impact of the noncash mark-to-market of a share-based deferred compensation plan and higher employee-related costs associated with incentive and medical benefit plans.
Capital expenditures decreased in the three- and six-month periods in 2016, compared with the same periods in 2015, due to projects placed in service in 2015, proactive spending reductions to align with customer needs and lower well connect activities in the natural gas gathering and processing segment.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the second-quarter 2016 conference call is accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, or by selecting the links below.
ONEOK AND ONEOK PARTNERS HIGHLIGHTS:
ONEOK:
ONEOK Partners:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated during the second quarter 2016, primarily due to recent Williston Basin and Mid-Continent natural gas processing plant connections and higher levels of ethane recovery. NGLs fractionated increased nearly 10 percent and NGLs transported on gathering lines increased 3 percent in the second quarter 2016, compared with the same period in 2015.
Ethane recovery levels increased in the Mid-Continent region and the Williston Basin during the second quarter 2016, compared with the second quarter 2015, positively impacting second-quarter 2016 results. A portion of the fees associated with those increased volumes were previously being earned under contracts with minimum volume obligations. We expect ethane recovery levels to continue to fluctuate for the remainder of 2016 as the market continually balances ethane supply and demand.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
276.6 |
$ |
244.6 |
$ |
546.8 |
$ |
437.2 |
|||||||
Capital expenditures |
$ |
20.8 |
$ |
59.1 |
$ |
55.0 |
$ |
132.6 |
The increase in second-quarter 2016 adjusted EBITDA, compared with the second quarter 2015, primarily reflects:
The increase in adjusted EBITDA for the six-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures decreased for the three- and six-month 2016 periods, compared with the same periods in 2015, due primarily to proactive spending reductions to align with customer needs.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's second-quarter 2016 adjusted EBITDA increased more than 40 percent, compared with the same period in 2015, driven by continued volume growth in the Williston Basin, even with planned facility maintenance and weather events in the basin during the second quarter.
Second-quarter 2016 natural gas volumes processed increased more than 12 percent, and natural gas volumes gathered increased nearly 6 percent, compared with the second quarter 2015.
The segment continues to realize positive impacts from contract restructuring efforts, which helped increase the second quarter 2016 average fee rate to 76 cents, up 8 cents compared with the first quarter 2016 and 37 cents compared with the second quarter 2015.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
110.3 |
$ |
78.1 |
$ |
210.3 |
$ |
138.6 |
|||||||
Capital expenditures |
$ |
84.7 |
$ |
205.4 |
$ |
226.2 |
$ |
460.7 |
Second-quarter 2016 adjusted EBITDA increased, compared with the second quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2016 period, compared with the same period last year, primarily reflects:
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Six Months Ended | ||||||||||
June 30, |
June 30, | ||||||||||
Equity-Volume Information (a) |
2016 |
2015 |
2016 |
2015 | |||||||
NGL sales - including ethane (MBbl/d) |
16.0 |
21.1 |
16.2 |
19.0 |
|||||||
Condensate sales (MBbl/d) |
2.6 |
3.1 |
2.6 |
3.1 |
|||||||
Residue natural gas sales (BBtu/d) |
77.7 |
155.5 |
80.7 |
144.3 |
|||||||
(a) - Includes volumes for consolidated entities only. |
The natural gas gathering and processing segment has restructured a portion of it percent-of-proceeds with fee contracts to include significantly higher fees, which reduced its 2016 equity volumes and the related commodity price exposure compared with 2015. The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, isobutane and natural gasoline only. The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Six Months Ending December 31, 2016 | |||||||||
Volumes
Hedged |
Average Price |
Percentage
Hedged | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.8 |
$ |
0.48 |
/ gallon |
82% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
58.68 |
/ Bbl |
86% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
79.1 |
$ |
2.81 |
/ MMBtu |
93% |
Year Ending December 31, 2017 | |||||||||
Volumes
Hedged |
Average Price |
Percentage
Hedged | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.0 |
$ |
0.51 |
/ gallon |
67% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
44.88 |
/ Bbl |
74% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
73.1 |
$ |
2.66 |
/ MMBtu |
74% |
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of NGLs, natural gas and crude oil as of June 30, 2016, including the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
Natural Gas Pipelines Segment
The natural gas pipelines segment operations remain nearly 100 percent fee-based. Through the first six months of 2016, approximately 93 percent of the segment's natural gas transportation capacity was contracted under firm, demand-based contracts.
The second phase of the segment's joint venture Roadrunner Gas Transmission Pipeline and the 260 MMcf/d WesTex Transmission Pipeline expansion are expected to be complete in the fourth quarter 2016, ahead of schedule for both projects. The second phase of the Roadrunner joint venture project will add an additional 400 MMcf/d of capacity to the pipeline. Both projects are fully subscribed under long-term, firm fee-based (take-or-pay) commitments.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
68.5 |
$ |
65.2 |
$ |
142.9 |
$ |
135.9 |
|||||||
Capital expenditures |
$ |
29.3 |
$ |
15.6 |
$ |
47.2 |
$ |
25.2 |
Second-quarter 2016 adjusted EBITDA increased, compared with the second quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures increased in the three- and six-month 2016 periods, compared with the same periods in 2015, due primarily to the WesTex Transmission Pipeline expansion and compressor station expansion projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK and ONEOK Partners executive management will conduct a joint conference call at 10 a.m. Eastern Daylight Time (9 a.m. Central Daylight Time) on Aug. 3, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-600-4861, passcode 4836580, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, passcode 4836580.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Tables:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/events-presentation/q2-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release adjusted EBITDA, cash flow available for dividends, free cash flow and dividend coverage ratio, and ONEOK Partners distributable cash flow and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. ONEOK cash flow available for dividends, free cash flow and dividend coverage ratio, and ONEOK Partners distributable cash flow and cash distribution coverage ratio, should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. A reconciliation of cash flow available for dividends and free cash flow to net income is included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of June 30, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of dividends and distributions, and coverage ratios), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this Quarterly Report identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste | |
918-588-7167 | ||
Media Contact: |
Stephanie Higgins | |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Aug. 2, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced second-quarter 2016 financial results.
SUMMARY
SECOND-QUARTER 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
ONEOK Partners |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars, except per unit and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK Partners |
$ |
261.5 |
$ |
209.8 |
$ |
515.0 |
$ |
355.4 |
|||||||
Net income per limited partner unit |
$ |
0.54 |
$ |
0.44 |
$ |
1.06 |
$ |
0.65 |
|||||||
Adjusted EBITDA (a) |
$ |
455.8 |
$ |
387.3 |
$ |
900.4 |
$ |
711.6 |
|||||||
DCF (a) |
$ |
367.2 |
$ |
276.9 |
$ |
714.8 |
$ |
494.1 |
|||||||
Cash distribution coverage ratio (a) |
1.15 |
0.88 |
1.11 |
0.74 |
|||||||||||
(a) Adjusted EBITDA; distributable cash flow (DCF); and cash distribution coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK Partners continues to post solid 2016 financial results as natural gas and natural gas liquids volumes increased across all three business segments year over year," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "Our well-positioned assets and approximately $9 billion in capital-growth projects and acquisitions since 2006 provide opportunities for continued earnings growth without significant additional infrastructure needs or capital spending, particularly in the natural gas liquids segment.
"Our natural gas liquids segment continues to be a key driver of fee-based growth for the partnership, with segment operating income and adjusted EBITDA in the first half of 2016 increasing more than 25 percent compared with the same period last year," Spencer said. "We continue to expect a significant benefit from ethane recovery beginning in 2017 and have already observed intermittent periods of higher recovery on parts of our system this year. While prices have begun to improve, we haven't yet seen a large revenue increase from ethane recovery because a portion of the fees associated with the increased volumes were previously being earned through minimum volume commitments.
"In addition to ethane, new NGL supply opportunities are available in our natural gas liquids segment in the growing STACK and SCOOP plays in Oklahoma," he continued. "ONEOK Partners currently provides NGL gathering, transportation and fractionation services in these plays and is well-positioned, along with our natural gas gathering and processing segment, to benefit from continued growth opportunities in the region.
"Our natural gas gathering and processing segment also recorded increased volumes in the first half of 2016 and continues to benefit from contract restructuring efforts that began in 2015," Spencer said. "Our continuing contract restructuring efforts contributed to an 8 cent, or 12 percent, increase in the segment's average fee rate for the second quarter, compared with the first quarter 2016.
"We've taken the commercial, operational and financial steps to enable us to continue to grow our earnings in spite of a difficult commodity price environment," Spencer concluded. "Our focus on stable, fee-based earnings growth has positioned us well for the remainder of 2016."
SECOND-QUARTER 2016 FINANCIAL PERFORMANCE
Second-quarter 2016 results benefited from higher NGL volumes gathered and fractionated and higher natural gas volumes gathered and processed, compared with the same period in 2015, as well as increased fee-based earnings in the natural gas gathering and processing segment. Higher volumes and fee rates drove increases in second-quarter 2016 operating income of 20 percent and adjusted EBITDA of 18 percent, compared with the same period in 2015.
Ethane rejection continues across the partnership's system; however some natural gas processors are intermittently alternating between ethane recovery and rejection. Ethane rejection levels on the partnership's natural gas liquids gathering system decreased to approximately 150,000 barrels per day (bpd) in the second quarter 2016, compared with an average of more than 175,000 bpd during the second half of 2015 and first quarter of 2016, primarily related to natural gas processing plants in the Mid-Continent moving in and out of ethane recovery. The partnership expects ethane rejection levels to continue to fluctuate for the remainder of 2016.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
ONEOK Partners |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
325.6 |
$ |
271.7 |
$ |
643.8 |
$ |
468.6 |
|||||||
Operating costs |
$ |
181.8 |
$ |
166.6 |
$ |
352.1 |
$ |
344.8 |
|||||||
Depreciation and amortization |
$ |
98.5 |
$ |
86.2 |
$ |
192.2 |
$ |
172.0 |
|||||||
Equity in net earnings from investments |
$ |
32.4 |
$ |
30.0 |
$ |
65.3 |
$ |
61.0 |
|||||||
Adjusted EBITDA |
$ |
455.8 |
$ |
387.3 |
$ |
900.4 |
$ |
711.6 |
|||||||
Capital expenditures |
$ |
136.4 |
$ |
285.4 |
$ |
332.3 |
$ |
628.4 |
Higher second-quarter 2016 results primarily benefited from:
Operating costs increased in the three- and six-month 2016 periods, compared with the same periods in 2015, due primarily to higher employee-related costs associated with incentive and medical benefit plans.
Capital expenditures decreased in the three- and six-month periods in 2016, compared with the same periods in 2015, due to projects placed in service in 2015, proactive spending reductions to align with customer needs and lower well connect activities in the natural gas gathering and processing segment.
ONEOK Partners' second quarter 2016 distributable cash flow and distribution coverage ratio benefited from a one-time, approximately $15 million increase in the quarter due to a change in the timing of cash distributions received from the partnership's equity-method investment in Northern Border Pipeline. Beginning in the second quarter 2016, cash distributions related to the partnership's 50 percent ownership interest in the pipeline will be received monthly instead of quarterly.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the second-quarter conference call is accessible on ONEOK Partners' website, www.oneokpartners.com, or by selecting the links below.
ONEOK PARTNERS HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated during the second quarter 2016, primarily due to recent Williston Basin and Mid-Continent natural gas processing plant connections and higher levels of ethane recovery. NGLs fractionated increased nearly 10 percent and NGLs transported on gathering lines increased 3 percent in the second quarter 2016, compared with the same period in 2015.
Ethane recovery levels increased in the Mid-Continent region and the Williston Basin during the second quarter 2016, compared with the second quarter 2015, positively impacting second-quarter 2016 results. A portion of the fees associated with those increased volumes were previously being earned under contracts with minimum volume obligations. We expect ethane recovery levels to continue to fluctuate for the remainder of 2016 as the market continually balances ethane supply and demand.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
276.6 |
$ |
244.6 |
$ |
546.8 |
$ |
437.2 |
|||||||
Capital expenditures |
$ |
20.8 |
$ |
59.1 |
$ |
55.0 |
$ |
132.6 |
The increase in second-quarter 2016 adjusted EBITDA, compared with the second quarter 2015, primarily reflects:
The increase in adjusted EBITDA for the six-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures decreased for the three- and six-month 2016 periods, compared with the same periods in 2015, due primarily to proactive spending reductions to align with customer needs.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's second-quarter 2016 adjusted EBITDA increased more than 40 percent, compared with the same period in 2015, driven by continued volume growth in the Williston Basin, even with planned facility maintenance and weather events in the basin during the second quarter.
Second-quarter 2016 natural gas volumes processed increased more than 12 percent, and natural gas volumes gathered increased nearly 6 percent, compared with the second quarter 2015.
The segment continues to realize positive impacts from contract restructuring efforts, which helped increase the second quarter 2016 average fee rate to 76 cents, up 8 cents compared with the first quarter 2016 and 37 cents compared with the second quarter 2015.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
110.3 |
$ |
78.1 |
$ |
210.3 |
$ |
138.6 |
|||||||
Capital expenditures |
$ |
84.7 |
$ |
205.4 |
$ |
226.2 |
$ |
460.7 |
Second-quarter 2016 adjusted EBITDA increased, compared with the second quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2016 period, compared with the same period last year, primarily reflects:
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Six Months Ended | ||||||||||
June 30, |
June 30, | ||||||||||
Equity-Volume Information (a) |
2016 |
2015 |
2016 |
2015 | |||||||
NGL sales - including ethane (MBbl/d) |
16.0 |
21.1 |
16.2 |
19.0 |
|||||||
Condensate sales (MBbl/d) |
2.6 |
3.1 |
2.6 |
3.1 |
|||||||
Residue natural gas sales (BBtu/d) |
77.7 |
155.5 |
80.7 |
144.3 |
|||||||
(a) - Includes volumes for consolidated entities only. |
The natural gas gathering and processing segment has restructured a portion of it percent-of-proceeds with fee contracts to include significantly higher fees, which reduced its 2016 equity volumes and the related commodity price exposure compared with 2015. The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, isobutane and natural gasoline only. The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Six Months Ending December 31, 2016 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.8 |
$ |
0.48 |
/ gallon |
82% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
58.68 |
/ Bbl |
86% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
79.1 |
$ |
2.81 |
/ MMBtu |
93% | ||||
Year Ending December 31, 2017 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.0 |
$ |
0.51 |
/ gallon |
67% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
44.88 |
/ Bbl |
74% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
73.1 |
$ |
2.66 |
/ MMBtu |
74% |
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of NGLs, natural gas and crude oil as of June 30, 2016, including the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
Natural Gas Pipelines Segment
The natural gas pipelines segment operations remain nearly 100 percent fee-based. Through the first six months of 2016, approximately 93 percent of the segment's natural gas transportation capacity was contracted under firm, demand-based contracts.
The second phase of the segment's joint venture Roadrunner Gas Transmission Pipeline and the 260 MMcf/d WesTex Transmission Pipeline expansion are expected to be complete in the fourth quarter 2016, ahead of schedule for both projects. The second phase of the Roadrunner joint venture project will add an additional 400 MMcf/d of capacity to the pipeline. Both projects are fully subscribed under long-term, firm fee-based (take-or-pay) commitments.
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
2016 |
2015 | |||||||||||
(Millions of dollars) | |||||||||||||||
Adjusted EBITDA |
$ |
68.5 |
$ |
65.2 |
$ |
142.9 |
$ |
135.9 |
|||||||
Capital expenditures |
$ |
29.3 |
$ |
15.6 |
$ |
47.2 |
$ |
25.2 |
Second-quarter 2016 adjusted EBITDA increased, compared with the second quarter 2015, which primarily reflects:
The increase in adjusted EBITDA for the six-month 2016 period, compared with the same period last year, primarily reflects:
Capital expenditures increased in the three- and six-month 2016 periods, compared with the same periods in 2015, due primarily to the WesTex Transmission Pipeline expansion and compressor station expansion projects.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK Partners and ONEOK executive management will conduct a joint conference call at 10 a.m. Eastern Daylight Time (9 a.m. Central Daylight Time) on Aug. 3, 2016. The call also will be carried live on ONEOK Partners' and ONEOK's websites.
To participate in the telephone conference call, dial 888-600-4861, passcode 4836580, or log on to www.oneokpartners.com or www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners' website, www.oneokpartners.com, and ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, passcode 4836580.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneokpartners.com/~/media/Files/O/OneOK-Partners-IR/events-presentation/q2-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK Partners has disclosed in this news release adjusted EBITDA, DCF, distributable cash flow to limited partners per limited partner unit and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership's financial performance and are defined as follows:
The partnership believes the non-GAAP financial measures described above are useful to investors because they are used by many companies in its industry to measure financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA, DCF, distributable cash flow to limited partners and cash distribution coverage ratio per limited partner unit should not be considered alternatives to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for distributions or that is planned to be distributed in a given period, nor do they equate to available cash as defined in the partnership agreement.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of June 30, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of distributions, and coverage ratio), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part I, Item 1A, Risk Factors, in our most recent Annual Report on form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneokpartners.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste 918-588-7167 |
Media Contact: |
Brad Borror 918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., July 28, 2016 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 61.5 cents per share, effective for the second quarter 2016, resulting in an annualized dividend of $2.46 per share. The dividend is payable Aug. 14, 2016, to shareholders of record at the close of business Aug. 8, 2016.
ONEOK has increased its dividend by 54 percent since becoming the pure-play general partner of ONEOK Partners in February 2014.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK, Inc.
TULSA, Okla., July 28, 2016 /PRNewswire/ -- The board of directors of the general partner of ONEOK Partners, L.P. (NYSE: OKS) today declared a quarterly cash distribution of 79 cents per unit, effective for the second quarter 2016, payable Aug. 14, 2016, to unitholders of record as of Aug. 8, 2016.
ONEOK Partners has increased its distribution by 98 percent since April 2006, when a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE) became the sole general partner.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of March 31, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
This news release serves as qualified notice to nominees as provided for under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that ONEOK Partners, L.P.'s quarterly cash distributions are treated as partnership distributions for federal income tax purposes and that 100 percent of these distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of ONEOK Partners, L.P.'s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not ONEOK Partners, L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., July 13, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will release second-quarter 2016 earnings after the market closes on Aug. 2, 2016.
ONEOK's and ONEOK Partners' executive management will participate in a joint conference call the following day at 10 a.m. Eastern Daylight Time (9 a.m. Central Daylight Time) on Aug. 3, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-600-4861, pass code 4836580, or log on to www.oneok.com or www.oneokpartners.com.
What: |
ONEOK and ONEOK Partners second-quarter 2016 earnings conference call and webcast |
When: |
10 a.m. Eastern, Aug. 3, 2016 |
9 a.m. Central | |
Where: |
1) Phone conference call: dial 888-600-4861, pass code 4836580 |
2) Log on to the webcast at www.oneok.com | |
3) Log on to the webcast at www.oneokpartners.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 4836580.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
Megan Patterson |
918-561-5325 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., May 25, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) President and Chief Executive Officer Terry K. Spencer today provided an update on the company's business operations at the company's annual meeting of shareholders.
Spencer told attendees that through its ownership of ONEOK Partners, distributions declared from the partnership increased more than 16 percent in 2015 compared with 2014, as a result of ONEOK's purchase of an additional 21.5 million ONEOK Partners units in August 2015.
"ONEOK ended 2015 in a strong financial position, due largely to increased cash distributions from ONEOK's limited and general partner interests in ONEOK Partners," said Spencer. "We strengthened ONEOK Partners' business model by engaging in efforts that significantly increased fee-based earnings and reduced exposure to commodity price volatility."
Spencer also discussed the current commodity price environment and the company's strategy to remain engaged and innovative in its business practices.
"Our uniquely positioned assets, the resiliency of our employees and our commitment to prudent financial decision-making are critically important to a business designed to weather the cyclical nature of the energy industry," he said. "We remain confident that our key strategies, our quality assets and experienced employees will deliver the expected financial results for 2016 while positioning our business for the future.
"I am confident in the proactive steps our leadership and boards have taken – financially, commercially and in our operations – to enable us to withstand this down cycle and be ready to take advantage of opportunities in the marketplace," he continued.
Spencer touted the company's efforts to increase fee-based earnings through contract restructuring in ONEOK Partners' natural gas gathering and processing segment and strategic capital-growth projects in the partnership's natural gas pipelines segment.
"Companywide, we anticipate our 2016 fee-based earnings will increase to approximately 85 percent from 66 percent in 2014, which we expect will positively impact our full-year 2016 earnings," he said.
Spencer also noted that ONEOK Partners' natural gas liquids segment is positioned to benefit from the growing petrochemical demand for ethane, without significant capital costs to the partnership.
"The low market price of ethane is leading to increased exports, as well as the construction of additional world-class petrochemical facilities on the Gulf Coast that will utilize ethane as a feedstock during the manufacturing process," Spencer said. "Our large NGL asset base is ideally positioned to serve this growing ethane demand, which is expected to accelerate in 2017."
Spencer also thanked and recognized the company's employees for the company's continued success.
"Our achievements in this tough industry environment would not be possible without our employees' tremendous contributions," he said. "Their efforts to operate our network of assets safely and environmentally responsibly have enabled us to continue to provide quality and reliable service to our customers."
Shareholders approved the following proposals at today's annual meeting:
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Analyst Contact: T.D. Eureste 918-588-7167 Media Contact: Stephanie Higgins 918-591-5026
SOURCE ONEOK, Inc.
TULSA, Okla., May 3, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced first-quarter 2016 financial results.
SUMMARY
FIRST-QUARTER 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
ONEOK |
2016 |
2015 |
Increase | ||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||
Net income attributable to ONEOK |
$ |
83.4 |
$ |
60.8 |
37.2% | ||||
Net income per diluted share |
$ |
0.40 |
$ |
0.29 |
37.9% | ||||
Adjusted EBITDA (a) |
$ |
441.6 |
$ |
320.4 |
37.8% | ||||
Distributions declared from ONEOK Partners |
$ |
197.5 |
$ |
169.1 |
16.8% | ||||
Cash flow available for dividends (a) |
$ |
169.3 |
$ |
152.1 |
11.3% | ||||
Dividend coverage ratio (a) |
1.31 |
1.20 |
|||||||
(a) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA); cash flow available for dividends and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK's first-quarter financial results benefited from ONEOK Partners' uniquely positioned, integrated network of natural gas and NGL assets," said Terry K. Spencer, president and chief executive officer of ONEOK. "Distributions declared from the partnership to ONEOK increased nearly 17 percent in the first quarter 2016, compared with 2015, driven by ONEOK's increased ownership in ONEOK Partners.
"The partnership's natural gas gathering and processing segment's volume growth continued in the first quarter, due primarily to completed growth projects in the Williston Basin, which also drove increased NGL volumes from the region, and the natural gas pipelines segment continues to deliver consistent fee-based earnings," continued Spencer.
"In addition, we anticipate significant ethane recovery to begin in early 2017, as demand for exports increases and new petrochemical facilities begin to come online near market hubs where the partnership is well-positioned to serve this growing demand without additional infrastructure or capital investments required," added Spencer.
"ONEOK's and ONEOK Partners' proactive approach to reducing capital spending and operating costs, growing fee-based earnings and prudent financial decision-making continue to create value for investors," Spencer concluded.
FIRST-QUARTER 2016 FINANCIAL PERFORMANCE
First-quarter 2016 results increased significantly compared with the first quarter 2015, with adjusted EBITDA up nearly 40 percent and operating income up nearly 60 percent. Results were impacted positively by higher volumes and increased fee-based earnings at ONEOK Partners (NYSE: OKS). NGL volumes gathered and fractionated and natural gas volumes gathered and processed increased, compared with the first quarter 2015, and fee-based earnings increased in the natural gas gathering and processing segment from contract restructuring.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
ONEOK |
2016 |
2015 |
Increase (Decrease) | ||||||
(Millions of dollars) |
|||||||||
Operating income |
$ |
311.4 |
$ |
196.5 |
58.5% | ||||
Operating costs |
$ |
177.0 |
$ |
179.0 |
(1.1)% | ||||
Depreciation and amortization |
$ |
94.5 |
$ |
86.0 |
9.9% | ||||
Equity in net earnings from investments |
$ |
32.9 |
$ |
30.9 |
6.5% | ||||
Capital expenditures |
$ |
196.4 |
$ |
343.8 |
(42.9)% |
Higher first-quarter 2016 results primarily benefited from:
Operating costs decreased in the first quarter 2016, compared with the same period in 2015, due primarily to a decrease in operating costs in the natural gas liquids segment from lower rates charged by service providers and ongoing cost reduction efforts in all ONEOK Partners business segments.
Equity in net earnings from investments increased in the first quarter 2016, compared with the first quarter 2015, due primarily to higher NGL volumes delivered to the Overland Pass Pipeline from the Bakken NGL Pipeline.
Capital expenditures decreased in the first quarter 2016, compared with the same period in 2015, due to projects placed in service in 2015 and proactive spending reductions to align with customer needs.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the first-quarter 2016 conference call is accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, or by selecting the links below.
ONEOK AND ONEOK PARTNERS HIGHLIGHTS:
ONEOK:
ONEOK Partners:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated during the first quarter 2016. NGLs fractionated increased nearly 16 percent and NGLs transported on gathering lines increased nearly 6 percent in the first quarter 2016, compared with the same period in 2015, primarily due to increased volumes from recent Williston Basin and Mid-Continent natural gas processing plant connections and decreased ethane rejection in the Williston Basin.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
Increase (Decrease) | ||||||
(Millions of dollars) |
|||||||||
Adjusted EBITDA |
$ |
270.2 |
$ |
192.7 |
40.2% | ||||
Capital expenditures |
$ |
34.2 |
$ |
73.5 |
(53.5)% |
The increase in first-quarter 2016 adjusted EBITDA, compared with the first quarter 2015, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment maintains primarily fee-based operations, with continued growth in the Permian Basin as the partnership continues construction of the Roadrunner Gas Transmission Pipeline and the WesTex Transmission Pipeline expansion. The first phase of the Roadrunner project was completed in March and is fully subscribed under 25-year firm fee-based (take-or-pay) commitments.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
Increase | ||||||
(Millions of dollars) |
|||||||||
Adjusted EBITDA |
$ |
74.3 |
$ |
70.7 |
5.1% | ||||
Capital expenditures |
$ |
17.9 |
$ |
9.6 |
86.5% |
First-quarter 2016 adjusted EBITDA increased, compared with the first quarter 2015, which primarily reflects:
Capital expenditures increased in the first quarter 2016, compared with the same period in 2015, due primarily to a compressor station expansion project on Midwestern Gas Transmission.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's first quarter 2016 adjusted EBITDA increased more than 65 percent, compared with the same period in 2015, driven by strong volume growth in the Williston Basin and positive impacts from contract restructuring efforts, despite a lower commodity price environment. The Lonesome Creek plant and related compression projects placed in service in late 2015 provided the capacity to capture previously flared natural gas, and the partnership continued to connect new wells in the core areas of the Williston Basin.
First-quarter 2016 natural gas volumes processed increased nearly 20 percent, and natural gas volumes gathered increased nearly 18 percent, compared with the first quarter 2015.
Successful contract restructuring efforts increased the segment's first-quarter 2016 average fee rate to 68 cents, compared with 35 cents in the same period in 2015. The segment's average fee rate increased 24 percent, compared with the fourth quarter 2015, as new terms under the restructured contracts became effective.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
Increase | ||||||
(Millions of dollars) |
|||||||||
Adjusted EBITDA |
$ |
100.0 |
$ |
60.5 |
65.3% | ||||
Capital expenditures |
$ |
141.5 |
$ |
255.3 |
(44.6)% |
First-quarter 2016 adjusted EBITDA increased, compared with the first quarter 2015, which primarily reflects:
The following table contains equity-volume information for the periods indicated:
Three Months Ended | |||||
March 31, | |||||
Equity-Volume Information (a) |
2016 |
2015 | |||
NGL sales - including ethane (MBbl/d) |
16.4 |
16.8 |
|||
Condensate sales (MBbl/d) |
2.7 |
3.2 |
|||
Residue natural gas sales (BBtu/d) |
83.8 |
132.9 |
|||
(a) - Includes volumes for consolidated entities only. |
The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, isobutane and natural gasoline only. The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Nine Months Ending December 31, 2016 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.9 |
$ |
0.48 |
/ gallon |
81% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
58.68 |
/ Bbl |
84% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
77.9 |
$ |
2.85 |
/ MMBtu |
90% |
Year Ending December 31, 2017 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
4.1 |
$ |
0.46 |
/ gallon |
34% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.5 |
$ |
43.65 |
/ Bbl |
61% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
73.1 |
$ |
2.66 |
/ MMBtu |
74% |
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of NGLs, crude oil and natural gas as of March 31, 2016, including the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK and ONEOK Partners executive management will conduct a joint conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 4, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-430-8694, pass-code 8944381, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass-code 8944381.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneok.com/~/media/Files/O/OneOK-IR/events-presentation/q1-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release adjusted EBITDA, cash flow available for dividends, free cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. ONEOK cash flow available for dividends, free cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. A reconciliation of cash flow available for dividends and free cash flow to net income is included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of March 31, 2016, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of dividends and distributions, and coverage ratios), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this Quarterly Report identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., May 3, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced first-quarter 2016 financial results.
SUMMARY
FIRST-QUARTER 2016 FINANCIAL HIGHLIGHTS
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
ONEOK Partners |
2016 |
2015 |
Increase | ||||||
(Millions of dollars, except per unit and coverage ratio amounts) | |||||||||
Net income attributable to ONEOK Partners |
$ |
253.5 |
$ |
145.6 |
74.1% | ||||
Net income per limited partner unit |
$ |
0.52 |
$ |
0.21 |
147.6% | ||||
Adjusted EBITDA (a) |
$ |
444.6 |
$ |
324.3 |
37.1% | ||||
DCF (a) |
$ |
347.6 |
$ |
217.2 |
60.0% | ||||
Cash distribution coverage ratio (a) |
1.06 |
0.60 |
|||||||
(a) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA); distributable cash flow (DCF); and cash distribution coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK Partners reported solid first-quarter financial results, as we continue to build on the progress made throughout 2015 despite very challenging industry conditions," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "The partnership's distribution coverage increased to 1.06 times in the first quarter 2016, up from 1.03 times in the previous quarter, as fee-based earnings and volumes increased in our natural gas gathering and processing segment.
"Our natural gas gathering and processing segment's volume growth continued in the first quarter, particularly in the Williston Basin," Spencer continued. "We benefited from increased natural gas processing capacity related to our recently completed 200 million cubic feet per day (MMcf/d) Lonesome Creek plant and additional compression projects. Our Williston Basin processed volumes reached 810 MMcf/d during the quarter as we captured previously flared natural gas and connected new wells. The segment's results also benefited from our contract restructuring efforts, which significantly increased the segment's fee-based earnings.
"Our natural gas liquids segment recorded higher NGL volumes gathered and fractionated in the first quarter 2016, compared with the same period in 2015, driven by increased volumes from recent Williston Basin and Mid-Continent natural gas processing plant connections," continued Spencer. "In addition, we anticipate significant increased ethane recovery to begin in early 2017, as demand for exports increases and new petrochemical facilities begin to come online near market hubs where we're well-positioned to serve this growing demand without additional infrastructure or capital investments required.
"The natural gas pipelines segment's predominantly fee-based earnings mix was further enhanced in the first quarter with the completion of a natural gas compressor station project on Midwestern Gas Transmission in Illinois. This segment continues to deliver consistent fee-based earnings and is well-positioned to expand its fee-based natural gas export capabilities in the future, particularly to Mexico where we have key relationships through our joint venture Roadrunner Gas Transmission pipeline. The first phase of the pipeline was completed in March 2016.
"The partnership's completion of key growth projects, cost reductions, prudent financial decisions, proactive contract restructuring efforts and growing fee-based earnings created additional investor value and resulted in progress towards deleveraging the business and achieving an expected annual GAAP debt-to-EBITDA ratio of 4.2 times or less by late 2016," Spencer concluded.
FIRST-QUARTER 2016 FINANCIAL PERFORMANCE
First-quarter 2016 results increased significantly compared with the first quarter 2015, with adjusted EBITDA up nearly 40 percent and operating income up more than 60 percent. Results were impacted positively by higher NGL volumes gathered and fractionated and higher natural gas volumes gathered and processed, compared with the same period in 2015, as well as increased fee-based earnings in the natural gas gathering and processing segment from contract restructuring.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
ONEOK Partners |
2016 |
2015 |
Increase (Decrease) | ||||||
(Millions of dollars) |
|||||||||
Operating income |
$ |
318.2 |
$ |
196.9 |
61.6% | ||||
Operating costs |
$ |
170.4 |
$ |
178.2 |
(4.4)% | ||||
Depreciation and amortization |
$ |
93.7 |
$ |
85.8 |
9.2% | ||||
Equity in net earnings from investments |
$ |
32.9 |
$ |
30.9 |
6.5% | ||||
Capital expenditures |
$ |
195.9 |
$ |
343.0 |
(42.9)% |
Higher first-quarter 2016 results primarily benefited from:
Operating costs decreased in the first quarter 2016, compared with the same period in 2015, due primarily to a decrease in operating costs in the natural gas liquids segment from lower rates charged by service providers and ongoing cost reduction efforts in all ONEOK Partners business segments.
Equity in net earnings from investments increased in the first quarter 2016, compared with the first quarter 2015, due primarily to higher NGL volumes delivered to the Overland Pass Pipeline from the Bakken NGL Pipeline.
Capital expenditures decreased in the first quarter 2016, compared with the same period in 2015, due to projects placed in service in 2015 and proactive spending reductions to align with customer needs.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the first-quarter conference call is accessible on ONEOK Partners' website, www.oneokpartners.com, or by selecting the links below.
ONEOK PARTNERS HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated during the first quarter 2016. NGLs fractionated increased nearly 16 percent and NGLs transported on gathering lines increased nearly 6 percent in the first quarter 2016, compared with the same period in 2015, primarily due to increased volumes from recent Williston Basin and Mid-Continent natural gas processing plant connections and decreased ethane rejection in the Williston Basin.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
Natural Gas Liquids Segment |
2016 |
2015 |
Increase (Decrease) | ||||||
(Millions of dollars) |
|||||||||
Adjusted EBITDA |
$ |
270.2 |
$ |
192.7 |
40.2% | ||||
Capital expenditures |
$ |
34.2 |
$ |
73.5 |
(53.5)% |
The increase in first-quarter 2016 adjusted EBITDA, compared with the first quarter 2015, primarily reflects:
Natural Gas Pipelines Segment
The natural gas pipelines segment maintains primarily fee-based operations, with continued growth in the Permian Basin as the partnership continues construction of the Roadrunner Gas Transmission Pipeline and the WesTex Transmission Pipeline expansion. The first phase of the Roadrunner project was completed in March and is fully subscribed under 25-year firm fee-based (take-or-pay) commitments.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
Natural Gas Pipelines Segment |
2016 |
2015 |
Increase | ||||||
(Millions of dollars) |
|||||||||
Adjusted EBITDA |
$ |
74.3 |
$ |
70.7 |
5.1% | ||||
Capital expenditures |
$ |
17.9 |
$ |
9.6 |
86.5% |
First-quarter 2016 adjusted EBITDA increased, compared with the first quarter 2015, which primarily reflects:
Capital expenditures increased in the first quarter 2016, compared with the same period in 2015, due primarily to a compressor station expansion project on Midwestern Gas Transmission.
Natural Gas Gathering and Processing Segment
The natural gas gathering and processing segment's first quarter 2016 adjusted EBITDA increased more than 65 percent, compared with the same period in 2015, driven by strong volume growth in the Williston Basin and positive impacts from contract restructuring efforts, despite a lower commodity price environment. The Lonesome Creek plant and related compression projects placed in service in late 2015 provided the capacity to capture previously flared natural gas, and the partnership continued to connect new wells in the core areas of the Williston Basin.
First-quarter 2016 natural gas volumes processed increased nearly 20 percent, and natural gas volumes gathered increased nearly 18 percent, compared with the first quarter 2015.
Successful contract restructuring efforts increased the segment's first-quarter 2016 average fee rate to 68 cents, compared with 35 cents in the same period in 2015. The segment's average fee rate increased 24 percent, compared with the fourth quarter 2015, as new terms under the restructured contracts became effective.
Three Months Ended |
Three Months | ||||||||
March 31, |
2016 vs. 2015 | ||||||||
Natural Gas Gathering and Processing Segment |
2016 |
2015 |
Increase | ||||||
(Millions of dollars) |
|||||||||
Adjusted EBITDA |
$ |
100.0 |
$ |
60.5 |
65.3% | ||||
Capital expenditures |
$ |
141.5 |
$ |
255.3 |
(44.6)% |
First-quarter 2016 adjusted EBITDA increased, compared with the first quarter 2015, which primarily reflects:
The following table contains equity-volume information for the periods indicated:
Three Months Ended | |||||
March 31, | |||||
Equity-Volume Information (a) |
2016 |
2015 | |||
NGL sales - including ethane (MBbl/d) |
16.4 |
16.8 |
|||
Condensate sales (MBbl/d) |
2.7 |
3.2 |
|||
Residue natural gas sales (BBtu/d) |
83.8 |
132.9 |
|||
(a) - Includes volumes for consolidated entities only. |
The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, isobutane and natural gasoline only. The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Nine Months Ending December 31, 2016 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
8.9 |
$ |
0.48 |
/ gallon |
81% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.8 |
$ |
58.68 |
/ Bbl |
84% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
77.9 |
$ |
2.85 |
/ MMBtu |
90% |
Year Ending December 31, 2017 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
4.1 |
$ |
0.46 |
/ gallon |
34% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.5 |
$ |
43.65 |
/ Bbl |
61% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
73.1 |
$ |
2.66 |
/ MMBtu |
74% |
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of NGLs, crude oil and natural gas as of March 31, 2016, including the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK Partners and ONEOK executive management will conduct a joint conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 4, 2016. The call also will be carried live on ONEOK Partners' and ONEOK's websites.
To participate in the telephone conference call, dial 888-430-8694, pass-code 8944381, or log on to www.oneokpartners.com or www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners' website, www.oneokpartners.com, and ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass-code 8944381.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://ir.oneokpartners.com/~/media/Files/O/OneOK-Partners-IR/events-presentation/q1-2016-earnings-presentation.pdf
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK Partners has disclosed in this news release adjusted EBITDA, DCF, distributable cash flow to limited partners per limited partner unit and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership's financial performance and are defined as follows:
The partnership believes the non-GAAP financial measures described above are useful to investors because they are used by many companies in its industry to measure financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA, DCF, distributable cash flow to limited partners and cash distribution coverage ratio per limited partner unit should not be considered alternatives to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for distributions or that is planned to be distributed in a given period, nor do they equate to available cash as defined in the partnership agreement.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of March 31, 2016.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of distributions, and coverage ratio), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part I, Item 1A, Risk Factors, in our most recent Annual Report on form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneokpartners.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., April 21, 2016 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 61.5 cents per share, effective for the first quarter 2016, resulting in an annualized dividend of $2.46 per share. The dividend is payable May 13, 2016, to shareholders of record at the close of business May 2, 2016.
The dividend remains unchanged from the previous quarter and represents an increase of nearly 2 percent compared with the first quarter 2015.
Since becoming the pure-play general partner of ONEOK Partners in February 2014, ONEOK has increased the dividend five times, representing a 54 percent increase during that period.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., April 21, 2016 /PRNewswire/ -- The board of directors of the general partner of ONEOK Partners, L.P. (NYSE: OKS) today declared a quarterly cash distribution of 79 cents per unit, effective for the first quarter 2016, payable May 13, 2016, to unitholders of record as of May 2, 2016.
The distribution remains unchanged from the previous quarter.
ONEOK Partners has increased its distribution by 98 percent since April 2006, when a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE) became the sole general partner.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2015.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
This news release serves as qualified notice to nominees as provided for under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that ONEOK Partners, L.P.'s quarterly cash distributions are treated as partnership distributions for federal income tax purposes and that 100 percent of these distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of ONEOK Partners, L.P.'s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not ONEOK Partners, L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., April 14, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will release their first-quarter 2016 earnings after the market closes on May 3, 2016.
ONEOK's and ONEOK Partners' executive management will participate in a joint conference call the following day at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 4, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-430-8694, pass code 8944381, or log on to www.oneok.com or www.oneokpartners.com.
What: |
ONEOK and ONEOK Partners first-quarter 2016 earnings conference call and webcast |
When: |
11 a.m. Eastern, May 4, 2016 |
10 a.m. Central | |
Where: |
1) Phone conference call: dial 888-430-8694, pass code 8944381 |
2) Log on to the webcast at www.oneok.com | |
3) Log on to the webcast at www.oneokpartners.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 8944381.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., March 9, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced the completion of the first phase of the Roadrunner Gas Transmission pipeline project (Roadrunner) in West Texas.
"The addition of Roadrunner to our extensive natural gas pipeline infrastructure in West Texas positions ONEOK Partners to serve Mexico's rapidly expanding natural gas markets by connecting them with U.S. producers in the Permian Basin," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "This project is a good example of our commitment to grow stable, long-term, fee-based earnings for the partnership."
Roadrunner is a 200-mile pipeline connecting ONEOK Partners' existing WesTex natural gas pipeline system near Coyanosa, Texas, to a new international border-crossing connection at the U.S. and Mexico border near San Elizario, Texas. The project is fully subscribed under 25-year firm fee-based commitments. The completed first phase provides 170 million cubic feet per day (MMcf/d) of capacity to markets in Mexico and El Paso, Texas.
The second phase, which will increase the pipeline's capacity to 570 MMcf/d, currently is under construction and is expected to be completed in the first quarter 2017. The third and final phase of the project is expected to be completed in 2019 and will increase the total capacity on the pipeline to 640 MMcf/d.
The project is a 50-50 joint venture with Mexico City-based natural gas infrastructure company Fermaca and is estimated to cost approximately $430 million to $480 million, a decrease of $20 million from previously announced cost estimates. The reduction in project capital is a result of lower material and labor costs associated with construction.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2015.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions and distribution coverage), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Feb. 29, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate in the Morgan Stanley MLP & Diversified Natural Gas Conference on March 1, 2016, and the Barclays MLP Corporate Access Day on March 2, 2016, in New York City.
Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer; Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president of strategic planning and corporate affairs; and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, will conduct one-on-one meetings with investment-community representatives at the conferences.
The materials used at the conferences will be accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, the morning of March 1, 2016, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time).
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 25, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced that its 2015 tax packages, including the Schedule K-1, will be available online beginning Tuesday, March 1, 2016, and may be accessed through the ONEOK Partners website at www.oneokpartners.com or directly from this link. The partnership's 2015 tax packages are expected to be mailed by Friday, March 4, 2016.
For additional information, unitholders may call the tax package support staff toll free at 800-371-2188.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2015.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Feb. 23, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will hold its 2016 annual meeting of shareholders at 9 a.m. Central Daylight Time on May 25, 2016. The meeting also will be audio webcast on ONEOK's website, www.oneok.com.
The record date for determining shareholders entitled to receive notice of the meeting and to vote is March 28, 2016.
What: |
ONEOK, Inc. 2016 Annual Meeting of Shareholders |
When: |
9 a.m. CDT, May 25, 2016 |
Where: |
ONEOK Plaza, 100 West 5th Street, Tulsa, Oklahoma |
How: |
Log on to the webcast at www.oneok.com |
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 22, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced fourth-quarter and full-year 2015 financial results.
FOURTH-QUARTER AND FULL-YEAR 2015 FINANCIAL HIGHLIGHTS
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars, except per share and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK (a) |
$ |
25.5 |
$ |
94.5 |
$ |
245.0 |
$ |
314.1 |
|||||||
Net income per diluted share (a) |
$ |
0.12 |
$ |
0.45 |
$ |
1.16 |
$ |
1.49 |
|||||||
Distributions declared from OKS |
$ |
197.5 |
$ |
168.5 |
$ |
735.3 |
$ |
633.0 |
|||||||
Cash flow available for dividends (b) |
$ |
166.6 |
$ |
142.2 |
$ |
641.3 |
$ |
620.6 |
|||||||
Dividend coverage ratio (b) |
1.29 |
1.13 |
1.26 |
1.28 |
(a) Amounts include noncash impairment charges at ONEOK Partners of $264.3 million, or 33 cents per diluted share, in the fourth quarter 2015; and $76.4 million, or 9 cents per diluted share, in the third quarter 2014. (b) Cash flow available for dividends and dividend coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK ended 2015 in a strong financial position, benefiting from increased distributions related to our limited and general partner interests in ONEOK Partners," said Terry K. Spencer, president and chief executive officer of ONEOK. "Distributions declared from the partnership increased more than 16 percent in 2015 compared with 2014, driven by ONEOK's purchase of an additional 21.5 million ONEOK Partners units in August 2015.
"Despite a continued challenging environment, we remain confident in the partnership's uniquely positioned assets, its ability to grow natural gas and natural gas liquids (NGL) volumes and its expectation to continue increasing fee-based earnings," said Spencer. "In 2015, ONEOK Partners took important steps to reduce commodity risk through initiatives such as contract restructuring in the Williston Basin and the completion of strategic capital-growth projects that will provide primarily fee-based earnings.
"We expect to achieve our 2016 financial guidance, including our expectation to maintain dividend coverage of approximately 1.3 times and to have approximately $250 million of free cash flow after dividends and cash on hand available to support ONEOK Partners if needed," added Spencer.
FOURTH-QUARTER AND FULL-YEAR 2015 FINANCIAL PERFORMANCE
Fourth-quarter and full-year 2015 results were impacted positively by higher volumes and increased fee-based earnings at ONEOK Partners (NYSE: OKS). NGL volumes gathered and fractionated and natural gas volumes gathered and processed increased, compared with 2014 results, and fee-based earnings increased in the natural gas gathering and processing segment as a result of successful contract restructuring efforts.
Unplanned outages related to ice storms in the Mid-Continent resulted in an approximately $4 million negative impact in the fourth quarter 2015 and sustained low commodity prices continued to impact the partnership throughout the year.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
242.0 |
$ |
306.8 |
$ |
996.2 |
$ |
1,143.6 |
|||||||
Operating costs |
$ |
184.8 |
$ |
181.3 |
$ |
693.3 |
$ |
674.9 |
|||||||
Depreciation and amortization |
$ |
93.4 |
$ |
80.6 |
$ |
354.6 |
$ |
294.7 |
|||||||
Impairment of long-lived assets |
$ |
(83.7) |
$ |
— |
$ |
(83.7) |
$ |
— |
|||||||
Equity in net earnings from investments |
$ |
32.1 |
$ |
34.3 |
$ |
125.3 |
$ |
117.4 |
|||||||
Impairment of equity investments |
$ |
(180.6) |
$ |
— |
$ |
(180.6) |
$ |
(76.4) |
|||||||
Capital expenditures |
$ |
258.0 |
$ |
574.8 |
$ |
1,188.3 |
$ |
1,779.2 |
Fourth-quarter and full-year 2015 operating income reflect:
Operating costs increased for the fourth-quarter and full-year 2015 periods compared with the same periods in 2014 due primarily to completed capital-growth projects and acquisitions in the partnership's natural gas gathering and processing and natural gas liquids segments.
Depreciation and amortization increased in the fourth-quarter and full-year 2015, compared with 2014, due to the growth of operations related to completed capital-growth projects and acquisitions.
Equity in net earnings from investments increased for the full-year 2015, compared with 2014, due primarily to higher NGL volumes delivered to the Overland Pass Pipeline from the Bakken NGL Pipeline in 2015.
ONEOK's future cash payments associated with the released natural gas transportation and storage capacity from the former energy services segment are expected to total approximately $37 million, which consists of approximately $19 million in 2016; $10 million in 2017; $4 million in 2018; and $4 million over the period 2019 through 2023.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the fourth-quarter and full-year 2015 conference call is accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, or by selecting the links below.
ONEOK AND ONEOK PARTNERS HIGHLIGHTS:
ONEOK:
ONEOK Partners:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated during the fourth quarter and full-year 2015. NGLs transported on gathering lines increased more than 30 percent in the fourth quarter 2015 and nearly 44 percent for the full-year 2015, compared with the same periods in 2014, primarily due to increased Permian Basin volumes transported on the West Texas LPG pipeline system and increased volumes from eight new natural gas processing plants connected to ONEOK Partners' system in 2015, including the fourth-quarter completion of Lonesome Creek. NGLs fractionated increased approximately 8 and 6 percent in the fourth-quarter and full-year 2015 periods, respectively, compared with the same periods in 2014.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Liquids Segment |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
217.7 |
$ |
179.5 |
$ |
767.3 |
$ |
689.0 |
|||||||
Operating costs |
$ |
80.4 |
$ |
78.2 |
$ |
314.5 |
$ |
296.4 |
|||||||
Depreciation and amortization |
$ |
40.7 |
$ |
34.3 |
$ |
158.7 |
$ |
124.1 |
|||||||
Impairment of long-lived assets |
$ |
(10.0) |
$ |
— |
$ |
(10.0) |
$ |
— |
|||||||
Equity in net earnings from investments |
$ |
11.1 |
$ |
13.7 |
$ |
38.7 |
$ |
27.3 |
The increase in fourth-quarter 2015 operating income, compared with the fourth quarter 2014, primarily reflects:
The increase in operating income for the full-year 2015, compared with 2014, primarily reflects:
Operating costs increased in the fourth-quarter and full-year 2015 periods, compared with 2014, due primarily to a $29.2 million increase from the West Texas LPG pipeline system acquisition.
Depreciation and amortization expense increased in the fourth-quarter and full-year 2015 periods, compared with the same periods in 2014, due to completed capital-growth projects and acquisitions.
Equity in net earnings from investments decreased slightly in the fourth-quarter 2015 compared with the fourth quarter 2014 due to the timing of minimum volume commitment payments on the Overland Pass Pipeline in 2014. Full-year 2015 equity in net earnings from investments increased, compared with 2014, due primarily to higher volumes delivered to the Overland Pass Pipeline from the Bakken NGL Pipeline.
Natural Gas Pipelines Segment
The natural gas pipelines segment maintains primarily fee-based operations, with continued growth in the Permian Basin as the partnership continues construction of the Roadrunner Gas Transmission Pipeline joint venture and the WesTex Transmission Pipeline expansion. The first phase of the Roadrunner Gas Transmission Pipeline is expected to be complete in the first quarter 2016 and is fully subscribed under 25-year firm fee-based (take-or-pay) commitments.
The segment expects its earnings to remain more than 95 percent fee-based in 2016, with approximately 92 percent of its transportation capacity and 76 percent of its natural gas storage capacity expected to be contracted for the year.
Variances in financial performance between 2015 results and 2014 results were primarily a reflection of significantly higher weather-related seasonal demand resulting in higher natural gas prices during the first quarter 2014.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Pipelines Segment |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
46.1 |
$ |
52.3 |
$ |
153.0 |
$ |
181.0 |
|||||||
Operating costs |
$ |
26.7 |
$ |
28.2 |
$ |
105.7 |
$ |
111.0 |
|||||||
Depreciation and amortization |
$ |
11.0 |
$ |
10.7 |
$ |
43.5 |
$ |
43.3 |
|||||||
Equity in net earnings from investments |
$ |
16.6 |
$ |
16.1 |
$ |
68.7 |
$ |
69.8 |
Fourth-quarter 2015 operating income decreased, compared with the fourth quarter 2014, which primarily reflects:
The decrease in operating income for the full-year 2015, compared with 2014, primarily reflects:
Operating costs decreased for the fourth-quarter and full-year 2015 periods, compared with 2014, primarily as a result of lower costs for materials, supplies and outside services.
Natural Gas Gathering and Processing Segment
Completed capital-growth projects in the Williston Basin continue to drive volume growth in the natural gas gathering and processing segment. Full-year 2015 natural gas volumes gathered increased nearly 12 percent, and natural gas volumes processed increased approximately 10 percent, compared with 2014. Fourth-quarter natural gas volumes gathered and processed increased approximately 8 and 4 percent, respectively, compared with the fourth quarter 2014.
Due to successful contract restructuring efforts, the segment's fourth-quarter 2015 average fee rate increased to 55 cents, a more than 50 percent increase compared with the same period in 2014. Additionally, nearly 80 percent of the operating income impact realized in the fourth quarter from lower commodity prices was offset by higher average fee rates.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
(21.7) |
$ |
71.7 |
$ |
78.2 |
$ |
280.6 |
|||||||
Operating costs |
$ |
78.5 |
$ |
69.2 |
$ |
272.4 |
$ |
257.7 |
|||||||
Depreciation and amortization |
$ |
41.0 |
$ |
34.2 |
$ |
150.0 |
$ |
123.8 |
|||||||
Impairment of long-lived assets |
$ |
(73.7) |
$ |
— |
$ |
(73.7) |
$ |
— |
|||||||
Equity in net earnings from investments |
$ |
4.4 |
$ |
4.4 |
$ |
17.9 |
$ |
20.3 |
|||||||
Impairment of equity investments |
$ |
(180.6) |
$ |
— |
$ |
(180.6) |
$ |
(76.4) |
Fourth-quarter 2015 operating income decreased, compared with the fourth quarter 2014, which primarily reflects:
Operating income for the full-year 2015 decreased, compared with 2014, which primarily reflects:
Operating costs and depreciation and amortization expense increased in the fourth-quarter and full-year 2015 periods, compared with the same periods in 2014, due primarily to completed capital-growth projects.
Equity in net earnings from investments decreased in 2015, compared with 2014, due to a $180.6 million noncash impairment charge in the fourth quarter 2015 related to ONEOK Partners' equity investments primarily in the dry natural gas area of the Powder River Basin. In 2014, the segment recorded a $76.4 million noncash impairment charge related to an investment in the same area.
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Years Ended | ||||||||||
December 31, |
December 31, | ||||||||||
Equity-Volume Information (a) |
2015 |
2014 |
2015 |
2014 | |||||||
NGL sales (MBbl/d) |
20.5 |
16.2 |
20.9 |
16.5 |
|||||||
Condensate sales (MBbl/d) |
2.4 |
3.2 |
2.8 |
3.1 |
|||||||
Residue natural gas sales (BBtu/d) |
120.3 |
143.9 |
136.2 |
118.2 |
|||||||
(a) - Includes volumes for consolidated entities only. |
Although the partnership's business is predominately fee based, the natural gas gathering and processing segment is exposed to commodity price risk as a result of percent-of-proceeds (POP) with fee contracts, where the segment receives commodities, or equity volumes, as a portion of its compensation for services. In 2015, the partnership restructured a portion of its POP with fee contracts to include significantly higher fees, which it expects will reduce equity volumes and the related commodity price exposure.
The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, iso-butane and natural gasoline only. The ethane component of the natural gas gathering and processing segment's equity NGL volume is not expected to significantly impact the results of operations.
The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Year Ending December 31, 2016 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
7.9 |
$ |
0.48 |
/ gallon |
80% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.7 |
$ |
59.24 |
/ Bbl |
57% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
74.1 |
$ |
2.96 |
/ MMBtu |
83% |
Year Ending December 31, 2017 | |||||||||
Volumes |
Average Price |
Percentage | |||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
1.0 |
$ |
0.40 |
/ gallon |
9% | ||||
Condensate (MBbl/d) - WTI-NYMEX |
1.5 |
$ |
43.65 |
/ Bbl |
49% | ||||
Natural gas (BBtu/d) - NYMEX and basis |
50.6 |
$ |
2.62 |
/ MMBtu |
48% |
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of natural gas, NGLs and crude oil as of Dec. 31, 2015, excluding the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities, including the effects of hedging and assuming normal operating conditions, for the year ending Dec. 31, 2016:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK and ONEOK Partners executive management will conduct a joint conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Tuesday, Feb. 23, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-503-8169, pass-code 7469339, or log on to www.oneok.com or www.oneokpartners.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass-code 7469339.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Tables:
http://www.oneok.com/~/media/ONEOK/EarningsTables/2015/OKE_Q4_2015_earnings_58MSD4Z2.ashx
Presentation:
http://www.oneok.com/~/media/ONEOK/EarningsTables/2015/OKE_Q42015_EarningsPresentation_YnF87s2.ashx
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:
ONEOK has disclosed in this news release cash flow available for dividends, free cash flow and dividend coverage ratio, which are non-GAAP financial metrics, used to measure the company's financial performance and are defined as follows:
These non-GAAP financial measures described above are useful to investors because they are used by many companies in the industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other companies within our industry. ONEOK cash flow available for dividends, free cash flow and dividend coverage ratio should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. A reconciliation of cash flow available for dividends and free cash flow to net income is included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Dec. 31, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of dividends and distributions, and coverage ratios), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this Quarterly Report identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneok.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste 918-588-7167 |
Media Contact: |
Stephanie Higgins 918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Feb. 22, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced fourth-quarter and full-year 2015 financial results.
FOURTH-QUARTER AND FULL-YEAR 2015 FINANCIAL HIGHLIGHTS
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK Partners |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars, except per unit and coverage ratio amounts) | |||||||||||||||
Net income attributable to ONEOK Partners (a) |
$ |
7.2 |
$ |
263.2 |
$ |
589.5 |
$ |
910.3 |
|||||||
Net income (loss) per limited partner unit (a) |
$ |
(0.33) |
$ |
0.67 |
$ |
0.73 |
$ |
2.33 |
|||||||
Adjusted EBITDA (b) |
$ |
450.2 |
$ |
415.5 |
$ |
1,565.5 |
$ |
1,558.6 |
|||||||
DCF (b) |
$ |
339.8 |
$ |
306.0 |
$ |
1,136.7 |
$ |
1,169.5 |
|||||||
Cash distribution coverage ratio (b) |
1.03 |
1.06 |
0.86 |
1.10 |
(a) Amounts include noncash impairment charges of $264.3 million, or 91 cents per unit, in the fourth quarter 2015; and $76.4 million, or 31 cents per unit, in the third quarter 2014. (b) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA); distributable cash flow (DCF); and cash distribution coverage ratio are non-GAAP measures. Reconciliations to relevant GAAP measures are attached to this news release. |
"ONEOK Partners' uniquely positioned assets continue to capture natural gas and natural gas liquids (NGL) volume growth across our integrated businesses, helping us to achieve higher adjusted EBITDA in the fourth quarter and full-year 2015," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "Our 2015 adjusted EBITDA slightly increased compared with 2014 and has increased 24 percent since 2013. We also were able to deliver distribution coverage of greater than 1.0 times in the fourth quarter 2015.
"Our natural gas liquids segment finished the year with NGL volumes gathered increasing 44 percent, compared with 2014, and our natural gas pipelines segment continues to deliver consistent fee-based earnings," continued Spencer. "The natural gas gathering and processing segment achieved its highest volumes ever in the fourth quarter, led by our position in the Williston Basin, and realized significant success related to contract restructuring in the region. Our average fourth-quarter fee rate in the segment increased more than 50 percent compared with the fourth quarter 2014.
"Lower commodity prices have created challenges and we have responded by reducing risk in our business and by driving cost savings and capital-spending reductions across our operations," added Spencer. "Reduced costs from service providers due to market conditions in 2015 also contributed to decreased operating costs and maintenance capital expenditures for the year.
"Contract restructuring in the Williston Basin and strategic capital-growth projects in our fee-based natural gas pipelines segment are prime examples of how we're working to reduce commodity risk in our business," said Spencer.
"We expect to achieve our 2016 financial guidance expectations," added Spencer. "The partnership's proactive approach to securing financial liquidity, reducing capital expenditures and increasing fee-based earnings, and continued volume growth from completed growth projects and acquisitions have positioned us well for 2016."
FOURTH-QUARTER AND FULL-YEAR 2015 FINANCIAL PERFORMANCE
Fourth-quarter and full-year 2015 results were impacted positively by higher NGL volumes gathered and fractionated and higher natural gas volumes gathered and processed, compared with 2014 results, as well as increased fee-based earnings in the natural gas gathering and processing segment from successful contract restructuring efforts.
Unplanned outages related to ice storms in the Mid-Continent resulted in an approximately $4 million negative impact in the fourth quarter 2015 and sustained low commodity prices continued to impact the partnership throughout the year.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
ONEOK Partners |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
241.9 |
$ |
300.9 |
$ |
998.1 |
$ |
1,148.8 |
|||||||
Operating costs |
$ |
185.3 |
$ |
188.0 |
$ |
692.2 |
$ |
669.7 |
|||||||
Depreciation and amortization |
$ |
92.6 |
$ |
79.2 |
352.2 |
$ |
291.2 |
||||||||
Impairment of long-lived assets |
$ |
(83.7) |
— |
$ |
(83.7) |
— |
|||||||||
Equity in net earnings from investments |
$ |
32.1 |
$ |
34.3 |
125.3 |
$ |
117.4 |
||||||||
Impairment of equity investments |
$ |
(180.6) |
— |
$ |
(180.6) |
$ |
(76.4) |
||||||||
Capital expenditures |
$ |
257.2 |
$ |
573.0 |
$ |
1,186.1 |
$ |
1,746.0 |
Fourth-quarter and full-year 2015 operating income reflect:
Operating costs decreased in the fourth quarter 2015, compared with the same period in 2014, due primarily to lower materials, supplies and outside services expenses related to weaker market conditions in 2015. Operating costs increased for the full-year 2015 compared with 2014 due primarily to completed capital-growth projects and acquisitions in the partnership's natural gas gathering and processing and natural gas liquids segments.
Depreciation and amortization increased in the fourth-quarter and full-year 2015, compared with 2014, due to the growth of operations related to completed capital-growth projects and acquisitions.
Equity in net earnings from investments increased for the full-year 2015, compared with 2014, due primarily to higher NGL volumes delivered to the Overland Pass Pipeline from the Bakken NGL Pipeline in 2015.
EARNINGS PRESENTATION AND KEY STATISTICS:
Additional financial and operating information that will be discussed on the fourth-quarter and full-year 2015 conference call is accessible on ONEOK Partners' website, www.oneokpartners.com, or by selecting the links below.
ONEOK PARTNERS HIGHLIGHTS:
BUSINESS-SEGMENT RESULTS:
Key financial and operating statistics are listed in the tables.
Natural Gas Liquids Segment
The natural gas liquids segment benefited from volume growth of NGLs gathered and fractionated during the fourth quarter and full-year 2015. NGLs transported on gathering lines increased more than 30 percent in the fourth quarter 2015 and nearly 44 percent for the full-year 2015, compared with the same periods in 2014, primarily due to increased Permian Basin volumes transported on the West Texas LPG pipeline system and increased volumes from eight new natural gas processing plants connected to ONEOK Partners' system in 2015, including the fourth-quarter completion of Lonesome Creek. NGLs fractionated increased approximately 8 and 6 percent in the fourth-quarter and full-year 2015 periods, respectively, compared with the same periods in 2014.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Liquids Segment |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
217.7 |
$ |
179.5 |
$ |
767.3 |
$ |
689.0 |
|||||||
Operating costs |
$ |
80.4 |
$ |
78.2 |
$ |
314.5 |
$ |
296.4 |
|||||||
Depreciation and amortization |
$ |
40.7 |
$ |
34.3 |
$ |
158.7 |
$ |
124.1 |
|||||||
Impairment of long-lived assets |
$ |
(10.0) |
$ |
— |
$ |
(10.0) |
$ |
— |
|||||||
Equity in net earnings from investments |
$ |
11.1 |
$ |
13.7 |
$ |
38.7 |
$ |
27.3 |
The increase in fourth-quarter 2015 operating income, compared with the fourth quarter 2014, primarily reflects:
The increase in operating income for the full-year 2015, compared with 2014, primarily reflects:
Operating costs increased in the fourth-quarter and full-year 2015 periods, compared with 2014, due primarily to a $29.2 million increase from the West Texas LPG pipeline system acquisition.
Depreciation and amortization expense increased in the fourth-quarter and full-year 2015 periods, compared with the same periods in 2014, due to completed capital-growth projects and acquisitions.
Equity in net earnings from investments decreased slightly in the fourth-quarter 2015 compared with the fourth quarter 2014 due to the timing of minimum volume commitment payments on the Overland Pass Pipeline in 2014. Full-year 2015 equity in net earnings from investments increased, compared with 2014, due primarily to higher volumes delivered to the Overland Pass Pipeline from the Bakken NGL Pipeline.
Natural Gas Pipelines Segment
The natural gas pipelines segment maintains primarily fee-based operations, with continued growth in the Permian Basin as the partnership continues construction of the Roadrunner Gas Transmission Pipeline joint venture and the WesTex Transmission Pipeline expansion. The first phase of the Roadrunner Gas Transmission Pipeline is expected to be complete in the first quarter 2016 and is fully subscribed under 25-year firm fee-based (take-or-pay) commitments.
The segment expects its earnings to remain more than 95 percent fee-based in 2016, with approximately 92 percent of its transportation capacity and 76 percent of its natural gas storage capacity expected to be contracted for the year.
Variances in financial performance between 2015 results and 2014 results were primarily a reflection of significantly higher weather-related seasonal demand resulting in higher natural gas prices during the first quarter 2014.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Pipelines Segment |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
46.1 |
$ |
52.3 |
$ |
153.0 |
$ |
181.0 |
|||||||
Operating costs |
$ |
26.7 |
$ |
28.2 |
$ |
105.7 |
$ |
111.0 |
|||||||
Depreciation and amortization |
$ |
11.0 |
$ |
10.7 |
$ |
43.5 |
$ |
43.3 |
|||||||
Equity in net earnings from investments |
$ |
16.6 |
$ |
16.1 |
$ |
68.7 |
$ |
69.8 |
Fourth-quarter 2015 operating income decreased, compared with the fourth quarter 2014, which primarily reflects:
The decrease in operating income for the full-year 2015, compared with 2014, primarily reflects:
Operating costs decreased for the fourth-quarter and full-year 2015 periods, compared with 2014, primarily as a result of lower costs for materials, supplies and outside services.
Natural Gas Gathering and Processing Segment
Completed capital-growth projects in the Williston Basin continue to drive volume growth in the natural gas gathering and processing segment. Full-year 2015 natural gas volumes gathered increased nearly 12 percent, and natural gas volumes processed increased approximately 10 percent, compared with 2014. Fourth-quarter natural gas volumes gathered and processed increased approximately 8 and 4 percent, respectively, compared with the fourth quarter 2014.
Due to successful contract restructuring efforts, the segment's fourth-quarter 2015 average fee rate increased to 55 cents, a more than 50 percent increase compared with the same period in 2014. Additionally, nearly 80 percent of the operating income impact realized in the fourth quarter from lower commodity prices was offset by higher average fee rates.
Three Months Ended |
Years Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
Natural Gas Gathering and Processing Segment |
2015 |
2014 |
2015 |
2014 | |||||||||||
(Millions of dollars) | |||||||||||||||
Operating income |
$ |
(21.7) |
$ |
71.7 |
$ |
78.2 |
$ |
280.6 |
|||||||
Operating costs |
$ |
78.5 |
$ |
69.2 |
$ |
272.4 |
$ |
257.7 |
|||||||
Depreciation and amortization |
$ |
41.0 |
$ |
34.2 |
$ |
150.0 |
$ |
123.8 |
|||||||
Impairment of long-lived assets |
$ |
(73.7) |
$ |
— |
$ |
(73.7) |
$ |
— |
|||||||
Equity in net earnings from investments |
$ |
4.4 |
$ |
4.4 |
$ |
17.9 |
$ |
20.3 |
|||||||
Impairment of equity investments |
$ |
(180.6) |
$ |
— |
$ |
(180.6) |
$ |
(76.4) |
Fourth-quarter 2015 operating income decreased, compared with the fourth quarter 2014, which primarily reflects:
Operating income for the full-year 2015 decreased, compared with 2014, which primarily reflects:
Operating costs and depreciation and amortization expense increased in the fourth-quarter and full-year 2015 periods, compared with the same periods in 2014, due primarily to completed capital-growth projects.
Equity in net earnings from investments decreased in 2015, compared with 2014, due to a $180.6 million noncash impairment charge in the fourth quarter 2015 related to ONEOK Partners' equity investments primarily in the dry natural gas area of the Powder River Basin. In 2014, the segment recorded a $76.4 million noncash impairment charge related to an investment in the same area.
The following table contains equity-volume information for the periods indicated:
Three Months Ended |
Years Ended | ||||||||||
December 31, |
December 31, | ||||||||||
Equity-Volume Information (a) |
2015 |
2014 |
2015 |
2014 | |||||||
NGL sales (MBbl/d) |
20.5 |
16.2 |
20.9 |
16.5 |
|||||||
Condensate sales (MBbl/d) |
2.4 |
3.2 |
2.8 |
3.1 |
|||||||
Residue natural gas sales (BBtu/d) |
120.3 |
143.9 |
136.2 |
118.2 |
|||||||
(a) - Includes volumes for consolidated entities only. |
Although the partnership's business is predominately fee based, the natural gas gathering and processing segment is exposed to commodity price risk as a result of percent-of-proceeds (POP) with fee contracts, where the segment receives commodities, or equity volumes, as a portion of its compensation for services. In 2015, the partnership restructured a portion of its POP with fee contracts to include significantly higher fees, which it expects will reduce equity volumes and the related commodity price exposure.
The partnership executes hedges to reduce its commodity price risk. NGLs hedged reflect propane, normal butane, iso-butane and natural gasoline only. The ethane component of the natural gas gathering and processing segment's equity NGL volume is not expected to significantly impact the results of operations.
The following tables set forth hedging information for the natural gas gathering and processing segment's forecasted equity volumes for the periods indicated:
Year Ending December 31, 2016 | |||||||
Volumes |
Average Price |
Percentage | |||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
7.9 |
$ |
0.48 |
/ gallon |
80% | ||
Condensate (MBbl/d) - WTI-NYMEX |
1.7 |
$ |
59.24 |
/ Bbl |
57% | ||
Natural gas (BBtu/d) - NYMEX and basis |
74.1 |
$ |
2.96 |
/ MMBtu |
83% | ||
Year Ending December 31, 2017 | |||||||
Volumes |
Average Price |
Percentage | |||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu |
1.0 |
$ |
0.40 |
/ gallon |
9% | ||
Condensate (MBbl/d) - WTI-NYMEX |
1.5 |
$ |
43.65 |
/ Bbl |
49% | ||
Natural gas (BBtu/d) - NYMEX and basis |
50.6 |
$ |
2.62 |
/ MMBtu |
48% |
All of the natural gas gathering and processing segment's commodity price sensitivities are estimated as a hypothetical change in the price of natural gas, NGLs and crude oil as of Dec. 31, 2015, excluding the effects of hedging and assuming normal operating conditions. Condensate sales are based on the price of crude oil.
The natural gas gathering and processing segment estimates the following sensitivities, including the effects of hedging and assuming normal operating conditions, for the year ending Dec. 31, 2016:
These estimates do not include any effects on demand for ONEOK Partners' services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes. For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream affecting natural gas gathering and processing earnings for certain contracts.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK Partners and ONEOK executive management will conduct a joint conference call at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Tuesday, Feb. 23, 2016. The call also will be carried live on ONEOK Partners' and ONEOK's websites.
To participate in the telephone conference call, dial 888-503-8169, pass-code 7469339, or log on to www.oneokpartners.com or www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners' website, www.oneokpartners.com, and ONEOK's website, www.oneok.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass-code 7469339.
LINKS TO EARNINGS TABLES AND PRESENTATION:
Presentation:
http://www.oneokpartners.com/~/media/ONEOKPartners/EarningsTables/2015/OKS_Q4_2015_EarningsPresentation_KD93d73.ashx
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK Partners has disclosed in this news release adjusted EBITDA, DCF, distributable cash flow to limited partners per limited partner unit and cash distribution coverage ratio, which are non-GAAP financial metrics, used to measure the partnership's financial performance and are defined as follows:
The partnership believes the non-GAAP financial measures described above are useful to investors because they are used by many companies in its industry to measure financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA, DCF, distributable cash flow to limited partners and cash distribution coverage ratio per limited partner unit should not be considered alternatives to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP.
These non-GAAP financial measures exclude some, but not all, items that affect net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies. Furthermore, these non-GAAP measures should not be viewed as indicative of the actual amount of cash that is available for distributions or that is planned to be distributed in a given period, nor do they equate to available cash as defined in the partnership agreement.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2015.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of distributions, and coverage ratio), liquidity, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part I, Item 1A, Risk Factors, in our most recent Annual Report on form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov and our website at www.oneokpartners.com. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste 918-588-7167 |
Media Contact: |
Brad Borror 918-588-7582 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Jan. 27, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will release their fourth-quarter and year-end 2015 earnings after the market closes on Feb. 22, 2016.
ONEOK's and ONEOK Partners' executive management will participate in a joint conference call the following day at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time) on Feb. 23, 2016. The call also will be carried live on ONEOK's and ONEOK Partners' websites.
To participate in the telephone conference call, dial 888-503-8169, pass code 7469339, or log on to www.oneok.com or www.oneokpartners.com.
What: |
ONEOK and ONEOK Partners fourth-quarter and year-end 2015 earnings conference call and webcast |
When: |
11 a.m. Eastern, Feb. 23, 2016 |
10 a.m. Central | |
Where: |
1) Phone conference call dial 888-503-8169, pass code 7469339 |
2) Log on to the webcast at www.oneok.com | |
3) Log on to the webcast at www.oneokpartners.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, and ONEOK Partners' website, www.oneokpartners.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 7469339.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., Jan. 25, 2016 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE: OKS) will participate in the U.S. Capital Advisors Midstream Corporate Access Day on Tuesday, Jan. 26, 2016, in Houston, Texas.
Terry K. Spencer, ONEOK and ONEOK Partners president and chief executive officer; Walter S. Hulse III, ONEOK and ONEOK Partners executive vice president, strategic planning and corporate affairs; and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be accessible on the ONEOK and ONEOK Partners websites, www.oneok.com and www.oneokpartners.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Tuesday, Jan. 26, 2016.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For more information, visit the websites at www.oneok.com or www.oneokpartners.com.
For the latest news about ONEOK and ONEOK Partners, follow us on Twitter @ONEOKNews and @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.; ONEOK Partners, L.P.
TULSA, Okla., Jan. 21, 2016 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) today declared a quarterly dividend of 61.5 cents per share, effective for the fourth quarter 2015, resulting in an annualized dividend of $2.46 per share. The dividend is payable Feb. 12, 2016, to shareholders of record at the close of business Feb. 1, 2016.
The dividend remains unchanged from the previous quarter and represents an increase of nearly 2 percent compared with the fourth quarter 2014.
"In line with our recently announced financial guidance, we're sustaining ONEOK's current dividend and underscoring our expectation to continue to do so throughout 2016," said Terry K. Spencer, president and chief executive officer of ONEOK. "Despite a challenging environment, we expect to maintain substantial excess dividend coverage in 2016 and remain in a position to provide value to shareholders while continuing to make prudent financial decisions."
Since becoming the pure-play general partner of ONEOK Partners in February 2014, ONEOK has increased the dividend five times, representing a 54 percent increase during that period.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual dividends and dividend coverage), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK, Inc.
TULSA, Okla., Jan. 21, 2016 /PRNewswire/ -- The board of directors of the general partner of ONEOK Partners, L.P. (NYSE: OKS) today declared a quarterly cash distribution of 79 cents per unit, effective for the fourth quarter 2015, payable Feb. 12, 2016, to unitholders of record as of Feb. 1, 2016.
The distribution remains unchanged from the previous quarter.
"ONEOK Partners' board of directors and management team expects to report distribution coverage of greater than 1.0 times in the fourth quarter 2015," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "Even in this challenging commodity price environment, our integrated business model continues to deliver strong performance, and therefore, we're maintaining the partnership's current distribution of 79 cents per unit."
ONEOK Partners has increased its distribution by 98 percent since April 2006, when a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE) became the sole general partner.
-------------------------------------------------------------------------------------------------------------------
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Sept. 30, 2015.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions and distribution coverage), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
This news release serves as qualified notice to nominees as provided for under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that ONEOK Partners, L.P.'s quarterly cash distributions are treated as partnership distributions for federal income tax purposes and that 100 percent of these distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of ONEOK Partners, L.P.'s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not ONEOK Partners, L.P., are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Jan. 19, 2016 /PRNewswire/ -- The board of directors of ONE Gas, Inc. (NYSE: OGS) today increased the quarterly dividend by 5 cents per share to 35 cents per share, effective for the first quarter 2016, resulting in an annualized dividend of $1.40 per share.
The dividend is payable Mar. 11, 2016, to shareholders of record at the close of business Feb. 26, 2016.
The company expects an average annual dividend increase of 8 to 10 percent between 2015 and 2020, with a target dividend payout ratio of 55 percent to 65 percent of net income, all subject to its board of directors' approval.
ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On January 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.
ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and the third largest in Texas, in terms of customers.
Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.
For more information, visit the website at http://www.ONEGas.com.
Analyst Contact: |
Andrew Ziola |
918-947-7163 | |
Media Contact: |
Jennifer Rector |
918-947-7571 |
SOURCE ONE Gas, Inc.
TULSA, Okla., Jan. 19, 2016 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced that its 2016 net income is expected to be in the range of $127 million to $137 million, or approximately $2.40 to $2.60 per diluted share. The midpoint for ONE Gas' 2016 net income guidance is $132 million, or $2.50 per diluted share.
ONE Gas expects 2015 net income to be in the range of $118 million to $120 million due primarily to lower operating expenses. The previous guidance range of $113 million to $118 million was provided on Oct. 28, 2015.
ONE Gas' 2016 earnings guidance primarily reflects the benefit of new rates and residential customer growth in Texas and Oklahoma. These benefits are offset partially by higher employee-related costs and higher depreciation expense due to capital investments.
Capital expenditures are expected to be $305 million in 2016. More than 70 percent of these expenditures are targeted for system integrity and replacement projects.
Guidance estimates may be impacted by the variables listed in the forward-looking statements below. Additional information is available in the guidance table on the ONE Gas website.
FIVE-YEAR GROWTH FORECAST UPDATED
ONE Gas expects net income and earnings per share to increase by an average of 5 to 8 percent annually between 2015 and 2020. ONE Gas' rate base is expected to grow an average of approximately 5 percent per year between 2015 and 2020. The impact of bonus depreciation from the recently enacted federal legislation has been reflected in this guidance.
Capital expenditures are expected to be in the range of $305 million to $325 million per year between 2016 and 2020.
ONE Gas is increasing its expected average annual dividend growth rate to 8 to 10 percent between 2015 and 2020, compared with the previous estimated range of 6 to 8 percent between 2014 and 2019, with a target dividend payout ratio of 55 to 65 percent of net income, all subject to its board of directors' approval.
LINK TO GUIDANCE TABLE
http://www.onegas.com/~/media/OGS/Guidance/2016/OGS2016Guidance_Ll23$3Pfm.ashx
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES
ONE Gas has disclosed in the guidance table cash flow from operations before changes in working capital, which is a non-GAAP financial measure. Cash flow from operations before changes in working capital is used as a measure of the company's financial performance. Cash flow from operations before changes in working capital is defined as net income adjusted for depreciation and amortization, deferred income taxes and certain other noncash items.
The non-GAAP financial measure described above is useful to investors as an indicator of financial performance of the company's investments to generate cash flows sufficient to support our capital expenditure programs and pay dividends to our investors. ONE Gas cash flow from operations before changes in working capital should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
This non-GAAP financial measure excludes some, but not all, items that affect net income. Additionally, this calculation may not be comparable with similarly titled measures of other companies. A reconciliation of cash flow from operations before changes in working capital is included in the guidance table.
ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On Jan. 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.
ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and the third largest in Texas, in terms of customers.
Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.
For more information, visit the website at http://www.ONEGas.com. For the latest news about ONE Gas, follow us on Twitter @ONEGasInc.
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
Andrew Ziola |
918-947-7163 | |
Media Contact: |
Jennifer Rector |
918-947-7571 |
SOURCE ONE Gas, Inc.
TULSA, Okla., Jan. 14, 2016 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) will release its fourth-quarter and year-end 2015 earnings after the market closes on Wed., Feb. 17, 2016.
The ONE Gas executive management team will participate in a conference call the following day, Thurs., Feb. 18, 2016, at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time).
The call also will be carried live on the ONE Gas website.
What: |
ONE Gas fourth-quarter and year-end 2015 earnings conference call and webcast |
When: |
11 a.m. Eastern, Feb. 18, 2016 |
10 a.m. Central | |
Where: |
1) Phone conference call dial 888-334-3001, pass code 9604001 |
2) Log on to the webcast at www.onegas.com |
If you are unable to participate in the conference call or the webcast, the replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 9604001.
2016 Earnings News Release, Conference Call and Webcast Schedules
Additionally, conference calls and webcasts for the first, second and third quarters of 2016 also have been scheduled.
Each quarterly earnings news release will be issued following the close of market on the date indicated.
Each quarterly conference call and webcast will take place at 11 a.m. Eastern Time (10 a.m. Central Time) on the date indicated. Conference call dial-in information will be provided at a later date.
ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On January 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.
ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and the third largest in Texas, in terms of customers.
Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.
For more information, visit the website at http://www.ONEGas.com.
Analyst Contact: |
Andrew Ziola |
918-947-7163 | |
Media Contact: |
Jennifer Rector |
918-947-7571 |
SOURCE ONE Gas, Inc.
TULSA, Okla., Jan. 11, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) will participate in the UBS MLP One-on-One Conference Jan. 12-13, 2016, in Park City, Utah.
Terry K. Spencer, ONEOK Partners president and chief executive officer; Walter S. Hulse III, ONEOK Partners executive vice president, strategic planning and corporate affairs; and Derek S. Reiners, ONEOK and ONEOK Partners senior vice president, chief financial officer and treasurer, will conduct a series of one-on-one meetings with investment-community representatives at the conference.
The materials used at the conference will be posted on ONEOK Partners' website, www.oneokpartners.com, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time) on Jan. 12, 2016.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Sept. 30, 2015.
For more information, visit the website at www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter @ONEOKPartners.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Jan. 11, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced that it has entered into a $1 billion three-year unsecured term loan agreement, which will be used for general partnership purposes, including the repayment of existing borrowings.
"This agreement effectively refinances ONEOK Partners' 2016 long-term debt maturities and further enhances the partnership's financial flexibility," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "The financial commitments we've received under this agreement underscore the strong relationships we have with our banks and their continued support of the partnership."
"The term loan, our commercial paper program and our $2.4 billion credit facility provide ONEOK Partners with ample liquidity to fund current capital-growth projects," added Spencer. "ONEOK Partners does not expect the need to access public markets for debt or equity until well into 2017."
The term loan is unsecured and includes a floating interest rate calculated based on ONEOK Partners' credit rating, which is currently 130 basis points, or 1.3 percent, over the London Interbank Offered Rate (LIBOR). The loan includes a delayed draw feature that allows the partnership to draw on it for up to 90 days from Jan. 8, 2016. The loan is prepayable in whole or in part at any time without penalty and includes two, one-year extension options. The term loan contains substantially the same covenants as those contained in the partnership's existing revolving credit facility.
Mizuho Bank, Ltd. serves as the administrative agent for the term loan agreement.
-------------------------------------------------------------------------------------------------------------------
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Sept. 30, 2015.
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected operating income, net income, capital expenditures, cash flow and projected levels of distributions), liquidity, access to the public debt and equity markets, management's plans and objectives for our future growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities and related cost estimates), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities legislation and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Part I, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings, which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Stephanie Higgins |
918-591-5026 |
SOURCE ONEOK Partners, L.P.
TULSA, Okla., Jan. 4, 2016 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced it will participate in the Evercore ISI Utility CEO Conference on Thursday and Friday, Jan. 7-8, 2016, in Phoenix, Ariz.
Pierce H. Norton II, president and chief executive officer, and Curtis Dinan, senior vice president, chief financial officer and treasurer, will be conducting a series of meetings with members of the investment community.
The materials utilized at the conference will be accessible on the ONE Gas website, www.onegas.com, on Jan. 7, 2016, beginning at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time).
ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On January 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.
ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and the third largest in Texas, in terms of customers.
Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.
For more information, visit the website at http://www.ONEGas.com.
Analyst Contact: |
Andrew Ziola |
|
918-947-7163 |
||
Media Contact: |
Jennifer Rector |
|
918-947-7571 |
SOURCE ONE Gas, Inc.
TULSA, Okla., Dec. 29, 2015 /PRNewswire/ -- The board of directors of ONEOK, Inc. (NYSE: OKE) has elected Brian L. Derksen, Randall J. Larson and Kevin S. McCarthy to its board, effective today.
"We are pleased to announce these additions to the ONEOK board of directors," said John W. Gibson, ONEOK chairman. "Their experience and expertise will greatly benefit our board and shareholders."
With these elections, the ONEOK board of directors now has 12 members, 10 of whom are independent. William L. Ford retired from the board earlier this month after 34 years of service, and Bert H. Mackie retired from the board in May after 26 years of service.
"Derksen, Larson and McCarthy bring a wealth of knowledge and experience to our board, and we look forward to their contributions," said Jim W. Mogg, chairman of the corporate governance committee and lead independent director.
Derksen, 64, served as global deputy chief executive officer of Deloitte Touche Tohmatsu Limited from 2011 until 2014, and as deputy chief executive officer of Deloitte U.S. from 2003 to 2011. Prior to that, he was U.S. managing partner of the financial advisory business unit of Deloitte U.S. and regional managing partner of the mid-America region of Deloitte U.S.
Derksen earned a Bachelor of Science from the University of Saskatchewan (Canada) and a Master of Business Administration from Duke University's Fuqua School of Business.
Larson, 58, served as chief executive officer of the general partner of TransMontaigne Partners L.P. from 2006 until 2009, and as its chief financial officer from 2003 to 2006, and served as its controller from 2002 to 2003.
Before joining TransMontaigne, Larson was a partner with KPMG, LLP in its Silicon Valley and National (New York City) offices. Prior to that, he served as a Professional Accounting Fellow in the Office of Chief Accountant of the Securities and Exchange Commission. Larson also serves on the board of directors of Valero Energy Partners GP LLC. He also formerly served as a director of the general partner of MarkWest Energy Partners, L.P. prior to its merger with MPLX LP.
Larson earned a Bachelor of Business Administration from the University of Wisconsin – Eau Claire and a Master of Business Administration from the University of Wisconsin – Madison.
McCarthy, 56, is a co-founder and managing partner for Kayne Anderson Fund Advisors. He is responsible for master limited partnership private equity investments and serves as chairman, president and chief executive officer of the Kayne Anderson MLP Investment Company (KYN), Kayne Anderson Energy Total Return Fund (KYE), Kayne Anderson Midstream/Energy Fund (KMF) and Kayne Anderson Energy Development Company (KED).
Prior to joining Kayne Anderson in 2004, McCarthy was global head of energy investment banking at UBS Securities LLC where he had senior responsibility for all of UBS' energy investment banking activities, including direct responsibilities for securities underwriting and mergers and acquisitions in the MLP industry. From 1995 to 2000, he led the energy investment banking activities of Dean Witter Reynolds and then PaineWebber Incorporated. McCarthy also serves on the board of directors of Range Resources Corporation.
McCarthy earned a Bachelor of Arts in economics and geology from Amherst College and a Master of Business Administration in finance from the University of Pennsylvania's Wharton School.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the general partner and as of Sept. 30, 2015, owns 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500 Stock Index.
For information about ONEOK, Inc., visit the website: www.oneok.com.
For the latest news about ONEOK, follow us on Twitter @ONEOKNews.
Analyst Contact: |
T.D. Eureste |
918-588-7167 | |
Media Contact: |
Brad Borror |
918-588-7582 |
SOURCE ONEOK, Inc.
Arbuckle II Extension Project (subscriber access)
Status: (subscriber access)
Parent Entities:
ONEOK Inc.
Arbuckle II Pipeline (subscriber access)
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ONEOK Inc.
Arbuckle II Pumping Expansion Project (subscriber access)
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ONEOK Inc.
Arbuckle to Cajun-Sibon NGL Expansion (subscriber access)
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ONEOK Inc.
Bakken NGL Pipeline Extension (subscriber access)
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ONEOK Inc.
Bear Creek Processing Plant Expansion (subscriber access)
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Canadian Valley Natural Gas Processing Plant II (subscriber access)
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Demicks Lake II Natural Gas Processing Plant (subscriber access)
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Demicks Lake III Natural Gas Processing Plant (subscriber access)
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ONEOK Inc.
Demicks Lake Natural Gas Processing Plant (subscriber access)
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ONEOK Inc.
Elk Creek NGL Pipeline (subscriber access)
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ONEOK Inc.
MB-5 Fractionator (subscriber access)
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ONEOK Inc.
MB-6 Fractionator (subscriber access)
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ONEOK Inc.
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ONEOK Inc.
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OGT Pipeline Expansion (subscriber access)
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ONEOK Partners, L.P.
ONEOK Blaine County Gas Gathering Pipeline (subscriber access)
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ONEOK Inc.
ONEOK Gas Transportation (OGT) Eastbound Expansion (subscriber access)
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ONEOK Inc.
ONEOK Gas Transportation (OGT) Westbound Expansion (subscriber access)
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ONEOK Partners, L.P.
ONEOK MB-4 Expansion (subscriber access)
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ONEOK Inc.
OneOk WesTex Expansion (subscriber access)
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Roadrunner Gas Transmission Pipeline Phase 1 (subscriber access)
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Fermaca Infrastructure B.V.
Roadrunner Gas Transmission Pipeline Phase 2 (subscriber access)
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ONEOK Partners, L.P.
Fermaca Infrastructure B.V.
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ONEOK Partners, L.P.
Fermaca Infrastructure B.V.
Roadrunner Gas Transmission Project (subscriber access)
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Fermaca Infrastructure B.V.
ONEOK Partners, L.P.
Saguaro Connector Pipeline (subscriber access)
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ONEOK Inc.
Sterling III Pipeline Expansion (subscriber access)
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ONEOK Inc.
West Texas LPG Delaware Basin Extension (subscriber access)
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West Texas LPG Pipeline Limited Partnership
West Texas LPG Delaware Basin Extension Phase II (subscriber access)
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West Texas LPG Delaware Basin Extension Phase III (subscriber access)
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