About Oneok, Inc.
ONEOK ("one oak") is having a gas pursuing its pipeline dreams. ONEOK is an Oklahoma-based midstream service provider that owns one of the nation's premier NGL systems, connecting NGL supply in the Rocky Mountain, Permian and Mid-Continent regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets. It serves customers such as petrochemical companies, propane distributors, heating fuel users, ethanol producers, refineries and exporters. The company have an ownership interest in FERC-regulated NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming and Colorado, and terminal and storage facilities in Missouri, Nebraska, Iowa and Illinois.
ONEOK operates three reportable segments: Natural Gas Liquids, Natural Gas Gathering and Processing, and Natural Gas Pipelines.
The Natural Gas Liquids segment, owns and operates facilities that gather NGLs and then fractionate and treat them, separating them into NGL products, primarily in Oklahoma, Kansas, Texas, New Mexico and Rocky Mountain regions. The NGL products are then held in storage facilities or distributed to customers, such as petrochemical manufacturers, heating fuel users, ethanol producers, refineries, exporters and propane distributors.
The Natural Gas Gathering and Processing segment serves producers of natural gas in Kansas, Montana, North Dakota, Oklahoma, and Wyoming. Raw natural gas is typically gathered at the wellhead, compressed and transported through pipelines to their processing facilities. The NGLs separated from the natural gas are delivered through NGL Pipelines to fractionation facilities for further processing.
The Natural Gas Pipelines segment owns and operates more than 5,000 miles of regulated natural gas transmission pipelines and around 55 billion cubic feet of natural gas storage facilities. It provides interstate and intrastate natural gas transportation and storage services (underground natural gas storage facilities in Kansas, Oklahoma, and Texas). It is also part owner of two additional pipelines, Northern Border Pipeline, located near the US-Canada border, and Roadrunner, which runs from West Texas to the Mexican border.
Tulsa, Oklahoma-based ONEOK operates gathering and treatment facilities in well-known natural gas plays, such as Bakken, Permian Basin, and Powder River Basin. It has pipeline and plants in some 15 US states, with much of its infrastructure in Oklahoma, Kansas, and Texas, though its operations stretch as far as Tennessee, Montana, and Wyoming.
Sales and Marketing
Natural Gas Gathering and Processing and Natural Gas Liquids segments derive services revenue from major and independent crude oil and natural gas producers. Their Natural Gas Liquids segment's customers also include NGL and natural gas gathering and processing companies. The company's downstream commodity sales customers are primarily utilities, large industrial companies, natural gasoline distributors, propane distributors, municipalities and petrochemical, refining and marketing companies. ONEOK's Natural Gas Pipeline segment's assets primarily serve local natural gas distribution companies, electric-generation facilities, large industrial companies, municipalities, producers, processors and marketing companies.
Except in 2019, the company's revenue has been rising for the last five years. It has an overall growth of 31% between 2015 and 2019.
Sales in 2019 decreased 19% to $10.2 billion compared to $12.6 billion in 2018. Decrease in revenue was due to changes in commodity prices and sales volumes affect both revenue and cost of sales and fuel.
Net income increased by about $126.9 million to $1.3 billion in 2019 compared to 2018, mainly due to higher natural gas and NGL volumes in the company's Natural Gas Gathering and Processing and Natural Gas Liquids segments; and higher allowance for equity funds used during construction related to its capital-growth projects, offset partially by higher interest expense related to its underwritten public debt offerings in March and August 2019.
Cash at the end of 2019 was $21.0 million, an increase of $9.0 million from the prior year. Cash from operations contributed $1.9 billion to the coffers, while investing activities used $3.8 billion, mainly for capital expenditures. Financing activities provided $1.8 billion, primarily in the form of issuance of long-term debt.
Oneok's primary business strategy is to maintain prudent financial strength and flexibility while growing its fee-based earnings and dividends per share with a focus on safe, reliable, environmentally responsible, legally compliant and sustainable operations for customers, employees, contractors and the public through the following:
Operate in a safe, reliable, environmentally responsible and sustainable manner; Pursue organic investments in existing operating regions to support earnings growth; Manage balance sheet and maintain investment-grade credit ratings; and Attract, select, develop, motivate, challenge and retain a diverse group of employees to support strategy execution.
100 W 5th St Ste LL
Tulsa, OK 74103-4298
Phone: 1 (918) 588-7000
Employer Type: Publicly Owned
Stock Symbol: OKE
Stock Exchange: , NYSE
SVP Operations: Wesley J. Christensen
Chairman, ONEOK, ONEOK Partners, and ONE Gas: John W. Gibson
President and CEO: Terry K. Spencer
Employees (This Location): 1,000
Employees (All Locations): 2,882
Des Moines, IA
El Dorado, KS
Great Bend, KS
Junction City, KS
Kansas City, KS
Overland Park, KS
Broken Arrow, OK
Oklahoma City, OK
Ponca City, OK
El Paso, TX