TULSA, Okla., April 30 /PRNewswire-FirstCall/ -- ONEOK, Inc. (NYSE: OKE)
today announced first-quarter 2008 net income of $143.8 million, or $1.36 per
diluted share, compared with $152.9 million, or $1.36 per diluted share, in
the same period last year.
"All three business segments turned in solid performances this quarter,"
said John W. Gibson, ONEOK chief executive officer. "ONEOK Partners had an
exceptionally strong quarter, driven by increased volumes, higher commodity
prices and wider commodity spreads. Colder weather and increased volumes in
our Oklahoma and Kansas service territories benefited our distribution
segment. Our energy services segment also performed well in the first
quarter, although results are down compared with last year, primarily as a
result of lower marketing and storage margins.
"We also increased our ownership of ONEOK Partners to 47.7 percent,
providing ONEOK with a larger share of the partnership's current earnings and
positioning us for additional future earnings through the $1.6 billion in
internally generated growth projects currently under way at the partnership,"
Gibson added.
ONEOK also reaffirmed its 2008 net income guidance, announced on Jan. 8,
2008, in the range of $2.75 to $3.15 per diluted share.
Operating income for the first quarter 2008 was $333.1 million, compared
with $328.3 million for the first quarter 2007. The earnings increase is
primarily due to higher realized commodity prices and wider NGL product price
spreads in the ONEOK Partners segment, as well as higher volumes. This
increase was offset by reduced marketing and storage margins in the energy
services segment, driven primarily by colder than anticipated weather.
Operating costs were $193.3 million in the first quarter 2008, compared
with $182.3 million in the first quarter 2007, primarily as a result of
incremental operating expenses associated with ONEOK Partners' North System,
an interstate natural gas liquids and refined petroleum products pipeline
system that was acquired in October 2007, as well as costs incurred to comply
with regulations and higher employee-related costs.
Equity earnings from investments increased $3.7 million to $27.8 million
in the first quarter 2008, compared with the same period in 2007, primarily as
a result of higher throughput on Northern Border Pipeline, in which ONEOK
Partners has a 50 percent ownership interest.
FIRST-QUARTER 2008 SUMMARY INCLUDES:
-- Operating income of $333.1 million, compared with $328.3 million in the
first quarter last year;
-- ONEOK Partners segment operating income of $150.5 million, compared
with $104.4 million in the first quarter 2007;
-- Distribution segment operating income of $108.5 million, compared with
$103.2 million in the first quarter 2007;
-- Energy Services segment operating income of $74.3 million, compared
with operating income of $120.1 million in the first quarter 2007;
-- Operating costs of $193.3 million, compared with $182.3 million in the
first quarter 2007;
-- Purchasing an additional 5.4 million of ONEOK Partners' common units in
March 2008 for a total purchase price of approximately $303.2 million,
and contributing $9.4 million to maintain the 2 percent general partner
interest. ONEOK Partners also completed a public offering of 2.5
million common units at $58.10 per common unit. Following these
transactions and the exercise of the over-allotment option in April,
the company's ownership in ONEOK Partners increased to 47.7 percent;
-- Distributions declared on the company's general partner interest in
ONEOK Partners of $19.1 million for the first quarter 2008;
distributions declared on the company's limited partner interest in
ONEOK Partners of $44.1 million for the first quarter 2008;
-- ONEOK, on a stand-alone basis, having $265.6 million in short-term debt
at March 31, 2008, $35.9 million of cash and cash equivalents and
$145.6 million of gas in storage;
-- ONEOK stand-alone total debt representing 48 percent of total
capitalization, following the retirement of $402.3 million of maturing,
long-term debt in February 2008;
-- ONEOK stand-alone cash flow from continuing operations, before changes
in working capital, of $190.7 million, which exceeded capital
expenditures and dividends of $112.0 million by $78.7 million;
-- Receiving approval in April 2008 of $1.1 million in new rates in the
distribution segment's south Texas territory;
-- Receiving approval of a capital investment mechanism for the
distribution segment in Oklahoma that allows for recovery of, and a
return on, the capital costs incurred between rate cases to expand and
maintain the natural gas distribution system; and
-- Declaring a quarterly dividend of 38 cents, an increase of 19 percent
since January 2007.
FIRST-QUARTER 2008 BUSINESS UNIT RESULTS
ONEOK Partners
First-quarter 2008 operating income increased 44 percent to $150.5
million, compared with $104.4 million in the same period last year.
The first-quarter 2008 operating income increase is primarily the result
of higher commodity prices in the natural gas gathering and processing
business and wider regional NGL product price spreads in the natural gas
liquids gathering and fractionation business. Also, both the natural gas and
natural gas liquids businesses experienced higher volumes than in the previous
year, primarily due to new supply connections and the recently acquired North
System.
First-quarter 2008 operating costs were $88.1 million, compared with $75.7
million in the first quarter 2007. The increase is primarily due to
incremental operating expenses associated with the recently acquired North
System, as well as costs incurred to comply with regulations and higher
employee-related costs. Depreciation and amortization increased $2.4 million,
compared with the same period last year, also primarily due to the North
System acquisition.
Equity earnings from investments for the first quarter 2008 increased to
$27.8 million, compared with $24.1 million in the same period a year earlier,
primarily as a result of higher throughput from ONEOK Partners' 50 percent
interest in Northern Border Pipeline.
Distribution
The distribution segment reported operating income of $108.5 million in
the first quarter 2008, compared with operating income of $103.2 million in
the first quarter 2007.
First-quarter 2008 earnings increased as a result of colder temperatures
and increased volumes in the Oklahoma and Kansas service territories.
Transportation volumes were strong in Oklahoma and Kansas and improved margins
by $2.5 million. Residential margins were moderated by weather normalization
mechanisms and reflect an increase of $1.2 million from the implementation of
new rate schedules.
Operating costs decreased to $94.2 million, compared with $95.7 million in
the first quarter 2007, primarily as a result of lower employee-related costs.
Energy Services
Energy Services reported first-quarter operating income of $74.3 million,
compared with operating income of $120.1 million in the same period in 2007.
The first-quarter 2008 earnings decline is due primarily to a decrease of
$47.9 million in marketing and storage margins. Colder than anticipated
weather in the first quarter 2008 increased supply requirements of customers,
leaving less volume available for the segment's marketing optimization
activities. With lower volumes available, combined with steadily increasing
natural gas prices, storage optimization margins were also reduced. In
addition, financial trading margins were down $7.8 million, partially offset
by an increase of $7.0 million in transportation margins and an increase of
$2.2 million in retail marketing activities.
Operating costs for the quarter were $10.2 million, relatively flat
compared with the same period a year earlier.
At March 31, 2008, total natural gas in storage was 14.6 Bcf, compared
with 37.3 Bcf a year earlier. Total natural gas storage capacity under lease
was 96 Bcf in the first quarter of 2008, compared with 88 Bcf in the same
period 2007.
The net margin for the energy services segment was derived from the
following sources:
Three Months Ended
March 31,
2008 2007
(Thousands of dollars)
Marketing and storage,
gross $137,678 $177,106
Less: Storage and
transportation costs (54,275) (52,713)
Marketing and
storage, net 83,403 124,393
Retail marketing 5,213 2,994
Financial trading (3,751) 4,017
Net margin $84,865 $131,404
EARNINGS CONFERENCE CALL AND WEBCAST
ONEOK and ONEOK Partners management will conduct a joint conference call
on Thursday, May 1, 2008, 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 866-847-7864, pass
code 1226646, or log on to http://www.oneok.com or
http://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, http://www.oneok.com, and
ONEOK Partners' Web site, http://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 1226646.
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 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 much of the natural gas and NGL supply in the Mid-Continent with
key market centers. ONEOK is among the largest natural gas distributors in
the United States, serving more than 2 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:
http://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 Securities and Exchange Act of
1934, 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;
-- the capital intensive nature of our businesses;
-- the profitability of assets or businesses acquired by us;
-- 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, and authorized rates or recovery of gas and gas
transportation costs;
-- 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 or changes in
governmental policies and regulations due to climate change
initiatives;
-- 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;
-- 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 OCC, KCC,
Texas regulatory authorities or any other local, state or federal
regulatory body, including the 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
which 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 affects 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;
- availability of additional storage capacity;
- weather conditions; and
- competitive developments by Canadian and U.S. natural gas
transmission peers;
-- 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 rights-of-way permits and consents
in a timely manner, to promptly obtain all necessary materials and
supplies required for construction, and to construct pipelines 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 significant slowdown in growth or decline in the U.S.
economy or the risk of delay in growth recovery in the U.S. economy;
-- 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;
-- our ability to promptly obtain all necessary materials and supplies
required for construction of gathering, processing, storage,
fractionation and transportation facilities;
-- 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 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, 2007. 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.
OKE-FE
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) 2008 2007
Revenues (Thousands of dollars,
except per share amounts)
Operating revenues, excluding energy
trading revenues $4,918,031 $3,804,860
Energy trading revenues, net (15,955) 1,348
Total Revenues 4,902,076 3,806,208
Cost of sales and fuel 4,316,164 3,241,358
Net Margin 585,912 564,850
Operating Expenses
Operations and maintenance 167,992 158,643
Depreciation and amortization 59,479 56,450
General taxes 25,331 23,659
Total Operating Expenses 252,802 238,752
Gain on sale of assets 13 2,203
Operating Income 333,123 328,301
Equity earnings from investments 27,783 24,055
Allowance for equity funds used
during construction 8,496 1,337
Other income 3,232 5,004
Other expense (4,608) (645)
Interest expense (62,861) (62,012)
Income before Minority Interests and
Income Taxes 305,165 296,040
Minority interests in income of
consolidated subsidiaries (68,960) (45,313)
Income taxes (92,368) (97,847)
Net Income $143,837 $152,880
Earnings Per Share of Common Stock
Net Earnings Per Share, Basic $1.38 $1.38
Net Earnings Per Share, Diluted $1.36 $1.36
Average Shares of Common Stock
(Thousands)
Basic 104,170 110,868
Diluted 105,821 112,724
Dividends Declared Per Share of
Common Stock $0.38 $0.34
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(Unaudited) 2008 2007
Assets (Thousands of dollars)
Current Assets
Cash and cash equivalents $268,740 $19,105
Trade accounts and notes receivable,
net 1,723,572 1,723,212
Gas and natural gas liquids in
storage 329,307 841,362
Commodity exchanges and imbalances 75,302 82,938
Energy marketing and risk management
assets 129,049 168,609
Other current assets 216,694 116,249
Total Current Assets 2,742,664 2,951,475
Property, Plant and Equipment
Property, plant and equipment 8,297,604 7,893,492
Accumulated depreciation and
amortization 2,091,337 2,048,311
Net Property, Plant and Equipment 6,206,267 5,845,181
Investments and Other Assets
Goodwill and intangible assets 1,041,857 1,043,773
Energy marketing and risk management
assets 7,180 3,978
Investments in unconsolidated
affiliates 754,304 756,260
Other assets 487,562 461,367
Total Investments and Other Assets 2,290,903 2,265,378
Total Assets $11,239,834 $11,062,034
ONEOK, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(Unaudited) 2008 2007
Liabilities and Shareholders' (Thousands of dollars)
Equity
Current Liabilities
Current maturities of long-term debt $118,181 $420,479
Notes payable 265,600 202,600
Accounts payable 1,585,757 1,436,005
Commodity exchanges and imbalances 219,773 252,095
Energy marketing and risk management
liabilities 244,632 133,903
Other current liabilities 445,064 436,585
Total Current Liabilities 2,879,007 2,881,667
Long-term Debt, excluding current
maturities 4,118,394 4,215,046
Deferred Credits and Other
Liabilities
Deferred income taxes 720,733 680,543
Energy marketing and risk management
liabilities 64,256 26,861
Other deferred credits 485,190 486,645
Total Deferred Credits and Other
Liabilities 1,270,179 1,194,049
Commitments and Contingencies
Minority Interests in Consolidated
Subsidiaries 965,462 801,964
Shareholders' Equity
Common stock, $0.01 par value:
authorized 300,000,000 shares; issued
121,380,458 shares and outstanding
104,252,433 shares at March 31, 2008;
issued 121,115,217 shares and
outstanding 103,987,476 shares at
December 31, 2007 1,214 1,211
Paid in capital 1,275,103 1,273,800
Accumulated other comprehensive
income (loss) (75,177) (7,069)
Retained earnings 1,515,793 1,411,492
Treasury stock, at cost: 17,128,025
shares at March 31, 2008 and
17,127,741 shares at
December 31, 2007 (710,141) (710,126)
Total Shareholders' Equity 2,006,792 1,969,308
Total Liabilities and
Shareholders' Equity $11,239,834 $11,062,034
ONEOK, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
(Unaudited) 2008 2007
Operating Activities (Thousands of dollars)
Net income $143,837 $152,880
Depreciation and amortization 59,479 56,450
Allowance for funds used during
construction (8,496) (1,337)
Gain on sale of assets (13) (2,203)
Minority interests in income of
consolidated subsidiaries 68,960 45,313
Equity earnings from investments (27,783) (24,055)
Distributions received from
unconsolidated affiliates 24,040 26,455
Deferred income taxes 29,362 19,499
Stock-based compensation expense 7,982 8,641
Allowance for doubtful accounts 2,035 1,974
Changes in assets and liabilities
(net of acquisition and disposition
effects):
Trade accounts and notes receivable (7,065) 60,072
Gas and natural gas liquids in
storage 488,214 426,136
Deposits (52,052) 79,641
Accounts payable 119,795 (3,020)
Commodity exchanges and imbalances,
net (24,686) (7,468)
Accrued interest 50,293 44,756
Energy marketing and risk management
assets and liabilities 90,433 61,128
Other assets and liabilities (93,820) (75,569)
Cash Provided by Operating Activities 870,515 869,293
Investing Activities
Changes in investments in
unconsolidated affiliates 3,311 (141)
Capital expenditures (less allowance
for equity funds used during
construction) (339,531) (102,135)
Changes in short-term investments - (506,905)
Proceeds from sale of assets 161 3,707
Other 2,450 -
Cash Used in Investing Activities (333,609) (605,474)
Financing Activities
Borrowing (repayment) of notes
payable, net 63,000 (6,000)
Payment of debt (405,504) (520)
Repurchase of common stock (15) (20,089)
Issuance of common stock 1,533 2,702
Issuance of common units, net of
discounts 140,369 -
Dividends paid (39,536) (37,691)
Distributions to minority interests (47,118) (44,979)
Cash Used in Financing Activities (287,271) (106,577)
Change in Cash and Cash Equivalents 249,635 157,242
Cash and Cash Equivalents at
Beginning of Period 19,105 68,268
Cash and Cash Equivalents at End of
Period $268,740 $225,510
ONEOK, Inc. and Subsidiaries
INFORMATION AT A GLANCE
Three Months Ended
March 31,
(Unaudited) 2008 2007
(Millions of dollars)
ONEOK Partners
Net margin $268.5 $205.4
Operating costs $88.1 $75.7
Depreciation and amortization $29.9 $27.5
Operating income $150.5 $104.4
Natural gas gathered (BBtu/d) 1,192 1,168
Natural gas processed (BBtu/d) 624 609
Natural gas transported (MMcf/d) 3,956 3,948
Natural gas sales (BBtu/d) 277 268
Natural gas liquids gathered (MBbl/d) 251 210
Natural gas liquids sales (MBbl/d) 286 220
Natural gas liquids fractionated
(MBbl/d) 391 319
Natural gas liquids transported
(MBbl/d) 303 205
Capital expenditures $267.1 $74.6
Conway-to-Mount Belvieu OPIS average
spread Ethane/Propane mixture ($/gallon) $0.09 $0.06
Natural Gas Gathering and Processing:
Realized composite NGL sales prices
($/gallon) $1.33 $0.82
Realized condensate sales price
($/Bbl) $87.51 $56.53
Realized natural gas sales price
($/MMBtu) $7.40 $6.58
Realized gross processing spread
($/MMBtu) $7.43 $3.59
Distribution
Net margin $231.7 $227.2
Operating costs $94.2 $95.7
Depreciation and amortization $29.0 $28.3
Operating income $108.5 $103.2
Customers per employee 732 745
Capital expenditures $30.6 $25.4
Natural gas volumes (Bcf)
Gas Sales 80.9 78.8
Transportation 62.1 57.6
Natural gas margins
Gas Sales $194.0 $193.5
Transportation $27.3 $24.7
Energy Services
Net margin $84.9 $131.4
Operating costs $10.2 $10.7
Depreciation and amortization $0.4 $0.5
Operating income $74.3 $120.1
Natural gas marketed (Bcf) 340 337
Natural gas gross margin ($/Mcf) $0.17 $0.34
Physically settled volumes (Bcf) 636 639
ONEOK, Inc. and Subsidiaries
Consolidating Income Statement
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)
Minority interest - - (69) (69)
Income taxes (89) (3) - (92)
Net Income $144 $145 $(145) $144
Three Months Ended March 31, 2007
ONEOK Consolidating
(Unaudited) ONEOK Partners Entries Consolidated
(Millions of dollars)
Operating Income
ONEOK Partners $- $104 $- $104
Distribution 103 - - 103
Energy Services 120 - - 120
Other 1 - - 1
Operating Income 224 104 - 328
Equity in earnings of
ONEOK Partners 51 - (51) -
Other income 3 27 - 30
Interest expense (30) (32) - (62)
Minority interest - - (45) (45)
Income taxes (95) (3) - (98)
Net Income $153 $96 $(96) $153
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, 2008
(Millions of dollars)
Net income $143.8
Depreciation and amortization 29.5
Distributions received from
unconsolidated affiliates 54.1
Income from equity investments, net (76.1)
Deferred income taxes 29.4
Stock based compensation expense 8.0
Allowance for doubtful accounts 2.0
Cash flow, before changes in working
capital (a) $190.7
(a) ONEOK, Inc. 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, Inc. 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.
SOURCE ONEOK, Inc.
-0- 04/30/2008
/CONTACT: Analysts, Dan Harrison, +1-918-588-7950, or Media, Megan
Washbourne, +1-918-588-7572, both of ONEOK, Inc./
/Web site: http://www.oneok.com /
(OKE OKS)
CO: ONEOK, Inc.; ONEOK Partners, L.P.
ST: Oklahoma
IN: OIL
SU: ERN ERP CCA
KS-DE
-- LAW054 --
5002 04/30/2008 16:10 EDT http://www.prnewswire.com