DEMICKS LAKE WILLISTON BASIN 2018 ANNUAL REPORT ELK CREEK CONTENTS POWDER RIVER BASIN Letter to Our Investors 2018 Financial Performance Our Assets Midstream Industry and Operations CONWAY, KANSAS Operational Highlights STACK AND SCOOP PLAYS Financial Highlights Non-GAAP Financial Measures and Forward- Looking Statements WEST TEXAS LPG ARBUCKLE II Board of Directors, Officers and Corporate Information PERMIAN BASIN Form 10-K MONT BELVIEU, TEXAS Online Survey ROADRUNNER Download Annual Report CONNECTIONS. Basins. Assets. Markets. Relationships. BACK NEXT 2018 ANNUAL REPORT LETTER TO OUR INVESTORS 2018 ANNUAL REPORT CONNECTIONS ARE CENTRAL CONTENTS TO OUR SUCCESS. Whether we’re physically connecting customers to our integrated In addition to the 2018 achievements already mentioned, we’re proud Letter to Our Investors network of assets; connecting our assets to one another; or connecting to have been named Best of the Best – Great Companies to Work For by with our stakeholders by building relationships – the connections Oklahoma Magazine; awarded the Horizon Award by the Sidney, Montana, we’ve made throughout our company’s history have strengthened and Area Chamber of Commerce and Agriculture; given the Gas Processors sustained us through the many ups and downs in the energy business. Association’s Environmental Excellence Award for our MB-1 fractionation 2018 Financial Performance facility in Mont Belvieu, Texas; and recognized as a Veteran Employer Thankfully, 2018 wasn’t simply a good year for ONEOK … it was an Champion by the Oklahoma Veteran Employer Champion Network. exceptional year of exciting growth opportunities and realized potential. Our Assets It’s been an outstanding year on all fronts – financially, operationally, Over the course of 2018, we announced approximately $5.5 billion in commercially and from an ESH standpoint. The successes of 2018 are additional natural gas liquids (NGL) and natural gas projects, bringing the attributable to our talented, diverse and committed employees whom we total investment in our current capital-growth program to more than thank for not only executing on our vision but also doing so in a manner that Midstream Industry $6 billion. These projects are anchored by long-term, fee-based contracts, exemplifies our core values – ethics, quality, diversity, value and service. and Operations volume commitments and/or acreage dedications. Our employees continue to work safely, reliably and in an A $6 billion growth program is impressive by most standards, but it’s the environmentally sustainable manner that ensures the integrity of capital discipline and attractive returns we expect from these projects our assets and company, and we are very proud of what they’ve Operational Highlights that are reflective of our core strategy to provide high-quality midstream accomplished this year. services to our customers while creating long-term shareholder value. Thank you to our board of directors for its guidance and support Financial Highlights Once completed, these projects will significantly increase capacity in some as we navigate this exciting time for our company. We continue to of the most prolific shale plays in the country where we already operate an refresh our board of directors as demonstrated by the election of extensive network of assets. We expect this investment in our business to Mark Helderman to the board in February 2019. Mark recently retired be the foundation for even stronger returns to our investors and position from Sasco Capital Inc., an independent, institutional investment firm, Non-GAAP Financial us to not only continue to provide but also expand the reliable services our and his experience and expertise will further strengthen the board and Measures and Forward- customers expect and need both in the near and long term. benefit our shareholders. Looking Statements In addition to executing on the capital-growth projects announced in And finally, thank you to our investors for your continued trust and 2018, we: investment in ONEOK. 2019 will be a year of execution, as we bring more • Significantly improved over 2017 our environment, safety and health of our announced projects online that are expected to drive significant (ESH) performance, meeting or exceeding our 2018 targets, which earnings growth in the years to come and look for new opportunities Board of Directors, Officers translated into fewer injuries, fewer vehicle incidents and a reduced both in the U.S. and abroad. It will take the hard work of everyone to and Corporate Information impact to the environment because of our operational performance. complete these projects on time and on budget, but we will continue • Increased NGL volumes gathered and natural gas volumes processed to challenge ourselves to think of new and innovative ways to solve across our system by 12 percent and 16 percent, respectively, problems and build long-lasting connections. compared with 2017. Form 10-K • Completed construction of more than $500 million of capital-growth projects, including expansions of our West Texas LPG system, Sterling III Pipeline and Canadian Valley plant. Online Survey • Increased operating income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) by 32 percent and 23 percent, respectively, compared with 2017. • Increased our dividends paid in 2018 to $3.245 per share, a Download Annual Report 19 percent increase compared with 2017. • Achieved full-year dividend coverage of nearly 1.37 times. • Ended the year with a strong balance sheet and a debt-to-EBITDA ratio of 3.83 times on a trailing 12-month basis, compared with John W. Gibson Terry K. Spencer 4.6 times at the end of 2017. Chairman President and Chief Executive Officer This performance further strengthens our businesses as we evaluate March 6, 2019 future opportunities while remaining focused on sustaining our investment-grade balance sheet by operating and investing in a disciplined manner that delivers strong returns for our stakeholders. BACK 1 NEXT 2018 ANNUAL REPORT ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation’s premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets. ONEOK is a Fortune 500 company and is included in the S&P 500. For the latest news about ONEOK, find us on LinkedIn, Facebook, Twitter and Instagram. CONTENTS Letter to Our Investors 2018 FINANCIAL PERFORMANCE 2018 Financial Performance Our Assets OPERATING INCOME ADJUSTED EBITDA MARKET CAP (MILLIONS OF DOLLARS) (MILLIONS OF DOLLARS ) Midstream Industry 2018 2018 and Operations 2017 27 2017 2016 2016 BILLION 2015 Operational Highlights 2015 $1,835.5 YIELD Financial Highlights $996.2 $1,579.5 $1,295.8 $2,447.5 $1,391.8 $1,849.9 Non-GAAP Financial $1,986.9 52% Market cap and yield as of March 6, 2019 Measures and Forward- ∙ Looking Statements Board of Directors, Officers DIVIDEND GROWTH TOTAL SHAREHOLDER RETURN* and Corporate Information 2018 29% ONEOK 2017 Form 10-K 5-YEAR -25% ONEOK Peer Group 2016 50% S&P 500 Index 2015 Online Survey 160% ONEOK 3-YEAR 13% ONEOK Peer Group $2.43 30% S&P 500 Index Download Annual Report $2.46 6% ONEOK $3.245 $2.72 1-YEAR -15% ONEOK Peer Group -4% S&P 500 Index 0% 25% 50% 75% -50% -25% 100% 125% 150% 175% 200% As of Dec. 31, 2018 *Total return represents share-price appreciation and the reinvestment of dividends. BACK 2 NEXT OUR ASSETS 2018 ANNUAL REPORT CONTENTS A MONTANA NORTH DAKOTA MINNESOTA Letter to Our Investors WILLISTON BASIN WISCONSIN 2018 Financial Performance WYOMING SOUTH DAKOTA B Our Assets POWDER RIVER BASIN IOWA Midstream Industry NEBRASKA and Operations INDIANA ILLINOIS KANSAS COLORADO Operational Highlights MISSOURI KENTUCKY Financial Highlights OKLAHOMA TENNESSEE NEW MEXICO C Non-GAAP Financial D Measures and Forward- STACK & SCOOP PLAYS ARKANSAS Looking Statements LEGEND Natural Gas E G F Gathering Pipelines Board of Directors, Officers H Natural Gas Processing Plants and Corporate Information PERMIAN BASIN LOUISIANA NGL Pipelines TEXAS NGL Fractionators I NGL Storage Form 10-K Partial Interest Natural Gas Pipelines Natural Gas Storage Online Survey Growth Projects Basins Download Annual Report GROWTH PROJECTS A Demicks Lake Plants I & II ( I N P R O G R E S S ) F Arbuckle II Pipeline & Expansion (IN PROGRESS) B Elk Creek Pipeline (IN PROGRESS) G West Texas LPG System Expansion I (COMPLETED) & II (IN PROGRESS) C Canadian Valley Plant Expansion (COMPLETED) H Roadrunner and ONEOK WesTex Expansion (COMPLETED) D ONEOK Gas Transportation Expansions (COMPLETED) I MB-4 & MB-5 NGL Fractionators and Storage (IN PROGRESS) E Sterling III Pipeline Expansion (COMPLETED) BACK 3 NEXT MIDSTREAM INDUSTRY Local Distribution Companies 2018 ANNUAL REPORT Electric Generation Large Industrials Natural Gas Pipeline Liquefied Natural Gas Exports Natural Gas Gathering Residue Gas CONTENTS NATURAL GAS STORAGE & END-USE MARKETS Raw Feed NGLs NGL Gathering WELLHEAD NATURAL GAS Pipeline PROCESSING Letter to Our Investors PLANT NGL Distribution Pipeline NGL FRACTIONATOR 2018 Financial Performance Petrochemical Ethane Propane Refining Isobutane Heating Normal Butane Our Assets Exports Natural Gasoline NGL STORAGE & MARKET CENTER Midstream Industry and Operations Operational Highlights FEE-BASED NEARLY EARNINGS Financial Highlights IN 2018 Non-GAAP Financial Measures