ONEOK Announces 26% Year-Over-Year Increase in

Third Quarter 2021 Net Income and Earnings Per Share

Nov. 2, 2021

Page 1

ONEOK, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Unaudited)

2021

2020

2021

2020

(Thousands of dollars, except per share amounts)

Revenues

Commodity sales

$

4,204,792

$

1,852,198

$

10,115,674

$

5,004,375

Services

331,383

322,066

1,004,144

967,290

Total revenues

4,536,175

2,174,264

11,119,818

5,971,665

Cost of sales and fuel (exclusive of items shown separately below)

3,449,127

1,265,674

7,937,616

3,483,060

Operations and maintenance

225,364

173,548

644,841

538,782

Depreciation and amortization

154,542

153,245

468,583

426,014

Impairment charges

-

-

-

604,024

General taxes

39,753

31,381

126,132

97,651

Gain on sale of assets

(470)

(17)

(1,446)

(560)

Operating income

667,859

550,433

1,944,092

822,694

Equity in net earnings from investments

28,573

38,046

87,613

108,001

Impairment of equity investments

-

-

-

(37,730)

Allowance for equity funds used during construction

247

3,084

1,485

22,347

Other income

6,662

8,175

13,882

42,343

Other expense

(5,375)

(4,496)

(18,110)

(22,620)

Interest expense (net of capitalized interest of $6,083, $13,821,

(184,049)

(176,371)

(554,529)

(535,955)

$16,621, and $61,439,respectively)

Income before income taxes

513,917

418,871

1,474,433

399,080

Income taxes

(121,899)

(106,555)

(354,100)

(94,300)

Net income

392,018

312,316

1,120,333

304,780

Less: Preferred stock dividends

275

275

825

825

Net income available to common shareholders

$

391,743

$

312,041

$

1,119,508

$

303,955

Basic earnings per common share

$

0.88

$

0.70

$

2.51

$

0.71

Diluted earnings per common share

$

0.88

$

0.70

$

2.50

$

0.71

Average shares (thousands)

446,634

446,288

Basic

445,103

426,369

Diluted

447,635

445,510

447,117

426,997

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ONEOK Announces 26% Year-Over-Year Increase in

Third Quarter 2021 Net Income and Earnings Per Share

Nov. 2, 2021

Page 2

ONEOK, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

(Unaudited)

2021

2020

Assets

(Thousands of dollars)

Current assets

Cash and cash equivalents

$

224,337

$

524,496

Accounts receivable, net

1,497,549

829,796

Materials and supplies

147,800

143,178

NGLs and natural gas in storage

628,110

227,810

Commodity imbalances

22,396

11,959

Other current assets

146,669

132,536

Total current assets

2,666,861

1,869,775

Property, plant and equipment

Property, plant and equipment

23,580,308

23,072,935

Accumulated depreciation and amortization

4,358,361

3,918,007

Net property, plant and equipment

19,221,947

19,154,928

Investments and other assets

Investments in unconsolidated affiliates

797,233

805,032

Goodwill and net intangible assets

765,902

773,723

Other assets

420,388

475,296

Total investments and other assets

1,983,523

2,054,051

Total assets

$

23,872,331

$

23,078,754

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ONEOK Announces 26% Year-Over-Year Increase in

Third Quarter 2021 Net Income and Earnings Per Share

Nov. 2, 2021

Page 3

ONEOK, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS (Continued)

September 30,

December 31,

(Unaudited)

2021

2020

Liabilities and equity

(Thousands of dollars)

Current liabilities

Current maturities of long-term debt

$

536,107

$

7,650

Accounts payable

1,442,984

719,302

Commodity imbalances

316,270

186,372

Accrued taxes

121,228

89,428

Accrued interest

140,689

245,153

Operating lease liability

14,378

13,610

Other current liabilities

231,214

83,032

Total current liabilities

2,802,870

1,344,547

Long-term debt, excluding current maturities

13,640,467

14,228,421

Deferred credits and other liabilities

Deferred income taxes

981,823

669,697

Operating lease liability

78,497

87,610

Other deferred credits

527,799

706,081

Total deferred credits and other liabilities

1,588,119

1,463,388

Commitments and contingencies

Equity

ONEOK shareholders' equity:

Preferred stock, $0.01 par value:

authorized and issued 20,000 shares at September 30, 2021, and at December 31,

-

-

2020

Common stock, $0.01 par value:

authorized 1,200,000,000 shares; issued 474,916,234 shares and

outstanding 445,933,921 shares at September 30, 2021; issued 474,916,234 shares

4,749

4,749

and outstanding 444,872,383 shares at December 31, 2020

Paid-in capital

7,235,255

7,353,396

Accumulated other comprehensive loss

(661,836)

(551,449)

Retained earnings

-

-

Treasury stock, at cost: 28,982,313 shares at September 30, 2021, and 30,043,851

(737,293)

(764,298)

shares at December 31, 2020

Total equity

5,840,875

6,042,398

Total liabilities and equity

$

23,872,331

$

23,078,754

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ONEOK Announces 26% Year-Over-Year Increase in

Third Quarter 2021 Net Income and Earnings Per Share

Nov. 2, 2021

Page 4

ONEOK, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

(Unaudited)

2021

2020

(Thousands of dollars)

Operating activities

Net income

$

1,120,333

$

304,780

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

468,583

426,014

Impairment charges

-

641,754

Equity in net earnings from investments

(87,613)

(108,001)

Distributions received from unconsolidated affiliates

88,389

109,595

Deferred income tax expense

344,808

93,174

Other, net

57,479

(17,599)

Changes in assets and liabilities:

Accounts receivable

(687,031)

111,629

NGLs and natural gas in storage

(400,300)

4,349

Accounts payable

756,072

(198,809)

Risk-management assets and liabilities

(254,163)

(136,543)

Other assets and liabilities

84,605

(127,215)

Cash provided by operating activities

1,491,162

1,103,128

Investing activities

Capital expenditures (less allowance for equity funds used during construction)

(490,329)

(1,924,003)

Distributions received from unconsolidated affiliates in excess of cumulative earnings

19,188

22,280

Other, net

(4,286)

(80,148)

Cash used in investing activities

(475,427)

(1,981,871)

Financing activities

Dividends paid

(1,250,204)

(1,189,575)

Repayment of short-term borrowings, net

-

(220,000)

Issuance of long-term debt, net of discounts

-

3,244,777

Repayment of long-term debt

(68,787)

(1,433,480)

Issuance of common stock

21,871

959,653

Other

(18,774)

(56,461)

Cash provided by (used in) financing activities

(1,315,894)

1,304,914

Change in cash and cash equivalents

(300,159)

426,171

Cash and cash equivalents at beginning of period

524,496

20,958

Cash and cash equivalents at end of period

$

224,337

$

447,129

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ONEOK Announces 26% Year-Over-Year Increase in

Third Quarter 2021 Net Income and Earnings Per Share

Nov. 2, 2021

Page 5

ONEOK, Inc. and Subsidiaries

INFORMATION AT A GLANCE

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Unaudited)

2021

2020

2021

2020

(Millions of dollars, except as noted)

Natural Gas Liquids

Operating costs, excluding noncash compensation adjustments

$

122.4

$

97.0

$

359.5

$

290.6

Depreciation and amortization

$

75.0

$

71.5

$

223.7

$

198.4

Equity in net earnings from investments

$

5.4

$

8.0

$

14.1

$

31.1

Adjusted EBITDA

$

532.2

$

451.2

$

1,448.1

$

1,199.8

Raw feed throughput (MBbl/d) (a)

1,275

1,162

1,174

1,088

Average Conway-to-Mont Belvieu OPIS price differential -

$

-

$

(0.01)

ethane in ethane/propane mix ($/gallon)

$

0.03

$

0.01

Capital expenditures

$

53.8

$

298.9

$

225.8

$

1,504.9

(a) - Represents physical raw feed volumes on which ONEOK

charges a fee for transportation and/or fractionation services.

Natural Gas Gathering and Processing

Operating costs, excluding noncash compensation adjustments

$

91.3

$

67.4

$

254.0

$

229.8

Depreciation and amortization

$

63.8

$

66.5

$

198.1

$

180.6

Equity in net earnings (loss) from investments

$

0.5

$

-

$

2.7

$

(1.4)

Adjusted EBITDA

$

229.7

$

183.1

$

663.6

$

431.5

Natural gas gathered (BBtu/d) (a)

2,757

2,514

2,693

2,503

Natural gas processed (BBtu/d) (a) (b)

2,549

2,345

2,471

2,327

Average fee rate ($/MMBtu) (a)

$

1.02

$

0.94

$

1.04

$

0.84

Capital expenditures

$

80.8

$

63.0

$

177.4

$

362.8

  1. - Includes volumes for consolidated entities only.
  2. - Includes volumes ONEOK processed at company-owned and third-party facilities.

Natural Gas Pipelines

Operating costs, excluding noncash compensation adjustments

$

39.2

$

33.4

$

115.4

$

99.0

Depreciation and amortization

$

14.8

$

14.2

$

43.8

$

43.9

Equity in net earnings from investments

$

22.7

$

30.1

$

70.9

$

78.3

Adjusted EBITDA

$

102.7

$

109.8

$

423.6

$

332.2

Natural gas transportation capacity contracted (MDth/d) (a)

7,335

7,349

7,353

7,485

Transportation capacity contracted (a)

94 %

94 %

94 %

96 %

Capital expenditures

$

24.6

$

13.0

$

73.5

$

40.5

(a) - Includes volumes for consolidated entities only.

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Oneok Inc. published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 20:21:11 UTC.