Oklahoma | 73-1520922 | ||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification No.)
|
100 West Fifth Street,
|
Tulsa, | OK | 74103 | ||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, par value of $0.01 | OKE | New York Stock Exchange |
Page No. | |||||||||||
$1.5 Billion Term Loan Agreement |
The senior unsecured delayed-draw three-year $1.5 billion term loan agreement dated November 19, 2018
|
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$2.5 Billion Credit Agreement |
ONEOK’s $2.5 billion revolving credit agreement, as amended
|
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AFUDC | Allowance for funds used during construction | ||||
Annual Report | Annual Report on Form 10-K for the year ended December 31, 2020 | ||||
ASU | Accounting Standards Update | ||||
Bbl | Barrels, 1 barrel is equivalent to 42 United States gallons | ||||
BBtu/d | Billion British thermal units per day | ||||
Bcf | Billion cubic feet | ||||
Bcf/d | Billion cubic feet per day | ||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | ||||
CFTC | U.S. Commodity Futures Trading Commission | ||||
Clean Air Act | Federal Clean Air Act, as amended | ||||
Clean Water Act | Federal Water Pollution Control Act Amendments of 1972, as amended | ||||
COVID-19 | Coronavirus disease 2019 | ||||
DJ | Denver-Julesburg | ||||
DOT | United States Department of Transportation | ||||
EBITDA | Earnings before interest expense, income taxes, depreciation and amortization | ||||
EPA | United States Environmental Protection Agency | ||||
EPS | Earnings per share of common stock | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FERC | Federal Energy Regulatory Commission | ||||
Fitch | Fitch Ratings, Inc. | ||||
GAAP | Accounting principles generally accepted in the United States of America | ||||
GHG | Greenhouse gas | ||||
ICE | Intercontinental Exchange | ||||
Intermediate Partnership |
ONEOK Partners Intermediate Limited Partnership, a wholly owned subsidiary of ONEOK Partners, L.P.
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KCC | Kansas Corporation Commission | ||||
LIBOR | London Interbank Offered Rate | ||||
MBbl/d | Thousand barrels per day | ||||
MDth/d | Thousand dekatherms per day | ||||
MMBbl | Million barrels | ||||
MMBbl/d | Million barrels per day | ||||
MMBtu | Million British thermal units | ||||
MMcf/d | Million cubic feet per day | ||||
Moody’s | Moody’s Investors Service, Inc. | ||||
Natural Gas Act | Natural Gas Act of 1938, as amended | ||||
Natural Gas Policy Act | Natural Gas Policy Act of 1978, as amended | ||||
NGL(s) | Natural gas liquid(s) | ||||
NGL products |
Marketable natural gas liquid purity products, such as ethane, ethane/propane mix, propane, iso-butane, normal butane and natural gasoline
|
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Northern Border Pipeline | Northern Border Pipeline Company, a 50% owned joint venture | ||||
NYMEX | New York Mercantile Exchange | ||||
NYSE | New York Stock Exchange | ||||
OCC | Oklahoma Corporation Commission | ||||
ONEOK | ONEOK, Inc. | ||||
ONEOK Partners | ONEOK Partners, L.P., a wholly owned subsidiary of ONEOK, Inc. | ||||
ONEOK Partners Term Loan Agreement |
The senior unsecured three-year $1.0 billion term loan agreement dated January 8, 2016, as amended
|
ONEOK West Texas NGL | ONEOK West Texas NGL pipeline and Mesquite pipeline (formerly known as West Texas LPG pipeline and Mesquite pipeline) | ||||
OPIS | Oil Price Information Service | ||||
Overland Pass Pipeline |
Overland Pass Pipeline Company, LLC, a 50% owned joint venture
|
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PHMSA |
United States Department of Transportation Pipeline and Hazardous Materials Safety Administration
|
||||
POP | Percent of Proceeds | ||||
Quarterly Report(s) | Quarterly Report(s) on Form 10-Q | ||||
Roadrunner | Roadrunner Gas Transmission, LLC, a 50% owned joint venture | ||||
RRC | Railroad Commission of Texas | ||||
S&P | S&P Global Ratings | ||||
SCOOP |
South Central Oklahoma Oil Province, an area in the Anadarko Basin in Oklahoma
|
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SEC | Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
Series E Preferred Stock | Series E Non-Voting, Perpetual Preferred Stock, par value $0.01 per share | ||||
STACK |
Sooner Trend Anadarko Canadian Kingfisher, an area in the Anadarko Basin in Oklahoma
|
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Tax Cuts and Jobs Act |
H.R. 1, the tax reform bill, signed into law on December 22, 2017
|
||||
Topic 606 | Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” | ||||
WTI | West Texas Intermediate | ||||
XBRL | eXtensible Business Reporting Language |
Name and Position | Age | Business Experience in Past Five Years | ||||||||||||||||||
John W. Gibson | 68 | 2011 to present | Chairman of the Board, ONEOK | |||||||||||||||||
Chairman of the Board | 2007 to 2017 | Chairman of the Board, ONEOK Partners | ||||||||||||||||||
Terry K. Spencer | 61 | 2014 to present | President and Chief Executive Officer, ONEOK | |||||||||||||||||
President and Chief Executive Officer | 2014 to 2017 | President and Chief Executive Officer, ONEOK Partners | ||||||||||||||||||
2014 to present | Member of the Board of Directors, ONEOK | |||||||||||||||||||
2014 to 2017 | Member of the Board of Directors, ONEOK Partners | |||||||||||||||||||
Robert F. Martinovich | 63 | 2015 to present | Executive Vice President and Chief Administrative Officer, ONEOK | |||||||||||||||||
Executive Vice President and Chief Administrative Officer | 2015 to 2017 | Executive Vice President and Chief Administrative Officer, ONEOK Partners | ||||||||||||||||||
Walter S. Hulse III | 57 | 2019 to present | Chief Financial Officer, Treasurer and Executive Vice President, Strategy and Corporate Affairs, ONEOK | |||||||||||||||||
Chief Financial Officer, Treasurer and Executive Vice President, Strategy and Corporate Affairs | 2017 to 2019 | Chief Financial Officer and Executive Vice President, Strategic Planning and Corporate Affairs, ONEOK | ||||||||||||||||||
2015 to 2017 | Executive Vice President, Strategic Planning and Corporate Affairs, ONEOK and ONEOK Partners | |||||||||||||||||||
Kevin L. Burdick | 56 | 2017 to present | Executive Vice President and Chief Operating Officer, ONEOK | |||||||||||||||||
Executive Vice President and Chief Operating Officer | 2017 | Executive Vice President and Chief Commercial Officer, ONEOK and ONEOK Partners | ||||||||||||||||||
2016 to 2017 | Senior Vice President, Natural Gas Gathering and Processing, ONEOK Partners | |||||||||||||||||||
2013 to 2016 | Vice President, Natural Gas Gathering and Processing, ONEOK Partners | |||||||||||||||||||
Charles M. Kelley | 62 | 2018 to present | Senior Vice President, Natural Gas, ONEOK | |||||||||||||||||
Senior Vice President, Natural Gas | 2017 to 2018 | Senior Vice President, Natural Gas Gathering & Processing, ONEOK | ||||||||||||||||||
2015 to 2017 | Senior Vice President, Corporate Planning and Development, ONEOK and ONEOK Partners | |||||||||||||||||||
Sheridan C. Swords | 51 | 2017 to present | Senior Vice President, Natural Gas Liquids, ONEOK | |||||||||||||||||
Senior Vice President, Natural Gas Liquids | 2013 to 2017 | Senior Vice President, Natural Gas Liquids, ONEOK Partners | ||||||||||||||||||
Stephen B. Allen | 47 | 2017 to present | Senior Vice President, General Counsel and Assistant Secretary, ONEOK | |||||||||||||||||
Senior Vice President, General Counsel
and Assistant Secretary |
2008 to 2017 | Vice President and Associate General Counsel, ONEOK and ONEOK Partners | ||||||||||||||||||
Mary M. Spears | 41 | 2019 to present | Vice President and Chief Accounting Officer, ONEOK | |||||||||||||||||
Vice President and Chief Accounting Officer | 2015 to 2019 | Director, SEC Reporting, ONEOK | ||||||||||||||||||
2015 to 2017 | Director, SEC Reporting, ONEOK Partners |
Cumulative Total Return | ||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||
ONEOK, Inc. | $ | 249.37 | $ | 244.18 | $ | 259.53 | $ | 383.51 | $ | 217.21 | ||||||||||||||||||||||
S&P 500 Index | $ | 111.96 | $ | 136.40 | $ | 130.42 | $ | 171.49 | $ | 203.04 | ||||||||||||||||||||||
ONEOK Peer Group (a) | $ | 148.02 | $ | 138.01 | $ | 117.37 | $ | 127.36 | $ | 90.69 | ||||||||||||||||||||||
Alerian Midstream Energy Select Index (b) | $ | 143.55 | $ | 144.65 | $ | 119.08 | $ | 145.69 | $ | 111.56 |
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
(Millions of dollars, except per share data)
|
||||||||||||||||||||||||||||||||
Revenues | $ | 8,542.2 | $ | 10,164.4 | $ | 12,593.2 | $ | 12,173.9 | $ | 8,920.9 | ||||||||||||||||||||||
Net income | $ | 612.8 | $ | 1,278.6 | $ | 1,155.0 | $ | 593.5 | $ | 743.5 | ||||||||||||||||||||||
Total assets | $ | 23,078.8 | $ | 21,812.1 | $ | 18,231.7 | $ | 16,845.9 | $ | 16,138.8 | ||||||||||||||||||||||
Long-term debt, including current maturities | $ | 14,236.1 | $ | 12,487.4 | $ | 9,381.0 | $ | 8,524.3 | $ | 8,330.6 | ||||||||||||||||||||||
EPS - total | ||||||||||||||||||||||||||||||||
Basic | $ | 1.42 | $ | 3.09 | $ | 2.80 | $ | 1.30 | $ | 1.67 | ||||||||||||||||||||||
Diluted | $ | 1.42 | $ | 3.07 | $ | 2.78 | $ | 1.29 | $ | 1.66 | ||||||||||||||||||||||
Dividends declared per share of common stock | $ | 3.74 | $ | 3.53 | $ | 3.245 | $ | 2.72 | $ | 2.46 |
Project (b) | Scope |
Approximate
Costs (a) |
Completion |
||||||||
Natural Gas Gathering and Processing
|
(In millions)
|
||||||||||
Demicks Lake I plant and related infrastructure
|
200 MMcf/d processing plant and related gathering infrastructure in the core of the Williston Basin | $400 |
Completed
October 2019 |
||||||||
Supported by acreage dedications with long-term primarily fee-based contracts | |||||||||||
Demicks Lake II plant and related infrastructure
|
200 MMcf/d processing plant and related gathering infrastructure in the core of the Williston Basin | $410 |
Completed
January 2020 |
||||||||
Supported by acreage dedications with long-term primarily fee-based contracts | |||||||||||
Bear Creek plant expansion and related infrastructure | 200 MMcf/d processing plant expansion and related gathering infrastructure in the Williston Basin | $405 | Paused (c) | ||||||||
Supported by acreage dedications with long-term primarily fee-based contracts | |||||||||||
Natural Gas Liquids | |||||||||||
Elk Creek pipeline and related infrastructure
|
900-mile NGL pipeline from the Williston Basin to the Mid-Continent region, with capacity of up to 240 MBbl/d, and related infrastructure | $1,400 |
Completed
December 2019 |
||||||||
Anchored by long-term contracts | |||||||||||
Expansion capability up to 400 MBbl/d with additional pump facilities | |||||||||||
Arbuckle II pipeline and related infrastructure
|
530-mile NGL pipeline from the STACK area to Mont Belvieu, Texas, and related infrastructure | $1,360 |
Completed
March 2020 |
||||||||
Supported by long-term contracts | |||||||||||
Expansion capability up to 1 MMBbl/d | |||||||||||
MB-4 fractionator and related infrastructure | 125 MBbl/d NGL fractionator in Mont Belvieu, Texas, and related infrastructure, which includes additional NGL storage in Mont Belvieu | $575 |
Completed
March 2020 (d) |
||||||||
Fully contracted with long-term contracts | |||||||||||
ONEOK West Texas NGL pipeline expansion and Arbuckle II connection | Increasing mainline capacity by 80 MBbl/d with additional pump facilities and pipeline looping | $295 |
Completed
June 2020 (e) |
||||||||
Connecting ONEOK West Texas NGL pipeline system to the Arbuckle II pipeline | |||||||||||
Supported by long-term dedicated production from six third-party processing plants expected to produce up to 60 MBbl/d | |||||||||||
Bakken NGL pipeline extension
|
75-mile NGL pipeline in the Williston Basin connecting to a third-party processing plant | $100 |
Completed
August 2020 |
||||||||
Supported by a long-term contract with a minimum volume commitment | |||||||||||
Arbuckle II extension project and additional gathering infrastructure | Provide additional takeaway capacity in the STACK area | $240 | Completed | ||||||||
Allow increasing volumes on the Elk Creek pipeline access to fractionation capacity at Mont Belvieu, Texas | August 2020 | ||||||||||
Arbuckle II pipeline expansion | Increasing mainline capacity with additional pump facilities | $60 | Paused (c) | ||||||||
Increases capacity to 500 MBbl/d | |||||||||||
MB-5 fractionator and related infrastructure
|
125 MBbl/d NGL fractionator in Mont Belvieu, Texas, and related infrastructure, which includes additional NGL storage in Mont Belvieu | $750 | Paused (c) | ||||||||
Fully contracted with long-term contracts | |||||||||||
ONEOK West Texas NGL pipeline expansion | Increasing mainline capacity by 40 MBbl/d | $145 | Paused (c) | ||||||||
Supported by long-term dedicated production from third-party processing plants expected to produce up to 45 MBbl/d | |||||||||||
Mid-Continent fractionation facility expansions
|
65 MBbl/d of expansions at our Mid-Continent NGL facilities | $150 | Paused (c) | ||||||||
Years Ended December 31, | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Financial Results | 2020 | 2019 | 2018 | $ Increase (Decrease) | ||||||||||||||||||||||||||||
(Millions of dollars, except per share amounts)
|
||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Commodity sales | $ | 7,255.2 | $ | 8,916.1 | $ | 11,395.6 | (1,660.9) | (2,479.5) | ||||||||||||||||||||||||
Services | 1,287.0 | 1,248.3 | 1,197.6 | 38.7 | 50.7 | |||||||||||||||||||||||||||
Total revenues | 8,542.2 | 10,164.4 | 12,593.2 | (1,622.2) | (2,428.8) | |||||||||||||||||||||||||||
Cost of sales and fuel (exclusive of items shown separately below)
|
5,110.1 | 6,788.0 | 9,422.7 | (1,677.9) | (2,634.7) | |||||||||||||||||||||||||||
Operating costs | 886.1 | 982.9 | 907.0 | (96.8) | 75.9 | |||||||||||||||||||||||||||
Depreciation and amortization | 578.7 | 476.5 | 428.6 | 102.2 | 47.9 | |||||||||||||||||||||||||||
Impairment charges | 607.2 | — | — | 607.2 | — | |||||||||||||||||||||||||||
(Gain) loss on sale of assets | (1.3) | 2.6 | (0.6) | 3.9 | (3.2) | |||||||||||||||||||||||||||
Operating income | $ | 1,361.4 | $ | 1,914.4 | $ | 1,835.5 | (553.0) | 78.9 | ||||||||||||||||||||||||
Equity in net earnings from investments | $ | 143.2 | $ | 154.5 | $ | 158.4 | (11.3) | (3.9) | ||||||||||||||||||||||||
Impairment of equity investments | $ | (37.7) | $ | — | $ | — | 37.7 | — | ||||||||||||||||||||||||
Interest expense, net of capitalized interest | $ | (712.9) | $ | (491.8) | $ | (469.6) | 221.1 | 22.2 | ||||||||||||||||||||||||
Net income | $ | 612.8 | $ | 1,278.6 | $ | 1,155.0 | (665.8) | 123.6 | ||||||||||||||||||||||||
Diluted EPS | $ | 1.42 | $ | 3.07 | $ | 2.78 | (1.65) | 0.29 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 2,723.7 | $ | 2,580.2 | $ | 2,447.5 | 143.5 | 132.7 | ||||||||||||||||||||||||
Distributable cash flow | $ | 1,881.6 | $ | 2,016.1 | $ | 1,822.4 | (134.5) | 193.7 | ||||||||||||||||||||||||
Capital expenditures | $ | 2,195.4 | $ | 3,848.3 | $ | 2,141.5 | (1,652.9) | 1,706.8 |
Years Ended December 31, | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Financial Results | 2020 | 2019 | 2018 | $ Increase (Decrease) | ||||||||||||||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||||||||||||||
NGL sales | $ | 775.9 | $ | 1,024.3 | $ | 1,567.2 | (248.4) | (542.9) | ||||||||||||||||||||||||
Condensate sales | 113.5 | 200.1 | 208.8 | (86.6) | (8.7) | |||||||||||||||||||||||||||
Residue natural gas sales | 771.5 | 966.1 | 1,084.2 | (194.6) | (118.1) | |||||||||||||||||||||||||||
Gathering, compression, dehydration and processing fees and other revenue
|
159.2 | 178.1 | 174.4 | (18.9) | 3.7 | |||||||||||||||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs)
|
(844.0) | (1,302.3) | (2,041.4) | (458.3) | (739.1) | |||||||||||||||||||||||||||
Operating costs, excluding noncash compensation adjustments
|
(320.0) | (352.8) | (357.7) | (32.8) | (4.9) | |||||||||||||||||||||||||||
Equity in net earnings (loss) from investments | (1.1) | (6.3) | 0.4 | 5.2 | (6.7) | |||||||||||||||||||||||||||
Other | (5.0) | (4.5) | (4.3) | (0.5) | (0.2) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 650.0 | $ | 702.7 | $ | 631.6 | (52.7) | 71.1 | ||||||||||||||||||||||||
Impairment charges | $ | 566.1 | $ | — | $ | — | 566.1 | — | ||||||||||||||||||||||||
Capital expenditures | $ | 446.1 | $ | 926.5 | $ | 694.6 | (480.4) | 231.9 | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
Operating Information (a) | 2020 | 2019 | 2018 | |||||||||||||||||
Natural gas gathered (BBtu/d)
|
2,553 | 2,753 | 2,546 | |||||||||||||||||
Natural gas processed (BBtu/d) (b)
|
2,364 | 2,555 | 2,382 | |||||||||||||||||
Average fee rate ($/MMBtu)
|
$ | 0.89 | $ | 0.92 | $ | 0.90 |
Years Ended December 31, | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Financial Results | 2020 | 2019 | 2018 | $ Increase (Decrease) | ||||||||||||||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||||||||||||||
NGL and condensate sales | $ | 6,409.3 | $ | 7,910.8 | $ | 10,319.9 | (1,501.5) | (2,409.1) | ||||||||||||||||||||||||
Exchange service revenues and other | 497.8 | 424.2 | 415.7 | 73.6 | 8.5 | |||||||||||||||||||||||||||
Transportation and storage revenues | 182.9 | 197.5 | 199.0 | (14.6) | (1.5) | |||||||||||||||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs)
|
(5,108.6) | (6,690.9) | (9,176.8) | (1,582.3) | (2,485.9) | |||||||||||||||||||||||||||
Operating costs, excluding noncash compensation adjustments
|
(396.4) | (434.4) | (378.3) | (38.0) | 56.1 | |||||||||||||||||||||||||||
Equity in net earnings from investments | 39.9 | 65.1 | 67.1 | (25.2) | (2.0) | |||||||||||||||||||||||||||
Other | (7.7) | (6.5) | (6.0) | (1.2) | (0.5) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 1,617.2 | $ | 1,465.8 | $ | 1,440.6 | 151.4 | 25.2 | ||||||||||||||||||||||||
Impairment charges | $ | 78.8 | $ | — | $ | — | 78.8 | — | ||||||||||||||||||||||||
Capital expenditures | $ | 1,655.8 | $ | 2,796.6 | $ | 1,306.3 | (1,140.8) | 1,490.3 |
Years Ended December 31, | ||||||||||||||||||||
Operating Information | 2020 | 2019 | 2018 | |||||||||||||||||
Raw feed throughput (MBbl/d) (a)
|
1,084 | 1,079 | 1,010 | |||||||||||||||||
Average Conway-to-Mont Belvieu OPIS price differential -
ethane in ethane/propane mix ($/gallon)
|
$ | 0.01 | $ | 0.07 | $ | 0.15 |
Years Ended December 31, | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||
Financial Results | 2020 | 2019 | 2018 | $ Increase (Decrease) | ||||||||||||||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||||||||||||||
Transportation revenues | $ | 401.7 | $ | 393.7 | $ | 343.0 | 8.0 | 50.7 | ||||||||||||||||||||||||
Storage revenues | 68.4 | 72.6 | 72.0 | (4.2) | 0.6 | |||||||||||||||||||||||||||
Residue natural gas sales and other revenues | 9.9 | 5.7 | 16.7 | 4.2 | (11.0) | |||||||||||||||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs)
|
(6.8) | (4.6) | (16.0) | 2.2 | (11.4) | |||||||||||||||||||||||||||
Operating costs, excluding noncash compensation adjustments
|
(137.2) | (150.8) | (139.2) | (13.6) | 11.6 | |||||||||||||||||||||||||||
Equity in net earnings from investments | 104.4 | 95.7 | 90.8 | 8.7 | 4.9 | |||||||||||||||||||||||||||
Other | (3.0) | (3.5) | (1.0) | 0.5 | (2.5) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 437.4 | $ | 408.8 | $ | 366.3 | 28.6 | 42.5 | ||||||||||||||||||||||||
Capital expenditures | $ | 71.9 | $ | 99.2 | $ | 119.2 | (27.3) | (20.0) |
Years Ended December 31, | ||||||||||||||||||||
Operating Information (a) | 2020 | 2019 | 2018 | |||||||||||||||||
Natural gas transportation capacity contracted (MDth/d)
|
7,461 | 7,618 | 6,846 | |||||||||||||||||
Transportation capacity contracted | 96 | % | 98 | % | 96 | % |
Years Ended December 31, | ||||||||||||||||||||
(Unaudited)
|
2020 | 2019 | 2018 | |||||||||||||||||
Reconciliation of net income to adjusted EBITDA, distributable cash flow and dividend coverage |
(Thousands of dollars, except per share amounts and coverage ratios)
|
|||||||||||||||||||
Net income | $ | 612,809 | $ | 1,278,577 | $ | 1,155,032 | ||||||||||||||
Add: | ||||||||||||||||||||
Interest expense, net of capitalized interest | 712,886 | 491,773 | 469,620 | |||||||||||||||||
Depreciation and amortization | 578,662 | 476,535 | 428,557 | |||||||||||||||||
Income tax expense | 189,507 | 372,414 | 362,903 | |||||||||||||||||
Impairment charges | 644,930 | — | — | |||||||||||||||||
Noncash compensation expense (a) | 8,540 | 26,699 | 37,954 | |||||||||||||||||
Equity AFUDC and other noncash items | (23,661) | (65,811) | (6,545) | |||||||||||||||||
Adjusted EBITDA (b) | 2,723,673 | 2,580,187 | 2,447,521 | |||||||||||||||||
Interest expense, net of capitalized interest | (712,886) | (491,773) | (469,620) | |||||||||||||||||
Maintenance capital | (136,920) | (195,631) | (188,420) | |||||||||||||||||
Equity in net earnings from investments | (143,241) | (154,541) | (158,383) | |||||||||||||||||
Distributions received from unconsolidated affiliates | 176,160 | 257,644 | 197,285 | |||||||||||||||||
Other (b) | (25,195) | 20,227 | (5,994) | |||||||||||||||||
Distributable cash flow | 1,881,591 | 2,016,113 | 1,822,389 | |||||||||||||||||
Dividends paid to preferred shareholders | (1,100) | (1,100) | (1,100) | |||||||||||||||||
Distributable cash flow to shareholders | 1,880,491 | 2,015,013 | 1,821,289 | |||||||||||||||||
Dividends paid | (1,604,266) | (1,456,528) | (1,333,958) | |||||||||||||||||
Distributable cash flow in excess of dividends paid | $ | 276,225 | $ | 558,485 | $ | 487,331 | ||||||||||||||
Dividends paid per share | $ | 3.74 | $ | 3.53 | $ | 3.245 | ||||||||||||||
Dividend coverage ratio | 1.17 | 1.38 | 1.37 | |||||||||||||||||
Number of shares used in computation (thousands)
|
428,948 | 412,614 | 411,081 |
Years Ended December 31, | ||||||||||||||||||||
(Unaudited)
|
2020 | 2019 | 2018 | |||||||||||||||||
Reconciliation of segment adjusted EBITDA to adjusted EBITDA |
(Thousands of dollars)
|
|||||||||||||||||||
Segment adjusted EBITDA: | ||||||||||||||||||||
Natural Gas Gathering and Processing | $ | 650,036 | $ | 702,650 | $ | 631,607 | ||||||||||||||
Natural Gas Liquids | 1,617,241 | 1,465,765 | 1,440,605 | |||||||||||||||||
Natural Gas Pipelines | 437,426 | 408,816 | 366,251 | |||||||||||||||||
Other (a) | 18,970 | 2,956 | 9,058 | |||||||||||||||||
Adjusted EBITDA | $ | 2,723,673 | $ | 2,580,187 | $ | 2,447,521 |
Capital Expenditures | 2020 | 2019 | 2018 | |||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||
Natural Gas Gathering and Processing | $ | 446.1 | $ | 926.5 | $ | 694.6 | ||||||||||||||
Natural Gas Liquids | 1,655.8 | 2,796.6 | 1,306.3 | |||||||||||||||||
Natural Gas Pipelines | 71.9 | 99.2 | 119.2 | |||||||||||||||||
Other | 21.6 | 26.0 | 21.4 | |||||||||||||||||
Total capital expenditures | $ | 2,195.4 | $ | 3,848.3 | $ | 2,141.5 |
Rating Agency | Long-Term Rating | Short-Term Rating | Outlook | ||||||||
Moody’s | Baa3 | Prime-3 | Stable | ||||||||
S&P | BBB | A-2 | Stable | ||||||||
Fitch (a) | BBB | F2 | Stable | ||||||||
(a) - Fitch assigned first-time ratings to ONEOK in November 2020. |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||
Total cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 1,899.0 | $ | 1,946.8 | $ | 2,186.7 | ||||||||||||||
Investing activities | (2,270.5) | (3,768.8) | (2,114.9) | |||||||||||||||||
Financing activities | 875.0 | 1,831.0 | (97.0) | |||||||||||||||||
Change in cash and cash equivalents | 503.5 | 9.0 | (25.2) | |||||||||||||||||
Cash and cash equivalents at beginning of period | 21.0 | 12.0 | 37.2 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 524.5 | $ | 21.0 | $ | 12.0 |
Payments Due by Period | ||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations | Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | |||||||||||||||||||||||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||||||||||||||||||||||||||
Senior notes | $ | 14,347.9 | $ | — | $ | 1,437.7 | $ | 925.0 | $ | 500.0 | $ | 887.0 | $ | 10,598.2 | ||||||||||||||||||||||||||||||
Guardian Pipeline senior notes | 13.7 | 7.7 | 6.0 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Interest payments on debt | 9,710.4 | 704.2 | 675.0 | 631.4 | 586.8 | 555.7 | 6,557.3 | |||||||||||||||||||||||||||||||||||||
Operating leases | 116.1 | 16.5 | 15.1 | 13.8 | 12.5 | 11.1 | 47.1 | |||||||||||||||||||||||||||||||||||||
Finance lease | 35.1 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 12.6 | |||||||||||||||||||||||||||||||||||||
Firm transportation and storage contracts
|
516.7 | 70.9 | 60.9 | 55.8 | 53.4 | 47.9 | 227.8 | |||||||||||||||||||||||||||||||||||||
Financial and physical derivatives | 393.4 | 377.9 | 15.5 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Employee benefit plans | 57.0 | 11.2 | 11.8 | 12.9 | 10.3 | 10.8 | — | |||||||||||||||||||||||||||||||||||||
Purchase commitments and other | 369.6 | 83.8 | 83.4 | 81.6 | 41.1 | 40.7 | 39.0 | |||||||||||||||||||||||||||||||||||||
Total | $ | 25,559.9 | $ | 1,276.7 | $ | 2,309.9 | $ | 1,725.0 | $ | 1,208.6 | $ | 1,557.7 | $ | 17,482.0 |
Commodity Contracts |
December 31,
2020 |
December 31,
2019 |
|||||||||
(Millions of dollars)
|
|||||||||||
Crude oil and NGLs | $ | 20.0 | $ | 26.1 | |||||||
Natural gas | 10.6 | 12.7 | |||||||||
Total change in estimated fair value of commodity contracts | $ | 30.6 | $ | 38.8 |
Year Ending December 31, 2021 | |||||||||||||||||||||||
Volumes
Hedged |
Average Price |
Percentage
Hedged |
|||||||||||||||||||||
NGLs - excluding ethane (MBbl/d) - Conway/Mont Belvieu
|
10.4 | $ | 0.51 | / gallon | 60% | ||||||||||||||||||
Condensate (MBbl/d) - WTI-NYMEX
|
2.9 | $ | 42.87 | / Bbl | 74% | ||||||||||||||||||
Natural gas (BBtu/d) - NYMEX and basis
|
118.6 | $ | 2.64 | / MMBtu | 75% |
December 31,
2020 |
December 31,
2019 |
||||||||||
(Millions of dollars)
|
|||||||||||
Forward-starting interest-rate swaps | $ | 12.9 | $ | 40.5 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars, except per share amounts)
|
||||||||||||||||||||
Revenues | ||||||||||||||||||||
Commodity sales | $ | 7,255,259 | $ | 8,916,047 | $ | 11,395,642 | ||||||||||||||
Services | 1,286,983 | 1,248,320 | 1,197,554 | |||||||||||||||||
Total revenues (Note P) | 8,542,242 | 10,164,367 | 12,593,196 | |||||||||||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 5,110,146 | 6,788,040 | 9,422,708 | |||||||||||||||||
Operations and maintenance | 761,176 | 863,708 | 803,146 | |||||||||||||||||
Depreciation and amortization | 578,662 | 476,535 | 428,557 | |||||||||||||||||
Impairment charges (Note A) | 607,200 | — | — | |||||||||||||||||
General taxes | 125,028 | 119,156 | 103,922 | |||||||||||||||||
(Gain) loss on sale of assets | (1,327) | 2,575 | (601) | |||||||||||||||||
Operating income | 1,361,357 | 1,914,353 | 1,835,464 | |||||||||||||||||
Equity in net earnings from investments (Note M) | 143,241 | 154,541 | 158,383 | |||||||||||||||||
Impairment of equity investments (Note A) | (37,730) | — | — | |||||||||||||||||
Allowance for equity funds used during construction | 23,662 | 64,815 | 7,962 | |||||||||||||||||
Other income | 43,745 | 27,058 | 674 | |||||||||||||||||
Other expense | (19,073) | (18,003) | (14,928) | |||||||||||||||||
Interest expense (net of capitalized interest of $75,436, $107,275 and $28,062, respectively)
|
(712,886) | (491,773) | (469,620) | |||||||||||||||||
Income before income taxes | 802,316 | 1,650,991 | 1,517,935 | |||||||||||||||||
Income taxes (Note L) | (189,507) | (372,414) | (362,903) | |||||||||||||||||
Net income | 612,809 | 1,278,577 | 1,155,032 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 3,329 | |||||||||||||||||
Net income attributable to ONEOK | 612,809 | 1,278,577 | 1,151,703 | |||||||||||||||||
Less: Preferred stock dividends | 1,100 | 1,100 | 1,100 | |||||||||||||||||
Net income available to common shareholders | $ | 611,709 | $ | 1,277,477 | $ | 1,150,603 | ||||||||||||||
Basic EPS (Note I) | $ | 1.42 | $ | 3.09 | $ | 2.80 | ||||||||||||||
Diluted EPS (Note I) | $ | 1.42 | $ | 3.07 | $ | 2.78 | ||||||||||||||
Average shares (thousands)
|
||||||||||||||||||||
Basic | 431,105 | 413,560 | 411,485 | |||||||||||||||||
Diluted | 431,782 | 415,444 | 414,195 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Net income | $ | 612,809 | $ | 1,278,577 | $ | 1,155,032 | ||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||
Change in fair value of derivatives, net of tax of $49,292, $44,149 and $1,694, respectively
|
(165,023) | (147,803) | (5,673) | |||||||||||||||||
Derivative amounts reclassified to net income, net of tax of $(6,313), $6,058 and $(11,013), respectively
|
21,097 | (21,057) | 36,870 | |||||||||||||||||
Change in retirement and other postretirement benefit plan obligations, net of tax of $7,812, $2,910 and $(1,425), respectively
|
(26,154) | (9,696) | 4,771 | |||||||||||||||||
Other comprehensive income (loss) of unconsolidated affiliates, net of tax of $2,201, $2,152 and $(724), respectively
|
(7,369) | (7,205) | 2,424 | |||||||||||||||||
Total other comprehensive income (loss), net of tax | (177,449) | (185,761) | 38,392 | |||||||||||||||||
Comprehensive income | 435,360 | 1,092,816 | 1,193,424 | |||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 3,329 | |||||||||||||||||
Comprehensive income attributable to ONEOK | $ | 435,360 | $ | 1,092,816 | $ | 1,190,095 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
December 31, | December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
Assets |
(Thousands of dollars)
|
|||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 524,496 | $ | 20,958 | ||||||||||
Accounts receivable, net | 829,796 | 835,121 | ||||||||||||
Materials and supplies | 143,178 | 201,749 | ||||||||||||
NGLs and natural gas in storage | 227,810 | 304,926 | ||||||||||||
Commodity imbalances | 11,959 | 25,267 | ||||||||||||
Other current assets | 132,536 | 82,313 | ||||||||||||
Total current assets | 1,869,775 | 1,470,334 | ||||||||||||
Property, plant and equipment | ||||||||||||||
Property, plant and equipment | 23,072,935 | 22,051,492 | ||||||||||||
Accumulated depreciation and amortization | 3,918,007 | 3,702,807 | ||||||||||||
Net property, plant and equipment (Note D) | 19,154,928 | 18,348,685 | ||||||||||||
Investments and other assets | ||||||||||||||
Investments in unconsolidated affiliates (Note M) | 805,032 | 861,844 | ||||||||||||
Goodwill and intangible assets (Note E) | 773,723 | 957,833 | ||||||||||||
Other assets | 475,296 | 173,425 | ||||||||||||
Total investments and other assets | 2,054,051 | 1,993,102 | ||||||||||||
Total assets | $ | 23,078,754 | $ | 21,812,121 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(Continued) | ||||||||||||||
December 31, | December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
Liabilities and equity |
(Thousands of dollars)
|
|||||||||||||
Current liabilities | ||||||||||||||
Current maturities of long-term debt (Note F) | $ | 7,650 | $ | 7,650 | ||||||||||
Short-term borrowings (Note F) | — | 220,000 | ||||||||||||
Accounts payable | 719,302 | 1,209,900 | ||||||||||||
Commodity imbalances | 186,372 | 104,480 | ||||||||||||
Accrued taxes | 89,428 | 75,422 | ||||||||||||
Accrued interest | 245,153 | 190,750 | ||||||||||||
Operating lease liability (Note O) | 13,610 | 1,883 | ||||||||||||
Other current liabilities | 83,032 | 210,213 | ||||||||||||
Total current liabilities | 1,344,547 | 2,020,298 | ||||||||||||
Long-term debt, excluding current maturities (Note F) | 14,228,421 | 12,479,757 | ||||||||||||
Deferred credits and other liabilities | ||||||||||||||
Deferred income taxes (Note L) | 669,697 | 536,063 | ||||||||||||
Operating lease liability (Note O) | 87,610 | 13,509 | ||||||||||||
Other deferred credits | 706,081 | 536,543 | ||||||||||||
Total deferred credits and other liabilities | 1,463,388 | 1,086,115 | ||||||||||||
Commitments and contingencies (Note N) | ||||||||||||||
Equity (Note G) | ||||||||||||||
ONEOK shareholders’ equity: | ||||||||||||||
Preferred stock, $0.01 par value:
authorized and issued 20,000 shares at December 31, 2020, and at December 31, 2019 |
— | — | ||||||||||||
Common stock, $0.01 par value:
authorized 1,200,000,000 shares; issued 474,916,234 shares and outstanding
444,872,383 shares at December 31, 2020; issued 445,016,234 shares and outstanding 413,239,050 shares at December 31, 2019
|
4,749 | 4,450 | ||||||||||||
Paid-in capital | 7,353,396 | 7,403,895 | ||||||||||||
Accumulated other comprehensive loss (Note H) | (551,449) | (374,000) | ||||||||||||
Retained earnings | — | — | ||||||||||||
Treasury stock, at cost: 30,043,851 shares at December 31, 2020, and 31,777,184 shares at December 31, 2019
|
(764,298) | (808,394) | ||||||||||||
Total equity | 6,042,398 | 6,225,951 | ||||||||||||
Total liabilities and equity | $ | 23,078,754 | $ | 21,812,121 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | 612,809 | $ | 1,278,577 | $ | 1,155,032 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 578,662 | 476,535 | 428,557 | |||||||||||||||||
Impairment charges | 644,930 | — | — | |||||||||||||||||
Equity in net earnings from investments | (143,241) | (154,541) | (158,383) | |||||||||||||||||
Distributions received from unconsolidated affiliates | 144,352 | 163,476 | 170,528 | |||||||||||||||||
Deferred income tax expense | 186,730 | 372,729 | 361,010 | |||||||||||||||||
Other, net | 35,327 | (26,101) | 23,570 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Accounts receivable | (1,297) | (19,688) | 383,993 | |||||||||||||||||
NGLs and natural gas in storage | 77,116 | (8,259) | 38,456 | |||||||||||||||||
Accounts payable | (80,257) | (62,946) | (320,132) | |||||||||||||||||
Commodity imbalances | 95,200 | (1,934) | (44,302) | |||||||||||||||||
Accrued interest | 54,403 | 29,373 | 26,068 | |||||||||||||||||
Risk-management assets and liabilities | (187,458) | (86,268) | 117,717 | |||||||||||||||||
Other assets and liabilities, net | (118,208) | (14,174) | 4,605 | |||||||||||||||||
Cash provided by operating activities | 1,899,068 | 1,946,779 | 2,186,719 | |||||||||||||||||
Investing activities | ||||||||||||||||||||
Capital expenditures (less allowance for equity funds used during construction) | (2,195,381) | (3,848,349) | (2,141,475) | |||||||||||||||||
Distributions received from unconsolidated affiliates in excess of cumulative earnings
|
31,808 | 94,168 | 26,757 | |||||||||||||||||
Other, net | (106,956) | (14,577) | (170) | |||||||||||||||||
Cash used in investing activities | (2,270,529) | (3,768,758) | (2,114,888) | |||||||||||||||||
Financing activities | ||||||||||||||||||||
Dividends paid | (1,605,366) | (1,457,628) | (1,335,058) | |||||||||||||||||
Distributions to noncontrolling interests | — | — | (3,500) | |||||||||||||||||
Borrowing (repayment) of short-term borrowings, net | (220,000) | 220,000 | (614,673) | |||||||||||||||||
Issuance of long-term debt, net of discounts | 3,244,777 | 4,185,435 | 1,795,773 | |||||||||||||||||
Debt financing costs | (28,247) | (29,747) | (13,441) | |||||||||||||||||
Repayment of long-term debt | (1,457,222) | (1,057,348) | (932,650) | |||||||||||||||||
Issuance of common stock | 969,759 | 29,040 | 1,203,981 | |||||||||||||||||
Acquisition of noncontrolling interests | — | — | (195,000) | |||||||||||||||||
Other, net | (28,702) | (58,790) | (2,481) | |||||||||||||||||
Cash provided by (used in) financing activities | 874,999 | 1,830,962 | (97,049) | |||||||||||||||||
Change in cash and cash equivalents | 503,538 | 8,983 | (25,218) | |||||||||||||||||
Cash and cash equivalents at beginning of period | 20,958 | 11,975 | 37,193 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 524,496 | $ | 20,958 | $ | 11,975 | ||||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||
Cash paid for interest, net of amounts capitalized | $ | 760,984 | $ | 435,165 | $ | 418,244 | ||||||||||||||
Cash paid for income taxes, net of refunds | $ | 342 | $ | 2,690 | $ | 2,225 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||||||||
ONEOK Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Common
Stock Issued |
Preferred Stock Issued |
Common
Stock |
Preferred Stock |
Paid-in
Capital |
||||||||||||||||||||||||||||
(Shares)
|
(Thousands of dollars)
|
|||||||||||||||||||||||||||||||
January 1, 2018 | 423,166,234 | 20,000 | $ | 4,232 | $ | — | $ | 6,588,878 | ||||||||||||||||||||||||
Cumulative effect adjustment for adoption of ASUs (a) | — | — | — | — | — | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||||||||
Preferred stock dividends - $55.00 per share (Note G)
|
— | — | — | — | — | |||||||||||||||||||||||||||
Common stock issued | 21,850,000 | — | 218 | — | 1,183,321 | |||||||||||||||||||||||||||
Common stock dividends - $3.245 per share (Note G)
|
— | — | — | — | (144,805) | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | |||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | |||||||||||||||||||||||||||
Acquisition of noncontrolling interests (Note G) | — | — | — | — | (21,220) | |||||||||||||||||||||||||||
Other, net | — | — | — | — | 8,964 | |||||||||||||||||||||||||||
December 31, 2018 | 445,016,234 | 20,000 | 4,450 | — | 7,615,138 | |||||||||||||||||||||||||||
Cumulative effect adjustment for adoption of ASU 2016-02, “Leases (Topic 842)” | — | — | — | — | — | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||
Other comprehensive loss (Note H) | — | — | — | — | — | |||||||||||||||||||||||||||
Preferred stock dividends - $55.00 per share (Note G)
|
— | — | — | — | — | |||||||||||||||||||||||||||
Common stock issued | — | — | — | — | (7,667) | |||||||||||||||||||||||||||
Common stock dividends - $3.53 per share (Note G)
|
— | — | — | — | (180,421) | |||||||||||||||||||||||||||
Other, net | — | — | — | — | (23,155) | |||||||||||||||||||||||||||
December 31, 2019 | 445,016,234 | 20,000 | 4,450 | — | 7,403,895 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||
Other comprehensive loss (Note H) | — | — | — | — | — | |||||||||||||||||||||||||||
Preferred stock dividends - $55.00 per share (Note G)
|
— | — | — | — | (550) | |||||||||||||||||||||||||||
Common stock issued | 29,900,000 | — | 299 | — | 934,473 | |||||||||||||||||||||||||||
Common stock dividends - $3.74 per share (Note G)
|
— | — | — | — | (992,741) | |||||||||||||||||||||||||||
Other, net | — | — | — | — | 8,319 | |||||||||||||||||||||||||||
December 31, 2020 | 474,916,234 | 20,000 | $ | 4,749 | $ | — | $ | 7,353,396 |
ONEOK, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||||||||
(Continued) | ||||||||||||||||||||||||||||||||
ONEOK Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Accumulated
Other Comprehensive Loss |
Retained
Earnings |
Treasury
Stock |
Noncontrolling
Interests in Consolidated Subsidiaries |
Total
Equity |
||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||
January 1, 2018 | $ | (188,530) | $ | — | $ | (876,713) | $ | 157,485 | $ | 5,685,352 | ||||||||||||||||||||||
Cumulative effect adjustment for adoption of ASUs (a) | (38,101) | 39,803 | — | 17 | 1,719 | |||||||||||||||||||||||||||
Net income | — | 1,151,703 | — | 3,329 | 1,155,032 | |||||||||||||||||||||||||||
Other comprehensive income | 38,392 | — | — | — | 38,392 | |||||||||||||||||||||||||||
Preferred stock dividends - $55.00 per share (Note G)
|
— | (1,100) | — | — | (1,100) | |||||||||||||||||||||||||||
Common stock issued | — | — | 24,907 | — | 1,208,446 | |||||||||||||||||||||||||||
Common stock dividends - $3.245 per share (Note G)
|
— | (1,190,406) | — | — | (1,335,211) | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (3,500) | (3,500) | |||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | 16,449 | 16,449 | |||||||||||||||||||||||||||
Acquisition of noncontrolling interests (Note G) | — | — | — | (173,780) | (195,000) | |||||||||||||||||||||||||||
Other, net | — | — | — | — | 8,964 | |||||||||||||||||||||||||||
December 31, 2018 | (188,239) | — | (851,806) | — | 6,579,543 | |||||||||||||||||||||||||||
Cumulative effect adjustment for adoption of ASU 2016-02, “Leases (Topic 842)” | — | (67) | — | — | (67) | |||||||||||||||||||||||||||
Net income | — | 1,278,577 | — | — | 1,278,577 | |||||||||||||||||||||||||||
Other comprehensive loss (Note H) | (185,761) | — | — | — | (185,761) | |||||||||||||||||||||||||||
Preferred stock dividends - $55.00 per share (Note G)
|
— | (1,100) | — | — | (1,100) | |||||||||||||||||||||||||||
Common stock issued | — | — | 43,412 | — | 35,745 | |||||||||||||||||||||||||||
Common stock dividends - $3.53 per share (Note G)
|
— | (1,277,410) | — | — | (1,457,831) | |||||||||||||||||||||||||||
Other, net | — | — | — | — | (23,155) | |||||||||||||||||||||||||||
December 31, 2019 | (374,000) | — | (808,394) | — | 6,225,951 | |||||||||||||||||||||||||||
Net income | — | 612,809 | — | — | 612,809 | |||||||||||||||||||||||||||
Other comprehensive loss (Note H) | (177,449) | — | — | — | (177,449) | |||||||||||||||||||||||||||
Preferred stock dividends - $55.00 per share (Note G)
|
— | (550) | — | — | (1,100) | |||||||||||||||||||||||||||
Common stock issued | — | — | 44,096 | — | 978,868 | |||||||||||||||||||||||||||
Common stock dividends - $3.74 per share (Note G)
|
— | (612,259) | — | — | (1,605,000) | |||||||||||||||||||||||||||
Other, net | — | — | — | — | 8,319 | |||||||||||||||||||||||||||
December 31, 2020 | $ | (551,449) | $ | — | $ | (764,298) | $ | — | $ | 6,042,398 |
Recognition and Measurement | ||||||||||||||
Accounting Treatment | Balance Sheet | Income Statement | ||||||||||||
Normal purchases and
normal sales |
- | Fair value not recorded | - | Change in fair value not recognized in earnings | ||||||||||
Mark-to-market | - | Recorded at fair value | - | Change in fair value recognized in earnings | ||||||||||
Cash flow hedge | - |
The gain or loss on the
derivative instrument is reported initially as a component of accumulated other comprehensive income (loss) |
- | The gain or loss on the derivative instrument is reclassified out of accumulated other comprehensive income (loss) into earnings when the forecasted transaction affects earnings | ||||||||||
Fair value hedge | - | Recorded at fair value | - |
The gain or loss on the derivative instrument is
recognized in earnings |
||||||||||
- |
Change in fair value of the hedged item is
recorded as an adjustment to book value |
- |
Change in fair value of the hedged item is
recognized in earnings |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total - Gross | Netting (a) | Total - Net | |||||||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||
Financial contracts | $ | 6,697 | $ | — | $ | 103,801 | $ | 110,498 | $ | (110,498) | $ | — | ||||||||||||||||||||||||||
Total derivative assets | $ | 6,697 | $ | — | $ | 103,801 | $ | 110,498 | $ | (110,498) | $ | — | ||||||||||||||||||||||||||
Derivative liabilities
|
||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||
Financial contracts | $ | (10,489) | $ | — | $ | (135,122) | $ | (145,611) | $ | 145,611 | $ | — | ||||||||||||||||||||||||||
Interest-rate contracts | — | (203,407) | — | (203,407) | — | (203,407) | ||||||||||||||||||||||||||||||||
Total derivative liabilities | $ | (10,489) | $ | (203,407) | $ | (135,122) | $ | (349,018) | $ | 145,611 | $ | (203,407) |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total - Gross | Netting (a) | Total - Net | |||||||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||
Financial contracts | $ | 10,892 | $ | — | $ | 55,557 | $ | 66,449 | $ | (28,588) | $ | 37,861 | ||||||||||||||||||||||||||
Interest-rate contracts | — | 581 | — | 581 | — | 581 | ||||||||||||||||||||||||||||||||
Total derivative assets | $ | 10,892 | $ | 581 | $ | 55,557 | $ | 67,030 | $ | (28,588) | $ | 38,442 | ||||||||||||||||||||||||||
Derivative liabilities
|
||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||
Financial contracts | $ | (4,811) | $ | — | $ | (24,785) | $ | (29,596) | $ | 28,588 | $ | (1,008) | ||||||||||||||||||||||||||
Interest-rate contracts | — | (201,941) | — | (201,941) | — | (201,941) | ||||||||||||||||||||||||||||||||
Total derivative liabilities | $ | (4,811) | $ | (201,941) | $ | (24,785) | $ | (231,537) | $ | 28,588 | $ | (202,949) |
Years Ended | ||||||||||||||
December 31, | ||||||||||||||
Derivative Assets (Liabilities) | 2020 | 2019 | ||||||||||||
(Thousands of dollars)
|
||||||||||||||
Net assets at beginning of period | $ | 30,772 | $ | 40,484 | ||||||||||
Total changes in fair value: | ||||||||||||||
Settlements included in net income (a) | (31,660) | (40,344) | ||||||||||||
New Level 3 derivatives included in other comprehensive loss (b) | (36,568) | 30,627 | ||||||||||||
Unrealized change included in other comprehensive loss (b) | 6,135 | 5 | ||||||||||||
Net assets (liabilities) at end of period | $ | (31,321) | $ | 30,772 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Location in our Consolidated Balance Sheets | Assets | (Liabilities) | Assets | (Liabilities) | |||||||||||||||||||||||||
(Thousands of dollars)
|
|||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts (a) | |||||||||||||||||||||||||||||
Financial contracts (b) | Other current assets | $ | 107,461 | $ | (142,573) | $ | 64,858 | $ | (26,997) | ||||||||||||||||||||
Other deferred credits | — | — | 1,591 | (2,599) | |||||||||||||||||||||||||
Interest-rate contracts | Other current liabilities | — | — | — | (90,161) | ||||||||||||||||||||||||
Other assets/other deferred credits | — | (203,407) | 581 | (111,780) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | 107,461 | (345,980) | 67,030 | (231,537) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts (a) | |||||||||||||||||||||||||||||
Financial contracts (b) | 3,037 | (3,038) | — | — | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 3,037 | (3,038) | — | — | |||||||||||||||||||||||||
Total derivatives | $ | 110,498 | $ | (349,018) | $ | 67,030 | $ | (231,537) |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Contract
Type |
Net Purchased/Payor
(Sold/Receiver) |
|||||||||||||||||||||||||
Derivatives designated as hedging instruments: (a) | ||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||
Fixed price | ||||||||||||||||||||||||||
-Natural gas (Bcf)
|
Futures | (43.3) | (59.0) | |||||||||||||||||||||||
-Crude oil and NGLs (MMBbl)
|
Futures | (4.6) | (9.5) | |||||||||||||||||||||||
Basis | ||||||||||||||||||||||||||
-Natural gas (Bcf)
|
Futures | (43.3) | (59.0) | |||||||||||||||||||||||
Interest-rate contracts (Billions of dollars)
|
Swaps | $ | 1.1 | $ | 3.1 | |||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Commodity contracts | $ | (5,699) | $ | 38,819 | $ | 53,217 | ||||||||||||||
Interest-rate contracts | (208,616) | (230,771) | (60,584) | |||||||||||||||||
Total unrealized change in fair value of cash flow hedges in other comprehensive income (loss) | $ | (214,315) | $ | (191,952) | $ | (7,367) |
Estimated Useful
Lives (Years) |
December 31,
2020 |
December 31,
2019 |
||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Nonregulated | ||||||||||||||||||||
Gathering pipelines and related equipment |
5 to 40
|
$ | 4,143,752 | $ | 4,316,936 | |||||||||||||||
Processing and fractionation and related equipment |
3 to 40
|
5,084,802 | 4,439,332 | |||||||||||||||||
Storage and related equipment |
3 to 54
|
798,785 | 684,635 | |||||||||||||||||
Transmission pipelines and related equipment |
5 to 54
|
810,434 | 797,678 | |||||||||||||||||
General plant and other |
2 to 60
|
647,675 | 610,013 | |||||||||||||||||
Construction work in process | — | 1,265,736 | 1,645,663 | |||||||||||||||||
Regulated | ||||||||||||||||||||
Storage and related equipment |
5 to 25
|
9,180 | 9,180 | |||||||||||||||||
Natural gas transmission pipelines and related equipment |
5 to 77
|
1,569,268 | 1,552,546 | |||||||||||||||||
NGL transmission pipelines and related equipment |
5 to 88
|
8,423,544 | 6,126,056 | |||||||||||||||||
General plant and other |
2 to 50
|
72,535 | 66,507 | |||||||||||||||||
Construction work in process | — | 247,224 | 1,802,946 | |||||||||||||||||
Property, plant and equipment | 23,072,935 | 22,051,492 | ||||||||||||||||||
Accumulated depreciation and amortization - nonregulated | (2,514,328) | (2,471,649) | ||||||||||||||||||
Accumulated depreciation and amortization - regulated | (1,403,679) | (1,231,158) | ||||||||||||||||||
Net property, plant and equipment | $ | 19,154,928 | $ | 18,348,685 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Natural Gas Liquids | 2.2% | 2.0% | 1.9% | |||||||||||||||||
Natural Gas Pipelines | 2.1% | 2.1% | 2.1% |
December 31,
2020 |
December 31,
2019 |
|||||||||||||
(Thousands of dollars)
|
||||||||||||||
Natural Gas Gathering and Processing | $ | — | $ | 153,404 | ||||||||||
Natural Gas Liquids | 371,217 | 371,217 | ||||||||||||
Natural Gas Pipelines | 156,375 | 156,375 | ||||||||||||
Total goodwill | $ | 527,592 | $ | 680,996 |
December 31,
2020 |
December 31,
2019 |
|||||||||||||
(Thousands of dollars)
|
||||||||||||||
Gross intangible assets | $ | 381,435 | $ | 414,345 | ||||||||||
Accumulated amortization | (135,304) | (137,508) | ||||||||||||
Net intangible assets | $ | 246,131 | $ | 276,837 |
December 31,
2020 |
December 31,
2019 |
|||||||||||||
(Thousands of dollars) | ||||||||||||||
Commercial paper outstanding, bearing a weighted-average interest rate of 2.16% as of December 31, 2019
|
$ | — | $ | 220,000 | ||||||||||
Senior unsecured obligations: | ||||||||||||||
$1,500,000 term loan at 2.70% as of December 31, 2019, due November 2021
|
— | 1,250,000 | ||||||||||||
$700,000 at 4.25% due February 2022
|
541,877 | 547,397 | ||||||||||||
$900,000 at 3.375% due October 2022
|
895,814 | 900,000 | ||||||||||||
$425,000 at 5.0% due September 2023
|
425,000 | 425,000 | ||||||||||||
$500,000 at 7.5% due September 2023
|
500,000 | 500,000 | ||||||||||||
$500,000 at 2.75% due September 2024
|
500,000 | 500,000 | ||||||||||||
$500,000 at 4.9% due March 2025
|
500,000 | 500,000 | ||||||||||||
$400,000 at 2.2% due September 2025
|
387,000 | — | ||||||||||||
$600,000 at 5.85% due January 2026
|
600,000 | — | ||||||||||||
$500,000 at 4.0% due July 2027
|
500,000 | 500,000 | ||||||||||||
$800,000 at 4.55% due July 2028
|
800,000 | 800,000 | ||||||||||||
$100,000 at 6.875% due September 2028
|
100,000 | 100,000 | ||||||||||||
$700,000 at 4.35% due March 2029
|
700,000 | 700,000 | ||||||||||||
$750,000 at 3.4% due September 2029
|
714,251 | 750,000 | ||||||||||||
$850,000 at 3.1% due March 2030
|
780,093 | — | ||||||||||||
$600,000 at 6.35% due January 2031
|
600,000 | — | ||||||||||||
$400,000 at 6.0% due June 2035
|
400,000 | 400,000 | ||||||||||||
$600,000 at 6.65% due October 2036
|
600,000 | 600,000 | ||||||||||||
$600,000 at 6.85% due October 2037
|
600,000 | 600,000 | ||||||||||||
$650,000 at 6.125% due February 2041
|
650,000 | 650,000 | ||||||||||||
$400,000 at 6.2% due September 2043
|
400,000 | 400,000 | ||||||||||||
$700,000 at 4.95% due July 2047
|
689,006 | 700,000 | ||||||||||||
$1,000,000 at 5.2% due July 2048
|
1,000,000 | 1,000,000 | ||||||||||||
$750,000 at 4.45% due September 2049
|
713,676 | 750,000 | ||||||||||||
$500,000 at 4.5% due March 2050
|
451,270 | — | ||||||||||||
$300,000 at 7.15% due January 2051
|
300,000 | — | ||||||||||||
Guardian Pipeline | ||||||||||||||
Weighted average 7.85% due December 2022
|
13,657 | 21,307 | ||||||||||||
Total debt | 14,361,644 | 12,813,704 | ||||||||||||
Unamortized portion of terminated swaps | 13,314 | 15,032 | ||||||||||||
Unamortized debt issuance costs and discounts | (138,887) | (121,329) | ||||||||||||
Current maturities of long-term debt | (7,650) | (7,650) | ||||||||||||
Short-term borrowings (a) | — | (220,000) | ||||||||||||
Long-term debt | $ | 14,228,421 | $ | 12,479,757 |
Senior
Unsecured Obligations |
Guardian
Pipeline |
Total | ||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||||
2021 | $ | — | $ | 7.7 | $ | 7.7 | ||||||||||||||||||||
2022 | $ | 1,437.7 | $ | 6.0 | $ | 1,443.7 | ||||||||||||||||||||
2023 | $ | 925.0 | $ | — | $ | 925.0 | ||||||||||||||||||||
2024 | $ | 500.0 | $ | — | $ | 500.0 | ||||||||||||||||||||
2025 | $ | 887.0 | $ | — | $ | 887.0 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
First Quarter | $ | 0.935 | $ | 0.860 | $ | 0.770 | ||||||||||||||
Second Quarter | 0.935 | 0.865 | 0.795 | |||||||||||||||||
Third Quarter | 0.935 | 0.890 | 0.825 | |||||||||||||||||
Fourth Quarter | 0.935 | 0.915 | 0.855 | |||||||||||||||||
Total | $ | 3.74 | $ | 3.53 | $ | 3.245 |
Risk-
Management Assets/Liabilities (a) |
Retirement and Other
Postretirement Benefit Plan Obligations (a) (b) |
Risk-
Management Assets/Liabilities of Unconsolidated Affiliates (a) |
Accumulated
Other Comprehensive Loss (a) |
|||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
January 1, 2019 | $ | (64,660) | $ | (121,785) | $ | (1,794) | $ | (188,239) | ||||||||||||||||||
Other comprehensive loss before reclassifications | (147,803) | (19,490) | (7,275) | (174,568) | ||||||||||||||||||||||
Amounts reclassified to net income (c) | (21,057) | 9,794 | 70 | (11,193) | ||||||||||||||||||||||
Other comprehensive loss | (168,860) | (9,696) | (7,205) | (185,761) | ||||||||||||||||||||||
December 31, 2019 | (233,520) | (131,481) | (8,999) | (374,000) | ||||||||||||||||||||||
Other comprehensive loss before reclassifications | (165,023) | (40,341) | (8,635) | (213,999) | ||||||||||||||||||||||
Amounts reclassified to net income (c) | 21,097 | 14,187 | 1,266 | 36,550 | ||||||||||||||||||||||
Other comprehensive loss | (143,926) | (26,154) | (7,369) | (177,449) | ||||||||||||||||||||||
December 31, 2020 | $ | (377,446) | $ | (157,635) | $ | (16,368) | $ | (551,449) |
Risk-
Management Assets/Liabilities (a) |
||||||||
(Thousands of dollars)
|
||||||||
Commodity derivative instruments expected to be realized within the next 24 months (b) | $ | (27,303) | ||||||
Settled interest-rate swaps to be recognized over the life of the long-term, fixed-rate debt (c)
|
(193,519) | |||||||
Interest-rate swaps with future settlement dates expected to be amortized over the life of long-term debt
|
(156,624) | |||||||
Accumulated other comprehensive loss at December 31, 2020 | $ | (377,446) |
Year Ended December 31, 2020 | ||||||||||||||||||||
Income | Shares |
Per Share
Amount |
||||||||||||||||||
(Thousands, except per share amounts)
|
||||||||||||||||||||
Basic EPS | ||||||||||||||||||||
Net income available for common stock
|
$ | 611,709 | 431,105 | $ | 1.42 | |||||||||||||||
Diluted EPS | ||||||||||||||||||||
Effect of dilutive securities | — | 677 | ||||||||||||||||||
Net income available for common stock and common stock equivalents
|
$ | 611,709 | 431,782 | $ | 1.42 |
Year Ended December 31, 2019 | ||||||||||||||||||||
Income | Shares |
Per Share
Amount |
||||||||||||||||||
(Thousands, except per share amounts)
|
||||||||||||||||||||
Basic EPS | ||||||||||||||||||||
Net income available for common stock | $ | 1,277,477 | 413,560 | $ | 3.09 | |||||||||||||||
Diluted EPS | ||||||||||||||||||||
Effect of dilutive securities | — | 1,884 | ||||||||||||||||||
Net income available for common stock and common stock equivalents | $ | 1,277,477 | 415,444 | $ | 3.07 |
Year Ended December 31, 2018 | ||||||||||||||||||||
Income | Shares |
Per Share
Amount |
||||||||||||||||||
(Thousands, except per share amounts)
|
||||||||||||||||||||
Basic EPS | ||||||||||||||||||||
Net income attributable to ONEOK available for common stock
|
$ | 1,150,603 | 411,485 | $ | 2.80 | |||||||||||||||
Diluted EPS | ||||||||||||||||||||
Effect of dilutive securities | — | 2,710 | ||||||||||||||||||
Net income attributable to ONEOK available for common stock and common stock equivalents
|
$ | 1,150,603 | 414,195 | $ | 2.78 |
Number of
Units |
Weighted
Average Price |
|||||||||||||
Nonvested December 31, 2019 | 698,990 | $ | 54.05 | |||||||||||
Granted | 216,392 | $ | 76.49 | |||||||||||
Released to participants | (240,576) | $ | 46.58 | |||||||||||
Forfeited | (28,519) | $ | 65.20 | |||||||||||
Nonvested December 31, 2020 | 646,287 | $ | 63.85 |
2020 | 2019 | 2018 | ||||||||||||||||||
Weighted-average grant date fair value (per share) | $ | 76.49 | $ | 58.07 | $ | 46.94 | ||||||||||||||
Fair value of units granted (thousands of dollars) | $ | 16,552 | $ | 15,238 | $ | 13,907 | ||||||||||||||
Grant date fair value of units vested (thousands of dollars) | $ | 11,204 | $ | 10,691 | $ | 9,552 |
Number of
Units |
Weighted
Average Price |
|||||||||||||
Nonvested December 31, 2019 | 937,821 | $ | 66.67 | |||||||||||
Granted | 283,029 | $ | 88.43 | |||||||||||
Released to participants | (300,423) | $ | 58.99 | |||||||||||
Forfeited | (86,181) | $ | 74.83 | |||||||||||
Nonvested December 31, 2020 | 834,246 | $ | 75.96 |
2020 | 2019 | 2018 | ||||||||||||||||||
Volatility (a) | 21.70% | 27.10% | 39.20% | |||||||||||||||||
Dividend yield | 4.87% | 5.05% | 5.49% | |||||||||||||||||
Risk-free interest rate | 1.39% | 2.47% | 2.44% |
2020 | 2019 | 2018 | ||||||||||||||||||
Weighted-average grant date fair value (per share) | $ | 88.43 | $ | 68.02 | $ | 59.57 | ||||||||||||||
Fair value of units granted (thousands of dollars) | $ | 25,028 | $ | 23,020 | $ | 22,081 | ||||||||||||||
Grant date fair value of units vested (thousands of dollars) | $ | 17,722 | $ | 15,018 | $ | 12,545 |
Retirement Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Change in benefit obligation |
(Thousands of dollars)
|
|||||||||||||||||||||||||
Benefit obligation, beginning of period | $ | 534,849 | $ | 466,994 | $ | 52,309 | $ | 46,840 | ||||||||||||||||||
Service cost | 8,154 | 7,825 | 460 | 468 | ||||||||||||||||||||||
Interest cost | 18,318 | 20,528 | 1,771 | 2,038 | ||||||||||||||||||||||
Plan participants’ contributions | — | — | 1,032 | 1,142 | ||||||||||||||||||||||
Actuarial loss | 37,951 | 55,954 | 2,860 | 5,101 | ||||||||||||||||||||||
Benefits paid | (16,200) | (16,452) | (3,917) | (3,280) | ||||||||||||||||||||||
Benefit obligation, end of period | 583,072 | 534,849 | 54,515 | 52,309 | ||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||
Fair value of plan assets, beginning of period | 346,792 | 290,684 | 39,060 | 30,800 | ||||||||||||||||||||||
Actual return on plan assets (a) | 36,400 | 58,060 | (15,699) | 8,087 | ||||||||||||||||||||||
Employer contributions | 12,100 | 14,500 | — | 2,000 | ||||||||||||||||||||||
Plan participants’ contributions | — | — | 1,032 | 1,142 | ||||||||||||||||||||||
Benefits paid | (16,200) | (16,452) | (3,519) | (2,969) | ||||||||||||||||||||||
Fair value of plan assets, end of period | 379,092 | 346,792 | 20,874 | 39,060 | ||||||||||||||||||||||
Balance at December 31 | $ | (203,980) | $ | (188,057) | $ | (33,641) | $ | (13,249) | ||||||||||||||||||
Current liabilities | $ | (4,679) | $ | (4,616) | $ | — | $ | — | ||||||||||||||||||
Noncurrent liabilities | (199,301) | (183,441) | (33,641) | (13,249) | ||||||||||||||||||||||
Balance at December 31 | $ | (203,980) | $ | (188,057) | $ | (33,641) | $ | (13,249) |
Retirement Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | 8,154 | $ | 7,825 | $ | 7,339 | $ | 460 | $ | 468 | $ | 845 | ||||||||||||||||||||||||||
Interest cost | 18,318 | 20,528 | 17,659 | 1,771 | 2,038 | 2,108 | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (24,964) | (23,600) | (23,917) | (2,894) | (2,285) | (2,690) | ||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 114 | — | — | — | (227) | (1,662) | ||||||||||||||||||||||||||||||||
Amortization of net loss | 18,306 | 12,649 | 17,060 | 5 | 297 | 1,338 | ||||||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | 19,928 | $ | 17,402 | $ | 18,141 | $ | (658) | $ | 291 | $ | (61) |
Retirement Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||||||||
Net gain (loss) (a) | $ | (31,016) | $ | (25,389) | $ | (16,351) | $ | (21,453) | $ | 700 | $ | 6,545 | ||||||||||||||||||||||||||
Prior service cost | — | (601) | — | — | — | — | ||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) (b) | 114 | — | — | — | (227) | (1,662) | ||||||||||||||||||||||||||||||||
Amortization of net loss (b) | 18,306 | 12,649 | 17,060 | 5 | 297 | 1,338 | ||||||||||||||||||||||||||||||||
Deferred income taxes (c) | 2,897 | 3,068 | (18,928) | 4,933 | (177) | (2,831) | ||||||||||||||||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | (9,699) | $ | (10,273) | $ | (18,219) | $ | (16,515) | $ | 593 | $ | 3,390 |
Retirement Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
Prior service cost | $ | (487) | $ | (601) | $ | — | $ | — | ||||||||||||||||||
Accumulated loss (a) | (185,662) | (172,952) | (25,558) | (4,110) | ||||||||||||||||||||||
Accumulated other comprehensive loss | (186,149) | (173,553) | (25,558) | (4,110) | ||||||||||||||||||||||
Deferred income taxes | 49,251 | 46,354 | 6,322 | 1,389 | ||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | $ | (136,898) | $ | (127,199) | $ | (19,236) | $ | (2,721) |
Retirement Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Discount rate | 3.00% | 3.50% | 2.75% | 3.50% | ||||||||||||||||||||||
Compensation increase rate | 3.60% | 3.70% | NA | NA |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Discount rate - retirement plans | 3.50% | 4.50% | 3.75% | |||||||||||||||||
Discount rate - other postretirement plans | 3.50% | 4.50% | 3.75% | |||||||||||||||||
Expected long-term return on plan assets | 7.50% | 7.50% | 8.00% | |||||||||||||||||
Compensation increase rate | 3.70% | 3.65% | 3.00% |
2020 | 2019 | |||||||||||||
Health care cost-trend rate assumed for next year | 6.50% | 7.00% | ||||||||||||
Rate to which the cost-trend rate is assumed to decline
(the ultimate trend rate)
|
5.00% | 5.00% | ||||||||||||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 |
Domestic and international equities | 42 | % | ||||||
Long duration fixed income | 30 | % | ||||||
Return-seeking credit | 11 | % | ||||||
Hedge funds | 10 | % | ||||||
Real estate funds | 7 | % | ||||||
Total | 100 | % |
Pension Benefits | ||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Subtotal |
Measured at NAV (d)
|
Total | ||||||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Equity securities (a) | $ | 43 | $ | — | $ | — | $ | 43 | $ | 164,099 | $ | 164,142 | ||||||||||||||||||||||||||
Real estate funds | — | — | — | — | 24,134 | 24,134 | ||||||||||||||||||||||||||||||||
Government obligations | — | — | — | — | 45,237 | 45,237 | ||||||||||||||||||||||||||||||||
Corporate obligations (b) | — | — | — | — | 101,626 | 101,626 | ||||||||||||||||||||||||||||||||
Common/collective trusts | — | 4,890 | — | 4,890 | — | 4,890 | ||||||||||||||||||||||||||||||||
Other investments (c) | — | — | — | — | 39,063 | 39,063 | ||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 43 | $ | 4,890 | $ | — | $ | 4,933 | $ | 374,159 | $ | 379,092 |
Pension Benefits | ||||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Subtotal |
Measured at NAV (d)
|
Total | ||||||||||||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Equity securities (a) | $ | 47 | $ | — | $ | — | $ | 47 | $ | 149,985 | $ | 150,032 | ||||||||||||||||||||||||||
Real estate funds | — | — | — | — | 23,885 | 23,885 | ||||||||||||||||||||||||||||||||
Government obligations | — | — | — | — | 50,708 | 50,708 | ||||||||||||||||||||||||||||||||
Corporate obligations (b) | — | — | — | — | 85,898 | 85,898 | ||||||||||||||||||||||||||||||||
Common/collective trusts | — | 3,263 | — | 3,263 | — | 3,263 | ||||||||||||||||||||||||||||||||
Cash | 63 | — | — | 63 | — | 63 | ||||||||||||||||||||||||||||||||
Other investments (c) | — | — | — | — | 32,943 | 32,943 | ||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 110 | $ | 3,263 | $ | — | $ | 3,373 | $ | 343,419 | $ | 346,792 |
Other Postretirement Benefits | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Equity securities (a) (b) | $ | 15,116 | $ | — | $ | — | $ | 15,116 | ||||||||||||||||||
Money market funds | — | 808 | — | 808 | ||||||||||||||||||||||
Municipal obligations (b) | 4,950 | — | — | 4,950 | ||||||||||||||||||||||
Fair value of plan assets | $ | 20,066 | $ | 808 | $ | — | $ | 20,874 |
Other Postretirement Benefits | ||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Equity securities (a) | $ | 2,043 | $ | — | $ | — | $ | 2,043 | ||||||||||||||||||
Money market funds | — | 2,428 | — | 2,428 | ||||||||||||||||||||||
Insurance and group annuity contracts | — | 34,589 | — | 34,589 | ||||||||||||||||||||||
Fair value of plan assets | $ | 2,043 | $ | 37,017 | $ | — | $ | 39,060 |
Pension
Benefits |
Other Postretirement
Benefits |
|||||||||||||
Benefits to be paid in: |
(Thousands of dollars)
|
|||||||||||||
2021 | $ | 19,460 | $ | 3,297 | ||||||||||
2022 | $ | 20,325 | $ | 3,408 | ||||||||||
2023 | $ | 21,216 | $ | 3,371 | ||||||||||
2024 | $ | 22,234 | $ | 3,335 | ||||||||||
2025 | $ | 23,260 | $ | 3,322 | ||||||||||
2026 through 2030 | $ | 127,038 | $ | 15,848 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Current tax expense (benefit) | ||||||||||||||||||||
Federal | $ | 980 | $ | (1,278) | $ | 260 | ||||||||||||||
State | 1,797 | 963 | 1,633 | |||||||||||||||||
Total current tax expense (benefit) | 2,777 | (315) | 1,893 | |||||||||||||||||
Deferred tax expense | ||||||||||||||||||||
Federal | 154,068 | 327,806 | 319,551 | |||||||||||||||||
State | 32,662 | 44,923 | 41,459 | |||||||||||||||||
Total deferred tax expense | 186,730 | 372,729 | 361,010 | |||||||||||||||||
Total provision for income taxes | $ | 189,507 | $ | 372,414 | $ | 362,903 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Income before income taxes | $ | 802,316 | $ | 1,650,991 | $ | 1,517,935 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 3,329 | |||||||||||||||||
Net income attributable to ONEOK before income taxes | 802,316 | 1,650,991 | 1,514,606 | |||||||||||||||||
Federal statutory income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||
Provision for federal income taxes | 168,486 | 346,708 | 318,067 | |||||||||||||||||
State income taxes, net of federal benefit | 13,580 | 34,545 | 38,668 | |||||||||||||||||
Deferred tax rate change, inclusive of valuation allowance | 20,879 | 11,340 | 5,552 | |||||||||||||||||
Excess tax benefits from share-based compensation | (7,380) | (20,983) | (4,644) | |||||||||||||||||
Other, net | (6,058) | 804 | 5,260 | |||||||||||||||||
Income tax provision | $ | 189,507 | $ | 372,414 | $ | 362,903 |
December 31,
2020 |
December 31,
2019 |
|||||||||||||
Deferred tax assets |
(Thousands of dollars)
|
|||||||||||||
Employee benefits and other accrued liabilities | $ | 96,741 | $ | 99,510 | ||||||||||
Federal net operating loss | 1,473,093 | 858,030 | ||||||||||||
State net operating loss and benefits | 258,929 | 171,779 | ||||||||||||
Derivative instruments | 134,499 | 83,710 | ||||||||||||
Other | 12,894 | 12,769 | ||||||||||||
Total deferred tax assets | 1,976,156 | 1,225,798 | ||||||||||||
Valuation allowance for state net operating loss and tax credits | ||||||||||||||
Carryforward expected to expire prior to utilization | (121,212) | (94,794) | ||||||||||||
Net deferred tax assets | 1,854,944 | 1,131,004 | ||||||||||||
Deferred tax liabilities | ||||||||||||||
Excess of tax over book depreciation | 87,021 | 84,631 | ||||||||||||
Investment in partnerships (a) | 2,437,620 | 1,582,436 | ||||||||||||
Total deferred tax liabilities | 2,524,641 | 1,667,067 | ||||||||||||
Net deferred tax assets (liabilities) | $ | (669,697) | $ | (536,063) |
Net
Ownership Interest |
December 31,
2020 |
December 31,
2019 |
||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Northern Border Pipeline | 50% | $ | 291,987 | $ | 307,209 | |||||||||||||||
Overland Pass Pipeline | 50% | 409,573 | 417,473 | |||||||||||||||||
Roadrunner | 50% | 66,794 | 80,816 | |||||||||||||||||
Other (a) | Various | 36,678 | 56,346 | |||||||||||||||||
Investments in unconsolidated affiliates (b) | $ | 805,032 | $ | 861,844 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Northern Border Pipeline | $ | 75,409 | $ | 68,871 | $ | 67,854 | ||||||||||||||
Overland Pass Pipeline | 38,618 | 63,698 | 65,887 | |||||||||||||||||
Roadrunner | 29,017 | 26,839 | 22,993 | |||||||||||||||||
Other | 197 | (4,867) | 1,649 | |||||||||||||||||
Equity in net earnings from investments | $ | 143,241 | $ | 154,541 | $ | 158,383 | ||||||||||||||
Impairment of equity investments | $ | (37,730) | $ | — | $ | — | ||||||||||||||
Firm
Transportation and Storage Contracts |
||||||||
(Millions of dollars)
|
||||||||
2021 | $ | 70.9 | ||||||
2022 | 60.9 | |||||||
2023 | 55.8 | |||||||
2024 | 53.4 | |||||||
2025 | 47.9 | |||||||
Thereafter | 227.8 | |||||||
Total | $ | 516.7 |
Leases | Location in our Consolidated Balance Sheet | December 31, 2020 | December 31, 2019 | ||||||||||||||
(Thousands of dollars)
|
|||||||||||||||||
Assets
|
|||||||||||||||||
Operating leases | Other assets | $ | 100,154 | $ | 15,147 | ||||||||||||
Finance lease | Property, plant and equipment | 28,286 | 28,286 | ||||||||||||||
Finance lease | Accumulated depreciation | (2,451) | (1,320) | ||||||||||||||
Total leased assets
|
$ | 125,989 | $ | 42,113 | |||||||||||||
Liabilities | |||||||||||||||||
Current | |||||||||||||||||
Operating leases | Operating lease liability | $ | 13,610 | $ | 1,883 | ||||||||||||
Finance lease | Other current liabilities | 2,153 | 1,949 | ||||||||||||||
Noncurrent | |||||||||||||||||
Operating leases | Operating lease liability | 87,610 | 13,509 | ||||||||||||||
Finance lease | Other deferred credits | 22,143 | 24,296 | ||||||||||||||
Total lease liabilities | $ | 125,516 | $ | 41,637 |
Years Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(Thousands of dollars)
|
||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities
|
||||||||||||||
Operating cash flows for operating leases
|
$ | 13,245 | $ | 6,213 | ||||||||||
Financing cash flows for finance lease | $ | 1,949 | $ | 1,764 | ||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities (noncash) | $ | 99,547 | $ | 4,097 |
Years Ended December 31, | |||||||||||||||||
Location in our
Consolidated Statement of Income |
2020 | 2019 | |||||||||||||||
(Thousands of dollars)
|
|||||||||||||||||
Operating leases | Operations and maintenance | $ | 17,162 | $ | 6,803 | ||||||||||||
Finance lease | |||||||||||||||||
Amortization of lease assets | Depreciation and amortization | 1,131 | 1,131 | ||||||||||||||
Interest on lease liabilities | Interest expense | 2,537 | 2,721 | ||||||||||||||
Total lease cost | $ | 20,830 | $ | 10,655 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||
Weighted average remaining lease term (years) | ||||||||||||||||||||
Operating leases | 8.3 | 10.4 | ||||||||||||||||||
Finance lease | 7.8 | 8.8 | ||||||||||||||||||
Weighted average discount rate (a) | ||||||||||||||||||||
Operating leases | 3.20% | 4.58% | ||||||||||||||||||
Finance lease | 10.00% | 10.00% |
Finance
Lease |
Operating
Leases |
|||||||||||||
(Millions of dollars)
|
||||||||||||||
2021 | $ | 4.5 | $ | 16.5 | ||||||||||
2022 | 4.5 | 15.1 | ||||||||||||
2023 | 4.5 | 13.8 | ||||||||||||
2024 | 4.5 | 12.5 | ||||||||||||
2025 | 4.5 | 11.1 | ||||||||||||
2026 and beyond | 12.6 | 47.1 | ||||||||||||
Total lease payments | 35.1 | 116.1 | ||||||||||||
Less: Interest | 10.8 | 14.9 | ||||||||||||
Present value of lease liabilities | $ | 24.3 | $ | 101.2 |
Contract Liabilities |
(Millions of dollars)
|
|||||||
Balance at January 1, 2019 | $ | 31.7 | ||||||
Revenue recognized included in beginning balance | (15.6) | |||||||
Net additions | 41.0 | |||||||
Balance at December 31, 2019 (a) | 57.1 | |||||||
Revenue recognized included in beginning balance (c) | (36.1) | |||||||
Net additions | 20.4 | |||||||
Balance at December 31, 2020 (b) | $ | 41.4 |
Expected Period of Recognition in Revenue |
(Millions of dollars)
|
|||||||
2021 | $ | 328.2 | ||||||
2022 | 263.0 | |||||||
2023 | 235.4 | |||||||
2024 | 197.9 | |||||||
2025 and beyond | 762.0 | |||||||
Total estimated transaction price allocated to unsatisfied performance obligations | $ | 1,786.5 |
Year Ended December 31, 2020 |
Natural Gas
Gathering and Processing |
Natural Gas
Liquids (a) |
Natural Gas
Pipelines (b) |
Total
Segments |
||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
NGL and condensate sales | $ | 889,388 | $ | 6,409,332 | $ | — | $ | 7,298,720 | ||||||||||||||||||
Residue natural gas sales | 771,486 | — | 8,693 | 780,179 | ||||||||||||||||||||||
Gathering, processing and exchange services revenue | 141,943 | 488,574 | — | 630,517 | ||||||||||||||||||||||
Transportation and storage revenue | — | 182,915 | 470,097 | 653,012 | ||||||||||||||||||||||
Other | 17,304 | 9,192 | 1,192 | 27,688 | ||||||||||||||||||||||
Total revenues (c) | 1,820,121 | 7,090,013 | 479,982 | 9,390,116 | ||||||||||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs)
|
(843,976) | (5,108,558) | (6,809) | (5,959,343) | ||||||||||||||||||||||
Operating costs | (326,938) | (412,900) | (141,713) | (881,551) | ||||||||||||||||||||||
Equity in net earnings (loss) from investments | (1,123) | 39,938 | 104,426 | 143,241 | ||||||||||||||||||||||
Noncash compensation expense and other | 1,952 | 8,748 | 1,540 | 12,240 | ||||||||||||||||||||||
Segment adjusted EBITDA | $ | 650,036 | $ | 1,617,241 | $ | 437,426 | $ | 2,704,703 | ||||||||||||||||||
Depreciation and amortization | $ | (247,010) | $ | (271,900) | $ | (55,739) | $ | (574,649) | ||||||||||||||||||
Impairment charges | $ | (566,145) | $ | (78,785) | $ | — | $ | (644,930) | ||||||||||||||||||
Investments in unconsolidated affiliates | $ | 22,757 | $ | 423,494 | $ | 358,781 | $ | 805,032 | ||||||||||||||||||
Total assets | $ | 6,499,908 | $ | 13,636,109 | $ | 2,100,213 | $ | 22,236,230 | ||||||||||||||||||
Capital expenditures | $ | 446,142 | $ | 1,655,759 | $ | 71,918 | $ | 2,173,819 |
Year Ended December 31, 2020 |
Total
Segments |
Other and
Eliminations |
Total | |||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Reconciliations of total segments to consolidated | ||||||||||||||||||||
NGL and condensate sales | $ | 7,298,720 | $ | (820,851) | $ | 6,477,869 | ||||||||||||||
Residue natural gas sales | 780,179 | (10,860) | 769,319 | |||||||||||||||||
Gathering, processing and exchange services revenue | 630,517 | — | 630,517 | |||||||||||||||||
Transportation and storage revenue | 653,012 | (14,599) | 638,413 | |||||||||||||||||
Other | 27,688 | (1,564) | 26,124 | |||||||||||||||||
Total revenues (a) | $ | 9,390,116 | $ | (847,874) | $ | 8,542,242 | ||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (5,959,343) | $ | 849,197 | $ | (5,110,146) | ||||||||||||||
Operating costs | $ | (881,551) | $ | (4,653) | $ | (886,204) | ||||||||||||||
Depreciation and amortization | $ | (574,649) | $ | (4,013) | $ | (578,662) | ||||||||||||||
Impairment charges | $ | (644,930) | $ | — | $ | (644,930) | ||||||||||||||
Equity in net earnings from investments | $ | 143,241 | $ | — | $ | 143,241 | ||||||||||||||
Investments in unconsolidated affiliates | $ | 805,032 | $ | — | $ | 805,032 | ||||||||||||||
Total assets | $ | 22,236,230 | $ | 842,524 | $ | 23,078,754 | ||||||||||||||
Capital expenditures | $ | 2,173,819 | $ | 21,562 | $ | 2,195,381 |
Year Ended December 31, 2019 |
Natural Gas
Gathering and Processing |
Natural Gas
Liquids (a) |
Natural Gas
Pipelines (b) |
Total
Segments |
||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
NGL and condensate sales | $ | 1,224,378 | $ | 7,910,833 | $ | — | $ | 9,135,211 | ||||||||||||||||||
Residue natural gas sales | 966,149 | — | 1,244 | 967,393 | ||||||||||||||||||||||
Gathering, processing and exchange services revenue | 164,299 | 414,238 | — | 578,537 | ||||||||||||||||||||||
Transportation and storage revenue | — | 197,483 | 466,266 | 663,749 | ||||||||||||||||||||||
Other | 13,813 | 9,962 | 4,477 | 28,252 | ||||||||||||||||||||||
Total revenues (c) | 2,368,639 | 8,532,516 | 471,987 | 11,373,142 | ||||||||||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs)
|
(1,302,310) | (6,690,918) | (4,628) | (7,997,856) | ||||||||||||||||||||||
Operating costs | (368,352) | (456,892) | (157,230) | (982,474) | ||||||||||||||||||||||
Equity in net earnings (loss) from investments | (6,292) | 65,123 | 95,710 | 154,541 | ||||||||||||||||||||||
Noncash compensation expense and other | 10,965 | 15,936 | 2,977 | 29,878 | ||||||||||||||||||||||
Segment adjusted EBITDA | $ | 702,650 | $ | 1,465,765 | $ | 408,816 | $ | 2,577,231 | ||||||||||||||||||
Depreciation and amortization | $ | (219,519) | $ | (196,132) | $ | (57,250) | $ | (472,901) | ||||||||||||||||||
Investments in unconsolidated affiliates | $ | 34,426 | $ | 439,393 | $ | 388,025 | $ | 861,844 | ||||||||||||||||||
Total assets | $ | 6,795,744 | $ | 12,551,476 | $ | 2,094,072 | $ | 21,441,292 | ||||||||||||||||||
Capital expenditures | $ | 926,489 | $ | 2,796,604 | $ | 99,221 | $ | 3,822,314 |
Year Ended December 31, 2019 |
Total
Segments |
Other and
Eliminations |
Total | |||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||
Reconciliations of total segments to consolidated | ||||||||||||||||||||
NGL and condensate sales | $ | 9,135,211 | $ | (1,190,424) | $ | 7,944,787 | ||||||||||||||
Residue natural gas sales | 967,393 | (1,418) | 965,975 | |||||||||||||||||
Gathering, processing and exchange services revenue | 578,537 | — | 578,537 | |||||||||||||||||
Transportation and storage revenue | 663,749 | (15,646) | 648,103 | |||||||||||||||||
Other | 28,252 | (1,287) | 26,965 | |||||||||||||||||
Total revenues (a) | $ | 11,373,142 | $ | (1,208,775) | $ | 10,164,367 | ||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (7,997,856) | $ | 1,209,816 | $ | (6,788,040) | ||||||||||||||
Operating costs | $ | (982,474) | $ | (390) | $ | (982,864) | ||||||||||||||
Depreciation and amortization | $ | (472,901) | $ | (3,634) | $ | (476,535) | ||||||||||||||
Equity in net earnings from investments | $ | 154,541 | $ | — | $ | 154,541 | ||||||||||||||
Investments in unconsolidated affiliates | $ | 861,844 | $ | — | $ | 861,844 | ||||||||||||||
Total assets | $ | 21,441,292 | $ | 370,829 | $ | 21,812,121 | ||||||||||||||
Capital expenditures | $ | 3,822,314 | $ | 26,035 | $ | 3,848,349 |
Year Ended December 31, 2018 |
Natural Gas
Gathering and Processing |
Natural Gas
Liquids (a) |
Natural Gas
Pipelines (b) |
Total
Segments |
||||||||||||||||||||||
(Thousands of dollars)
|
||||||||||||||||||||||||||
NGL and condensate sales | $ | 1,775,991 | $ | 10,319,847 | $ | — | $ | 12,095,838 | ||||||||||||||||||
Residue natural gas sales | 1,084,162 | — | 9,772 | 1,093,934 | ||||||||||||||||||||||
Gathering, processing and exchange services revenue | 163,194 | 404,897 | — | 568,091 | ||||||||||||||||||||||
Transportation and storage revenue | — | 199,018 | 414,969 | 613,987 | ||||||||||||||||||||||
Other | 11,230 | 10,816 | 6,994 | 29,040 | ||||||||||||||||||||||
Total revenues (c) | 3,034,577 | 10,934,578 | 431,735 | 14,400,890 | ||||||||||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs)
|
(2,041,448) | (9,176,813) | (15,984) | (11,234,245) | ||||||||||||||||||||||
Operating costs | (368,939) | (394,115) | (144,259) | (907,313) | ||||||||||||||||||||||
Equity in net earnings from investments | 410 | 67,126 | 90,847 | 158,383 | ||||||||||||||||||||||
Noncash compensation expense and other | 7,007 | 9,829 | 3,912 | 20,748 | ||||||||||||||||||||||
Segment adjusted EBITDA | $ | 631,607 | $ | 1,440,605 | $ | 366,251 | $ | 2,438,463 | ||||||||||||||||||
Depreciation and amortization | $ | (196,090) | $ | (174,007) | $ | (55,118) | $ | (425,215) | ||||||||||||||||||
Investments in unconsolidated affiliates | $ | 42,630 | $ | 451,040 | $ | 475,480 | $ | 969,150 | ||||||||||||||||||
Total assets | $ | 6,078,473 | $ | 9,663,640 | $ | 2,131,669 | $ | 17,873,782 | ||||||||||||||||||
Capital expenditures | $ | 694,611 | $ | 1,306,341 | $ | 119,185 | $ | 2,120,137 |
Year Ended December 31, 2018 |
Total
Segments |
Other and
Eliminations |
Total | |||||||||||||||||
(Thousands of dollars) | ||||||||||||||||||||
Reconciliations of total segments to consolidated | ||||||||||||||||||||
NGL and condensate sales | $ | 12,095,838 | $ | (1,794,342) | $ | 10,301,496 | ||||||||||||||
Residue natural gas sales | 1,093,934 | (2,832) | 1,091,102 | |||||||||||||||||
Gathering, processing and exchange services revenue | 568,091 | (21) | 568,070 | |||||||||||||||||
Transportation and storage revenue | 613,987 | (10,550) | 603,437 | |||||||||||||||||
Other | 29,040 | 51 | 29,091 | |||||||||||||||||
Total revenues (a) | $ | 14,400,890 | $ | (1,807,694) | $ | 12,593,196 | ||||||||||||||
Cost of sales and fuel (exclusive of depreciation and operating costs) | $ | (11,234,245) | $ | 1,811,537 | $ | (9,422,708) | ||||||||||||||
Operating costs | $ | (907,313) | $ | 245 | $ | (907,068) | ||||||||||||||
Depreciation and amortization | $ | (425,215) | $ | (3,342) | $ | (428,557) | ||||||||||||||
Equity in net earnings from investments | $ | 158,383 | $ | — | $ | 158,383 | ||||||||||||||
Investments in unconsolidated affiliates | $ | 969,150 | $ | — | $ | 969,150 | ||||||||||||||
Total assets | $ | 17,873,782 | $ | 357,889 | $ | 18,231,671 | ||||||||||||||
Capital expenditures | $ | 2,120,137 | $ | 21,338 | $ | 2,141,475 |
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Reconciliation of net income to total segment adjusted EBITDA
|
(Thousands of dollars)
|
|||||||||||||||||||
Net income | $ | 612,809 | $ | 1,278,577 | $ | 1,155,032 | ||||||||||||||
Add: | ||||||||||||||||||||
Interest expense, net of capitalized interest | 712,886 | 491,773 | 469,620 | |||||||||||||||||
Depreciation and amortization | 578,662 | 476,535 | 428,557 | |||||||||||||||||
Income tax expense | 189,507 | 372,414 | 362,903 | |||||||||||||||||
Impairment charges | 644,930 | — | — | |||||||||||||||||
Noncash compensation expense | 8,540 | 26,699 | 37,954 | |||||||||||||||||
Other corporate costs and equity AFUDC (a) | (42,631) | (68,767) | (15,603) | |||||||||||||||||
Total segment adjusted EBITDA | $ | 2,704,703 | $ | 2,577,231 | $ | 2,438,463 |
Year Ended December 31, 2020 |
First
Quarter (a) |
Second
Quarter (b) |
Third
Quarter (c) |
Fourth
Quarter (c) |
||||||||||||||||||||||
(Thousands of dollars, except per share amounts)
|
||||||||||||||||||||||||||
Total revenues | $ | 2,136,672 | $ | 1,660,729 | $ | 2,174,264 | $ | 2,570,577 | ||||||||||||||||||
Operating income (loss) | $ | (83,469) | $ | 355,730 | $ | 550,433 | $ | 538,663 | ||||||||||||||||||
Net income (loss) | $ | (141,857) | $ | 134,321 | $ | 312,316 | $ | 308,029 | ||||||||||||||||||
Net income (loss) available to common shareholders | $ | (142,132) | $ | 134,046 | $ | 312,041 | $ | 307,754 | ||||||||||||||||||
Earnings (loss) per share total | ||||||||||||||||||||||||||
Basic | $ | (0.34) | $ | 0.32 | $ | 0.70 | $ | 0.69 | ||||||||||||||||||
Diluted | $ | (0.34) | $ | 0.32 | $ | 0.70 | $ | 0.69 |
Year Ended December 31, 2019 |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
||||||||||||||||||||||
(Thousands of dollars except per share amounts)
|
||||||||||||||||||||||||||
Total revenues | $ | 2,779,958 | $ | 2,457,575 | $ | 2,263,228 | $ | 2,663,606 | ||||||||||||||||||
Operating income | $ | 468,742 | $ | 476,146 | $ | 482,151 | $ | 487,314 | ||||||||||||||||||
Net income | $ | 337,208 | $ | 311,963 | $ | 309,155 | $ | 320,251 | ||||||||||||||||||
Net income available to common shareholders | $ | 336,933 | $ | 311,688 | $ | 308,880 | $ | 319,976 | ||||||||||||||||||
EPS total | ||||||||||||||||||||||||||
Basic | $ | 0.82 | $ | 0.75 | $ | 0.75 | $ | 0.77 | ||||||||||||||||||
Diluted | $ | 0.81 | $ | 0.75 | $ | 0.74 | $ | 0.77 |
Number of Securities
to be Issued Upon Exercise of Outstanding Options, Warrants and Rights |
Weighted-Average
Exercise Price of Outstanding Options, Warrants and Rights |
Number of Securities
Remaining Available For Future Issuance Under Equity Compensation Plans (Excluding Securities in Column (a)) |
||||||||||||||||||||||||||||||
Plan Category | (a) | (b) (3) | (c) | |||||||||||||||||||||||||||||
Equity compensation plans
approved by security holders (1)
|
2,854,622 | — | 7,937,940 | |||||||||||||||||||||||||||||
Equity compensation plans
not approved by security holders (2)
|
295,620 | $ | 38.38 | — | ||||||||||||||||||||||||||||
Total | 3,150,242 | $ | 38.38 | 7,937,940 |
(1) Financial Statements | Page No. | ||||||||||
(a) | Report of Independent Registered Public Accounting Firm | 57-59 | |||||||||
(b) |
Consolidated Statements of Income for the years ended
December 31, 2020, 2019 and 2018 |
60 | |||||||||
(c) |
Consolidated Statements of Comprehensive Income for the years ended
December 31, 2020, 2019 and 2018 |
61 | |||||||||
(d) | Consolidated Balance Sheets as of December 31, 2020 and 2019 | 62-63 | |||||||||
(e) |
Consolidated Statements of Cash Flows for the years ended
December 31, 2020, 2019 and 2018 |
65 | |||||||||
(f) |
Consolidated Statements of Changes in Equity for the years ended
December 31, 2020, 2019 and 2018 |
66-67 | |||||||||
(g) | Notes to Consolidated Financial Statements | 68-106 | |||||||||
(2) Financial Statements Schedules | |||||||||||
All schedules have been omitted because of the absence of conditions under which they are required. |
(3) Exhibits | ||||||||
3 | ||||||||
3.1 | ||||||||
4 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 |
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | ||||||||
4.11 | ||||||||
4.12 | ||||||||
4.13 | ||||||||
4.14 | ||||||||
4.15 | ||||||||
4.16 | ||||||||
4.17 | ||||||||
4.18 | ||||||||
4.19 | ||||||||
4.20 | ||||||||
4.21 | ||||||||
4.22 | ||||||||
4.23 | ||||||||
4.24 | ||||||||
4.25 | ||||||||
4.26 | ||||||||
4.27 | ||||||||
4.28 | ||||||||
4.29 | ||||||||
4.30 | ||||||||
4.31 | ||||||||
4.32 | ||||||||
4.33 | ||||||||
4.34 | ||||||||
4.35 | ||||||||
4.36 | ||||||||
4.37 | ||||||||
4.38 | ||||||||
4.39 | ||||||||
4.40 | ||||||||
4.41 | ||||||||
4.42 | ||||||||
4.43 | ||||||||
10 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18 | ||||||||
10.19 |
10.32 | ||||||||
10.33 | ||||||||
10.34 | ||||||||
10.35 | ||||||||
10.36 | ||||||||
10.37 | ||||||||
10.38 | ||||||||
10.39 | ||||||||
10.40 | ||||||||
21 | ||||||||
22 | ||||||||
23 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definitions Document. | |||||||
101.LAB | Inline XBRL Taxonomy Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
ONEOK, Inc. | ||||||||
Registrant | ||||||||
Date: February 23, 2021 | By: | /s/ Walter S. Hulse III | ||||||
Walter S. Hulse III | ||||||||
Chief Financial Officer, Treasurer and | ||||||||
Executive Vice President, Strategy | ||||||||
and Corporate Affairs | ||||||||
(Principal Financial Officer) |
/s/ John W. Gibson | /s/ Terry K. Spencer | ||||||||||
John W. Gibson | Terry K. Spencer | ||||||||||
Chairman of the Board | President, Chief Executive Officer and | ||||||||||
Director | |||||||||||
/s/ Walter S. Hulse III | /s/ Mary M. Spears | ||||||||||
Walter S. Hulse III | Mary M. Spears | ||||||||||
Chief Financial Officer, Treasurer and | Vice President and | ||||||||||
Executive Vice President, Strategy | Chief Accounting Officer | ||||||||||
and Corporate Affairs | |||||||||||
/s/ Brian L. Derksen | /s/ Julie H. Edwards | ||||||||||
Brian L. Derksen | Julie H. Edwards | ||||||||||
Director | Director | ||||||||||
/s/ Mark W. Helderman | /s/ Randall J. Larson | ||||||||||
Mark W. Helderman | Randall J. Larson | ||||||||||
Director | Director | ||||||||||
/s/ Steven J. Malcolm | /s/ Jim W. Mogg | ||||||||||
Steven J. Malcolm | Jim W. Mogg | ||||||||||
Director | Director | ||||||||||
/s/ Pattye L. Moore | /s/ Eduardo A. Rodriguez | ||||||||||
Pattye L. Moore | Eduardo A. Rodriguez | ||||||||||
Director | Director | ||||||||||
/s/ Gerald B. Smith | |||||||||||
Gerald B. Smith | |||||||||||
Director | |||||||||||
Subsidiaries |
State of
Incorporation
or Organization
|
||||
Bighorn Gas Gathering, L.L.C. (49.0%) | Delaware | ||||
Black Mesa Holdings, Inc. | Delaware | ||||
Black Mesa Pipeline, Inc. | Delaware | ||||
Black Mesa Pipeline Operations, L.L.C. | Delaware | ||||
Black Mesa Technologies, Inc. | Oklahoma | ||||
Border Midwestern Company | Delaware | ||||
Chisholm Pipeline Company (50%) | Delaware | ||||
Chisholm Pipeline Holdings, L.L.C. | Delaware | ||||
Crestone Energy Ventures, L.L.C. | Delaware | ||||
Crestone Gathering Services, L.L.C. | Delaware | ||||
Crestone Powder River, L.L.C. | Delaware | ||||
Crestone Wind River, L.L.C. | Delaware | ||||
Fort Union Gas Gathering, L.L.C. (57.405%) | Delaware | ||||
Guardian Pipeline, L.L.C. | Delaware | ||||
Heartland Pipeline Company (general partnership) (50%) | Texas | ||||
Lost Creek Gathering Company, L.L.C. (35%) | Delaware | ||||
Mid Continent Market Center, L.L.C. | Kansas | ||||
Midwestern Gas Transmission Company | Delaware | ||||
Mont Belvieu I Fractionation Facility (joint venture) (80%) | Texas | ||||
Northern Border Pipeline Company (general partnership) (50%) | Texas | ||||
OkTex Pipeline Company, L.L.C. | Delaware | ||||
ONEOK Arbuckle II Pipeline, L.L.C. | Oklahoma | ||||
ONEOK Arbuckle North Pipeline, L.L.C. | Delaware | ||||
ONEOK Arbuckle Pipeline, L.L.C. | Delaware | ||||
ONEOK Bakken Pipeline, L.L.C. | Delaware | ||||
ONEOK Bushton Processing, L.L.C. | Delaware | ||||
ONEOK Elk Creek Pipeline, L.L.C. | Oklahoma | ||||
ONEOK Energy Services Company, II | Delaware | ||||
ONEOK Energy Services Company, L.P. | Texas | ||||
ONEOK Energy Services Holdings, L.L.C. | Oklahoma | ||||
ONEOK Field Services Company, L.L.C. | Oklahoma | ||||
ONEOK Gas Storage Holdings, L.L.C. | Delaware | ||||
ONEOK Gas Storage, L.L.C. | Oklahoma | ||||
ONEOK Gas Transportation, L.L.C. | Oklahoma | ||||
ONEOK Hydrocarbon GP, L.L.C. | Delaware | ||||
ONEOK Hydrocarbon Holdings, L.L.C. | Delaware | ||||
ONEOK Hydrocarbon Southwest, L.L.C. | Delaware | ||||
ONEOK Hydrocarbon, L.L.C. | Delaware | ||||
ONEOK Hydrocarbon, L.P. | Delaware | ||||
ONEOK ILP GP, L.L.C. | Delaware | ||||
ONEOK Leasing Company | Delaware |
ONEOK MB I, L.P. | Delaware | ||||
ONEOK Midstream Gas Supply, L.L.C. | Oklahoma | ||||
ONEOK Mont Belvieu Properties, L.L.C. | Delaware | ||||
ONEOK Mont Belvieu Storage Company, L.L.C. | Delaware | ||||
ONEOK NGL Gathering, L.L.C. | Delaware | ||||
ONEOK NGL Pipeline, L.L.C. | Delaware | ||||
ONEOK North System, L.L.C. | Delaware | ||||
ONEOK Northern Border Pipeline Company Holdings, L.L.C. | Oklahoma | ||||
ONEOK Overland Pass Holdings, L.L.C. | Oklahoma | ||||
ONEOK Parking Company, L.L.C. | Delaware | ||||
ONEOK Partners GP, L.L.C. | Delaware | ||||
ONEOK Partners Intermediate Limited Partnership | Delaware | ||||
ONEOK Partners, L.P. | Delaware | ||||
ONEOK Permian NGL Operating Company, L.L.C. | Delaware | ||||
ONEOK Pipeline Holdings, L.L.C. | Delaware | ||||
ONEOK Rockies Investments, L.L.C. | Delaware | ||||
ONEOK Rockies Midstream, L.L.C. | Delaware | ||||
ONEOK Services Company, L.L.C. | Oklahoma | ||||
ONEOK Southeast Texas NGL Pipeline, L.L.C. | Oklahoma | ||||
ONEOK Sterling III Pipeline, L.L.C. | Oklahoma | ||||
ONEOK Texas Gas Storage, L.L.C. | Texas | ||||
ONEOK Underground Storage Company, L.L.C. | Kansas | ||||
ONEOK Unit Holdings, Inc. | Delaware | ||||
ONEOK VESCO Holdings, L.L.C. | Delaware | ||||
ONEOK West Texas NGL Pipeline, L.L.C. | Texas | ||||
ONEOK Western Trail Pipeline, L.L.C. | Oklahoma | ||||
ONEOK WesTex Transmission, L.L.C. | Delaware | ||||
Overland Pass Pipeline Company LLC (50%) | Delaware | ||||
Roadrunner Gas Transmission Holdings, LLC (50%) | Delaware | ||||
Roadrunner Gas Transmission, LLC (100% owned by Roadrunner Gas Transmission Holdings, LLC) | Delaware | ||||
Venice Energy Services Company, L.L.C. (10.1765%) | Delaware | ||||
Viking Gas Transmission Company | Delaware |
Entity | Jurisdiction of Incorporation or Organization | ONEOK Notes | ONEOK Partners Notes | ||||||||
ONEOK, Inc. | Oklahoma | Issuer | Guarantor | ||||||||
ONEOK Partners, L.P. | Delaware | Guarantor | Issuer | ||||||||
ONEOK Partners Intermediate Limited Partnership | Delaware | Guarantor | Guarantor |
Issued under the Indenture dated as of September 24, 1998 | ||
6-7/8% Debentures due 2028 | ||
Issued under the Indenture dated as of December 28, 2001 | ||
6.00% Notes due 2035
|
||
Issued under the Indenture dated as of January 26, 2012 | ||
4.25% Notes due 2022
|
||
7.50% Notes due 2023 | ||
2.75% Notes due 2024 | ||
2.200% Notes due 2025 | ||
5.850% Notes due 2026 | ||
4.000% Notes due 2027 | ||
4.55% Notes due 2028 | ||
4.35% Notes due 2029 | ||
3.40% Notes due 2029 | ||
3.100% Notes due 2030 | ||
6.350% Notes due 2031 | ||
4.950% Notes due 2047 | ||
5.20% Notes due 2048 | ||
4.45% Notes due 2049 | ||
4.500% Notes due 2050 | ||
7.150% Notes due 2051 |
Issued under the Indenture dated as of September 25, 2006 | ||
3.375% Senior Notes due 2022 | ||
5.000% Senior Notes due 2023 | ||
4.90% Senior Notes due 2025 | ||
6.65% Senior Notes due 2036 | ||
6.85% Senior Notes due 2037 | ||
6.125% Senior Notes due 2041 | ||
6.200% Senior Notes due 2043 |
/s/ Terry K. Spencer | |||||
Terry K. Spencer | |||||
Chief Executive Officer |
/s/ Walter S. Hulse III | |||||
Walter S. Hulse III | |||||
Chief Financial Officer |