Current Report
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
|
(Date
of report)
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August
4, 2009
|
|
(Date
of earliest event reported)
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August
4, 2009
|
ONEOK
PARTNERS, L.P.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
1-12202
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93-1120873
|
||
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
||
|
of
incorporation)
|
File
Number)
|
Identification
No.)
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100
West Fifth Street; Tulsa, OK
(Address
of principal executive offices)
74103
(Zip
code)
(918)
588-7000
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
[]
Written communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
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ONEOK
Partners, L.P.
By: ONEOK
Partners GP, L.L.C., General Partner
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|||
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Date:
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August
4, 2009
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By:
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/s/ Curtis L. Dinan
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Executive
Vice President -
Chief
Financial Officer and
Treasurer
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Exhibit
99.1
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August
4, 2009
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Analyst
Contact:
|
Christy
Williamson
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||||
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918-588-7163
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||||||
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Media
Contact:
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Brad
Borror
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|||||
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918-588-7582
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||||||
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
TULSA,
Okla. – Aug. 4, 2009 – ONEOK Partners, L.P. (NYSE: OKS) today announced
second-quarter 2009 earnings of 81 cents per unit, compared with $1.46 per unit
for the second quarter 2008. Net income attributable to ONEOK
Partners was $97.5 million in the second quarter 2009, compared with $154.5
million in the same period in 2008.
Year-to-date
2009 net income attributable to ONEOK Partners was $197.1 million, or $1.66 per
unit, compared with $299.5 million, or $2.94 per unit, in the prior
year.
The
partnership also updated its 2009 limited partners’ net income per unit guidance
to the range of $3.25 to $3.65 per unit from its previous range of $3.15 to
$3.75 per unit. The partnership's distributable cash flow is expected
to be in the range of $505 million to $545 million.
“The partnership posted solid results
in the second quarter, benefiting from continued volume growth in both the
natural gas and natural gas liquids businesses, despite significantly lower
commodity prices,” said John W. Gibson, chairman and chief executive officer of
ONEOK Partners. “We also raised $241 million of equity through a
common unit offering, providing the partnership with additional financial
flexibility to fund its growth and maintain a balanced capital
structure.
“We are nearing completion of the $2
billion of internal growth projects that we started in 2007, as we have just
completed construction on the Arbuckle natural gas liquids pipeline in late
July,” Gibson said. “The committed throughput from these projects
will continue to increase over the next few years as additional supplies are
connected to our natural gas liquids infrastructure,” Gibson added.
Cash
flow, as measured by earnings before interest, taxes, depreciation and
amortization (EBITDA), was $182.0 million in the second quarter 2009, compared
with $212.0 million in 2008. Distributable cash flow (DCF) for the
second quarter 2009 was $130.9 million, or $1.17 per unit, compared with $176.9
million, or $1.72 per unit, in the second quarter 2008.
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
2
Year-to-date
2009 EBITDA was $366.3 million, compared with $420.2 million in the same period
last year. DCF for the first six months of 2009 was $265.4 million,
or $2.40 per unit, compared with $335.8 million, or $3.37 per unit, in the same
period last year.
Operating
income for the second quarter 2009 was $124.8 million, compared with $163.7
million for the second quarter 2008. For the first six months of
2009, operating income was $249.6 million, compared with $314.3 million the
prior year. The decreases in both the three- and six-month periods
were due primarily to significantly lower realized commodity prices in the
natural gas gathering and processing segment and lower realized NGL product
price differentials in the natural gas liquids gathering and fractionation
segment. These decreases were partially offset by increased NGL
throughput in the natural gas liquids businesses, primarily associated with the
completion of the Overland Pass Pipeline, and incremental natural gas
transportation margins as a result of the Guardian Pipeline expansion and
extension.
Operating
costs were $100.5 million in the second quarter 2009, compared with $87.2
million in the same period last year. Operating costs for the six
months ended June 30, 2009, were $190.0 million, compared with $175.2 million in
the same period last year. Operating costs for the three- and
six-month 2009 periods increased due to higher operating expenses at
fractionation facilities, including incremental expenses associated with the
recently expanded Bushton fractionator that began operations in the third
quarter 2008; and incremental expenses associated with the Overland Pass
Pipeline.
SECOND
-QUARTER 2009 SUMMARY
INCLUDES:
|
·
|
Operating
income of $124.8 million, compared with $163.7 million in the second
quarter last year;
|
|
·
|
Natural
gas gathering and processing segment operating income of $40.9 million,
compared with $76.2 million in the second quarter
2008;
|
|
·
|
Natural
gas pipelines segment operating income of $31.7 million, compared with
$37.7 million in the second quarter
2008;
|
|
·
|
Natural
gas liquids gathering and fractionation segment operating income of $34.5
million, compared with $41.7 million in the second quarter
2008;
|
|
·
|
Natural
gas liquids pipelines segment operating income of $17.8 million, compared
with $9.9 million in the second quarter
2008;
|
|
·
|
Equity
earnings from investments of $14.2 million, compared with $17.6 million in
the second quarter 2008;
|
|
·
|
Capital
expenditures of $129.4 million, compared with $257.5 million in the second
quarter 2008;
|
|
·
|
Completing
a public offering of common units, generating net proceeds of
approximately $241.3 million;
|
|
·
|
Having
$360.0 million outstanding under the partnership’s $1.0 billion revolving
credit facility at June 30, 2009;
|
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
3
|
·
|
Declaring
a quarterly cash distribution of $1.08 per unit payable on Aug. 14, 2009,
to unitholders of record as of July 31, 2009;
and
|
|
·
|
Announcing
the retirement of James C. Kneale, president and chief operating officer,
effective Jan. 1, 2010, and the promotion of Terry K. Spencer to chief
operating officer, effective July 16,
2009.
|
SECOND
-QUARTER
AND
YEAR-TO-DATE
2009 BUSINESS UNIT RESULTS
Natural Gas
Gathering and Processing
Segment
The
natural gas gathering and processing segment reported second-quarter 2009
operating income of $40.9 million, compared with $76.2 million in the second
quarter 2008.
Second-quarter
2009 results decreased $34.0 million due to lower realized natural gas, NGL and
condensate prices. Operating costs in the second quarter 2009 were
$34.0 million, compared with $32.8 million in the same period last
year.
Operating
income for the six months was $80.6 million in 2009, compared with $135.2
million in the same period last year.
Six-month
2009 results decreased primarily due to $61.4 million in lower realized natural
gas, NGL and condensate prices, partially offset by a $7.4 million increase from
higher volumes processed and sold. Operating costs for the segment
were unchanged from the six-month period in 2008.
Depreciation
and amortization expense increased for both the three- and six-month periods
ended June 30, 2009, compared with 2008, primarily as a result of completed
capital projects.
Equity
earnings from investments decreased for both the three- and six-month periods
ended June 30, 2009, compared with the prior year, primarily as a result of
lower volumes in various gathering system investments.
The
following table contains margin information for the periods
indicated. NGL shrink, plant fuel and condensate shrink refer to the
Btus that are removed from natural gas through the gathering and processing
operation.
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
4
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
June
30,
|
June
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Percent
of proceeds
|
||||||||||||||||
|
Wellhead
purchases
(MMBtu/d)
|
56,788 | 69,389 | 58,632 | 69,960 | ||||||||||||
|
NGL
sales
(Bbl/d)
|
5,346 | 5,111 | 5,210 | 4,960 | ||||||||||||
|
Residue
gas sales
(MMBtu/d)
|
41,054 | 36,947 | 38,979 | 36,776 | ||||||||||||
|
Condensate
sales
(Bbl/d)
|
1,825 | 1,844 | 1,925 | 1,833 | ||||||||||||
|
Percentage
of total net margin
|
49% | 64% | 49% | 62% | ||||||||||||
|
Fee-based
|
||||||||||||||||
|
Wellhead
volumes
(MMBtu/d)
|
1,130,169 | 1,184,654 | 1,146,681 | 1,188,169 | ||||||||||||
|
Average
rate
($/MMBtu)
|
$ | 0.31 | $ | 0.26 | $ | 0.30 | $ | 0.26 | ||||||||
|
Percentage
of total net margin
|
36% | 21% | 36% | 22% | ||||||||||||
|
Keep
whole
|
||||||||||||||||
|
NGL
shrink
(MMBtu/d)
|
18,874 | 22,433 | 18,528 | 22,970 | ||||||||||||
|
Plant
fuel
(MMBtu/d)
|
2,166 | 2,313 | 2,174 | 2,400 | ||||||||||||
|
Condensate
shrink
(MMBtu/d)
|
2,042 | 2,242 | 2,113 | 2,127 | ||||||||||||
|
Condensate
sales
(Bbl/d)
|
413 | 454 | 428 | 430 | ||||||||||||
|
Percentage
of total net margin
|
15% | 15% | 15% | 16% | ||||||||||||
The
natural gas gathering and processing segment is exposed to commodity price risk,
primarily NGLs, as a result of receiving commodities in exchange for
services. The following table provides updated hedging information in
the natural gas gathering and processing segment for the remainder of 2009 and
for 2010:
|
Six
Months Ending
|
|||||||||||||
|
December
31, 2009
|
|||||||||||||
|
Volumes
Hedged
|
Average
Price
|
Percentage
Hedged
|
|||||||||||
|
NGLs
(Bbl/d)
(a)
|
6,445 | $1.08 |
/
gallon
|
75%
|
|||||||||
|
Condensate
(Bbl/d)
(a)
|
1,449 | $2.18 |
/
gallon
|
72%
|
|||||||||
|
Total
(Bbl/d)
|
7,894 | $1.29 |
/
gallon
|
74%
|
|||||||||
|
Natural
gas
(MMBtu/d)
|
8,753 | $4.20 |
/
MMBtu
|
45%
|
|||||||||
|
(a)
- Hedged with fixed-price swaps.
|
|||||||||||||
|
Year Ending
|
|||||||||||||
|
December
31, 2010
|
|||||||||||||
|
Volumes
Hedged
|
Average
Price
|
Percentage
Hedged
|
|||||||||||
|
NGLs
(Bbl/d)
(a)
|
451 | $1.37 |
/
gallon
|
5%
|
|||||||||
|
Condensate
(Bbl/d)
(a)
|
1,072 | $1.70 |
/
gallon
|
49%
|
|||||||||
|
Total
(Bbl/d)
|
1,523 | $1.60 |
/
gallon
|
14%
|
|||||||||
|
Natural
gas
(MMBtu/d)
|
7,828 | $5.71 |
/
MMBtu
|
37%
|
|||||||||
|
(a)
- Hedged with fixed-price swaps.
|
|||||||||||||
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
5
The
partnership currently estimates that a 1 cent per gallon decrease in the
composite price of NGLs would decrease annual net margin by approximately $1.2
million. A $1.00 per barrel decrease in the price of crude oil would
decrease annual net margin by approximately $1.0 million. Also, a 10
cent per MMBtu decrease in the price of natural gas would decrease annual net
margin by approximately $0.7 million. All of these sensitivities
exclude the effects of hedging and assume normal operating
conditions.
Natural Gas Pipelines
Segment
The
natural gas pipelines segment reported second-quarter 2009 operating income of
$31.7 million, compared with $37.7 million for the second quarter
2008.
Second-quarter
2009 results include an $8.3 million increase in transportation margins,
primarily as a result of the Guardian Pipeline expansion and extension being
placed into service in February 2009, partially offset by a $7.4 million
decrease from the effect of lower natural gas prices on retained
fuel.
Operating
costs were $24.5 million in the second quarter 2009, compared with $20.5 million
in 2008, primarily due to increased general taxes. Depreciation and
amortization expense was $10.6 million in the second quarter 2009, compared with
$8.5 million in the same period last year, primarily as a result of the
completed Guardian Pipeline expansion and extension project.
Operating
income for the six months 2009 was $64.3 million, compared with $69.4 million in
the same period in 2008.
Six-month
2009 results reflect $13.2 million from increased transportation margins,
primarily as a result of the Guardian Pipeline expansion and extension project,
partially offset by an $11.7 million decrease from the effect of lower natural
gas prices on retained fuel.
Operating
costs for the six-months 2009 were relatively unchanged from the same period
last year. Depreciation and amortization expense was $23.4 million
for the six-month period 2009, compared with $17.0 million in the same period
last year, primarily as a result of the completed Guardian Pipeline expansion
and extension project.
Equity
earnings from investments were $5.6 million in the second quarter 2009, compared
with $9.2 million in the same period in 2008. Six-month 2009 equity
earnings from investments were $21.8 million, compared with $29.2 million in the
same period in 2008. The decreases were primarily due to lower
subscription volumes and rates on the Northern Border Pipeline, in which the
partnership has a 50 percent interest.
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
6
Natural Gas Liquids
Gathering and Fractionation Segment
The
natural gas liquids gathering and fractionation segment reported second-quarter
2009 operating income of $34.5 million, compared with $41.7 million for the
second quarter 2008.
Second-quarter
2009 results benefited $20.3 million from higher volumes, primarily associated
with the Overland Pass Pipeline, as well as new supply connections; offset by
$14.8 million in higher tariff costs paid to the natural gas liquids pipelines
segment; and a $7.1 million decrease as a result of narrower NGL product price
differentials.
Operating
income for the six months 2009 was $64.5 million, compared with $87.0 million in
2008.
Six-month
2009 results benefited $41.6 million from higher volumes, primarily associated
with the Overland Pass Pipeline, as well as new supply connections; but was more
than offset by $25.6 million in higher tariff costs paid to the natural gas
liquids pipelines segment; and a $28.0 million decrease as a result of narrower
NGL product price differentials.
Operating
costs were $25.5 million in the second quarter 2009, compared with $20.0 million
in the second quarter 2008. Six-month 2009 operating costs were $48.3
million, compared with $38.6 million in the same period last
year. The increases resulted primarily from higher operating costs at
fractionation facilities, which included incremental expenses associated with
the recently expanded Bushton fractionator that began operations in the third
quarter 2008.
The
Conway-to-Mont Belvieu average price differential for ethane in the second
quarter 2009, based on Oil Price Information Service (OPIS) pricing, was 12
cents per gallon, compared with 13 cents per gallon in the same period in
2008. For the six months 2009, the average OPIS price differential
for ethane was 10 cents per gallon, compared with 11 cents per gallon in the
same period last year.
Natural Gas Liquids
Pipelines Segment
The
natural gas liquids pipelines segment reported second-quarter 2009 operating
income of $17.8 million, compared with $9.9 million for the second quarter
2008.
Second-quarter
2009 results increased $18.0 million due to increased volumes, primarily
associated with the Overland Pass Pipeline including tariffs received from the
natural gas liquids gathering and fractionation segment, as well as new supply
connections. Operating costs were $19.1 million in the second quarter
2009, compared with $13.8 million in the same period last
year. Depreciation and amortization expense was $7.1 million in the
second quarter 2009, compared with $3.7 million in 2008. These
increases were due primarily to incremental operating expenses associated with
the Overland Pass Pipeline.
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
7
Operating
income for the six months 2009 was $40.1 million, compared with $23.7 million in
2008.
Six-month
2009 results increased $31.6 million due to increased volumes, primarily from
the Overland Pass Pipeline including tariffs received from the natural gas
liquids gathering and fractionation segment, as well as new supply
connections.
Six-month
2009 operating costs for the segment were $34.7 million, compared with $27.2
million in the same period last year. Depreciation and amortization
expense was $13.4 million for the six months 2009, compared with $7.8 million in
the same period in 2008. These increases were due primarily to
incremental operating expenses associated with the Overland Pass
Pipeline.
GROWTH
ACTIVITIES
The
partnership is nearing completion of approximately $2 billion of internally
generated growth projects. Following is a status report on current
projects (all cost estimates exclude allowance for funds used during
construction, or AFUDC):
In late
July 2009, construction on the Arbuckle Pipeline was completed. The
440-mile NGL pipeline extends from southern Oklahoma through the Barnett Shale
of north Texas and on to the partnership’s fractionation and storage facilities
at Mont Belvieu on the Texas Gulf Coast. The pipeline has the
capacity to transport 160,000 barrels per day (bpd) of unfractionated NGLs,
expandable to 210,000 bpd with additional pump facilities. The
estimated cost for the pipeline is approximately $490 million. During
the third quarter 2009, flow on the pipeline is expected to reach 65,000 bpd,
and supply commitments from producers are sufficient to fill the expanded
210,000 bpd capacity level over the next three to five years.
In March
2009, the $70 million D-J Basin Lateral Pipeline, a 125-mile pipeline connecting
the Denver-Julesburg Basin with the Overland Pass Pipeline, was placed into
service. The pipeline has the capacity to transport as much as 55,000
bpd of unfractionated NGLs. Volumes are expected to exceed 31,000 bpd
on this pipeline during the third quarter 2009, with an additional 10,000 bpd in
the next two years.
In
November 2008, the Overland Pass Pipeline – the $575 million, 760-mile NGL
pipeline extending from Opal, Wyo., to Conway, Kan. – was placed into full
service with the capacity to transport approximately 110,000 bpd of
unfractionated NGLs. The Overland Pass Pipeline Company is a joint
venture with a subsidiary of The Williams Companies, Inc., which owns 1
percent. Currently, approximately 98,000 bpd are flowing on Overland
Pass, and the pipeline’s capacity can be increased to approximately 255,000 bpd
with additional pump facilities. By the end of the third quarter
2009, when the Piceance Lateral Pipeline is anticipated to be in service,
volumes are expected to be approximately 140,000 bpd on Overland
Pass.
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
8
In
October 2008, the partnership began construction on the Piceance Lateral
Pipeline, a 150-mile pipeline connecting the Piceance Basin with the Overland
Pass Pipeline. The project is expected to cost in the range of $110
million to $140 million and be completed in the third quarter
2009. The pipeline will have the capacity to transport as much as
100,000 bpd of unfractionated NGLs. Initial flow on this pipeline is
expected to be approximately 37,000 bpd.
The
partnership has identified approximately $300 million of potential growth
projects per year between 2010 and 2015, two-thirds of which are in the natural
gas liquids businesses.
2009 EARNINGS
GUIDANCE
The
partnership updated its 2009 limited partners’ net income per unit guidance to
the range of $3.25 to $3.65 per unit from its previous range of $3.15 to $3.75
per unit. The partnership's distributable cash flow is expected to be
in the range of $505 million to $545 million. Exhibits A and B
include updated information on the partnership’s 2009 earnings
guidance.
The
average unhedged prices used in the updated 2009 guidance for the remaining six
months of 2009 are $64 per barrel for New York Mercantile Exchange (NYMEX) crude
oil, $4 per MMBtu for NYMEX natural gas and 67 cents per gallon for composite
natural gas liquids. The average Conway-to-Mont Belvieu OPIS average
price differential used for ethane for the remaining six months of 2009 is 10
cents per gallon.
The
earnings-per-unit calculation has been updated as a result of the June equity
offering. The guidance also reflects additional interest expense
associated with a $500 million debt offering in March, which was partially
offset by lower interest on the partnership’s revolving credit
facility. This higher expense was offset by increased other
income from higher equity AFUDC than in previous guidance.
Operating
income guidance increased, compared with previous guidance, due primarily to
higher anticipated NGL product price differentials in the partnership’s natural
gas liquids gathering and fractionation segment. This increase is
partially offset by lower expected equity earnings due primarily to lower
volumes in the natural gas gathering and processing segment’s equity
investments.
The
guidance was also updated to reflect increased capital expenditures, primarily
due to the increased costs associated with the Arbuckle Pipeline in the natural
gas liquids pipelines segment.
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
9
EARNINGS CONFERENCE CALL AND
WEBCAST
ONEOK
Partners and ONEOK management will conduct a joint conference call on Wednesday,
Aug. 5, 2009, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight
Time). The call will also be carried live on ONEOK Partners’ and
ONEOK’s Web sites.
To
participate in the telephone conference call, dial 866-802-4305, pass code
1376622, or log on to
www.oneokpartners.com
or
www.oneok.com
.
If you
are unable to participate in the conference call or the webcast, the replay will
be available on ONEOK Partners’ Web site,
www.oneokpartners.com
,
and ONEOK’s Web site,
www.oneok.com
, for 30
days. A recording will be available by phone for seven
days. The playback call may be accessed at 866-837-8032, pass code
1376622.
NON-GAAP FINANCIAL
MEASURES
The
partnership has disclosed in this news release EBITDA and DCF amounts that are
non-GAAP financial measures. Management believes EBITDA and DCF
provide useful information to investors as a measure of comparison with peer
companies. However, these calculations may vary from company to
company, so the partnership's computations may not be directly comparable with
those of other companies. DCF is not necessarily the same as
available cash as defined in the Partnership Agreement. Management
further uses EBITDA to compare the financial performance of its segments and to
internally manage those business segments. Reconciliations of EBITDA
to net income and operating income and computations of DCF are included in the
financial tables attached to this news release.
ONEOK
Partners, L.P. (NYSE: OKS) is one of the largest publicly traded master limited
partnerships and is a leader in the gathering, processing, storage and
transportation of natural gas in the U.S. and owns one of the nation’s premier
natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent
and Rocky Mountain regions with key market centers. Its general partner is
a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a diversified energy
company, which owns 45.1 percent of the partnership. ONEOK is one of the
largest natural gas distributors in the United States, and its energy services
operation focuses primarily on marketing natural gas and related services
throughout the U.S.
For more
information about ONEOK Partners, L.P., visit:
www.oneokpartners.com.
Some of
the statements contained and incorporated in this news release are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Exchange Act, as
amended. The forward-looking statements relate to our anticipated
financial performance, management’s plans and objectives for our future
operations, our business prospects, the outcome of regulatory and legal
proceedings, market conditions and other matters. We make these
forward-looking statements in reliance on the safe harbor protections provided
under the Private Securities Litigation Reform Act of 1995. The
following discussion is intended to identify important factors that could cause
future outcomes to differ materially from those set forth in the forward-looking
statements.
Forward-looking statements include the items identified in the
preceding paragraph, the information concerning possible or assumed future
results of our operations and other statements contained or incorporated in this
news
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
10
release
identified by words such as “anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “believe,” “should,” “goal,” “forecast,” “could,” “may,”
“continue,” “might,” “potential,” “scheduled” and other words and terms of
similar meaning.
You
should not place undue reliance on forward-looking statements, which are
applicable only as of the date of this news release. Known and
unknown risks, uncertainties and other factors may cause our actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by forward-looking
statements. Those factors may affect our operations, markets,
products, services and prices. In addition to any assumptions and
other factors referred to specifically in connection with the forward-looking
statements, factors that could cause our actual results to differ materially
from those contemplated in any forward-looking statement include, among others,
the following:
|
·
|
the
effects of weather and other natural phenomena on our operations, demand
for our services and energy prices;
|
|
·
|
competition
from other United States and foreign energy suppliers and transporters, as
well as alternative forms of energy, including, but not limited to, solar
power, wind power, geothermal energy and biofuels such as ethanol and
biodiesel;
|
|
·
|
the
capital intensive nature of our
businesses;
|
|
·
|
the
profitability of assets or businesses acquired or constructed by
us;
|
|
·
|
our
ability to make cost-saving changes in
operations;
|
|
·
|
risks
of marketing, trading and hedging activities, including the risks of
changes in energy prices or the financial condition of our
counterparties;
|
|
·
|
the
uncertainty of estimates, including accruals and costs of environmental
remediation;
|
|
·
|
the
timing and extent of changes in energy commodity
prices;
|
|
·
|
the
effects of changes in governmental policies and regulatory actions,
including changes with respect to income and other taxes, environmental
compliance, climate change initiatives, authorized rates of recovery of
gas and gas transportation costs;
|
|
·
|
the
impact on drilling and production by factors beyond our control, including
the demand for natural gas and refinery-grade crude oil; producers’ desire
and ability to obtain necessary permits; reserve performance; and capacity
constraints on the pipelines that transport crude oil, natural gas and
NGLs from producing areas and our
facilities;
|
|
·
|
difficulties
or delays experienced by trucks or pipelines in delivering products to or
from our terminals or pipelines;
|
|
·
|
changes
in demand for the use of natural gas because of market conditions caused
by concerns about global warming;
|
|
·
|
conflicts
of interest between us, our general partner, ONEOK Partners GP, and
related parties of ONEOK Partners
GP;
|
|
·
|
the
impact of unforeseen changes in interest rates, equity markets, inflation
rates, economic recession and other external factors over which we have no
control;
|
|
·
|
our
indebtedness could make us vulnerable to general adverse economic and
industry conditions, limit our ability to borrow additional funds, and/or
place us at competitive disadvantages compared to our competitors that
have less debt or have other adverse
consequences;
|
|
·
|
actions
by rating agencies concerning the credit ratings of us or our general
partner;
|
|
·
|
the
results of administrative proceedings and litigation, regulatory actions
and receipt of expected clearances involving the Oklahoma Corporation
Commission (OCC), Kansas Corporation Commission (KCC), Texas regulatory
authorities or any other local, state or federal regulatory body,
including the Federal Energy Regulatory Commission
(FERC);
|
|
·
|
our
ability to access capital at competitive rates or on terms acceptable to
us;
|
|
·
|
risks
associated with adequate supply to our gathering, processing,
fractionation and pipeline facilities, including production declines that
outpace new drilling;
|
|
·
|
the
risk that material weaknesses or significant deficiencies in our internal
control over financial reporting could emerge or that minor problems could
become significant;
|
|
·
|
the
impact and outcome of pending and future
litigation;
|
|
·
|
the
ability to market pipeline capacity on favorable terms, including the
effects of:
|
|
-
|
future
demand for and prices of natural gas and
NGLs;
|
|
-
|
competitive
conditions in the overall energy
market;
|
|
-
|
availability
of supplies of Canadian and United States natural gas;
and
|
|
-
|
availability
of additional storage capacity;
|
|
·
|
performance
of contractual obligations by our customers, service providers,
contractors and shippers;
|
|
·
|
the
timely receipt of approval by applicable governmental entities for
construction and operation of our pipeline and other projects and required
regulatory clearances;
|
|
·
|
our
ability to acquire all necessary permits, consents and other approvals in
a timely manner, to promptly obtain all necessary materials and supplies
required for construction, and to construct gathering, processing,
storage, fractionation and transportation facilities without labor or
contractor problems;
|
|
·
|
the
mechanical integrity of facilities
operated;
|
|
·
|
demand
for our services in the proximity of our
facilities;
|
|
·
|
our
ability to control operating costs;
|
|
·
|
acts
of nature, sabotage, terrorism or other similar acts that cause damage to
our facilities or our suppliers’ or shippers’
facilities;
|
|
·
|
economic
climate and growth in the geographic areas in which we do
business;
|
|
·
|
the
risk of a prolonged slowdown in growth or decline in the U.S. economy or
the risk of delay in growth recovery in the U.S. economy, including
increasing liquidity risks in U.S. credit
markets;
|
|
·
|
the
impact of recently issued and future accounting pronouncements and other
changes in accounting policies;
|
|
·
|
the
possibility of future terrorist attacks or the possibility or occurrence
of an outbreak of, or changes in, hostilities or changes in the political
conditions in the Middle East and
elsewhere;
|
|
·
|
the
risk of increased costs for insurance premiums, security or other items as
a consequence of terrorist attacks;
|
|
·
|
risks
associated with pending or possible acquisitions and dispositions,
including our ability to finance or integrate any such acquisitions and
any regulatory delay or conditions imposed by regulatory bodies in
connection with any such acquisitions and
dispositions;
|
|
·
|
the
impact of unsold pipeline capacity being greater or less than
expected;
|
|
·
|
the
ability to recover operating costs and amounts equivalent to income taxes,
costs of property, plant and equipment and regulatory assets in our state
and FERC-regulated rates;
|
|
·
|
the
composition and quality of the natural gas and NGLs we gather and process
in our plants and transport on our
pipelines;
|
|
·
|
the
efficiency of our plants in processing natural gas and extracting and
fractionating NGLs;
|
|
·
|
the
impact of potential impairment
charges;
|
|
·
|
the
risk inherent in the use of information systems in our respective
businesses, implementation of new software and hardware, and the impact on
the timeliness of information for financial
reporting;
|
|
·
|
our
ability to control construction costs and completion schedules of our
pipelines and other projects; and
|
|
·
|
the
risk factors listed in the reports we have filed and may file with the
Securities and Exchange Commission (SEC), which are incorporated by
reference.
|
These
factors are not necessarily all of the important factors that could cause actual
results to differ materially from those expressed in any of our forward-looking
statements. Other factors could also have material adverse effects on
our future results. These and other risks are described in greater
detail in Part I, Item 1A, Risk Factors, in our Annual Report. All
forward-looking statements attributable to us or persons acting on our behalf
are expressly qualified in their entirety by these factors. Other
than as required under securities laws, we undertake no obligation to update
publicly any forward-looking statement whether as a result of new information,
subsequent events or change in circumstances, expectations or
otherwise. OKS-FE
###
|
ONEOK
Partners, L.P. and Subsidiaries
|
||||||||||||||||
|
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||||||||||
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
June
30,
|
June
30,
|
|||||||||||||||
|
(Unaudited)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
(Thousands
of dollars, except per unit amounts)
|
||||||||||||||||
|
Revenues
|
$ | 1,397,057 | $ | 2,143,892 | $ | 2,647,922 | $ | 4,202,927 | ||||||||
|
Cost
of sales and fuel
|
1,135,075 | 1,862,959 | 2,132,399 | 3,653,469 | ||||||||||||
|
Net
margin
|
261,982 | 280,933 | 515,523 | 549,458 | ||||||||||||
|
Operating
expenses
|
||||||||||||||||
|
Operations
and maintenance
|
87,712 | 80,532 | 165,391 | 157,473 | ||||||||||||
|
Depreciation
and amortization
|
39,953 | 30,033 | 79,893 | 59,975 | ||||||||||||
|
General
taxes
|
12,795 | 6,626 | 24,562 | 17,767 | ||||||||||||
|
Total
operating expenses
|
140,460 | 117,191 | 269,846 | 235,215 | ||||||||||||
|
Gain
(loss) on sale of assets
|
3,276 | (3 | ) | 3,940 | 28 | |||||||||||
|
Operating
income
|
124,798 | 163,739 | 249,617 | 314,271 | ||||||||||||
|
Equity
earnings from investments
|
14,188 | 17,610 | 35,410 | 45,393 | ||||||||||||
|
Allowance
for equity funds used during construction
|
9,468 | 11,676 | 18,471 | 20,172 | ||||||||||||
|
Other
income
|
3,424 | 676 | 3,815 | 2,734 | ||||||||||||
|
Other
expense
|
(383 | ) | (36 | ) | (2,429 | ) | (2,167 | ) | ||||||||
|
Interest
expense
|
(50,888 | ) | (34,705 | ) | (101,796 | ) | (73,234 | ) | ||||||||
|
Income
before income taxes
|
100,607 | 158,960 | 203,088 | 307,169 | ||||||||||||
|
Income
taxes
|
(3,068 | ) | (4,305 | ) | (5,939 | ) | (7,373 | ) | ||||||||
|
Net
income
|
97,539 | 154,655 | 197,149 | 299,796 | ||||||||||||
|
Less:
Net income attributable to noncontrolling interests
|
1 | 134 | 20 | 257 | ||||||||||||
|
Net
income attributable to ONEOK Partners, L.P.
|
$ | 97,538 | $ | 154,521 | $ | 197,129 | $ | 299,539 | ||||||||
|
Limited
partners’ interest in net income:
|
||||||||||||||||
|
Net
income attributable to ONEOK Partners, L.P.
|
$ | 97,538 | $ | 154,521 | $ | 197,129 | $ | 299,539 | ||||||||
|
General
partner’s interest in net income
|
(23,388 | ) | (21,688 | ) | (45,700 | ) | (41,393 | ) | ||||||||
|
Limited
partners’ interest in net income
|
$ | 74,150 | $ | 132,833 | $ | 151,429 | $ | 258,146 | ||||||||
|
Limited
partners’ net income per unit, basic and diluted
|
$ | 0.81 | $ | 1.46 | $ | 1.66 | $ | 2.94 | ||||||||
|
Number
of units used in computation
(thousands)
|
91,415 | 90,906 | 91,169 | 87,680 | ||||||||||||
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
13
|
ONEOK
Partners, L.P. and Subsidiaries
|
||||
|
CONSOLIDATED
BALANCE SHEETS
|
||||
|
June
30,
|
December
31,
|
|||
|
(Unaudited)
|
2009
|
2008
|
||
|
Assets
|
(Thousands
of dollars)
|
|||
|
Current
assets
|
||||
|
Cash
and cash equivalents
|
$ |
31,803
|
$ |
177,635
|
|
Accounts
receivable, net
|
397,006
|
317,182
|
||
|
Affiliate
receivables
|
25,831
|
25,776
|
||
|
Gas
and natural gas liquids in storage
|
164,640
|
190,616
|
||
|
Commodity
exchanges and imbalances
|
55,104
|
55,086
|
||
|
Derivative
financial instruments
|
18,732
|
63,780
|
||
|
Other
current assets
|
42,039
|
28,176
|
||
|
Total
current assets
|
735,155
|
858,251
|
||
|
Property,
plant and equipment
|
||||
|
Property,
plant and equipment
|
6,149,684
|
5,808,679
|
||
|
Accumulated
depreciation and amortization
|
930,031
|
875,279
|
||
|
Net
property, plant and equipment
|
5,219,653
|
4,933,400
|
||
|
Investments
and other assets
|
||||
|
Investments
in unconsolidated affiliates
|
735,394
|
755,492
|
||
|
Goodwill
and intangible assets
|
672,703
|
676,536
|
||
|
Other
assets
|
37,841
|
30,593
|
||
|
Total
investments and other assets
|
1,445,938
|
1,462,621
|
||
|
Total
assets
|
$ |
7,400,746
|
$ |
7,254,272
|
|
Liabilities
and partners’ equity
|
||||
|
Current
liabilities
|
||||
|
Current
maturities of long-term debt
|
$ |
261,931
|
$ |
11,931
|
|
Notes
payable
|
360,000
|
870,000
|
||
|
Accounts
payable
|
541,190
|
496,763
|
||
|
Affiliate
payables
|
22,604
|
23,333
|
||
|
Commodity
exchanges and imbalances
|
165,713
|
191,165
|
||
|
Other
current liabilities
|
113,724
|
100,832
|
||
|
Total
current liabilities
|
1,465,162
|
1,694,024
|
||
|
Long-term
debt, excluding current maturities
|
2,829,946
|
2,589,509
|
||
|
Deferred
credits and other liabilities
|
58,231
|
54,773
|
||
|
Commitments
and contingencies
|
||||
|
Partners’
equity
|
||||
|
ONEOK
Partners, L.P. partners’ equity:
|
||||
|
General
partner
|
82,443
|
77,546
|
||
|
Common
units: 59,426,087 and 54,426,087 units issued and outstanding
at
June
30, 2009 and December 31, 2008, respectively
|
1,554,685
|
1,361,058
|
||
|
Class
B units: 36,494,126 units issued and outstanding at
June 30, 2009 and December 31, 2008
|
1,388,890
|
1,407,016
|
||
|
Accumulated
other comprehensive income
|
15,917
|
64,405
|
||
|
Total
ONEOK Partners, L.P. partners’ equity
|
3,041,935
|
2,910,025
|
||
|
Noncontrolling
interests in consolidated subsidiaries
|
5,472
|
5,941
|
||
|
Total
partners’ equity
|
3,047,407
|
2,915,966
|
||
|
Total
liabilities and partners’ equity
|
$ |
7,400,746
|
$ |
7,254,272
|
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
14
|
ONEOK
Partners, L.P. and Subsidiaries
|
||||||||
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Six
Months Ended
|
|||||||
|
June
30,
|
||||||||
|
(Unaudited)
|
2009
|
2008
|
||||||
|
(Thousands
of dollars)
|
||||||||
|
Operating
activities
|
||||||||
|
Net
income
|
$ | 197,149 | $ | 299,796 | ||||
|
Depreciation
and amortization
|
79,893 | 59,975 | ||||||
|
Allowance
for equity funds used during construction
|
(18,471 | ) | (20,172 | ) | ||||
|
Gain
on sale of assets
|
(3,940 | ) | (28 | ) | ||||
|
Equity
earnings from investments
|
(35,410 | ) | (45,393 | ) | ||||
|
Distributions
received from unconsolidated affiliates
|
38,233 | 39,904 | ||||||
|
Changes
in assets and liabilities:
|
||||||||
|
Accounts
receivable
|
(79,824 | ) | 35,134 | |||||
|
Affiliate
receivables
|
(55 | ) | (14,815 | ) | ||||
|
Gas
and natural gas liquids in storage
|
25,976 | (104,557 | ) | |||||
|
Derivative
financial instruments
|
(2,058 | ) | 10,344 | |||||
|
Accounts
payable
|
16,410 | 39,225 | ||||||
|
Affiliate
payables
|
(729 | ) | 34,558 | |||||
|
Commodity
exchanges and imbalances, net
|
(25,470 | ) | 55,202 | |||||
|
Other
assets and liabilities
|
(2,259 | ) | (59,230 | ) | ||||
|
Cash
provided by operating activities
|
189,445 | 329,943 | ||||||
|
Investing
activities
|
||||||||
|
Changes
in investments in unconsolidated affiliates
|
17,393 | 6,480 | ||||||
|
Acquisitions
|
- | 2,450 | ||||||
|
Capital
expenditures (less allowance for equity funds used during
construction)
|
(321,860 | ) | (524,587 | ) | ||||
|
Proceeds
from sale of assets
|
8,050 | 111 | ||||||
|
Cash
used in investing activities
|
(296,417 | ) | (515,546 | ) | ||||
|
Financing
activities
|
||||||||
|
Cash
distributions:
|
||||||||
|
General
and limited partners
|
(241,864 | ) | (214,794 | ) | ||||
|
Noncontrolling
interests
|
(489 | ) | (148 | ) | ||||
|
Borrowing
of notes payable, net
|
360,000 | 20,000 | ||||||
|
Repayment
of notes payable with maturities over 90 days
|
(870,000 | ) | - | |||||
|
Issuance
of long-term debt, net of discounts
|
498,325 | - | ||||||
|
Long-term
debt financing costs
|
(4,000 | ) | - | |||||
|
Issuance
of common units, net of discounts
|
220,458 | 450,198 | ||||||
|
Contributions
from general partner
|
4,675 | 9,508 | ||||||
|
Payment
of long-term debt
|
(5,965 | ) | (5,964 | ) | ||||
|
Cash
provided by (used in) financing activities
|
(38,860 | ) | 258,800 | |||||
|
Change
in cash and cash equivalents
|
(145,832 | ) | 73,197 | |||||
|
Cash
and cash equivalents at beginning of period
|
177,635 | 3,213 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 31,803 | $ | 76,410 | ||||
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
15
|
ONEOK
Partners, L.P. and Subsidiaries
|
||||||||||||||||
|
INFORMATION
AT A GLANCE
|
||||||||||||||||
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
June
30,
|
June
30,
|
|||||||||||||||
|
(Unaudited)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
(Millions
of dollars, except as noted)
|
||||||||||||||||
|
Natural Gas Gathering and
Processing
|
||||||||||||||||
|
Net
margin
|
$ | 86.3 | $ | 121.1 | $ | 172.3 | $ | 225.0 | ||||||||
|
Operating
costs
|
$ | 34.0 | $ | 32.8 | $ | 65.9 | $ | 65.9 | ||||||||
|
Depreciation
and amortization
|
$ | 14.5 | $ | 12.1 | $ | 28.9 | $ | 23.9 | ||||||||
|
Operating
income
|
$ | 40.9 | $ | 76.2 | $ | 80.6 | $ | 135.2 | ||||||||
|
Equity
earnings from investments
|
$ | 7.7 | $ | 8.1 | $ | 12.2 | $ | 15.2 | ||||||||
|
Natural
gas gathered
(BBtu/d)
|
1,130 | 1,185 | 1,147 | 1,188 | ||||||||||||
|
Natural
gas processed
(BBtu/d)
|
658 | 651 | 655 | 637 | ||||||||||||
|
NGL
sales
(MBbl/d)
|
42 | 40 | 41 | 39 | ||||||||||||
|
Residue
gas sales
(BBtu/d)
|
291 | 281 | 288 | 279 | ||||||||||||
|
Realized
composite NGL sales price
($/gallon)
|
$ | 0.69 | $ | 1.49 | $ | 0.67 | $ | 1.41 | ||||||||
|
Realized
condensate sales price
($/Bbl)
|
$ | 72.15 | $ | 102.77 | $ | 67.04 | $ | 95.82 | ||||||||
|
Realized
residue gas sales price
($/MMBtu)
|
$ | 2.79 | $ | 9.42 | $ | 3.18 | $ | 8.41 | ||||||||
|
Realized
gross processing spread
($/MMBtu)
|
$ | 6.34 | $ | 6.69 | $ | 6.34 | $ | 7.06 | ||||||||
|
Capital
expenditures - growth
|
$ | 17.9 | $ | 31.4 | $ | 43.4 | $ | 54.8 | ||||||||
|
Capital
expenditures - maintenance
|
$ | 5.6 | $ | 4.9 | $ | 8.9 | $ | 8.0 | ||||||||
|
Natural Gas Pipelines
|
||||||||||||||||
|
Net
margin
|
$ | 66.8 | $ | 66.7 | $ | 132.4 | $ | 130.4 | ||||||||
|
Operating
costs
|
$ | 24.5 | $ | 20.5 | $ | 44.7 | $ | 44.0 | ||||||||
|
Depreciation
and amortization
|
$ | 10.6 | $ | 8.5 | $ | 23.4 | $ | 17.0 | ||||||||
|
Operating
income
|
$ | 31.7 | $ | 37.7 | $ | 64.3 | $ | 69.4 | ||||||||
|
Equity
earnings from investments
|
$ | 5.6 | $ | 9.2 | $ | 21.8 | $ | 29.2 | ||||||||
|
Natural
gas transportation capacity contracted
(MMcf/d)
|
5,264 | 4,816 | 5,205 | 4,883 | ||||||||||||
|
Average
natural gas price
Mid-Continent
region
($/MMBtu)
|
$ | 2.66 | $ | 9.20 | $ | 3.05 | $ | 8.19 | ||||||||
|
Capital
expenditures - growth
|
$ | 14.9 | $ | 27.6 | $ | 32.2 | $ | 48.5 | ||||||||
|
Capital
expenditures - maintenance
|
$ | 1.9 | $ | 2.2 | $ | 2.1 | $ | 3.5 | ||||||||
|
Natural Gas Liquids Gathering and
Fractionation
|
||||||||||||||||
|
Net
margin
|
$ | 67.7 | $ | 67.3 | $ | 126.9 | $ | 136.9 | ||||||||
|
Operating
costs
|
$ | 25.5 | $ | 20.0 | $ | 48.3 | $ | 38.6 | ||||||||
|
Depreciation
and amortization
|
$ | 7.7 | $ | 5.6 | $ | 14.1 | $ | 11.3 | ||||||||
|
Operating
income
|
$ | 34.5 | $ | 41.7 | $ | 64.5 | $ | 87.0 | ||||||||
|
NGLs
gathered
(MBbl/d)
|
303 | 285 | 284 | 267 | ||||||||||||
|
NGL
sales
(MBbl/d)
|
401 | 265 | 391 | 275 | ||||||||||||
|
NGLs
fractionated
(MBbl/d)
|
479 | 371 | 472 | 381 | ||||||||||||
|
Conway-to-Mont
Belvieu OPIS average price differential
|
||||||||||||||||
|
Ethane
($/gallon)
|
$ | 0.12 | $ | 0.13 | $ | 0.10 | $ | 0.11 | ||||||||
|
Capital
expenditures - growth
|
$ | 7.9 | $ | 50.8 | $ | 17.3 | $ | 77.5 | ||||||||
|
Capital
expenditures - maintenance
|
$ | 2.2 | $ | 4.2 | $ | 5.8 | $ | 7.1 | ||||||||
|
Natural Gas Liquids
Pipelines
|
||||||||||||||||
|
Net
margin
|
$ | 44.0 | $ | 27.4 | $ | 88.2 | $ | 58.7 | ||||||||
|
Operating
costs
|
$ | 19.1 | $ | 13.8 | $ | 34.7 | $ | 27.2 | ||||||||
|
Depreciation
and amortization
|
$ | 7.1 | $ | 3.7 | $ | 13.4 | $ | 7.8 | ||||||||
|
Operating
income
|
$ | 17.8 | $ | 9.9 | $ | 40.1 | $ | 23.7 | ||||||||
|
Equity
earnings from investments
|
$ | 0.9 | $ | 0.3 | $ | 1.5 | $ | 1.0 | ||||||||
|
NGLs
transported - gathering lines
(MBbl/d)
|
174 | 96 | 168 | 94 | ||||||||||||
|
NGLs
transported - distribution lines
(MBbl/d)
|
461 | 308 | 453 | 305 | ||||||||||||
|
Capital
expenditures - growth
|
$ | 76.6 | $ | 135.2 | $ | 208.2 | $ | 323.3 | ||||||||
|
Capital
expenditures - maintenance
|
$ | 1.8 | $ | 1.2 | $ | 3.5 | $ | 1.8 | ||||||||
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
16
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
17
|
ONEOK
Partners, L.P. and Subsidiaries
|
||||||||||||||||
|
RECONCILIATION
OF DISTRIBUTABLE CASH FLOW NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
June
30,
|
June
30,
|
|||||||||||||||
|
(Unaudited)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
(Thousands
of dollars, except per unit amounts)
|
||||||||||||||||
|
Reconciliation
of EBITDA to Distributable Cash Flow
|
||||||||||||||||
|
EBITDA
|
$ | 181,980 | $ | 212,022 | $ | 366,306 | $ | 420,206 | ||||||||
|
(Gain)/loss
on sale of assets
|
(3,276 | ) | 3 | (3,940 | ) | (28 | ) | |||||||||
|
Interest
expense
|
(50,888 | ) | (34,705 | ) | (101,796 | ) | (73,234 | ) | ||||||||
|
Maintenance
capital
|
(11,534 | ) | (12,492 | ) | (20,316 | ) | (20,418 | ) | ||||||||
|
Distributions
to noncontrolling interests
|
(146 | ) | (74 | ) | (489 | ) | (148 | ) | ||||||||
|
Equity
earnings from investments
|
(14,188 | ) | (17,610 | ) | (35,410 | ) | (45,393 | ) | ||||||||
|
Distributions
received from unconsolidated affiliates
|
30,142 | 33,214 | 63,473 | 60,627 | ||||||||||||
|
Current
income tax expense and other
|
(1,216 | ) | (3,456 | ) | (2,381 | ) | (5,829 | ) | ||||||||
|
Distributable
cash flow
|
$ | 130,874 | $ | 176,902 | $ | 265,447 | $ | 335,783 | ||||||||
|
Distributions
to general partner
|
(23,988 | ) | (20,920 | ) | (46,727 | ) | (40,022 | ) | ||||||||
|
Distributable
cash flow to limited partners
|
$ | 106,886 | $ | 155,982 | $ | 218,720 | $ | 295,761 | ||||||||
|
Distributable
cash flow per limited partner unit
|
$ | 1.17 | $ | 1.72 | $ | 2.40 | $ | 3.37 | ||||||||
|
Distributions
declared per limited partner unit
|
$ | 1.08 | $ | 1.06 | $ | 2.16 | $ | 2.10 | ||||||||
|
Coverage
ratio
|
1.08 | 1.62 | 1.11 | 1.61 | ||||||||||||
|
Number
of units used in computation
(thousands)
|
91,415 | 90,906 | 91,169 | 87,680 | ||||||||||||
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
18
|
ONEOK
Partners, L.P. and Subsidiaries
|
Exhibit
A
|
|||||||||||
|
EARNINGS
GUIDANCE*
|
||||||||||||
|
Updated
|
Previous
|
|||||||||||
|
2009
|
2009
|
|||||||||||
|
Guidance
|
Guidance
|
Change
|
||||||||||
|
(Millions
of dollars, except per unit amounts)
|
||||||||||||
|
Operating
income
|
||||||||||||
|
Natural
Gas Gathering and Processing
|
$ | 164 | $ | 164 | $ | - | ||||||
|
Natural
Gas Pipelines
|
141 | 141 | - | |||||||||
|
Natural
Gas Liquids Gathering and Fractionation
|
116 | 102 | 14 | |||||||||
|
Natural
Gas Liquids Pipelines
|
115 | 113 | 2 | |||||||||
|
Other
|
1 | 1 | - | |||||||||
|
Operating
income
|
537 | 521 | 16 | |||||||||
|
Equity
earnings from investments
|
80 | 91 | (11 | ) | ||||||||
|
Other
income (expense)
|
28 | 10 | 18 | |||||||||
|
Interest
expense
|
(214 | ) | (203 | ) | (11 | ) | ||||||
|
Income
before income taxes
|
431 | 419 | 12 | |||||||||
|
Income
taxes
|
(14 | ) | (16 | ) | 2 | |||||||
|
Net
income
|
417 | 403 | 14 | |||||||||
|
Less:
Net income attributable to noncontrolling interests
|
- | - | - | |||||||||
|
Net
income attributable to ONEOK Partners, L.P.
|
$ | 417 | $ | 403 | $ | 14 | ||||||
|
Limited
partners' net income per unit, basic and diluted
|
$ | 3.45 | $ | 3.45 | $ | - | ||||||
| - | ||||||||||||
|
Number
of units used in computation
(millions)
|
93.8 | 90.9 | 2.9 | |||||||||
|
Capital
expenditures
|
||||||||||||
|
Natural
Gas Gathering and Processing
|
$ | 108 | $ | 119 | $ | (11 | ) | |||||
|
Natural
Gas Pipelines
|
82 | 62 | 20 | |||||||||
|
Natural
Gas Liquids Gathering and Fractionation
|
52 | 71 | (19 | ) | ||||||||
|
Natural
Gas Liquids Pipelines
|
328 | 173 | 155 | |||||||||
|
Total
capital expenditures
|
$ | 570 | $ | 425 | $ | 145 | ||||||
|
Growth
|
$ | 509 | $ | 355 | $ | 154 | ||||||
|
Maintenance
|
61 | 70 | (9 | ) | ||||||||
|
Total
capital expenditures
|
$ | 570 | $ | 425 | $ | 145 | ||||||
|
*Amounts
shown are midpoints of ranges provided.
|
||||||||||||
-more-
ONEOK
Partners Reports Second-quarter 2009 Results;
Updates
2009 Earnings Guidance
August
4, 2009
Page
19
|
ONEOK
Partners, L.P. and Subsidiaries
|
Exhibit
B
|
|||||||||||
|
EARNINGS
GUIDANCE*
|
||||||||||||
|
Updated
|
Previous
|
|||||||||||
|
2009
|
2009
|
|||||||||||
|
Guidance
|
Guidance
|
Change
|
||||||||||
|
(Millions
of dollars)
|
||||||||||||
|
Reconciliation
of Net Income to EBITDA
|
||||||||||||
|
Net
income
|
$ | 417 | $ | 403 | $ | 14 | ||||||
|
Interest
expense
|
214 | 203 | 11 | |||||||||
|
Depreciation
and amortization
|
164 | 165 | (1 | ) | ||||||||
|
Income
taxes
|
14 | 16 | (2 | ) | ||||||||
|
Allowance
for equity funds used during construction
|
(22 | ) | (6 | ) | (16 | ) | ||||||
|
EBITDA
|
$ | 787 | $ | 781 | $ | 6 | ||||||
|
Reconciliation
of EBITDA to Distributable Cash Flow
|
||||||||||||
|
EBITDA
|
$ | 787 | $ | 781 | $ | 6 | ||||||
|
(Gain)/loss
on sale of assets
|
(4 | ) | - | (4 | ) | |||||||
|
Interest
expense
|
(214 | ) | (203 | ) | (11 | ) | ||||||
|
Maintenance
capital
|
(61 | ) | (70 | ) | 9 | |||||||
|
Equity
earnings from investments
|
(80 | ) | (91 | ) | 11 | |||||||
|
Distributions
received from investments
|
104 | 114 | (10 | ) | ||||||||
|
Current
income tax expense and other
|
(7 | ) | (11 | ) | 4 | |||||||
|
Distributable
cash flow
|
$ | 525 | $ | 520 | $ | 5 | ||||||
|
*Amounts
shown are midpoints of ranges provided.
|
||||||||||||