ONEOK, Inc. Q1 FY2026 earnings call

• Pierce Norton emphasized the dynamic energy markets with strong long-term fundamentals and One Oak's role in connecting supply and demand. - Walt Hulse discussed the increased 2026 financial guidance, first quarter net income and adjusted EBITDA results, and strong balance sheet. - Randy Lentz provided an operational and large capital projects update, noting focus on safe and reliable performance and progress on capital projects like relocation of natural gas processing plant, expansions of Delaware Basin processing assets, etc. - Sheridan Swartz gave a commercial update, highlighting active engagement across asset portfolio, strong volume performance in various segments, and demand support from downstream pull

Natural gas liquids segment: In Rocky Mountain region, NGL volumes increased 11% y-o-y driven by higher base volume and increased ethane recovery; Mid-Continent volumes increased 4% y-o-y entirely by C3 plus volume despite winter storm impact; Gulf Coast Permian region volumes increased more than 30% y-o-y. Refined products and crude segment: Year-over-year refined products volumes increased 12% supported by strong gasoline and diesel demand, refinery maintenance dynamics, favorable regional basis differentials, and wide crack spreads. Natural gathering and processing segment: Delivered strong year-over-year volume growth, led by mid-continent where volumes increased 7%, Rocky Mountain region process volumes increased y-o-y even with winter weather impacts, Permian Basin process volumes increased 4% y-o-y. Natural gas pipeline segment: Strong results continued in first quarter with all regions outperforming expectations, benefited from wider than planned Waha to Katy location price differentials and incremental marketing opportunities from Winter Storm Farm

• Raised 2026 net income midpoint to approximately $3.5 billion, diluted earnings per share midpoint to $5.53, and adjusted EBITDA guidance to midpoint of $8.25 billion. - Total 2026 capital expenditure guidance remains unchanged at $2.7 billion to $3.2 billion. - First quarter expected to be the lowest EBITDA quarter of the year consistent with typical annual cadence and seasonal dynamics

Q: Spiro Dunas asked about granularity on improved outlook and hedging; A: Walt Hulse clarified increase was blend of stronger volume expectations, higher commodity prices, and expected benefit from higher commodity prices despite hedging.

Q: Spiro Dunas asked about capital allocation and leverage targets; A: Walt Hulse said capital expenditure plan unchanged, projects on time and budget, expect free cash flow to kick in by mid-2027, prioritize high return capital projects.

Q: Teresa Chin asked about upstream outlook and export infrastructure; A: Sheridan Swartz said producers are leaning in to production, seeing more activity on export facilities and acceleration of interest on LPG dock.

Q: Michael Bloom asked about hedges and Sunbelt Connector project; A: Sheridan Swartz said hedged highly for first quarter on butane to RBOB hedges, and commented on Sunbelt Connector project.

Q: Jean Ann Salisbury asked about butane volumes and Waha spreads; A: Sheridan Swartz said increasing butane volume with more gasoline volume and synergy projects, and Waha spreads expected to normalize in second and third quarter.

Q: Jeremy Tonette asked about EBITDA guide and shaping of the year; A: Walt Hulse said to refer to earnings presentation, expected shape of curve to continue with potential upward slope in later part of year.

Q: Manav Gupta asked about natural gas segment and Western Gateway; A: Sheridan Swartz said in advanced discussions with AI and power demand, and commented on Western Gateway project.

Q: Sunil Sabal asked about hedging and data center projects; A: Walt Hulse and Pierce Norton commented on hedging in 2027 and data center projects as routine growth.

Q: Gabe Marine asked about pet chem economics and Powder River plant; A: Walt Hulse and Sheridan Swartz commented on pet chem economics and Powder River plant filling quickly.

Q: Jason Gabelman asked about guidance and data center projects size; A: Walt Hulse and Sheridan Swartz commented on guidance and data center projects size increase.

Q: Gabe Daud asked about upstream behavior and rig activity; A: Sheridan Swartz said seeing more activity on private sector, especially private equity, and emphasis on drilling and completion efficiency