U.S. CAPITAL ADVISORS MIDSTREAM ACCESS DAY Houston, Texas | Jan. 26, 2016
FORWARD-LOOKING STATEMENTS • Statements contained in this presentation that include company expectations or predictions should be considered forward-looking statements that are covered by the safe harbor protections provided under federal securities legislation and other applicable laws. It is important to note that the actual results could differ materially from those projected in such forward-looking • statements. For additional information that could cause actual results to differ materially from such forward-looking statements, refer to ONEOK’s and ONEOK Partners’ Securities and Exchange Commission filings. This presentation contains factual business information or forward-looking information and is neither an offer to sell nor a • solicitation of an offer to buy any securities of ONEOK or ONEOK Partners. All future cash dividends and distributions (declared or paid) discussed in this presentation are subject to the approval of • each entity’s (ONEOK and ONEOK Partners) board of directors. All references in this presentation to financial guidance are based on news releases issued on Feb. 23, 2015, Nov. 3, • 2015 and Dec. 21, 2015 and are not being updated or affirmed by this presentation. Page 2
INDEX ONEOK Partners Overview 4 ONEOK Partners 2016 Guidance 9 Financial Strength 24 ONEOK Overview and 2016 Guidance 26 Appendix – ONEOK Partners Business Segments 30 – 2015 Volume Outlook 35 – Natural Gas Liquids 40 – Natural Gas Gathering and Processing 44 – Disciplined Growth Continues 49 – Recent Projects 51 – ONEOK Partners Growth Projects 54 – Non-GAAP Reconciliations 60 Page 3
ONEOK PARTNERS OVERVIEW
ONEOK PARTNERS ASSET OVERVIEW Owns and operates strategically • located assets in midstream natural gas liquids and natural gas businesses Provides nondiscretionary • services to producers, processors and customers Extensive 36,000-mile integrated • network of natural gas liquids and natural gas pipelines • Supply and market diversity create opportunities Natural Gas Liquids Natural Gas Pipelines Natural Gas Gathering & Processing Page 5
BUSINESS SEGMENTS INTEGRATION – OUR COMPETITIVE ADVANTAGE Supply Diversification Predominantly Fee-Based Value Chain Long-term Growth Opportunities Natural Gas Pipelines Natural Gas Pipelines Growing exports • Nearly 100% fee-based earnings Connected to >50 transmission to Mexico • 6,630 miles of pipeline pipelines and >40 processing plants 53.4 Bcf working capacity of storage Canada • • Converting coal fired Connected to end-use markets Williston Basin • • electric facilities Mid-Continent • • Permian Basin Natural Gas Gathering and Processing Gathering and Processing More than 75% fee based fee-based • earnings in 2016 More than 2,000 contracts in • 20 active processing plants three core areas • 1,750 MMcf/d total processing capacity • Williston Basin • 18,950 miles of gathering pipeline Powder River Basin • Largest natural gas gatherer and • Mid-Continent • processor in the Williston Basin Significant incremental ethane demand beginning Natural Gas Liquids in 2017 from Natural Gas Liquids Connected to >180 • Predominantly fee-based earnings petrochemical facilities processing plants 7,090 miles of gathering pipeline • and growing NGL exports 4,380 miles of distribution pipeline • Permian Basin • • Williston Basin • 840,000 bpd fractionation capacity • Powder River Basin • Connected to major NGL markets Mid-Continent • Page 6
ONEOK PARTNERS WELL-POSITIONED TO CREATE LONG-TERM VALUE Increasing fee-based earnings through gathering, processing, fractionation, storage and transport • services – ONEOK Partners’ fee-based margin is expected to increase to approximately 85% in 2016 from approximately 75% in 2015 Supply and market diversification – strategic, integrated assets in growing NGL-rich plays and well- • positioned in major market areas – NGL-rich plays: Williston, Powder River, Mid-Continent and Permian – Major markets: Gulf Coast, Midwest and Southwest Supply backlog in core areas of the Williston Basin • – Large backlog of drilled but uncompleted wells – Recently completed compression infrastructure and Lonesome Creek plant capturing flared gas inventory – Continued drilling in most productive areas Market driven projects continue to emerge – NGL and natural gas • – Natural gas exports to Mexico driven by growing demand – Ethane demand projected to significantly increase due to petrochemical facilities – Lower natural gas prices could stimulate more ethane recovery Strong, investment-grade balance sheet, liquidity and financial flexibility as a result of disciplined growth • Page 7
OUR KEY STRATEGIES A PREMIER ENERGY COMPANY GROWTH • Increase distributable cash flow through investments in organic growth projects and strategic acquisitions – Continue to increase NGL and natural gas volume – Continue to grow/expand our integrated natural gas liquids and natural gas infrastructure by utilizing our strategic supply and market positions – Continue to increase fee-based earnings in all three business segments FINANCIAL • Manage balance sheet and maintain investment-grade credit ratings at ONEOK Partners – Manage capital spending and distribution growth rates over the long term, resulting in financial strength ENVIRONMENT, SAFETY AND HEALTH Continue sustainable improvement in ESH performance • – Continue to maintain the mechanical reliability of our assets PEOPLE Attract, select, develop and retain a diverse and inclusive group of employees to support strategy • execution – Management continuity is the result of effective succession planning Page 8
ONEOK PARTNERS 2016 GUIDANCE
ONEOK PARTNERS 2016 GUIDANCE SUMMARY ONEOK Partners expects: No public debt or equity offerings well into 2017 • • Distribution coverage at 1.0x or better*, and distributions to remain flat compared with 2015 Capital-growth expenditures of $460 million and maintenance capital of $140 million • • GAAP debt-to-EBITDA ratio of 4.2 times or less by late 2016 ~$1,880 $1,746 ~$1,500 $1,618 $1,258 ~$1,390 ~$260 $1,172 Gathering and Processing $1,170 $1,155 ~$245 Natural Gas Pipelines ~$600 ~$995 Natural Gas Liquids Adjusted EBITDA Distributable Cash Flow Capital Expenditures** 2016G Operating Income and Equity Earnings*** 2014 2015 Guidance Midpoint 2016 Guidance * Assumes average NYMEX 2016 future strip pricing of $40 -$45 per barrel of crude – 12 month price range $38-$46 per barrel ** Excludes acquisitions *** Includes equity earnings of Gathering and Processing: $20 million, Natural Gas Pipelines: $65 million and Natural Gas Liquids: $50 million Page 10
ONEOK PARTNERS SOURCES OF MARGIN PERCENT OF MARGIN Sources of Margin Fee-based margin expected to increase to approximately • 85% in 2016 $1.6 B $1.6 B $1.7 B $2.1 B $2.3 B ~$2.5 B • Volume risk ~5% 9% 11% 12% 20% ~10% – Exists primarily in natural gas gathering and processing and 31% natural gas liquids segments 16% 23% 22% Ethane rejection impacts the natural gas liquids segment • 22% Mitigated by supply and market diversity, firm-based, frac- – or-pay and ship-or-pay contracts 19% Mitigated by significant acreage dedications in the core – areas of the basins we operate in ~85% Commodity price risk • 75% Exists primarily in natural gas gathering and processing 66% 66% – 58% segment 50% Mitigated by hedging – Recontracting with producer customers to increase fee- – based components Price differential risk • 2011 2012 2013 2014 2015G 2016G NGL location price differentials between Mid-Continent and – Gulf Coast and product price differentials Fee Commodity Differential Optimization expected to be less of a contributor – Page 11
NATURAL GAS LIQUIDS MARGIN PROFILE MIX Exchange & Storage Services • Exchange & Gather, fractionate, transport and store NGLs and – 50% Storage Services deliver to market hubs; primarily fee based 74% Transportation • Transportation ~78% 72% 55% – Transporting raw NGL feed from supply basins 77% and NGL products to market centers; fee based Marketing 2% Marketing • 7% 6% Purchase for resale approximately 70% of – Optimization fractionator supply on an index-related basis; 7% differential based 7% 37% 12% • Optimization Isomerization 8% 28% 9% ~12% 6% – Obtain highest product price by directing product 8% 7% ~5% movement between market hubs; differential 6% 9% ~4% 4% 4% 3% based 1% ~1% 1% 2011 2012 2013 2014 2015G 2016G Isomerization • Convert normal butane to iso-butane to be used in – Focused on increasing fee-based refining to increase octane in motor gasoline; exchange-services margins differential based Page 12
NATURAL GAS PIPELINES PERCENT OF MARGIN Sources of Margin Nearly 100% of margin is fee- • 4% 4% ~4% 6% 6% 8% based Minimal volume risk • Backed by firm demand contracts – Roadrunner Gas Transmission • 96% 96% ~96% 94% 94% pipeline project and WesTex 92% pipeline expansion to enhance export capability to Mexico – Contract terms of 25 years* 2011 2012 2013 2014 2015G 2016G Fee Based Commodity *Subject to satisfaction of certain precedent conditions Page 13
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