ONEOK, Inc. Q4 FY2025 earnings call

• ONEOK, Inc. had double-digit earnings growth in 2025, with net income up 12% and adjusted EBITDA up 18%, and twelve consecutive years of adjusted EBITDA growth. • Integrated platform advantage with Magellan, Easton, EnLink, and Medallion acquisitions fully embedded in 2026, realizing nearly $500,000,000 of total synergies since Magellan acquisition in 2023, $250,000,000 in 2025. • High-quality earnings mix with ~90% fee-based earnings. • 2026 adjusted EBITDA midpoint $8,100,000,000 supported by volume growth, completed or near-completed projects, and $150,000,000 incremental acquisition synergies. • In Permian, ~5,000 identified wells yet to be drilled on dedicated acreage. • Capital projects: Shadowfax plant in Midland Basin expected end of first quarter 2026, Delaware natural gas processing assets expansions in third quarter 2026, Denver area pipeline expansion mid-third quarter 2026, Phase 1 of Medford NGL fractionator rebuild in fourth quarter 2026.

ONEOK, Inc. has a diversified, scaled, integrated energy infrastructure. In 2025, net income attributable to ONEOK, Inc. increased 12% to $3,390,000,000. Adjusted EBITDA is up 18% to $8,020,000,000. Approximately 90% fee-based earnings. For 2026, midpoint of adjusted EBITDA is $8,100,000,000 supported by volume growth, completed or near-completed projects, and $150,000,000 of incremental acquisition synergies.

• 2026 adjusted EBITDA midpoint $8,100,000,000. • Net income midpoint ~$3,450,000,000 or $5.45 per diluted share. • Expect average WTI crude oil price range $55 to $60 per barrel in 2026. • First quarter expected to be lowest EBITDA quarter due to 90 days vs 92 days in other quarters and weather impacts. • $100,000,000 EBITDA growth from increased volumes in Permian and full year of third-party Permian plant volumes delayed in 2025. • $150,000,000 EBITDA from asset optimization. • No forecasted gains on debt repurchases in 2026.

• Lower crude oil prices could slow drilling pace, impacting volume growth. • Weather impacts on volumes, e.g., winter storm Fern briefly impacted throughput in first quarter 2026. • Commodity price fluctuations could affect earnings. • Uncertainty in producer activity and drilling rig rates affecting volumes. • Potential challenges in capturing all expected synergies from acquisitions.

Q: Spiro Michael Dounis asked about conservatism in 2026 outlook and optimization opportunities.

A: Walter S. Hulse said they planned for $55 - $60 WTI range, and Pierce H. Norton mentioned marketing team's success in locking in spreads and spot offloads.

Q: Spiro Michael Dounis asked about power opportunities.

A: Pierce H. Norton said they are in advanced negotiations with hyperscalers and hope to announce soon.

Q: Michael Jacob Blum asked about Waha basis spreads and Bakken, Rockies, and Mid-Continent processing volume guidance.

A: Sheridan C. Swords said they have open capacity on Eiger pipeline, ranges are dependent on producer activity, and higher crude prices could increase volumes.

Q: Theresa Chen asked about risk-weighting incremental synergies.

A: Sheridan C. Swords said synergies are identified, underway, and they have high confidence in capturing them.

Q: Theresa Chen asked about Denver refined products expansion phases and Sunbelt commercialization.

A: Sheridan C. Swords said Denver expansion is fully contracted, working on Phase 2, and Sunbelt Connector has interest but not enough to FID yet.

Q: Jeremy Bryan Tonet asked about acquisitions hitting expectations.

A: Pierce H. Norton said Magellan has most progress, EnLink and Medallion on pace.

Q: Jeremy Bryan Tonet asked about drivers of delta in EBITDA outlook.

A: Pierce H. Norton said it's due to lower producer activity and narrowing spreads.

Q: Jean Ann Salisbury asked about NGL throughput volumes and Waha-Katy spread.

A: Sheridan C. Swords said it's due to ethane assumptions, Bakken volume off, and ethane rejection in Mid-Continent, and Waha-Katy spread volume will be used for G&P business.

Q: Rob Mosca asked about Permian G&P volumes and inorganic opportunities.

A: Sheridan C. Swords said there are opportunities to attract third-party volume, and they feel good about capturing G&P volumes in Permian.

Q: Manav Gupta asked about natural gas storage opportunities and refined product demand.

A: Sheridan C. Swords said natural gas storage opportunities in Texas, Oklahoma, and Louisiana, and refined product demand is good so far.

Q: John Mackay asked about capital allocation and Permian inorganic opportunities.

A: Pierce H. Norton said capital allocation includes maintenance, routine growth, and larger projects, and they are focused on organic growth in Permian.

Q: Brandon B. Bingham asked about realized pricing impacts and Texas JV.

A: Sheridan C. Swords said they assumed $55 - $60 WTI, and Texas JV is progressing.

Q: Keith T. Stanley asked about capital allocation and bundled NGL rate.

A: Walter S. Hulse said on track for 3.5 times leverage target, and Sheridan C. Swords said bundled NGL rate in Bakken is due to increased ethane recovery, ~$0.30-ish range.

Q: Jason Gabelman asked about M&A in refined products and crude business.

A: Pierce H. Norton said focus is on executing 2026 plan, and they will be intentional and disciplined in M&A.