For ONEOK Partners it's OK to have three businesses: natural gas pipelines; gas gathering and processing; and natural gas liquids (NGLs). Its pipelines include Midwestern Gas Transmission, Guardian Pipeline, Viking Gas Transmission, and OkTex Pipeline. The ONEOK affiliate operates 17,100 miles of gas-gathering pipeline and 7,600 miles of transportation pipeline, as well as gas processing plants and storage facilities (with 52 billion cu. ft. of capacity). It also owns one of the US's top natural NGL systems (more than 7,200 miles of pipeline). In 2017, 41%-owner ONEOK agreed to buy the stock of ONEOK Partners that it did not already own for $9.3 billion in a stock deal.
ONEOK Partners operates in three business segments: natural gas gathering and processing; natural gas pipelines; and natural gas liquids.
The company gathers and processes natural gas in the Mid-Continent region, which includes the NGL-rich Cana-Woodford Shale and Granite Wash formations, the Mississippian Lime formation of Oklahoma and Kansas, and the Hugoton and Central Kansas Uplift Basins of Kansas.
The Natural Gas Pipelines segment owns and operates regulated natural gas transmission pipelines, natural gas storage facilities and natural gas gathering systems for nonprocessed gas. It also provide interstate natural gas transportation and storage service. The company's interstate natural gas pipeline assets transport natural gas through pipelines in North Dakota, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Tennessee, Oklahoma, Texas and New Mexico.
Its Natural gas liquids assets provide nondiscretionary services to producers that consist of facilities that gather, fractionate, and treat NGLs and store NGL products primarily in Oklahoma, Kansas and Texas. It also owns or has stakes in natural gas liquids gathering and distribution pipelines in Oklahoma, Kansas, Texas, Wyoming and Colorado, and terminal and storage facilities in Missouri, Nebraska, Iowa and Illinois. In addition it owns natural gas liquids distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois and Indiana that connect the company's Mid-Continent assets with Midwest markets, including Chicago.
Revenues decreased by 10% in 2012 due to lower net realized natural gas and NGL product prices, offset partially by higher natural gas and NGL sales volumes from completed capital projects. The increase in natural gas supply resulting from the development of nonconventional resource areas in North America and a warmer than normal winter caused natural gas prices to drop. NGL prices, particularly ethane and propane, also decreased in 2012 due primarily to increased NGL production and an increase in available supply. Propane prices also were affected by a warmer than normal winter.
ONEOK Partners' net income grew by 7% in 2012, thanks to lower costs of sales and fuels and lower interest expenses.
The company pursues a strategy of building up its fee-based earnings coupled with organic growth and complementary acquisitions, in both conventional oil and gas and unconventional (shale plays).
It is looking to increase NGL volumes gathered and fractionated in its NGL segment and natural gas volumes processed in its natural gas gathering and processing segment, as producers continue to develop NGL-rich resource plays in the Mid-Continent and Rocky Mountain areas.
In 2012 ONEOK Partners announced plans to invest up to $360 million to grow its projects in the Woodford Shale formation.
ONEOK Partners was formed in 2006 when ONEOK spun off its gathering and processing, NGLs, pipelines, and storage businesses for $3 billion, following that company's acquisition of Northern Border Partners (which was founded in 1993). Building out its assets in 2007 the company acquired an interstate pipeline system from Kinder Morgan Energy Partners for $300 million.