Investor Story

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.

Highlights

55 bcf
natural gas
storage capacity
37,000
miles of natural gas
and natural gas liquids
pipelines
840,000 bpd
natural gas liquids
fractionation capacity
27 MMBbl
natural gas liquids
storage capacity
Corporate Snapshot

Who We Are

  • ONEOK is the sole general partner and as of March 31, 2016, 41.2 percent owner of ONEOK Partners, L.P.
  • ONEOK provides the management and resources that enable ONEOK Partners to execute its growth strategies allowing ONEOK to grow its dividend.
  • ONEOK Partners completed more than $8 billion in growth projects from 2006-2015 that will complement and strengthen our businesses well into the future and has nearly $2 billion of growth projects in progress.

Company Structure

Natural Gas

  • 18,800 miles of gathering pipeline
  • 6,600 miles of transmission pipeline
  • 55 billion cubic feet of storage capacity
  • 20 processing plants
  • 1,750 million cubic feet per day of processing capacity

Natural Gas Liquids

  • 7,100 miles of gathering pipeline
  • 4,300 miles of distribution pipeline
  • 27 million barrels of storage capacity
  • 7 fractionators
  • 840,000 barrels per day of net fractionation capacity
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Key Investment Considerations

ONEOK

Stable cash flow

  • Cash flow under pinned by investment-grade MLP with fee-based business model
  • GP and LP distributions from ONEOK Partners drive significant cash flow generation and growth
  • Prudent financial practices results in financial strength and flexibility

ONEOK Partners

Stable cash flow

  • ONEOK Partners – primarily fee based, non-discretionary services
  • Prudent financial practices: proactively manage commodity risk
  • Strong balance sheet and financial flexibility: maintain investment grade credit ratings with sufficient liquidity to support capital growth projects

Strategic assets connecting prolific supply basins and key markets

  • Non-discretionary services to producers, processors and customers

Focused on creating value for both customers and investors

  • Demonstrated financial discipline
  • Commitment to investment-grade credit ratings at ONEOK Partners

Disciplined growth

  • Aligning capital growth projects with producer customer needs as a result of lower commodity prices

Safe, reliable and environmentally responsible operator

  • Proven track record and commitment
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Corporate Strategy

GROWTH

Increase distributable cash flow through investments in organic growth projects and strategic acquisitions

  • Continue to increase NGL and natural gas volume resulting in fee-based earnings
  • Continue to grow/expand our integrated natural gas liquids and natural gas infrastructure by utilizing our strategic supply and market positions

FINANCIAL

Manage balance sheet and maintain investment-grade credit ratings at ONEOK Partners

  • Manage growth rates in distribution over the long term, resulting in financial strength

ENVIRONMENT, SAFETY AND HEALTH

Continue sustainable improvement in ESH performance

  • Continue to maintain the mechanical reliability of our assets

PEOPLE

Attract, select, develop and retain a diverse and inclusive group of employees to support strategy execution

  • Management continuity is the result of effective succession planning
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Business Segments

Natural Gas Liquids

  • Provides nondiscretionary services and links key NGL market centers in Conway, Kansas, and Mont Belvieu, Texas

Natural Gas Pipelines

  • Nearly 100% of margin is fee-based

Natural Gas Gathering and Processing

  • Provides nondiscretionary services and is actively pursuing opportunities to increase fee-based earnings

ONEOK PARTNERS ASSET OVERVIEW

Green Natural Gas Gathering and Processing
Blue Natural Gas Liquids
Gold Natural Gas Pipelines

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Growth Projects
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Letter to Shareholders

January 20, 2014,

Dear ONEOK Shareholder:

I am pleased to inform you that on January 8, 2014, the board of directors of ONEOK, Inc. (“ONEOK”) approved the distribution of all of the shares of common stock of ONE Gas, Inc. (“ONE Gas”), a wholly owned subsidiary of ONEOK, to ONEOK shareholders. Prior to the distribution, ONEOK will transfer its natural gas distribution business to ONE Gas.

The distribution of shares is to be made pursuant to a plan initially approved by the board of directors of ONEOK on July 24, 2013, to separate ONEOK’s natural gas distribution business from the other ONEOK businesses. Upon the distribution of shares, ONEOK shareholders will own 100 percent of the common stock of ONE Gas. ONEOK’s board of directors believes that creating a separate natural gas distribution company will serve a number of corporate business purposes and increase value to, and is in the best interests of, our shareholders.

The distribution of ONE Gas common stock is expected to occur on January 31, 2014, by way of a pro rata dividend to ONEOK shareholders of record on January 21, 2014, the record date of the distribution. Each ONEOK shareholder will be entitled to receive one share of ONE Gas common stock for every four shares of ONEOK common stock held by such shareholder at the close of business on the record date. ONE Gas common stock will be issued in book-entry form only, which means that no physical stock certificates will be issued. No fractional shares of ONE Gas common stock will be issued. If you would otherwise have been entitled to a fractional share of ONE Gas common stock in the distribution, you will receive the cash value of such fractional share instead. Shareholder approval of the distribution is not required, and you are not required to take any action to receive your ONE Gas common stock. The distribution is intended to be tax-free for U.S. federal income tax purposes to ONEOK shareholders, except for cash received in lieu of any fractional share interest.

Following the distribution, you will own shares in both ONEOK and ONE Gas. The number of ONEOK shares you own will not change as a result of this distribution. ONEOK’s common stock will continue to trade on the New York Stock Exchange under the symbol “OKE.” ONE Gas common stock will trade on the New York Stock Exchange under the ticker symbol “OGS.”

The Information Statement, which is being mailed to all holders of ONEOK common stock on the record date for the distribution, describes the distribution in detail and contains important information about ONE Gas, its business, financial condition and operations. We urge you to read the Information Statement carefully. You are not required to take any specific action.

We want to thank you for your continued support of ONEOK, and we look forward to your future support of ONE Gas.

Sincerely,

Chairman and Chief Executive Officer

10-year Total return*

3-year Total return*

5-year Total return*

1-year Total return*

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Stock Price

Investor Kit

Events & Presentations

02/28/17
Fourth Quarter 2016 ONEOK
and ONEOK Partners Earnings Conference Call
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