2. Jim Kneale
President and Chief Operating Officer
ONEOK, Inc. | ONEOK Partners, L.P.
2
3. Forward-
Forward-Looking Statement
Statements contained in this presentation that include company
p py
expectations or predictions should be considered forward-looking
statements which are covered by the safe harbor provisions of the
Securities Act of 1933 and the Securities and Exchange Act of 1934
1934.
It is important to note that the actual results of company earnings
could differ materially from those projected in such forward-looking
statements. For additional information, refer to ONEOK’s and
ONEOK Partners’ Securities and Exchange Commission Filings.
3
6. ONEOK Today
A Premier Energy Company
• Assets that fit and work • Demonstrated financial
together flexibility and discipline
– Integrated operations
– Expanding participation in the
value chain
• Proven ability to grow
profitably
– Predominately fee-based
income
– Executing $2 billion of growth
projects at ONEOK Partners ONEOK Distribution
ONEOK Energy Services
Leased Pipeline Capacity
Leased Storage Capacity
ONEOK Partners
Growth Projects
6
7. Our Vision
A Premier Energy Company
A premier energy company creating exceptional value for all
p gy py g p
stakeholders by:
• Rebundling services across the value chain, primarily through
verticall integration, t provide customers with premium services
ti i t ti to id t ith i i
at lower costs
• Applying our capabilities — as a gatherer, processor, transporter,
marketer and distributor — to natural gas and natural gas
liquids…
…and other commodities
7
8. A Journey By Design
Rebundling the Value Chain and Applying Our Capabilities
Markets
Midstream
Exploration & Distribution Marketing
Midstream
Natural Gas
Production NGLs
• Serve 2 million
• Gathering
• Gathering • Leading
customers in
• Fractionation
• Processing marketer of
Oklahoma,
• Pipelines
• Pipelines natural gas
Kansas & Texas
• Storage
• Storage
8
9. Our Key Strategies
A Premier Energy Company
• Generate consistent growth and sustainable earnings
g g
– Develop and execute internally generated growth projects at
ONEOK Partners
– Improve profitability of ONEOK Distribution Companies
– Continue focus on physical activities at ONEOK Energy Services
• Execute strategic acquisitions that p
g q provide long-term value
g
• Manage our balance sheet and maintain strong credit ratings
at or above current level
• Operate in a safe and environmentally responsible manner
• Attract, develop and retain employees to support strategy
p py pp gy
execution
9
11. Distribution
Sixth Largest Natural Gas Distributor in U.S.
• Growth
– Efficient investments
– Customers, volumes, rate base
• Earnings stabilization
g
– Synchronized rates and regulatory actions
– Innovative rate design and mechanisms
– Operations and maintenance cost control
• Cost control
– Standardization
– Continuous process improvement
p p
– Utilize technology
• Serve more than two million customers Revenues $2.1 billion
in Oklahoma, Kansas and Texas
, Asset Base $2.7 billion
Rate Base $1.7 billion
11
12. Distribution
Established a New Level of Performance Through Strategy Execution
• Closing the gap between actual
• Increased level of sustainable
and allowed returns
earnings
– $70 million operating income gap
• Rate mechanisms reduce in 2005
regulatory lag – Reduced to $20 million in 2008
Return on Equity*
Operating Income 10.2%
$186
$174
$ in Millions
8.8%
8.5%
$117
$114
5.3%
4.9%
4 9%
13% CAGR 80% Increase
2005 2007 2008
2006 2005 2006 2007 2008 2008
Guidance Guidance Allowed
* ROE calculations are consistent with utility ratemaking in
each jurisdiction and not consistent with GAAP returns
12
13. Energy Services
Strategic Leased Assets Enhance Our Ability to Provide
Premium Services to Customers
• Deliver natural gas,
together with bundled,
reliable, premium p
p products
and services
– Peaking services
– Primarily to LDCs
y
• Access to prolific supply
and high-demand areas Leased Pipeline
Leased Storage
• Industry knowledge and Storage 91 Bcf of capacity
2.2 Bcf/d of withdrawal rights
customer relationships 1.4 Bcf/d of injection rights
Transportation 1.5 Bcf/d of long-term firm capacity
Sales 3.3 Bcf/d in 2007
3.1 Bcf/d in 2006
13
14. Energy Services
Key Drivers
• $830 million of operating income in five years
• Seasonal storage and transportation differentials have the
greatest impact
$5.00 $250
$229
$205
Operating Income (Millions)
$4.00 $200
$
$166
$139
$3.00 $150
$/MMBtu
$93
$2.00 $100
$1.00 $50
$- $0
2004 2005 2006 2007 2008 Guidance
Realized Storage Differential Rockies to Mid-Continent Differential Operating Income
14
15. ONEOK Partners
Primary Growth Engine for ONEOK
ONEOK: General Partner and 47.7 percent owner
•
Strategic assets connected to prolific supply basins with access to key markets
•
Provide non-discretionary services to producers
•
Predominantly fee-based income generates stable cash flows
•
Natural Gas Natural Gas Liquids
Gathering & Fractionation Pipelines
Gathering & Processing Pipelines
– Connected to over 90 percent of the Mid-
—Diversified supply basins, producers and
Continent region’s processing plants
region s
contracts mitigate earnings volatility
– Allows us to provide full range of services
—Earnings on pipelines are predominantly
to our customers
fee based
15
16. ONEOK Partners - Roadmap to Growth
$2 Billion of Internal Growth Projects by 2009
Grasslands
plant expansion
$40-$45 million
Guardian II
Expansion
Fort Union Gas $277-$305 million
Gathering
Expansion
(
(37% owner)
NGL & Refined Product
D-J Lateral
System Acquisition
$70-$80 million
Overland Pass
$300 million
Pipeline
$575-$590 million
Piceance
Lateral
$110-$140 million NGL Upgrade
Projects Midwestern
$230-$240 million Extension
$69 million
Woodford
Extension
$36 million
Natural Gas Gathering & Processing
2010 -2015 Internal Growth Projects:
Arbuckle
Natural Gas Pipelines
$300-500 million/year
Pipeline
Natural Gas Liquids Gathering & Fractionation
$340-$360 million
Natural Gas Liquids Pipelines
plus acquisitions
l i iti
Growth Projects
16
17. ONEOK Partners
Growth in the Rockies
• Overland Pass Pipeline
– Construction complete
– Initial capacity110,000 Bpd
– Expandable to 255,000 Bpd,
expected b 2010
d by
• Supply
– 140,000 Bpd committed
– 60,000 Bpd over the next 3-5
years in various stages of
negotiation
• D J Lateral startup in fourth
D-J
quarter 2008 and fully
operational in first quarter 2009
• Piceance Lateral in service
in-service
during third quarter 2009
17
18. ONEOK Partners
Creating Exceptional Value for Unitholders
• ONEOK as sole general
g
partner Distributions Paid Per Unit
– 11 consecutive distribution $1.08
$1.06
increases $1.04
$1.025
$1.01
$1 01
• Continued opportunities
$1.00
$0.98 $0.99
$0.97
$0.95
for distribution growth
– Growth EBITDA generated 11% CAGR
$0.88
is primarily fee based
$0.80
• Aligned interests
– Quarterly distributions on
ONEOK’s general partner 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08
interest have more than
doubled
18
19. Aligned Interests
Increasing Our Investment in ONEOK Partners
• Purchased 5.4 million OKS • As ONEOK Partners grows,
common units in March 2008 for ONEOK grows
$303 million – EBITDA growth: Two-thirds of
every incremental dollar flows to
– Contributed $9.6 million to
ONEOK
maintain 2 percent general partner
interest – Distribution growth: Penny a
quarter adds $5.2 million to
– Increased ownership to 47.7
ONEOK’s annual cash flow
percent
IDR and
Capital EBITDA Higher Net
Equity Dividends
Projects Growth Distributions Income
Income
Unit Price Appreciation Share Price Appreciation
19
21. Stable Cash Flow
Financial Flexibility
• Continued strong free-cash flow Free Cash Flow
available for: $ in Millions
Acquisitions
–
$183 $159
Investment in OKS $170
– $182
$205
Share repurchase
–
$89 $110
Dividend increases
–
$163
$150
$135
Debt repayment
–
•RRepurchased $884 million of
hd illi f $264 $250
shares since 2005 $182
$175 $174
• Paid $402 million of maturing
long-term
long term debt in February 2008 2004 2005 2006 2007 2008
Guidance
• Invested $313 million in ONEOK Capital Expenditures Dividends Surplus
Partners in March 2008 *Stand-alone cash flow, excluding acquisitions
21
22. Strong Balance Sheet
Demonstrated Financial Discipline
• Capital structure • Strong credit rating
p g g
– Goal: 50/50 capitalization – S&P: BBB
– Moody’s: Baa2
• Liquidity at October 31, 2008
–$$335 million cash and cash
equivalents
– $115 million available under Total
Equity
Debt
existing $ billion facilities
$1.6 44%
56%
– $915 million of natural gas in
storage
Stand–alone Capitalization
September 30, 2008
22
23. Shareholder Value
Delivering Consistent Growth and Stable Earnings
Dividend Growth Shareholder Return
• Total return of 84 percent since 2004
• 10 dividend increases in five years
• Share price increase of 53 percent
• Target: 50-55 percent of recurring
since 2004
earnings
Share Price Total Return
$0.40
$50 180%
0.38
$47.40
6
$0.36
160%
$0
$0.34
$44.63
$45.00
$0.32
$40 140%
$0.30
$0.28
120%
$34.40
$37.79
$0.25
$30 $34.02
$0.23
$30.82 100%
$0.21
$32.25
16% CAGR
$0.19
84%
$26.02 80%
$22.55
$22
$20
$
60%
40%
$10
20%
S&P 500
ONEOK, Inc.
0%
$0
Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08
Dividends Per Share Total Shareholder Return
*Share prices are closing prices at last day of quarter
23
24. Key Investment Considerations
A Premier Energy Company
• Strong track record of creating value for both customers and
g g
investors, through rebundling services across the value chain and
applying our capabilities to other commodities
• St t i assets connecting prolific supply b i and k markets
Strategic t ti lifi l basins d key kt
• Significant growth potential through continued strategy execution
• Demonstrated financial discipline
• Experienced and proven management team
• Talented workforce dedicated to providing safe and reliable
p g
service to all our customers
24
27. Earnings Growth
Delivering Consistent Growth and Stable Earnings
• Di
Diverse asset b base Stand-alone Operating Income
provides significant fee- Plus Equity Earnings
based income and $617
$591
$341
$535
stable earnings $524
$444
• Strategy execution ONEOK
Partners
results
res lts in significant 7% CAGR
earnings growth Distribution
$186
Energy
$93
Services
2004 2005 2006 2007 2008G
*Millions of dollars, excluding gain/loss on sale of assets
Millions
27
28. Aligned Interests
Growth at ONEOK Partners Benefits ONEOK
$22.7
General Partner Distributions
• Quarterly distributions to
Q y $20.9
$19.1
ONEOK have increased in the $16.2
$14.9
$13.3 $14.1
$11.6 $12.4
$ in Millions
past two years: $10.0
– General partner interest 39% CAGR
distributions have more than
doubled 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
– Limited partner interest
Limited Partner Distributions $45.8
distributions have increased more $44.1 $44.9
than $10 million
$36.6 $37.0 $37.4 $37.9
$35.1 $35.9 $36.3
• It
Internally generated growth
ll td th
ns
$ in Million
projects will result in additional 11% CAGR
growth
2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
28
29. Business Segments
Diversity Provides Stability & Opportunity
• ONEOK Partners
– ONEOK’s primary growth engine
• Distribution
– Provides low-risk, stable cash flow
– Rate strategies have led to an increase in
sustainable earnings and an improved return
on equity
• Energy Services
– Combined supply, transportation and storage
contracts provide premium service to customers
– Positions us to capture upside in the market
29
30. Distribution
Sixth Largest Natural Gas Distributor in U.S.
• Largest natural g distributor in
g gas
Oklahoma and Kansas; third largest in
Texas
•SServe more th t million customers
than two illi t
Oklahoma Natural Gas Kansas Gas Service Texas Gas Service
Coldest territory with weather Highest potential growth
Largest customer base
normalization & bad debt recovery
$19.8 million
2008 Rate $5.2 million
2008 Rate
$2.9 million
2008 Rate
Filings Filings
Filings
Customer Base Approximately
Customer Base Approximately 85% Customer Base Approximately 70%
600,000 customers
residential load residential load
$675 million
$
Rate Base $710 million
Rate Base $302 million
Rate Base
30
31. Distribution
Successful Execution of Rate Strategy
2005 2008
Opportunities Rate Mechanism Solution Oklahoma Kansas Texas * Oklahoma Kansas Texas *
36% 50%
Earnings Lag Capital Recovery
Bad Debt Recovery 46%
FILED
Margin Increased Increased Increased
Customer Charge
Protection
Weather Normalization 46% 61%
Incentive Rates Revenue Sharing FILED
* Percent of customers within the 17 Texas jurisdictions
31
32. Energy Services
What We Do
• Contract for natural gas supply from diverse sources
g pp y
• Lease and optimize storage and transportation capacity
• Provide bundled, reliable products and services to natural gas
and electric utilities
• During periods of market inefficiencies, effectively use storage
and transportation assets to capture incremental margins
Supply Markets
Storage Transportation
• Electric
• LDCs Retail Customers:
Generators • Industrial
• Trading • Commercial
Counterparties • Residential
32
33. Energy Services
Sources of Margin
Approximately 75 Percent From Storage and Transportation
•
Differential- and
Baseload, swing and peaking
Storage 2008G 49%
demand-based
services 2007 60%
48%
2006
Marketing & risk management
Differential- and fee-
Transportation 2008G 24%
services to producers and markets
based 2007 27%
Maximize delivered value 32%
2006
Differential-, commodity-
Enhance margins through application
Optimization 2008G 14%
and derivative-based
of market knowledge and risk-
risk 2007 0%
management skills 5%
2006
Commodity- and fee-
Provide supply and risk-management
Retail 2008G 12%
based
services to industrial, commercial and 2007 6%
residential customers 7%
2006
Differential-, commodity-
Extract margins using primarily
Trading 2008G 1%
and derivative-based
derivatives, leveraging our physical
2007 7%
positions through market knowledge,
8%
2006
volatility or inefficiencies
33
35. ONEOK Partners
Overview
Natural Gas Gathering & Processing
Natural Gas Pipelines
Natural Gas Liquids Gathering & Fractionation
Natural Gas Liquids Pipelines
Growth Projects
35
36. Earnings Growth
Delivering Consistent Growth and Stable Earnings
• Diverse asset base
provides significant $653
Operating Income* $254
fee-based income and
stable earnings Natural Gas
$445 Gathering &
Processing
$396
• Strategy execution $130 Natural Gas
results in significant Pipelines
$253 $257
earnings growth $214
NGL Gathering &
– Particularly in NGL Fractionation
21% CAGR
Pipelines beg
pe es beginning g
in 2009 NGL Pipelines
$57
2004 2005 2006 2007 2008G
*Millions of dollars, excluding gain/loss on sale of assets
36
37. Stable Cash Flow
Financial Strength
• Predominantly fee based
y
– Large growth projects increase Sources of Margin
fee-based income $896 Million $1.2 Billion
$844 Million
12% 13%
• Commodity and spread risk 18%
is measured and managed 28% 27%
26%
within each segment
• Equity earnings are also
primarily fee based 60% 60% 56%
– 2008 Guidance: $94 million
2006 2007 2008 Guidance
y p
Fee Commodity Spread
37
38. Strong Balance Sheet
Financial Discipline
• Disciplined approach to raising
p pp g • Capital structure
p
capital for growth – Goal: 50/50 capitalization
• Common unit offering in March – Strong credit rating
2008 generating net proceeds
2008, • ONEOK interested in increasing
of $460 million ownership of ONEOK Partners
• Liquidity at October 31, 2008
– $396 million cash and cash
illi hd h
Total
equivalents Equity
Debt
50%
– $130 million available under 50%
existing $1 billion revolver
Capitalization
September 30, 2008
38
39. Distribution Coverage
Financial Discipline
$6.19
Distributions Declared Per Unit
• Target coverage ratio of
g g Distributable Cash Flow Per Unit
Coverage Ratio
1.05x to 1.15x $4.92
• Some distributable cash $4.48
$4.26
$4.15 $4.025
flow t i d to fund
fl retained t f d $3.78
$3 78
$3.71
$3.20 $3.20
growth
• Other considerations
– Commodity prices
1.45
– Overland Pass option 1.30 1.22
1.16 1.19
– Capital market conditions
2004 2005 2006 2007 2008
Guidance*
* Assumes q
quarterly p y
y payment for Q4 at indicated amount
39
40. Distribution Growth
Creating Exceptional Value for Unitholders
• ONEOK as sole general
g
partner Distributions Paid Per Unit
– 11 consecutive distribution $1.08
$1.06
increases $
$1.04
$1.025
$1 02
$1.01
$1.00
• Continued opportunities for
$0.99
$0.98
$0.97
$0.95
distribution growth
$0.88
$0 88
11% CAGR
$0.80
1Q06 3Q06 1Q07 3Q07 1Q08 3Q08
40
41. Value Creation
Delivering Consistent Growth and Stable Earnings
• General partner with
p T t l U ith ld R t
Total Unitholder Return
aligned interests Unit Price Total Return
$70 140%
• Demonstrated financial $67.50
$60 120%
discipline
di i li $59.46
$57.50
$50 100%
$56.25 $50.73
• Visible growth profile $48.24
$47.92
$47.85
$45.75
$40 80%
79%
– $2 billion under way $42.10
$30 60%
– 2010–2015: $300 - $500
$20 40%
million per year
$10 20%
ONEOK Partners Alerian MLP Index
$0 0%
1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08
*Unit prices are closing prices at last day of quarter
41
42. Natural Gas
Diverse Asset Base
Grasslands Plant
• Two segments Expansion
Guardian II
Expansion
– Natural Gas Gathering &
Processing
– Natural Gas Pipelines
Fort Union Gas
• Diverse supply basins, Gathering Expansion
producers and contracts
mitigate earnings volatility in
gathering and processing
Midwestern
• Earnings on pipelines are Extension
predominantly fee based
• More than $600 million of
internal growth projects under
way through 2009
y g Natural Gas Gathering Pipeline Natural Gas Processing Plant
Natural G Interstate Pipeline
Gas Natural G S
Gas Storage
Natural Gas Intrastate Pipeline Growth Projects
Northern Border Pipeline (50% interest)
42
43. Natural Gas Gathering & Processing
Providing Non-discretionary Services to Producers
Gathering
– M than 14 00 miles of pipeline
More h 14,500 il f i li
– Approximately 9,000 meters
– 1,060 MMcf/d* gathered Williston
Compression
– More than 625,000 Bhp Powder River
Wind River
Treating
– Removal of water and other
contaminants Kansas Uplift
Hugoton
Processing Anadarko
– 13 plants with 725 MMcf/d capacity
– 555 MMcf/d* processed
MMcf/d
*At third quarter 2008
43
44. Natural Gas Gathering & Processing
Successful Execution of Strategy
• Diverse contract portfolio
Contract Mix by Volume
– More than 2,000 contracts
3% 3%
3% 6%
6%
– No one contract accounts for
8% 1%
10% 1%
6%
15%
19%
more than 10 percent of volume
32%
30%
27%
– Average term slightly more than
34%
31%
25%
two years
• Contract restructuring has
reduced commodity price
61% 61% 61%
53%
sensitivity and increased fee
52% 51%
revenues
• Conditioning language on 83
2003 2004 2005 2006 2007 2008G
percent of keep-whole contracts
reduces spread risk
Fee Based Percent of Proceeds
Keep Whole Keep Whole w/ Conditioning
44
45. Natural Gas Gathering & Processing
Risk Mitigation
Contract portfolio
• Commodity Price Sensitivity*
y y
– Minimizes exposure to keep-whole Margin Impact ($ Millions)
spread $4.8
$4.5
– NGL exposure diversified among $3.8
five individual products
p
Hedging strategy focuses on long
$2.1
• $1.7 $1.5
$1.3
$1.1 $1.0
NGL, condensate and natural gas $0.9
$0.4
$0.5
positions $0.4
$0.3
-$0.1
-$0 1
– Target 75 percent of expected
production -$1.6
Hedged position:
• -$2.7
-$3.5
2006 2007 2008
2003 2004 2005
Fourth Quarter 2008
Commodity Sensitivity
NGLs & Condensate 63% $1.37 / gallon
Natural Gas Liquids 1 cent/gallon increase
Natural Gas 56% $9.61 / MMBtu Natural Gas 10 cent/MMBtu increase
Crude Oil $1/barrel increase
Full Year 2009
2009:
*Excludes effects of hedging
NGLs & Condensate 21% $2.35 / gallon
45
46. Natural Gas Gathering & Processing
Strong Focus on Natural Gas Supply
Natural Gas Gathered *
• Natural gas supplies from six
g pp BBtu/d
basins 1,174
1,182 1,168 1,171
• Significant drilling activity under
way in the Powder River
River,
Williston and Anadarko basins 801
800
852
908
• Well connects outpacing prior
years, JJanuary –September:
Stb
– 2008: 330
– 2007: 263 373
371
316
274
• Approximately $30 million
annual growth capital for new 2005 2006 2007 2008
Sept. YTD
well connections Rocky Mountain Mid-Continent
* Volumes based on existing asset base
46
47. Natural Gas Pipelines
Key Points
• Stable markets and diverse Viking Gas
Transmission
supply basins Northern Border
• Predominately fee-based
Pipeline
Guardian
Pipeline
iincome
• Storage provides valuable Midwestern Gas
services
Transmission
• Regulation at the state and
federal level
Pipelines 6,900 miles, 5.3 Bcf/d peak capacity
Natural Gas Interstate Pipeline
Storage 51.6 Bcf active working capacity Natural Gas Intrastate Pipeline
50% Northern Border Pipeline
Equity Natural Gas Storage
Investment Northern Border Pipeline (50% interest)
47
48. Natural Gas Liquids
Largest Gatherer and Fractionator of NGLs in the Mid-Continent
• Two segments
g
– NGL Gathering & Fractionation
– NGL Pipelines Overland Pass
Pipeline
• Connect large supply position
to major market centers and Piceance Lateral
end-use demand D-J Lateral
• Provide a full range of non
non- NGL Upgrade
discretionary services to our Projects
Woodford
Extension
customers
•OOpportunities f growth
t iti for th Arbuckle Pipeline
through major expansions
into new supply areas NGL Storage
g
NGL Pipelines
NGL Fractionator
NGL Gathering & Fractionation
NGL Market Hub
NGL Growth Projects
48
49. NGL Gathering and Fractionation
Providing Non-discretionary Services to Customers
Gathering
– M th 2 500 miles of pipeline
More than 2,500 il f i li
– Access to 82 natural gas processing
plants, more than 90 percent of the
Mid-Continent region’s plants
Fractionation
– Approximately 550,000 Bpd (net)
capacity
– Isomerization 9,000 Bpd capacity
Storage
– Underground caverns with capacity
of 24 6 million b l
f 24.6 illi barrels
Marketing NGL Market Hub
NGL Fractionator
– NGL products to end-users NGL Storage
NGL Gathering Pipeline
G th i Pi li
NGL Growth Projects
49
50. NGL Gathering & Fractionation
Fee-based Earnings with Optimization Opportunities
Sources of M i
S f Margin
Fee-based
Gather, fractionate, transport and
Exchange & 2008G 70%
store NGLs and deliver to market
Storage Services 73%
2007
hubs 2006 78%
Differential-based
Purchase for resale
Marketing 2008G 6%
approximately one-half of system
2007 13%
supply in the Mid-Continent on
8%
2006
an index-related basis
Differential-based
Obtain highest product price by
Optimization 2008G 21%
directing product movement 2007 8%
between market hubs 5%
2006
2008G 3%
Differential- and
Convert normal butane to
Isomerization
2007
fee-based 6%
isobutane
9%
2006
50
51. NGL Gathering & Fractionation
Strong Focus on NGL Supply
• Significant volume g
g growth in the Mid-Continent from 19 new processing
p g
plant connections and growth from existing connections
• Rockies, Barnett Shale and Woodford Shale provide additional growth
Gathering Volume Fractionation Volume
MBpd MBpd
251 253
385 391
246 243
371 375
370
232 349
333 326
224
312 319
309
213
208 210 210
275 281
193 193
189 26% Growth 21% Growth
3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08
51
52. NGL Pipelines
Key Points
• Links key NGL market
y
centers at Conway, Kansas,
and Mont Belvieu, Texas
• N th System connects Mid
North S t t Mid-
Continent to upper Midwest
refiners
• Developing links to the NGL Distribution Pipeline
NGL Gathering Pipeline
Rockies and Barnett Shale Growth Projects
NGL Market Hub
NGL Fractionator
NGL Storage
Distribution 3,350 miles of pipe with 434,000
Bpd capacity
Gathering 720 miles of pipe with 93,000 Bpd
capacity
52
53. NGL Pipelines
Key Points
• Delivers to the petrochemical and
• Primary supply sources in Mid-
refining industries
f
Continent and Rockies, and soon-to-
be north Texas, with connections to: – Texas Gulf Coast
– 23 natural gas processing plants, – Mid-Continent
with access to another 59
– Midwest
– 8 fractionators
• Regulation
– 8 storage facilities
– FERC-approved tariffs
FERC approved
– 4 refineries
Markets
Supply
Fractionators
Processing Plants Storage Petrochemical Refining Heating
53
54. NGL Pipelines – North System
Strategic Acquisition Creating Value
• Extends distribution network
into upper Midwest
• Connects to Mid-Continent
supply and Bushton storage
– Seasonal refinery-grade
butane and propane
• Opportunities for growth North System
– Diluent and denaturant NGL Distribution Pipeline
NGL Gathering Pipeline
– Propylene Growth Projects
NGL Market Hub
• Adds refined petroleum NGL Fractionator
NGL Storage
products to value chain
Distribution 1,630 miles of pipe
Capacity for Purity & 134,000 Bpd of transport
Refined Products 978,000 Bbl of storage
54
56. Capital Expenditures
Complements Existing Infrastructure and Core Operating Capabilities
Current Growth Program, 2007-2009
g ,
Growth Capital Expenditures
• $2 billion of internally generated
projects and routine growth $1,230
• EBITDA* generated
EBITDA $950 spent through
– Primarily fee based Oct.-08
$ In Millions
$878
– 2009: $250 million $650
$300-$500
– 2010 $360 million
2010: illi
n
per year
$365
$462
Looking Forward, 2010-2015 $233
$352
• $300 - $500 million of growth $188 $132
projects per year 2007 2008 2009 2010-2015
– Two-thirds in Natural Gas Natural Gas Liquids Natural Gas
q
Liquids
* EBITDA contributions assume projects are completed on schedule
* Does not include WMB exercising its 50/50 option in OPPL, Piceance Lateral or D-J Lateral
56
57. ONEOK Partners – Growth Status
MAJOR PROJECTS*: Contracts / Volumes Fee Based Expected In Service
Long-term supply agreement
Overland Pass Pipeline In Service
with Williams
Infrastructure upgrades to
Related NGL projects In Service
accommodate growth
Dedicated supplies from Devon
Woodford Shale extension In Service
and Antero processing plants
Fort Union Gas Gathering expansion (37%) Fully subscribed In Service
Midwestern Extension Fully subscribed In Service
Natural Gas Liquids Projects under way
Arbuckle Pipeline Anchor customers committed First Quarter 2009
Connecting to five gas
D-J Lateral Pipeline First Quarter 2009
processing facilities
Dedicated supplies from two
Piceance Lateral Pipeline Third Quarter 2009
Williams plants
Willi lt
Natural Gas Projects under way
Supply growth driven by drilling
Grasslands Plant expansion Fourth Quarter 2008
and production
Anchored by two 15-year
15 year
Guardian Pipeline t i
G di Pi li extension Fourth Quarter
F th Q t 2008
agreements
57
58. Natural Gas Gathering & Processing
Growth Projects
Grasslands Processing Plant
Project Status
Costs $40 - $45 Million
Completion
Fourth Quarter 2008
Dates
Phase 1 Phase 2
Processing plant Permits
tie-ins completed approved
Construction Equipment
completed ordered
Grasslands Expansion
Phase 1: Processing Increased from 63 to 100 MMcf/d capacity
Phase 2: Fractionation Increased from 8 to 12 MBpd capacity
58
59. Natural Gas Gathering & Processing
Growth Projects
Fort Union Gas Gathering
Project Status
P j t St t
Costs $120 - $130 Million (Project Financed)
Completion
In Service
Dates
Phase 1 Phase 2
Customers Customers
committed * committed *
Construction Construction
complete complete
ONEOK Partners Gathering
Fort Union (37%)
In service 11/07 In service 7/08
Lost Creek (35%)
Big Horn (49%)
• Backed by volume commitments *
• Doubled capacity
Fort Union Gas Gathering
Phase 1: Adds 44 miles of pipe and 200 MMcf/d capacity
Phase 2: Adds 104 miles of pipe and 450 MMcf/d capacity
59
60. Natural Gas Pipelines
Growth Projects
Guardian Pipeline
Project Status
Costs $277 - $305 Million
Completion
Fourth Quarter 2008
Date
Customers
Pipe ordered
committed *
Right of way
Pipe delivered
possession
Construction
80%
Permits
complete
Existing Pipeline
• Fully subscribed *
Proposed Extension
• Anchored by two 15-year agreements *
Guardian Pipeline
Capacity Incremental of 537 MMcf/d to eastern Wisconsin
Extension 119 miles from Ixonia to Green Bay
60
61. NGL Pipelines
Growth Projects
Overland Pass Pipeline
Project Status
Cost $575 - $590 Million
Opal
Echo Springs
•Partial operations have commenced
Completion
~30,000
~30 000 Bpd
Date •Fully operational in fourth quarter 2008
Anchor
customers Pipe ordered
committed *
Public right of Construction
way acquired contracts let
Permit
approved and Construction
Overland Pass Pipeline
federal right of complete
way acquired
yq
Overland Pass Pipeline
Pipeline 760 miles, 14-16”
• 99/1% joint venture with 50/50 option within two years of first flow
Capacity • 110,000 Bpd of raw NGLs with two pump • Dedicated supplies from two Williams plants (~60,000 Bpd) in Wamsutter
stations Area and two Williams plants in Piceance Basin (~30,000 Bpd) *
• Expandable to 255,000 Bpd with additional
• Additional commitments of 110,000 Bpd in various stages of negotiation
pump stations
61
62. NGL Pipelines
Growth Projects
Piceance Lateral
Project Status
Cost $110 - $140 Million
Completion
Third Quarter 2009
Date
Anchor
Permitting
customers
approved
committed *
Right of way
g y Construction
In
I progress
acquired underway
• 99/1% joint venture with 50/50 option within two years of
first flow
Overland Pass Pipeline
• Dedicated supplies from two Williams plants (~30,000 Bpd) *
Piceance Lateral
• Additional commitments in various stages of negotiation
Piceance Lateral
Pipeline 150 miles, 14”
Capacity 100,000 Bpd of raw NGLs
62
63. NGL Pipelines
Growth Projects
D-J Lateral
Project Status
Cost $70-$80 Million
Completion •Partial startup in fourth quarter 2008
•Fully operational in first quarter 2009
Date
Customers
Pipe ordered
committed
Right of way Construction
In progress
acquired underway
• Connecting to five processing plants (~33,000 Bpd)
Overland Pass Pipeline
D-J Lateral • Additional growth potential of 10 000 Bpd from drilling and
10,000
plant upgrades in next two years
D-J Lateral
Pipeline 125 miles, 6- to 12-inch
Capacity 55,000 Bpd of raw NGLs
63
64. Natural Gas Liquids
Growth Projects
Infrastructure Upgrades
Project Status
Cost $230 - $240 Million
Expand facility from 80,000 to 150,000 Bpd
Bushton
Phase I - complete
Fractionator
• Phase II – fourth quarter 2008
Upgrade facility to accommodate additional
Bushton Storage ethane/propane mix
Construction complete
Construct 135-mile pipeline with a capacity of
Bushton-to-
120,000 Bpd of ethane/propane mix
Medford Pipeline
Construction complete
Expand pipeline by 60,000 Bpd
Sterling Expansion
gp
Construction complete
Bushton-to- Expand pipeline by 14,000 Bpd
Conway Expansion Construction complete
NGL Gathering & Fractionation
NGL Pipelines
NGL Storage
NGL Fractionator
NGL Market Hub
64
65. NGL Gathering & Fractionation
Growth Projects
Woodford Shale
Pipeline E t
Pi li Extension
i
Project Status
NGL Gathering Pipeline
Woodford Extension
Cost $36 Million
NGL Storage
NGL Fractionator
Completion
NGL Market Hub In Service
Date
Anchor
Pipe
customers
delivered
committed *
Right of way Construction
acquired complete
• Connecting to two processing plants, operated by Devon
g p gp ,p y
Energy and Antero Resources, in southeast Oklahoma
Woodford Shale Pipeline Extension
Pipeline 78 miles, 6-8”
Expected Volume
E t dV l 25,000 Bpd f
25 000 B d of raw NGL
NGLs
65
66. NGL Pipelines
Growth Projects
Arbuckle Pipeline
Project Status
NGL Gathering Pipeline
NGL Pipeline
Cost $340 - $360 Million
NGL Arbuckle Pipeline
NGL Storage
g
Completion
First Quarter 2009
NGL Fractionator
Date
NGL Market Hub
Anchor
Permits
customers
received
committed *
80 miles
il
Pipe Construction
delivered underway
complete
• Expect approximately 65,000 Bpd at start up, and
indications of interest that could add 145,000 Bpd of
supply within the next three to five years
• Major expansion into one of the most active drilling areas
in the U.S.
• Allows delivery to Gulf Coast fractionators
Arbuckle Pipeline
Pipeline 440 miles, 12-16”
Capacity • 160 000 Bpd of raw NGLs with four pump
160,000
stations
• Expandable to 210,000 Bpd with additional
pump stations
66
