TULSA, Okla., April 29 /PRNewswire-FirstCall/ -- ONEOK, Inc. (NYSE: OKE)
today announced first-quarter 2009 earnings of $1.16 per diluted share,
compared with $1.36 per diluted share in the same period last year. Net
income attributable to ONEOK was $122.3 million in the first quarter 2009,
compared with $143.8 million in the same period in 2008.
ONEOK also reaffirmed its 2009 earnings per share guidance, announced on
Feb. 5, 2009, in the range of $2.25 to $2.75 per diluted share.
"The distribution segment had a great quarter as we continue to see the
benefits from the successful execution of our rate strategies and cost-control
initiatives," said John W. Gibson, ONEOK chief executive officer. "We are
also pleased that both our ONEOK Partners and energy services segments turned
in strong performances, despite the difficult economic conditions and
significantly lower commodity prices.
"Continued positive free cash flow enabled us to further reduce debt and
strengthen our balance sheet. With strong liquidity and no debt maturities
until 2011, we have the financial flexibility to perform well in a challenging
economic environment and make the investments necessary to drive the company's
continued success," Gibson added.
First-quarter 2009 operating income was $293.0 million, compared with
$333.1 million for the first quarter 2008. The decrease was due primarily to
lower realized commodity prices and narrower natural gas liquids (NGL) product
price differentials in the ONEOK Partners segment, and lower transportation,
storage and marketing margins in the energy services segment. These decreases
were partially offset by the implementation of new rate mechanisms in the
distribution segment and increased NGL volumes in the ONEOK Partners segment,
due, in part, to the Overland Pass Pipeline, which began operations in the
fourth quarter 2008.
First-quarter 2009 operating costs decreased to $186.9 million, compared
with $193.3 million in the same period last year, primarily as a result of
lower bad-debt expenses in the distribution segment and reduced general
operating costs. These decreases were partially offset by higher operating
costs at ONEOK Partners' fractionation facilities, which included costs from
the recently expanded Bushton fractionator, and from incremental costs
associated with the Overland Pass Pipeline.
FIRST-QUARTER 2009 SUMMARY INCLUDES:
-- Operating income of $293.0 million, compared with $333.1 million in
the first quarter last year;
-- ONEOK Partners segment operating income of $124.8 million, compared
with $150.5 million in the first quarter 2008;
-- Distribution segment operating income of $112.9 million, compared with
$108.5 million in the first quarter 2008;
-- Energy services segment operating income of $54.9 million, compared
with $74.3 million in the first quarter 2008;
-- ONEOK Partners completing a $500 million public offering of 10-year
senior notes at a coupon of 8.625 percent in March 2009;
-- ONEOK Partners completing the Guardian Pipeline expansion and
extension, the D-J Basin Lateral Pipeline and the Grasslands natural
gas processing facility expansion;
-- Filing for rate increases in the distribution segment's central Texas
service area for $3.6 million and in the Rio Grande Valley, Texas,
service area for $3.7 million;
-- Repaying $100 million of maturing long-term debt in February 2009;
-- Reducing ONEOK's stand-alone total debt to 49 percent of total
capitalization;
-- ONEOK, on a stand-alone basis, ending the quarter with $550.0 million
in short-term debt, $1.0 billion available on its existing credit
facilities, $75.6 million of cash and cash equivalents and $297.3
million of natural gas in storage;
-- Distributions declared on the company's general partner interest in
ONEOK Partners of $22.7 million for the first quarter 2009;
distributions declared on the company's limited partner interest in
ONEOK Partners of $45.8 million for the first quarter 2009;
-- Continuing to produce positive ONEOK stand-alone cash flow from
continuing operations, before changes in working capital, of $191.6
million, which exceeded stand-alone capital expenditures and dividends
of $92.6 million by $99.0 million;
-- Declaring a quarterly dividend of 40 cents payable on May 15, 2009, to
shareholders of record at the close of business April 30, 2009,
unchanged from the previous quarter; and
-- Naming Geoffrey A. Sands as vice president of environment, safety and
health for ONEOK and ONEOK Partners.
FIRST-QUARTER 2009 BUSINESS UNIT RESULTS
ONEOK Partners
ONEOK Partners' first-quarter 2009 operating income was $124.8 million,
compared with $150.5 million in the same period last year.
The first-quarter 2009 results decreased primarily due to lower commodity
prices, which reduced the natural gas gathering and processing business'
results by $27.5 million, and narrower NGL product price differentials and
lower NGL marketing margins, which reduced the natural gas liquids gathering
and fractionation business' results by $16.5 million. These decreases were
partially offset by a $20.4 million increase in the natural gas liquids
businesses due to increased throughput in the partnership's NGL gathering,
distribution and fractionation facilities, driven by the Overland Pass
Pipeline, which began operations in the fourth quarter 2008, and by new supply
connections.
First-quarter 2009 operating costs were $89.4 million, compared with $88.1
million in the first quarter 2008. Operating costs increased at fractionation
facilities, due, in part, to the recently expanded Bushton fractionator, and
incremental expenses associated with the Overland Pass Pipeline. These
increases were partially offset by lower general operating costs.
Depreciation and amortization expense increased to $39.9 million, compared
with $29.9 million in the same period in 2008, primarily due to incremental
expenses associated with the partnership's completed capital projects.
Equity earnings from investments for the first quarter 2009 were $21.2
million, compared with $27.8 million in the same period a year earlier,
primarily as a result of lower revenues in ONEOK Partners' various natural gas
gathering and processing investments and in the Northern Border Pipeline, of
which the partnership owns 50 percent.
Distribution
The distribution segment reported operating income of $112.9 million in
the first quarter 2009, compared with $108.5 million in the first quarter
2008.
First-quarter 2009 results increased as a result of the implementation of
new rate mechanisms of $2.4 million in Oklahoma, $0.7 million in Kansas and
$0.7 million in Texas, compared with the same period last year. These
increases were partially offset by $1.9 million in lower sales volumes due to
warmer weather across the segment's three-state service territory.
First-quarter 2009 operating costs decreased to $90.1 million, compared
with $94.2 million in the first quarter 2008, primarily as a result of $2.9
million in reduced bad-debt expenses across the segment's service territory,
as well as lower employee-related costs. Depreciation and amortization
expense was $31.6 million in the first quarter 2009, compared with $29.0
million in the same period last year.
Residential natural gas volumes sold were lower in the first quarter 2009,
compared with the same period last year, due to warmer temperatures in the
segment's entire service territory; however, the impact on margins was
moderated by weather-normalization mechanisms.
Energy Services
Energy Services reported first-quarter 2009 operating income of $54.9
million, compared with $74.3 million in the same period in 2008.
The decrease in first-quarter 2009 earnings, compared with the prior-year
period, is due to $16.0 million in reduced transportation margins, net of
hedging activities, primarily as a result of lower Mid-Continent-to-Gulf Coast
region margins; and $12.5 million in reduced storage and marketing margins,
net of hedging activities, due primarily to lower realized seasonal storage
differentials; partially offset by an increase of $7.0 million in financial
trading margins.
At March 31, 2009, total natural gas in storage was 45.8 Bcf, compared
with 14.6 Bcf a year earlier. Total natural gas storage capacity under lease
was 91 Bcf in the first quarter of 2009, compared with 96 Bcf in the same
period 2008. At May 1, 2009, total natural gas storage capacity under lease
will be 82.5 Bcf.
The net margin for the energy services segment was derived from the
following sources:
Three Months Ended
March 31,
2009 2008
---- ----
(Millions of dollars)
Marketing, storage and
transportation, gross $111.9 $137.7
Storage and transportation costs (57.0) (54.3)
-------------------------------- ----- -----
Marketing, storage and
transportation, net 54.9 83.4
Retail marketing 4.4 5.2
Financial trading 3.2 (3.7)
----------------- --- ----
Net margin $62.5 $84.9
========== ===== =====
EARNINGS CONFERENCE CALL AND WEBCAST
ONEOK and ONEOK Partners management will conduct a joint conference call
on Thursday, April 30, 2009, at 11 a.m. Eastern Daylight Time (10 a.m. Central
Daylight Time). The call will also be carried live on ONEOK's and ONEOK
Partners' Web sites.
To participate in the telephone conference call, dial 866-259-6033, pass
code 1350009, 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 Web site, www.oneok.com, and ONEOK
Partners' Web site, www.oneokpartners.com, for 30 days. A recording will be
available by phone for seven days. The playback call may be accessed at
866-837-8032, pass code 1350009.
--------------------------------------------------------------------------
ONEOK, Inc. (NYSE: OKE) is a diversified energy company. We are the
general partner and own 47.7 percent of ONEOK Partners, L.P. (NYSE: OKS), one
of the largest publicly traded master limited partnerships, which is a leader
in the gathering, processing, storage and transportation of natural gas in the
U.S. and 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. ONEOK is among the largest natural gas distributors in the
United States, serving more than two million customers in Oklahoma, Kansas and
Texas. Our energy services operation focuses primarily on marketing natural
gas and related services throughout the U.S. ONEOK is a Fortune 500 company.
For information about ONEOK, Inc., visit the Web site: www.oneok.com.
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 of 1933, as amended, and Section 21E of the Exchange Act, as amended. The
forward-looking statements relate to our anticipated financial performance,
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," "could,"
"may," "continue," "might," "potential," "scheduled" and other words and terms
of similar meaning.
You 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:
-- the effects of weather and other natural phenomena on our operations,
including energy sales and demand for our services and energy prices;
-- competition from other United States and Canadian energy suppliers and
transporters, as well as alternative forms of energy, including, but
not limited to, biofuels such as ethanol and biodiesel;
-- the status of deregulation of retail natural gas distribution;
-- the capital intensive nature of our businesses;
-- the profitability of assets or businesses acquired or constructed by
us;
-- our ability to make cost-saving changes in operations;
-- risks of marketing, trading and hedging activities, including the
risks of changes in energy prices or the financial condition of our
counterparties;
-- the uncertainty of estimates, including accruals and costs of
environmental remediation;
-- the timing and extent of changes in energy commodity prices;
-- the effects of changes in governmental policies and regulatory
actions, including changes with respect to income and other taxes,
environmental compliance, climate change initiatives, and authorized
rates of recovery of gas and gas transportation costs;
-- the impact on drilling and production by factors beyond our control,
including the demand for natural gas and refinery-grade crude oil;
producers' desire and ability to obtain necessary permits; reserve
performance; and capacity constraints on the pipelines that transport
crude oil, natural gas and NGLs from producing areas and our
facilities;
-- changes in demand for the use of natural gas because of market
conditions caused by concerns about global warming;
-- the impact of unforeseen changes in interest rates, equity markets,
inflation rates, economic recession and other external factors over
which we have no control, including the effect on pension expense and
funding resulting from changes in stock and bond market returns;
-- our indebtedness could make us vulnerable to general adverse economic
and industry conditions, limit our ability to borrow additional funds,
and/or place us at competitive disadvantages compared to our
competitors that have less debt, or have other adverse consequences;
-- actions by rating agencies concerning the credit ratings of ONEOK and
ONEOK Partners;
-- the results of administrative proceedings and litigation, regulatory
actions and receipt of expected clearances involving the Oklahoma
Corporation Commission (OCC), Kansas Corporation Commission (KCC),
Texas regulatory authorities or any other local, state or federal
regulatory body, including the Federal Energy Regulatory Commission
(FERC);
-- our ability to access capital at competitive rates or on terms
acceptable to us;
-- risks associated with adequate supply to our gathering, processing,
fractionation and pipeline facilities, including production declines
that outpace new drilling;
-- the risk that material weaknesses or significant deficiencies in our
internal controls over financial reporting could emerge or that minor
problems could become significant;
-- the impact and outcome of pending and future litigation;
-- the ability to market pipeline capacity on favorable terms, including
the effects of:
-- future demand for and prices of natural gas and NGLs;
-- competitive conditions in the overall energy market;
-- availability of supplies of Canadian and United States natural
gas; and
-- availability of additional storage capacity;
-- 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;
-- adverse labor relations;
-- 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 U.S.
economy or the risk of delay in growth recovery in the United States
economy, including increasing liquidity risks in United States credit
markets;
-- the impact of recently issued and future accounting pronouncements 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 possible loss of gas distribution franchises or other adverse
effects caused by the actions of municipalities;
-- the impact of unsold pipeline capacity 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 risk factors listed in the reports we have filed and may file with
the Securities and Exchange Commission (SEC), which are incorporated
by reference.
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 Annual Report on Form 10-K for
the year ended December 31, 2008. 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: Dan Harrison
918-588-7950
Media Contact: Megan Washbourne
918-588-7572
ONEOK, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
(Unaudited) 2009 2008
----------- ---- ----
(Thousands of dollars,
except per share
amounts)
Revenues $2,789,827 $4,902,076
Cost of sales and fuel 2,238,416 4,316,164
---------------------- --------- ---------
Net Margin 551,411 585,912
---------- ------- -------
Operating Expenses
Operations and maintenance 161,719 167,992
Depreciation and amortization 72,126 59,479
General taxes 25,227 25,331
------------- ------ ------
Total Operating Expenses 259,072 252,802
------------------------ ------- -------
Gain (Loss) on Sale of Assets 664 13
----------------------------- --- --
Operating Income 293,003 333,123
---------------- ------- -------
Equity earnings from investments 21,222 27,783
Allowance for equity funds used during
construction 9,003 8,496
Other income 1,665 3,232
Other expense (3,944) (4,608)
Interest expense (77,961) (62,861)
---------------- ------- -------
Income before Income Taxes 242,988 305,165
-------------------------- ------- -------
Income taxes (79,439) (92,368)
------------ ------- -------
Net Income 163,549 212,797
Net income attributable to noncontrolling
interests (41,264) (68,960)
----------------------------------------- ------- -------
Net Income Attributable to ONEOK $122,285 $143,837
================================ ======== ========
Earnings Per Share of Common Stock
Net Earnings Per Share, Basic $1.16 $1.38
Net Earnings Per Share, Diluted $1.16 $1.36
=============================== ===== =====
Average Shares of Common Stock (Thousands)
Basic 105,162 104,170
Diluted 105,733 105,821
======= ======= =======
Dividends Declared Per Share of Common Stock $0.40 $0.38
============================================ ===== =====
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(Unaudited) 2009 2008
----------- ---- ----
Assets (Thousands of dollars)
Current Assets
Cash and cash equivalents $76,753 $510,058
Accounts receivable, net 1,014,142 1,265,300
Gas and natural gas liquids in storage 443,244 858,966
Commodity exchanges and imbalances 49,734 56,248
Energy marketing and risk management assets 280,962 362,808
Deposits 102,355 105,798
Other current assets 71,539 218,424
-------------------- ------ -------
Total Current Assets 2,038,729 3,377,602
-------------------- --------- ---------
Property, Plant and Equipment
Property, plant and equipment 9,688,778 9,476,619
Accumulated depreciation and amortization 2,252,123 2,212,850
----------------------------------------- --------- ---------
Net Property, Plant and Equipment 7,436,655 7,263,769
---------------------------------- --------- ---------
Investments and Other Assets
Goodwill and intangible assets 1,036,309 1,038,226
Energy marketing and risk management assets 60,550 45,900
Investments in unconsolidated affiliates 747,990 755,492
Other assets 619,731 645,073
------------ ------- -------
Total Investments and Other Assets 2,464,580 2,484,691
---------------------------------- --------- ---------
Total Assets $11,939,964 $13,126,062
============ =========== ===========
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(Unaudited) 2009 2008
----------- ---- ----
Liabilities and Shareholders' Equity (Thousands of dollars)
Current Liabilities
Current maturities of long-term debt $18,200 $118,195
Notes payable 986,700 2,270,000
Accounts payable 798,625 1,122,761
Commodity exchanges and imbalances 130,199 188,030
Energy marketing and risk management
liabilities 77,084 175,006
Other current liabilities 436,702 319,772
------------------------- ------- -------
Total Current Liabilities 2,447,510 4,193,764
------------------------- --------- ---------
Long-term Debt, excluding current
maturities 4,602,756 4,112,581
Deferred Credits and Other Liabilities
Deferred income taxes 866,497 890,815
Energy marketing and risk management
liabilities 16,892 46,311
Other deferred credits 765,176 715,052
---------------------- ------- -------
Total Deferred Credits and Other
Liabilities 1,648,565 1,652,178
-------------------------------- --------- ---------
Commitments and Contingencies
Shareholders' Equity
ONEOK Shareholders' Equity
Common stock, $0.01 par value:
authorized 300,000,000 shares; issued
122,103,602 shares and outstanding
105,293,253 shares at March 31, 2009;
issued 121,647,007 shares and outstanding
104,845,231 shares at December 31, 2008 1,221 1,216
Paid in capital 1,301,849 1,301,153
Accumulated other comprehensive loss (56,152) (70,616)
Retained earnings 1,633,238 1,553,033
Treasury stock, at cost: 16,810,349
shares at March 31, 2009 and 16,801,776
shares at December 31, 2008 (696,863) (696,616)
-------------------------------------- -------- --------
Total ONEOK Shareholders' Equity 2,183,293 2,088,170
-------------------------------- --------- ---------
Noncontrolling Interests in Consolidated
Subsidiaries 1,057,840 1,079,369
-------------------------- --------- ---------
Total Shareholders' Equity 3,241,133 3,167,539
-------------------------- --------- ---------
Total Liabilities and Shareholders'
Equity $11,939,964 $13,126,062
=================================== =========== ===========
ONEOK, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
(Unaudited) 2009 2008
----------- ---- ----
(Thousands of dollars)
Operating Activities
Net income $163,549 $212,797
Depreciation and amortization 72,126 59,479
Allowance for equity funds used during
construction (9,003) (8,496)
Gain on sale of assets (664) (13)
Equity earnings from investments (21,222) (27,783)
Distributions received from unconsolidated
affiliates 25,187 24,040
Deferred income taxes 23,624 29,362
Stock-based compensation expense 4,173 7,982
Allowance for doubtful accounts (822) 2,035
Changes in assets and liabilities
(net of acquisition and
disposition effects):
Accounts receivable 251,980 (7,065)
Gas and natural gas liquids in storage 404,416 488,214
Deposits 3,443 (52,052)
Accounts payable (311,252) 119,795
Commodity exchanges and imbalances, net (51,317) (24,686)
Energy marketing and risk management assets
and liabilities (32,921) 33,626
Accrued interest 38,623 50,293
Unrecovered purchased gas costs 42,445 26,802
Fair value of firm commitments 153,391 (50,686)
Other assets and liabilities 35,102 (13,129)
---------------------------- ------ -------
Cash Provided by Operating Activities 790,858 870,515
------------------------------------- ------- -------
Investing Activities
Changes in investments in unconsolidated
affiliates 3,362 3,311
Acquisitions - 2,450
Capital expenditures (less allowance for equity
funds used during construction) (243,027) (339,531)
Proceeds from sale of assets 1,083 161
---------------------------- ----- ---
Cash Used in Investing Activities (238,582) (333,609)
--------------------------------- -------- --------
Financing Activities
Borrowing (repayment) of notes payable, net (813,300) 63,000
Repayment of notes payable with maturities over
90 days (470,000) -
Issuance of debt, net of discounts 498,325 -
Long-term debt financing costs (4,000) -
Payment of debt (104,037) (405,504)
Repurchase of common stock (247) (15)
Issuance of common stock 2,509 1,533
Issuance of common units, net of discounts - 140,369
Dividends paid (42,080) (39,536)
Distributions to noncontrolling interests (52,751) (47,118)
----------------------------------------- ------- -------
Cash Used in Financing Activities (985,581) (287,271)
--------------------------------- -------- --------
Change in Cash and Cash Equivalents (433,305) 249,635
Cash and Cash Equivalents at Beginning of
Period 510,058 19,105
----------------------------------------- ------- ------
Cash and Cash Equivalents at End of Period $76,753 $268,740
========================================== ======= ========
ONEOK, Inc. and Subsidiaries
INFORMATION AT A GLANCE
Three Months Ended
March 31,
(Unaudited) 2009 2008
----------- ---- ----
(Millions of dollars,
except as noted)
ONEOK Partners
--------------
Net margin $253.5 $268.5
Operating costs $89.4 $88.1
Depreciation and amortization $39.9 $29.9
Operating income $124.8 $150.5
Natural gas gathered (BBtu/d) 1,163 1,192
Natural gas processed (BBtu/d) 653 624
Natural gas transported (MMcf/d) 4,200 4,075
Residue gas sales (BBtu/d) 285 277
NGLs gathered (MBbl/d) 324 250
NGL sales (MBbl/d) 380 286
NGLs fractionated (MBbl/d) 465 391
NGLs transported (MBbl/d) 445 303
Capital expenditures $192.5 $267.1
Conway-to-Mont Belvieu OPIS
average price differential
Ethane ($/gallon) $0.08 $0.09
Natural Gas Gathering and Processing:
Realized composite NGL sales price
($/gallon) $0.66 $1.33
Realized condensate sales price ($/
Bbl) $62.24 $87.51
Realized natural gas sales price ($/
MMBtu) $3.59 $7.40
Realized gross processing spread ($/
MMBtu) $6.59 $7.43
Distribution
------------
Net margin $234.6 $231.7
Operating costs $90.1 $94.2
Depreciation and amortization $31.6 $29.0
Operating income $112.9 $108.5
Capital expenditures $44.7 $30.6
Natural gas volumes (Bcf)
Gas sales 73.6 80.9
Transportation 56.0 62.1
Natural gas margins
Net margin on gas sales $196.1 $194.0
Transportation revenues $26.5 $27.3
Energy Services
---------------
Net margin $62.5 $84.9
Operating costs $7.5 $10.2
Depreciation and amortization $0.1 $0.4
Operating income $54.9 $74.3
Natural gas marketed (Bcf) 329 340
Natural gas gross margin ($/Mcf) $0.19 $0.17
Physically settled volumes (Bcf) 634 636
ONEOK, Inc. and Subsidiaries
CONSOLIDATING INCOME STATEMENT
Three Months Ended March 31, 2009
ONEOK Consolidating
(Unaudited) ONEOK Partners Entries Consolidated
----------- ----- -------- ------- ------------
(Millions of dollars)
Operating Income
ONEOK Partners $- $125 $- $125
Distribution 113 - - 113
Energy Services 55 - - 55
Other - - - -
------- --- --- --- ---
Operating Income 168 125 - 293
---------------- --- --- --- ---
Equity in
earnings of ONEOK
Partners 59 - (59) -
Other income
(expense) (2) 29 - 27
Interest expense (27) (51) - (78)
Income taxes (76) (3) - (79)
------------ --- --- --- ---
Net Income 122 100 (59) 163
Net income
attributable to
noncontrolling
interests - - (41) (41)
---------------- --- --- --- ---
Net Income
Attributable to
ONEOK $122 $100 $(100) $122
================ ==== ==== ===== ====
Three Months Ended March 31, 2008
ONEOK Consolidating
(Unaudited) ONEOK Partners Entries Consolidated
----------- ----- -------- ------- ------------
(Millions of dollars)
Operating Income
ONEOK Partners $- $151 $- $151
Distribution 109 - - 109
Energy Services 74 - - 74
Other (1) - - (1)
------- --- --- --- ---
Operating Income 182 151 - 333
---------------- --- --- --- ---
Equity in
earnings of ONEOK
Partners 76 - (76) -
Other income
(expense) (1) 36 - 35
Interest expense (24) (39) - (63)
Income taxes (89) (3) - (92)
------------ --- --- --- ---
Net Income 144 145 (76) 213
Net income
attributable to
noncontrolling
interests - - (69) (69)
---------------- --- --- --- ---
Net Income
Attributable to
ONEOK $144 $145 $(145) $144
================ ==== ==== ===== ====
ONEOK, Inc. and Subsidiaries
REGULATION G GAAP RECONCILIATION
ONEOK, Inc. Stand-Alone Cash Flow, Before Changes in Working Capital
Three Months Ended
(Unaudited) March 31, 2009
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(Millions of dollars)
Net income $163.5
Net income attributable to noncontrolling interests (41.3)
Depreciation and amortization 32.2
Distributions received from unconsolidated affiliates 68.5
Equity earnings from investments (58.3)
Deferred income taxes 23.6
Stock based compensation expense 4.2
Allowance for doubtful accounts (0.8)
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Cash flow, before changes in working capital (a) $191.6
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(a) ONEOK stand-alone cash flow, before changes in working capital, is a
non-GAAP financial measure used by management, industry analysts,
investors, lenders and rating agencies to assess the financial performance
and the operating results of our fundamental business activities. ONEOK
stand-alone cash flow, before changes in working capital, should not be
considered in isolation or as a substitute for net income, income from
operations or other measures of cash flow.
OKE-FE
SOURCE ONEOK, Inc.
-0- 04/29/2009
/CONTACT: Analyst, Dan Harrison, +1-918-588-7950, or Media, Megan
Washbourne, +1-918-588-7572, both of ONEOK, Inc./
/Web Site: http://www.oneok.com
http://www.oneokpartners.com /
(OKE OKS)
CO: ONEOK, Inc.; ONEOK Partners, L.P.
ST: Oklahoma
IN: OIL UTI
SU: ERN CCA ERP
PR
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4496 04/29/2009 16:10 EDT http://www.prnewswire.com