ONEOK Announces Higher First-Quarter 2006 Earnings

May 02, 2006

TULSA, Okla., May 2, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- ONEOK, Inc. (NYSE: OKE) announced today that its first-quarter 2006 net income increased to $129.5 million, or $1.17 per diluted share, compared with $107.7 million, or $0.97 per diluted share, in the same period last year.

First-quarter 2006 results include operating income increases in the company's energy services, natural gas liquids, and pipelines and storage segments, with the gathering and processing and distributions segments down slightly.

"The natural gas liquids assets we acquired last year continue to perform as expected, benefiting both our natural gas liquids and pipelines and storage segments," said David Kyle, ONEOK chairman, president and chief executive officer.

"Our energy services segment turned in an outstanding performance as we continued to provide value to our customers through the delivery of physical products and risk management services through our portfolio of contracted transportation and storage capacity. Improved natural gas basis differentials and storage margins from increased demand fees also positively affected the energy services segment's performance," Kyle stated.

ONEOK adopted Financial Accounting Standards Board Emerging Issues Task Force Issue No. 04-5, requiring the company to consolidate its investment in Northern Border Partners, L.P. in its financial statements, effective Jan. 1, 2006. The adoption did not have an effect on the company's net income; however, reported revenues, costs and expenses are higher, reflecting the activities of the partnership. First-quarter 2006 results reflect the consolidation, which resulted in increased operating income of $63.8 million.

ONEOK's first-quarter results also include income from the three segments -- gathering and processing, natural gas liquids, and pipelines and storage -- that were sold to Northern Border Partners, effective April 1, 2006. Beginning with the second quarter 2006, results from those segments will be included in the partnership's stand-alone financial results but will still be included in ONEOK's consolidated results.

"With our completion of the transactions with Northern Border Partners and TransCanada in early April, we have established a strong foundation for future growth," Kyle added. "As the general partner and a 45.7 percent owner of the partnership, our interests are clearly aligned with the partnership as it pursues opportunities to grow, benefiting not only the partnership's unit holders but also ONEOK's shareholders."

FIRST-QUARTER 2006 RESULTS INCLUDED:
     * Operating income of $311.5 million, compared with $186.4 million in
       2005, reflecting the consolidation of the partnership's results and
       higher operating income in the company's energy services, natural gas
       liquids, and pipelines and storage segments;
     * Operating costs of $263.6 million in the first quarter, compared with
       $184.0 million in the same period a year earlier, primarily because of
       the consolidation of the partnership's financial results and the
       purchase of the natural gas liquids assets in July 2005;
     * Announcement of the transactions with Northern Border Partners, L.P.
       and TransCanada, which were subsequently completed, effective April 1,
       2006, in which ONEOK became the sole owner of the general partner
       interest, owner of 45.7 percent of the partnership and received
       $1.35 billion in cash and transferred certain assets to the
       partnership;
     * Settlement of the company's equity units in February, which resulted in
       the issuance of 19.5 million shares of common stock and receipt of
       $402.4 million that was used to reduce short-term debt;
     * Consolidated long-term debt of 57 percent of total capitalization;
       ONEOK stand-alone long-term debt of 46 percent of capitalization;
     * Consolidated cash flow from continuing operations, before changes in
       working capital, of $281.0 million, which exceeded capital
       expenditures, dividends and minority interest distributions of
       $142.8 million by $138.2 million;
     * Recognition by FORTUNE Magazine as one of the country's "most admired"
       companies, including a number-one rating in the energy sector in the
       categories of social responsibility, use of corporate assets, and
       quality of management and products/services.
FIRST-QUARTER 2006 BUSINESS-UNIT RESULTS

For comparison purposes, the segment financial and operating results for 2005 have been reclassified to reflect the transfer of the company's legacy natural gas liquids marketing business, which was previously in the gathering and processing segment, to the natural gas liquids segment.

Gathering and Processing

The gathering and processing segment's operating income for the first quarter 2006 was $32.5 million, compared with $33.0 million in the same quarter 2005. Higher commodity prices offset an operating income reduction of $9.4 million attributed to the sale of the Texas assets.

Net margin for the first quarter was $62.4 million, compared with $71.1 million in the same period 2005. Net margin decreased $18.8 million due to the sale of the Texas gathering and processing assets in December 2005. Margins were $3.4 million higher, related to the company's realized gross processing margins, net of hedging, on its keep-whole contracts. Higher natural gas and natural gas liquids prices on percent-of-proceeds contracts contributed an additional $9.9 million in net margin, net of hedging, compared with the same period last year. A decrease of $3.2 million was due to reduced volumes processed because of natural production declines and contract expirations. In the quarter, the volume of gas gathered, processed and sold also declined as a result of the sale of the Texas assets.

As a result of the Texas asset sale, operating costs declined $7.2 million, depreciation, depletion and amortization expense decreased $2.2 million and capital expenditures declined $1.4 million. These operating cost decreases were partially offset by higher employee-related expenses.

The following table provides realized prices, net of hedging:

    Realized Prices, net of Hedging
                                                       Three Months Ended
                                                          March 31, 2006
                                                      2006              2005
    Realized composite NGL sales price ($/Gal)       $0.81             $0.71
    Realized condensate sales price ($/bbl)         $57.67            $44.06
    Realized natural gas sales price ($/MMBtu)       $7.96             $5.94
    Realized gross processing spread ($/MMBtu)       $3.43             $2.94

The following table contains margin information for the time periods indicated. NGL shrink, plant fuel and condensate shrink refer to the Btus that are removed from natural gas through the gathering and processing operation. 

Three Months Ended  Three Months Ended
                                          March 31, 2006     March 31, 2005
    Keep whole:
        NGL shrink  (MMBtu/d)                  40,968             71,722
        Plant fuel  (MMBtu/d)                   5,114              9,179
        Condensate shrink (MMBtu/d)             3,403              5,280
        Condensate sales  (Bbls/d)                699              1,084
        Percentage of total net margin             15%                17%

    Percentage of Proceeds:
        Wellhead purchases (MMBtu/d)          129,813            195,639
        NGL sales  (Bbls/d)                     4,423              6,625
        Residue sales  (MMBtu/d)               16,505             24,804
        Condensate sales  (Bbls/d)              1,093              1,642
        Percentage of total net margin             65%                59%

    Fee:
        Wellhead volumes (MMBtu/d)            879,677          1,109,878
        Average rate  ($/MMBtu)                 $0.16              $0.17
        Percentage of total net margin             20%                24%



    The following tables contain hedging information for the gathering and
processing segment in 2006:

                                       Nine Months ending December 31, 2006
    Product                            Volumes Hedged        Average Price
    Percent of Proceeds:
      Condensate [a]                      225 MBbls       $52.00 - 60.00/Bbl
      Natural Gas [a]                       1.4 Bcf       $6.15 - 11.00/MMBtu

     [a] Hedged with NYMEX-based costless collars.


    Natural Gas Liquids
The natural gas liquids segment had operating income of $17.1 million in the first quarter 2006, compared with $4.8 million in the same period 2005.

Net margin increased to $33.7 million in the first quarter 2006, compared with $7.3 million in 2005. The acquisition of the natural gas liquids assets in July 2005 contributed $28.2 million in additional net margin. These increases were partially offset by a $1.8 million margin decrease in the company's legacy NGL marketing business, primarily caused by lower sales volumes as a result of the Texas gathering and processing asset sale.

Natural gas liquids supplies connected to the company's assets continue to grow as expected, despite periods of ethane rejection. During the quarter, the natural gas liquids segment completed construction to connect two new natural gas processing plants to its system in the mid-continent area, which came on line in April 2006. Construction is also scheduled to begin mid-year to connect two additional mid-continent gas processing plants.

Operating costs in the first quarter 2006 increased to $11.2 million versus $2.4 million in the first quarter 2005, with $8.9 million of the increase associated with the acquisition of the natural gas liquids assets in July 2005. Depreciation, depletion and amortization increased $5.4 million year over year, with $5.3 million of the increase related to the asset acquisition.

Pipelines and Storage

The pipelines and storage segment reported operating income of $27.7 million in the first quarter 2006, compared with $14.2 million in the same period 2005. Net margin in the period increased to $52.1 million, compared with $30.1 million in the same quarter last year.

The margin increase was primarily the result of the natural gas liquids gathering and distribution pipelines acquired in July 2005, which contributed $14.1 million in additional net margin. Natural gas transportation net margins increased $6.1 million due to increased throughput, improved fuel position and higher commodity prices. Storage margins increased $1.3 million as a result of new and renegotiated contracts.

Operating costs increased $5.2 million to $16.8 million in the first quarter 2006, with $4.6 million of the increase resulting from the acquisition of the natural gas liquids assets and the balance associated with higher regulatory compliance and employee-related costs. Depreciation, depletion and amortization expense increased $3.2 million in the quarter, primarily related to operating the newly acquired NGL pipelines.

Energy Services

The energy services segment posted operating income of $93.3 million in the first quarter 2006, compared with $52.7 million in the first quarter 2005. Net margin increased to $103.2 million from $61.2 million in the same period last year.

Net margin increases included: $28.2 million in transportation margins, net of hedges, due to improved natural gas basis differentials in the mid- continent and Gulf Coast regions; $9.5 million in storage margins due to increases in demand fees associated with peaking and load-following services, and; a $4.1 million increase from natural gas trading operations, primarily due to favorable natural gas basis spreads.

Natural gas volumes marketed declined 5 percent, and natural gas storage withdrawals declined 28.2 percent as a result of record-setting warmer weather in January 2006.

Financial trading margins were $11.9 million in the first quarter 2006, compared with $7.8 million in the first quarter 2005, with the increase related to the previously mentioned favorable natural gas basis spreads.

Operating costs for the first quarter 2006 increased to $9.3 million, compared with $8.0 million in the same period last year, due primarily to higher employee-related costs.

On March 31, 2006, natural gas in storage was 42.3 Bcf, compared with 40.2 Bcf a year earlier. Natural gas in storage on April 30, 2006, was 58.7 Bcf. Natural gas storage capacity under lease was 86 Bcf on March 31, 2006, compared with 87 Bcf a year earlier.

The net margin for the energy services segment was derived from the following sources:

                                                         Three Months Ended
                                                              March 31,
                                                      2006              2005
                                                     (Thousands of dollars)
    Marketing and storage, gross                   $135,068           $91,487
    Less:  Storage and transportation costs         (49,259)          (43,302)
      Marketing and storage, net                     85,809            48,185
    Retail marketing                                  5,449             5,210
    Financial trading                                11,896             7,800
    Net margin                                     $103,154           $61,195


    Distribution
The distribution segment reported first-quarter 2006 operating income of $76.9 million, compared with $80.6 million in the same period last year. Net margin was $195.9 million versus $201.2 million in the same period a year earlier.

Net margins improved $14.9 million as the result of implementation of new rates in Oklahoma in 2005, offset by a $12.2 million decline related to expiring riders in Oklahoma. The segment experienced an additional $6.7 million decline in customer sales due to warmer weather throughout its service territory.

Total volumes delivered declined 7 percent as a result of warmer weather, while operating income declined 5 percent. The impact of warmer than normal weather in the quarter was moderated by approved weather-protection mechanisms in all three states; other rate mechanisms in Texas and the implementation of a new two-tier rate structure in Oklahoma. The new Oklahoma rate structure reduces volumetric sensitivity while providing more consistent earnings and cash flow over time.

Operating costs were $90.8 million in the quarter, compared with $90.6 million in the same quarter 2005, primarily as a result of $2.1 million in higher labor and employee benefit costs, offset by a $1.9 million decrease in bad debt expense.

Depreciation, depletion and amortization expense was $28.2 million, compared with $30.0 million in the first quarter 2005. The decrease was primarily related to $2.0 million in cathodic protection and service lines amortization in Oklahoma that expired in 2005.

Northern Border Partners

Partnership operating income increased to $63.8 million in the first quarter 2006, compared with $63.5 million in the same period a year earlier. Net margin was $126.8 million in the first quarter 2006 versus $127.9 million. Depreciation, depletion and amortization expense was $21.3 million in the first quarter 2006, compared with $21.4 million in the same period last year. 2005 operating income is not consolidated in ONEOK's financial results.

The operating income increase is the result of higher revenues in the partnership's gathering and processing business, offset by expenses related to the transactions with ONEOK and TC PipeLines Intermediate Limited Partnership.

Effective April 1, 2006, the partnership sold to TC PipeLines Intermediate Limited Partnership, a publicly traded partnership affiliated with TransCanada, a 20 percent interest in Northern Border Pipeline Company for approximately $297 million. The price of the 20 percent interest, along with a related share of Northern Border Pipeline's outstanding debt, totals $418 million. As a result, Northern Border Partners and TC PipeLines, LP, will each own a 50-percent interest in the pipeline, with an affiliate of TransCanada becoming operator of the pipeline in April 2007.

EARNINGS CONFERENCE CALL

ONEOK and Northern Border Partners management will conduct a joint conference call on May 3, 2006, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call will also be carried live on ONEOK's and Northern Border Partners' Web sites.

To participate in the telephone conference call, dial 866-836-4700, pass code 890050, or log on to http://www.oneok.com or http://www.northernborderpartners.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 Northern Border Partners' Web site http://www.northernborderpartners.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 890050.

ONEOK, Inc. is a diversified energy company. We are the general partner and own 45.7 percent of Northern Border Partners, L.P. (NYSE: NBP), 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 press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements relate to: anticipated financial performance; management's plans and objectives for future operations; business prospects; outcome of regulatory and legal proceedings; market conditions and other matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements in certain circumstances.

Analyst Contact:  Dan Harrison
                       918-588-7950
     Media Contact:    Megan Washbourne
                       918-588-7572



     ONEOK, Inc. and Subsidiaries
     CONSOLIDATED STATEMENTS OF INCOME

                                                  Quarters Ended March 31,
                                                   2006             2005
            (Thousands of dollars, except per share amounts)
    Revenues
    Operating revenues, excluding energy
     trading revenues                          $3,910,952       $2,697,848
    Energy trading revenues, net                    7,370            9,192
    Total Revenues                              3,918,322        2,707,040
    Cost of sales and fuel                      3,343,173        2,336,643
    Net Margin                                    575,149          370,397
    Operating Expenses
    Operations and maintenance                    167,985          123,502
    Depreciation, depletion and
     amortization                                  69,426           43,217
    General taxes                                  26,190           17,300
    Total Operating Expenses                      263,601          184,019
    Operating Income                              311,548          186,378
    Other income                                   12,555            5,298
    Other expense                                   5,844              782
    Interest expense                               62,890           26,090
    Income before Minority Interest and
     Income Taxes                                 255,369          164,804
    Minority interest in income of
     consolidated subsidiaries                     45,497              ---
    Income taxes                                   80,141           63,026
    Income from Continuing Operations             129,731          101,778
    Discontinued operations, net of taxes:
      Income (loss) from operations of
       discontinued components, net of tax           (239)           5,886
    Net Income                                   $129,492         $107,664
    Earnings Per Share of Common Stock
      Basic:
        Earnings per share from continuing
         operations                                 $1.21            $0.98
        Earnings (loss) per share from
         operations of discontinued components,
         net of tax                                   ---             0.06
      Net earnings per share, basic                 $1.21            $1.04
      Diluted:
        Earnings per share from continuing
         operations                                 $1.17            $0.92
        Earnings (loss) per share from
         operations of discontinued components,
         net of tax                                   ---             0.05
      Net earnings per share, diluted               $1.17            $0.97
    Average Shares of Common Stock
     (Thousands)
      Basic                                       107,143          103,666
      Diluted                                     110,756          111,001
    Dividends Declared Per Share of
     Common Stock                                   $0.28            $0.25



     ONEOK, Inc. and Subsidiaries
     CONSOLIDATED BALANCE SHEETS

                                                  March 31,          Dec. 31,
                                                     2006              2005
    Assets                                           (Thousands of dollars)

    Current Assets
      Cash and cash equivalents                     $36,800            $7,915
      Trade accounts and notes receivable, net    1,501,651         2,202,895
      Gas and natural gas liquids in storage        625,029           911,393
      Commodity exchanges                            39,704           133,159
      Energy marketing and risk management assets   348,958           765,157
      Other current assets                          259,054           385,274
        Total Current Assets                      2,811,196         4,405,793

    Property, Plant and Equipment
      Property, plant and equipment               8,648,194         5,575,365
      Accumulated depreciation, depletion
       and amortization                           2,718,333         1,581,138
        Net Property, Plant and Equipment         5,929,861         3,994,227

    Deferred Charges and Other Assets
      Goodwill and intangibles                      991,264           683,211
      Energy marketing and risk management
       assets                                       113,415           150,026
      Investments and other                         822,695           716,298
        Total Deferred Charges and Other
     Assets                                       1,927,374         1,549,535

    Assets of Discontinued Component                 63,001            63,911

            Total Assets                        $10,731,432       $10,013,466



     ONEOK, Inc. and Subsidiaries
     CONSOLIDATED BALANCE SHEETS

                                                  March 31,         Dec. 31,
                                                    2006              2005
    Liabilities and Shareholders' Equity            (Thousands of dollars)

    Current Liabilities
      Current maturities of long-term debt          $6,551            $6,546
      Notes payable                                745,000         1,541,500
      Accounts payable                           1,308,421         1,756,307
      Commodity exchanges                          122,547           238,176
      Energy marketing and risk management
       liabilities                                 450,555           814,803
      Other                                        444,633           438,009
        Total Current Liabilities                3,077,707         4,795,341

    Long-term Debt, excluding current
     maturities                                  3,104,054         2,024,070

    Deferred Credits and Other
     Liabilities
      Deferred income taxes                        604,405           603,835
      Energy marketing and risk management
       liabilities                                 218,138           442,842
      Other deferred credits                       347,447           350,157
        Total Deferred Credits and Other
         Liabilities                             1,169,990         1,396,834

    Liabilities of Discontinued Component            1,963             2,464

    Commitments and Contingencies

    Minority Interests in Consolidated
     Subsidiaries                                1,022,668               ---

    Shareholders' Equity
      Common stock, $0.01 par value:
       authorized 300,000,000 shares; issued
       119,439,272 shares and outstanding
       117,284,487 shares at March 31, 2006;
       issued 107,973,436 shares and
       outstanding 97,654,697 shares at
       December 31, 2005                             1,194             1,080
      Paid in capital                            1,225,134         1,044,283
      Unearned compensation                            ---              (105)
      Accumulated other comprehensive loss            (505)          (56,991)
      Retained earnings                          1,188,046         1,085,845
      Treasury stock, at cost: 2,154,785
       shares at March 31, 2006 and
       10,318,739 shares at December 31, 2005      (58,819)         (279,355)
        Total Shareholders' Equity               2,355,050         1,794,757

            Total Liabilities and
             Shareholders' Equity              $10,731,432       $10,013,466



     ONEOK, Inc. and Subsidiaries
     CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                    Quarters Ended March 31,
                                                     2006             2005
    Operating Activities                             (Thousands of dollars)
      Net income                                   $129,492         $107,664
      Depreciation, depletion and amortization       69,426           43,217
      Gain on sale of assets                         (1,305)             (54)
      Minority interest in income of
       consolidated subsidiaries                     45,497              ---
      Income from equity investments, net            (6,472)             367
      Deferred income taxes                          38,623           13,545
      Stock-based compensation expense                1,510            2,633
      Allowance for doubtful accounts                 4,182            6,040
      Changes in assets and liabilities
       (net of acquisition and
       disposition effects):
        Accounts and notes receivable               780,136          163,425
        Inventories                                 280,042          292,126
        Unrecovered purchased gas costs             (27,081)          (3,617)
        Commodity exchanges                         (22,174)             ---
        Deposits                                     48,202          (38,412)
        Regulatory assets                            10,360           (4,898)
        Accounts payable and accrued
         liabilities                               (471,980)         (36,213)
        Energy marketing and risk management
         assets and liabilities                     (62,480)             375
        Other assets and liabilities                 (3,648)         (26,602)
        Cash Provided by Operating Activities       812,330          519,596
    Investing Activities
      Changes in other investments, net              10,815          (23,805)
      Capital expenditures                          (64,553)         (58,312)
      Other investing activities                      1,102             (567)
        Cash Used in Investing Activities           (52,636)         (82,684)
    Financing Activities
      Borrowing (repayment) of notes
       payable, net                              (1,027,500)          44,500
      Termination of interest rate swaps                ---          (20,212)
      Payment of debt                               (29,258)        (335,324)
      Equity unit conversion                        402,447              ---
      Repurchase of common stock                     (1,408)         (65,282)
      Issuance of common stock                        1,333            4,875
      Dividends paid                                (27,344)         (26,021)
      Distributions to minority interests           (50,855)             ---
      Contributions from minority interests           3,099              ---
      Other financing activities                    (44,895)         (13,411)
        Cash Used in Financing Activities          (774,381)        (410,875)
          Change in Cash and Cash Equivalents       (14,687)          26,037
          Cash and Cash Equivalents at
           Beginning of Period                        7,915            9,458
          Cash of Previously Unconsolidated
           Subsidiaries                              43,572              ---
          Cash and Cash Equivalents at End of
           Period                                   $36,800          $35,495



     ONEOK, Inc.
     INFORMATION AT A GLANCE

                                                        Quarters Ended
                                                           March 31,
                                                     2006             2005
                                                     (Millions of dollars)
    Gathering and Processing
    Net margin                                      $62.4            $71.1
    Depreciation, depletion and amortization         $6.3             $8.3
    Operating income                                $32.5            $33.0
    Total gas gathered (MMMBtu/d)                     880            1,110
    Total gas processed (MMMBtu/d)                    830            1,097
    Natural gas liquids sales (MBbls/d)                33               49
    Natural gas liquids produced (MBbls/d)             43               61
    Gas sales (MMMBtu/d)                              265              340
    Capital expenditures                             $3.3             $7.7
    Realized composite NGL sales price ($/Gal)      $0.81            $0.71
    Realized condensate sales price ($/bbl)        $57.67           $44.06
    Realized natural gas sales price ($/MMBtu)      $7.96            $5.94
    Realized gross processing spread ($/MMBtu)      $3.43            $2.94

    Natural Gas Liquids
    Net margin                                      $33.7             $7.3
    Depreciation, depletion and amortization         $5.4             $---
    Operating income                                $17.1             $4.8
    Natural gas liquids gathered (MBbls/d)            193              (a)
    Natural gas liquids sales (MBbls/d)               208               98
    Natural gas liquids fractionated (MBbls/d)        284              (a)
    Capital expenditures                             $3.0             $1.7

    Pipelines and Storage
    Net margin                                      $52.1            $30.1
    Depreciation, depletion and amortization         $7.6             $4.4
    Operating income                                $27.7            $14.2
    Natural gas transported (MMcf)                132,475          131,330
    Natural gas liquids transported (MBbls/d)         193              (a)
    Natural gas liquids gathered (MBbls/d)             55              (a)
    Capital expenditures                             $3.6             $1.7
    Average natural gas price ($/MMBtu)
     (mid-continent region)                         $7.23            $5.71

    Energy Services
    Net margin                                     $103.2            $61.2
    Depreciation, depletion and amortization         $0.6             $0.4
    Operating income                                $93.3            $52.7
    Natural gas marketed (Bcf)                        310              325
    Natural gas gross margin ($/Mcf)                $0.28            $0.15
    Physically settled volumes (Bcf)                  602              625
    Capital expenditures                             $---             $---

    Distribution
    Net margin                                     $195.9           $201.2
    Depreciation, depletion and amortization        $28.2            $30.0
    Operating income                                $76.9            $80.6
    Customers per employee                            712              688
    Capital expenditures                            $36.7            $27.7
    Natural gas margins
      Gas Sales                                    $162.8           $165.4
      Transportation                                $22.9            $28.4
    Natural gas volumes (MMcf)
      Gas Sales                                    74,137           85,242
      Transportation                               69,707           69,172

    Northern Border Partners
    Net margin                                     $126.8           $127.9 (b)
    Depreciation, depletion and amortization        $21.3            $21.4 (b)
    Operating income                                $63.8            $63.5 (b)
    Interstate natural gas pipeline:
      Natural gas delivered (MMcf)                305,280          306,692 (b)
      Natural gas average throughput (MMcf/d)       3,468            3,501 (b)
    Natural gas gathering and processing:
      Natural gas gathered (MMcf/d)                 1,095            1,049 (b)
      Natural gas processed (MMcf/d)                   65               60 (b)
    Capital expenditures                            $17.8             $9.8 (b)

     (a) -- No data available as the acquisition of these assets was completed
            on July 1, 2005.
     (b) -- Northern Border Partners was consolidated beginning January 1,
            2006. The 2005 data is presented for comparison purposes only.



     ONEOK, Inc. and Subsidiaries
     REGULATION G GAAP RECONCILIATION

                                                             Quarter Ended
                                                             March 31, 2006
                                                         (Millions of Dollars)
    Cash used in operating activities                            $812.3
      Accounts and notes receivable                              (780.1)
      Inventories                                                (280.0)
      Unrecovered purchased gas costs                              27.1
      Commodity Exchanges                                          22.2
      Deposits                                                    (48.2)
      Regulatory assets                                           (10.4)
      Accounts payable and accrued liabilities                    472.0
      Energy marketing and risk management
       assets and liabilities                                      62.5
      Other assets and liabilities                                  3.6
    Cash flow, before changes in working capital (a)             $281.0

    (a) Cash flow from operations, before changes in working capital, is a
        non-GAAP financial measure used by industry analysts, investors,
        lenders, and rating agencies to assess the financial performance and
        the operating results of a company's fundamental business activities.
        Cash flow from operations, 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. 

analysts, Dan Harrison, +1-918-588-7950, or media, Megan Washbourne, +1-918-588-7572,
both of ONEOK, Inc.

http://www.prnewswire.com