oneok ONEOK to Present at Lehman CEO Conference

Lehman Brothers CEO Energy/PowerLehman Brothers CEO Energy/PowerLehman Brothers CEO Energy/Power Lehman Brothers CEO Energy/Power ConferenceConferenceNew York City | September 3, 2008y | p

John W GibsonJohn W GibsonJohn W. GibsonJohn W. GibsonONEOK, Inc. | Chief Executive OfficerONEOK Partners, L.P. | Chairman and Chief Executive Officer

Page | 2

ONEOK Partners, L.P. | Chairman and Chief Executive Officer

ForwardForward--Looking StatementLooking Statement

Statements contained in this presentation that include company Statements contained in this presentation that include company expectations or predictions should be considered forward-looking statements which are covered by the safe harbor

i i f th S iti A t f 1933 d th S iti d provisions of the Securities Act of 1933 and the Securities and Exchange Act of 1934. It is important to note that the actual results of company earnings could differ materially from those projected in such forward-looking statements. For additional information, refer to ONEOK’s and ONEOK Partners’ Securities and Exchange Commission Filingsand Exchange Commission Filings.

Page | 3

AgendaAgenda

• Overview & VisionOverview & Vision• Diversified Assets• Financial Highlights

Page | 4

• Key Investment Considerations

Overview & VisionOverview & Vision

Page | 5

ONEOK TodayONEOK Today

• Three business segments

A Premier Energy Company

g– ONEOK Partners -- General

partner and 47.7 percent owner– Distribution -- Three distribution $624 ONEOK PartnersDistribution -- Three distribution

companies serving two million customers

– Energy Services -- A leading $186 Energy Services A leading marketer of natural gas

• Expanding participation in l h i

$142

$186 Distribution

Energy ServicesOther ($3)

energy value chain• $4.6 billion market capitalization Operating Income

2008 Guidance: $949 million

Page | 6

ONEOK TodayONEOK TodayAssets That Fit and Work Together

ONEOK DistributionONEOK Energy Services

Leased Pipeline CapacityLeased Storage Capacity

Page | 7

Leased Storage Capacity ONEOK Partners

Growth Projects

Our VisionOur Vision

A premier energy company creating exceptional value for all


p gy p y g pstakeholders by:• Rebundling services across the value chain, primarily through

ti l i t ti t id t ith i i t vertical integration, to provide customers with premium services at lower costs

• Applying our capabilities — as a gatherer, processor,Applying our capabilities as a gatherer, processor,transporter, marketer and distributor — to natural gas and natural gas liquids…

…and other commodities

Page | 8

Our Vision: A Journey by DesignOur Vision: A Journey by DesignValue Creation Through Rebundling - 1995

Natural Gas

Marketing

Power Industrial

Distribution

Exploration & Production Gathering & Processing Pipelines/Storage Markets

Refining

Natural Gas Liquids

Petro-Chemical

Refining

Heating

1995 Financial Statistics

Total revenue: $949.9 million

Page | 9

Pipelines/Storage MarketsGathering & FractionationNet income: $42.8 millionTotal assets: $1.2 billion

Our Vision: A Journey by DesignOur Vision: A Journey by DesignValue Creation Through Rebundling - Today

Natural GasNatural Gas

Power Industrial

MarketingDistribution

Exploration & Production Gathering & Processing Pipelines/Storage Markets

Refining

Natural Gas LiquidsNatural Gas Liquids

Petro-Chemical

Refining

Heating

2007 Financial Statistics

Total revenue: $13.5 billionN t i $304 9 illi

Page | 10

Pipelines/StorageGathering & Fractionation MarketsNet income: $304.9 millionTotal assets: $11.1 billion

Our Vision: A Journey by DesignOur Vision: A Journey by Design

• Established Mid-Continent presence beginning in 2000

Applying Our Capabilities to the NGL Business

beginning in 2000 • Acquired NGL assets from Koch in

2005– Gained access to largest NGL g

market hubs: Conway, Kansas, and Mont Belvieu,Texas

• Extending our reach into the Rockies and Barnett Shale through ginternal growth projects

– Doubles the business• Acquired NGL and refined petroleum

products system to connect to the products system to connect to the Midwest markets

– Provides producers with access to additional marketsFirst entrance into refined

NGL PipelinesNGL Gathering & FractionationNGL Growth ProjectsAcquired NGL Pipeline System

NGL StorageNGL FractionatorNGL Market Hub

Page | 11

– First entrance into refined petroleum products market

Our Key StrategiesOur Key Strategies

• Generate consistent growth and sustainable earnings


g g– Improve profitability of ONEOK Distribution Companies– Continue focus on physical activities at ONEOK Energy Services

D l d t i t ll t d th j t t – Develop and execute internally generated growth projects at ONEOK Partners

• Execute strategic acquisitions that provide long-term valueg q p g• Manage our balance sheet and maintain strong credit ratings at or

above current level• Operate in a safe and environmentally responsible manner• Attract, develop and retain employees to support strategy

Page | 12

p p y pp gyexecution

Diversified AssetsDiversified Assets

DistributionDistributionEnergy Services

Page | 13

ONEOK Partners

DistributionDistribution

• Largest natural gas

Eighth Largest Natural Gas Distributor in the U.S.

g gdistributor in Oklahoma and Kansas; third largest in Texas

• GrowthGrowth– Efficient investments– Customers, volumes, rate base

• Long term focus has led to:• Long-term focus has led to:– Unbundling and restructuring

in OklahomaWeather normalization– Weather normalization

– Capital recovery– Bad-debt recovery

Margin stabilityCustomers 2 millionR $2 1 billi

Kansas Gas ServiceOklahoma Natural GasTexas Gas Service

Page | 14

– Margin stability Revenues $2.1 billionAsset Base $2.7 billionRate Base $1.7 billion


• Return on equity

Integrated Strategy to Improve Profitability

Closing the GapSi ifi t i 2005– 2005: Oklahoma rate case

– 2006: Kansas and Texas rate cases– 2007: Five rate filings in Texas

2008: Texas rate increases of $4 2 ap ap

Gap

Significant progress since 2005

Gap

Allowed

8 5 8 6

10.2

– 2008: Texas rate increases of $4.2 million; Oklahoma filed bad-debt recovery

– Capital recovery mechanisms in allthree statesDisciplined approach to capital

Ga Ga

n on

Equ

ity(%

)

5 3

8.5 8.6

– Disciplined approach to capital investment

• Expense control and recovery– Expense recovery mechanisms

* Ret

urn

4.9 5.3

p y– Continuous process improvement– Pipeline integrity management recovery– Pension and other post-employment

benefit costs

Total Distribution Companies2005 2006 2007 2008G 2008 Allowed

Page | 15

benefit costs

* ROE calculations are consistent with utility ratemaking in each jurisdiction and not consistent with GAAP returns

Energy ServicesEnergy Services

• Deliver natural gas

Leased Assets Enhance Our Ability to Provide Premium Services to Customers

gtogether with bundled reliable products and services

,

services – Premium, peaking

servicesPrimarily to LDCs– Primarily to LDCs

• Access to prolific supply and high-demand areas

Storage 91 Bcf of capacity

Leased PipelineLeased Storage

• Industry knowledge and customer relationships

Storage 91 Bcf of capacity2.2 Bcf/d of withdrawal rights1.4 Bcf/d of injection rights

Transportation 1.8 Bcf/d of firm capacitySales 3.3 Bcf/d in 2007

3.1 Bcf/d in 2006Margin $0 19/MMBtu in 2007

Page | 16

Margin $0.19/MMBtu in 2007 $0.22/MMBtu in 2006


Storage Transportation Optimization Retail TradingUtilize leased capacity to meet customers’ Enhance storage and Sell natural gas supplies Extract trading

Sources of Income

Utilize leased capacity to meet customers baseload, swing and peaking requirements

Provide marketing and risk management services

Capture arbitrage opportunities

Enhance storage and transportation margins through application of market knowledge and risk management skills

Sell natural gas supplies and provide risk management services to commercial and industrial customers and to consumers who participate in LDC

Extract trading margins around our physical positions through market knowledge, volatility or inefficiencies

participate in LDC customer choice programs

Spread- and demand-based

Spread- and fee-based Spread-, commodity-and derivative-based

Commodity-based Spread-, commodity-and derivative-based

53%11% 10%

27%

6% 7%

53%26%60%27%

Page | 17

2008 Operating Income Guidance $142 million

2007 Operating Income$205 million


• Range from low of $139 million to high of $229 million of operating income

Operating Income History

• Seasonal storage differentials and transportation basis differentials have had the greatest impact

$250$5 00

$139 $166

$229 $205

$142 $

$200

$250

$

$4.00

$5.00

(Milli

ons)

$139 $142

$100

$150

$2.00

$3.00

ratin

g In

com

e

$/MMB

tu

$0

$50

$-

$1.00

2004 2005 2006 2007 2008 Guidance

Oper

Page | 18

April - December Storage Differential Rockies to Mid-Continent Basis Differential Operating Income

ONEOK PartnersONEOK Partners

• Primary growth engine for ONEOK

Overview

• Aligned interests: ONEOK is general partner and 47.7 percent owner• Value creation through integrated operations• Cash flow is approximately 60 percent fee based

Natural Gas Natural Gas Liquids

PipelinesGathering & Processing Gathering & Fractionation Pipelines

– Stable earnings through diversity– Diversified supply basins, producers and

t t iti t i l tilit

– Connected to over 90 percent of the Mid-Continent region’s processing plantsAllows us to provide full range of services

Page | 19

contracts mitigate earnings volatility – Allows us to provide full range of services to our customers


Distribution Growth

Delivering Consistent Growth and Stable Earnings

Unitholder Return• 10 increases with ONEOK as sole

general partner• Target coverage ratio: 1.05x to 1.15x

• Unit price increase of 25 percent since 2006

• Total return of 71 percent since 2006 137 t i 2003

$67 60$69.26

80%

90%

$60

$70Unit Price Total Return

$1 01 $1.025 $1.04

$1.06 Distributions Per Unit

2006; 137 percent since 2003

$48.00

$57.57

$67.60$61.25 $55.90 $59.77

50%

60%

70%

80%

$40

$50

$60

$0.88

$0.95 $0.97 $0.98 $0.99 $1.00 $1.01

10%

20%

30%

40%

$10

$20

$30

ONEOK P t Al i MLP I d

$0.80

$0.88

Page | 20

0%$01Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

ONEOK Partners Alerian MLP Index

1Q06 3Q06 1Q07 3Q07 1Q08 3Q08

*Unit prices are closing prices at last day of quarter; Third quarter 2008 through closing prices on 8/27/08

ONEOK Partners ONEOK Partners -- Roadmap to GrowthRoadmap to Growth$2 Billion of Internal Growth Projects Under Way, 2007-2009

Grasslands plant expansionplant expansion

$40-$45 million Guardian II Expansion

$277-$305 millionFort Union Gas Gathering Expansion

(37% owner)

Piceance Piceance LateralLateral

Overland Pass Pipeline

$575-$590 million

NGL & Refined Product System Acquisition

$300 million

(

Lateral Lateral $110-$140 million NGL Upgrade

Projects $230-$240 million

Woodford Woodford

Midwestern Extension $69 million

Arbuckle Pipeline

$340-$360 million

Natural Gas Gathering & ProcessingNatural Gas PipelinesNatural Gas Liquids Gathering & Fractionation

Extension Extension $30-$35 million

2010 -2015 Internal Growth Projects:$300-500 million/year

l i iti

Page | 21

Natural Gas Liquids Gathering & FractionationNatural Gas Liquids PipelinesGrowth Projects

plus acquisitions

ONEOK Partners ONEOK Partners –– Growth StatusGrowth Status

MAJOR PROJECTS*: Contracts / Volumes Fee Based Expected In Service

Complement Existing Infrastructure and Core Operating Capabilities

MAJOR PROJECTS : Contracts / Volumes Fee Based Expected In ServiceOverland Pass Pipeline Long-term supply agreement

with Williams Third Quarter 2008

Related NGL projects Infrastructure upgrades to accommodate growth In Serviceg

Arbuckle Pipeline Anchor customers committed Early 2009

Piceance Lateral Dedicated supplies from two Williams plants Second Quarter 2009

D di t d li f DWoodford Shale extension Dedicated supplies from Devonand Antero processing plants In Service

Grasslands Plant expansion Supply growth driven by drilling and production Second Half 2008

Fort Union Gas Gathering expansion (37%) Fully subscribed In Service

Guardian Pipeline extension Anchored by two 15-year agreements Fourth Quarter 2008

Mid t E t i F ll b ib d I S i

Page | 22

Midwestern Extension Fully subscribed In Service

* Additional project details included in the appendix, slides 52 - 66

ONEOK Partners ONEOK Partners -- Growth ContributionGrowth Contribution

• $2 billion of internal growth

Complements Existing Infrastructure and Core Operating Capabilities

• $2 billion of internal growth projects through 2009– Growth projects generate

EBITDA* Generated

$360 illisignificant cash flow

– Growth EBITDA generated is primarily fee based

$260 million

million

• $300-$500 million of growth projects per year in 2010-2015

• Incremental acquisition 2009 2010• Incremental acquisition opportunities

2009 2010

Page | 23

* EBITDA contributions assume projects are completed on schedule* Does not include WMB exercising its 50/50 option in OPPL or Piceance Lateral* Offsets natural declines in natural gas gathering and processing supplies

Growth at OKS benefits OKEGrowth at OKS benefits OKEHow Growth at ONEOK Partners Benefits ONEOK

DividendsNet Income

IDR and Equity Income

Higher Distributions

EBITDA Growth

Capital Projects

Unit Price AppreciationUnit Price Appreciation Share Price AppreciationShare Price Appreciation

EBITDAGrowth

OKS Incremental EBITDA is $1 million• Partnership is in “high splits”• All incremental cash flow is distributed• Annual depreciation is $125 thousand

Impacts OKE income by $684 thousand (pre-tax)• $500 thousand* from incentive distribution rights• $184 thousand* in equity earnings from general

partner interest and limited partner units owned

DistributionGrowth

Incentive Distribution Rights*

Limited Partner Units**

Every 1 cent quarterly increase Results in $3.5 million annual increase in cash flow and income before taxes

Page | 24

Every 1 cent quarterly increase Results in $1.7 million annual increase in cash flow

* Assumes “high splits”** ONEOK owns 42.4 million limited partner units

Financial HighlightsFinancial Highlights

Page | 25

Solid Financial PositionSolid Financial PositionStrong Balance Sheet• Strong credit rating

Stable Cash Flow• Continued strong free cash flow • Strong credit rating

– S&P: BBB– Moody’s: Baa2

• Capital Structure

• Continued strong free-cash flow available for:

– Acquisitions– Debt repayment

– Investment in OKS– Share repurchase• Capital Structure

– Goal: 50/50 Capitalization

– Debt repayment– Dividend increases

Capital

– Share repurchase

Total Debt54% Equity

46%

Surplus $180

Capital Expenditures

$182

Dividends $

Stand –Alone Capitalization Stand –Alone Cash Flow

$163

Page | 26

June 30, 2008 2008 Guidance (Millions)

Shareholder ValueShareholder Value

Dividend Growth Shareholder Return

Delivering Consistent Growth and Stable Earnings

• 13 dividend increases since January 2003

• Target: 50-55 percent of

• Share price increase of 32 percent since 2006

• Total Return of 79 percent since recurring earnings 2006; 178 percent since 2003

$51.68$51.68

120%$50

Dividends Per Share Share Price Total Return6 0.38

$0.4

0

$33.06$33.06$38.25$38.25

$43.12$43.12$45.29$45.29

$$$48.53$48.53 $44.63$44.63 $43.63$43.63

60%

80%

100%

$30

$40

9 21

$0.2

3 $0

.25 $0

.28

$0.3

0 $0

.32

$0.3

4

$0.3 $0

0%

20%

40%

$0

$10

$20

S&P 500ONEOK, Inc.

$0.1

55

$0.1

7

$0.1

8 $0

.19

$0. $

Page | 27

0%$01Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

*Share prices are closing prices at last day of quarter; Third quarter 2008 through closing price on 8/27/08

,

Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007

Key Investment ConsiderationsKey Investment Considerations

• Strong track record of creating value for both customers and g ginvestors, through rebundling services across the value chain and applying our capabilities to other commoditiesSt t i t ti lifi l b i d k k t • Strategic assets connecting prolific supply basins and key markets

• Significant growth potential through continued strategy execution• Demonstrated financial discipline• Demonstrated financial discipline• Experienced and proven management team• Talented workforce dedicated to providing safe and reliable p g

service to all our customers

Page | 28

Questions & AnswersQuestions & AnswersQuestions & AnswersQuestions & Answers

Page | 29

Page | 30

AppendixAppendix

Page | 31

Our Vision: A Journey by DesignOur Vision: A Journey by DesignValue Creation Through Re-bundling – How We Got Here

Acquired NGL and refined petroleum product pipeline

t f Ki d

Acquired Texas Gas Service

Oklahoma Natural Gas and exploration &

production are primary businesses

Acquired Oklahoma gathering and

processing assets from Koch

Acquired Kansas Gas Service and Kansas natural gas pipelines

storage and marketing ,

system from Kinder Morgan

Acquired Conway NGL assets from

Texaco

businesses

1996 1998 2000 2002 2004 2006

Oklahoma Unbundling: Storage & Gathering

deregulated; Distribution & Transmission assets become

separate utilitiesAcquired 85% general partner interest

in Northern Border Partners

Acquired NGL system from Koch

storage and marketing from Western

Resources

Created ONEOK Partners: Dropped down $3 billion of assets to Northern Border

Partners; became sole

Built NGL pipeline from Bushton to

ConwayAcquired NGL storage and fractionation

199519951996

1997

1998

1999

2000

2001

2002

2003

2004

2005

200620072007

Created E S i

Sold and exited exploration &

production business

Partners; became sole general partner

assets from Kinder Morgan

Acquired gathering and processing and natural gas pipeline, storage and

marketing assets in Texas, Oklahoma and Kansas from Dynegy and Kinder

Morgan

Announced $2 billion of internal growth projects at ONEOK

Partners,

2006 — 2008

Energy Services

Page | 32

Sold Texas gathering and

processing assets

g ,$1.4 billion of which are

NGL related


• Synchronized rate filings

Rate Strategy Progress

y g• Maintain positive relationships with regulators

Issue Solution Oklahoma Kansas TexasMargin fluctuations Straight-fixed variable ratesMargin fluctuations Straight-fixed variable rates

Revenue decoupling 1/17Weather normalization 8/17

Earnings lag More frequent filings

C t f i dj t t 8/17Cost of service adjustment 8/17

Bad debt Commodity recovery in PGA Filed 4/17Fixed-price plan 1/17Average payment plan

Financial hedging 7/17Physical hedging

Capital recovery Capital recovery mechanisms 6/17Return on gas in storage 2/17

Page | 33

Incentive rates Revenue sharing 2/17


• Contract with customers to deliver natural gas, together with

What We Do

g , gbundled, reliable products and services

• Contract for natural gas supplies• Lease and optimize storage and transportation capacity• Capitalize on market irregularities and inefficiencies

g ptim

izatio

n

MarketsTransportationStorageSupply

Trad

ing

Op

• LDC • Electric Generators

• Trading Counterparties

Retail Customers:• Industrial• Commercial• Residential

Page | 34


Diversified AssetsDiversified Assets

Page | 35


• One of the largest publicly

Overview

g p ytraded MLPs

• Diversified asset base and t bl h fl

$269 Natural Gas Gathering & Processing

stable cash flows• Value creation through

integrated operations$142 Natural Gas

Pipelinesintegrated operations• Aligned interests:

– ONEOK: General Partner$68

$153 NGL Gathering & Fractionation

NGL Pipelines

– ONEOK: 47.7 percent owner• $5.4 billion market capitalization

$

Operating Income2008 Guidance: $624 million

Other ($8)

Page | 36

ONEOK PartnersONEOK PartnersOverview

Natural Gas Gathering & ProcessingNatural Gas PipelinesNatural Gas Liquids Gathering & Fractionation

Page | 37

Natural Gas Liquids Gathering & FractionationNatural Gas Liquids Pipelines

Strong Balance SheetStrong Balance Sheet

• $1 billion revolver

Disciplined Approach to Raising Capital for Growth

• Capital structure $1 billion revolver – Funds 2008 capital expenditures

• Common unit offering in

Capital structure – Goal: 50/50 capitalization– Strong credit rating

EquityDebt

gMarch 2008, generating net proceeds of $460 million

50%50%• Permanent debt financing of $600 million in S t b 2007September 2007

Capitalization: June 30, 2008

Page | 38

Stable Cash FlowStable Cash Flow

• Predominantly fee based

Cash Flow Stability Managed Within Each Segment

y– Large growth projects under way increase fee-based income

• Commodity and spread risk is measured and managed – 2008: 74 percent hedged on NGLs and condensate at $1.38/gallon and 54 2008: 74 percent hedged on NGLs and condensate at $1.38/gallon and 54

percent on natural gas at $9.35/MMBtu – 2009: 30 percent hedged on NGLs and condensate at $2.22/gallon

Fee60% Commodity

27%Spread

Fee55%

Commodity29%

SpreadSpread13%

2007 Gross Margin: $896 million

Spread16%

2008 Gross Margin Guidance: $1.1 billion

Page | 39

2007 Gross Margin: $896 million 2008 Gross Margin Guidance: $1.1 billion


• Connect raw natural gas production from the wellhead to k t th h

What We Do

markets through:– Gathering and compression via extensive pipeline systems– Processing and treating to remove contaminants and extract natural gas liquids– Storage services through underground caverns– Transportation of residue natural gas via extensive pipeline systems, both intra-

and inter-state

MarketsStorage & Transportation

Gathering & Processing

Supply

Distribution Marketing Power / Industrial

Page | 40


• Two segments

Stable Earnings Through Diversity

Grasslands Plant E i

– Natural Gas Gathering & Processing

– Natural Gas Pipelines

ExpansionGuardian II Expansion

• Diversified supply basins producers and contracts mitigate earnings volatility in

Fort Union Gas Gathering Expansion

,

gathering and processing• Earnings on pipelines are fee

basedMidwestern Extension

• More than $600 million of internal growth projects under way through 2009 Natural Gas Gathering Pipeline

Nat ral Gas Interstate Pipeline

Page | 41

y gNatural Gas Interstate PipelineNatural Gas Intrastate PipelineNatural Gas Storage Natural Gas Processing PlantGrowth Projects

Natural Gas Gathering & ProcessingNatural Gas Gathering & Processing

Stable earnings through diversity

Key Points

Willistong g y• Multiple producing basins

effectively offset natural volume declines Wind River

Powder Riverdeclines• Supply mix between small and

large producers spreads drilling and volume exposureand volume exposure

• Makeup of contract portfolio: – Eliminates material exposure to

t l i fl t tiAnadarko

Kansas UpliftHugoton

Natural Gas Gathering PipelineNatural Gas Processing Plant

natural gas price fluctuations– Spreads NGL exposure among

six products and revenue streams

Gathering 14,300 miles of pipeProcessing 13 active plants

0.7 Bcf/d capacityProduction Second-quarter 2008

1,185 BBtu/d gathered651 BBtu/d processed40 MB d NGL ld40 MBpd NGLs sold

Page | 42


• Strong supply focus

SupplyGas Gathered *

BBtu/dg pp y• New well connects and

growth in the Rockies offset t l d li

1,1711,1681,1821,190 1,188

natural declines910 908 852 800 805

280 274 316 371 383 280 274 316

2004 2005 2006 2007 2008

R k M i Mid C i

Year-to-date

Page | 43

Rocky Mountain Mid-Continent* Volumes based on existing asset base


• Contract restructuring has reduced commodity price sensitivity and increased fee-based business• Hedging strategy focuses on long NGL and natural gas positions

Risk Mitigation

g g gy g g p– Second half 2008: 74 percent hedged on NGLs and condensate at $1.38/gallon and 54 percent on

natural gas at $9.35/MMBtu – 2009: 30 percent hedged on NGLs and condensate at $2.22/gallon

19% 15% 10% 6% 1% 1%3% 3% 3% 6% 8% 7% $4.8 $4.5

$3.8

$2 1

Commodity Price SensitivityMargin Impact ($ Millions)

Contract Mix by Volume

25% 31% 34%27% 30% 32%

$1 6

-$0.1 $0.3 $0.2

$2.1$1.7 $1.6$1.1 $1.3 $1.0

$0.4 $0.5 $0.7

52% 51% 53%61% 61% 60%

2003 2004 2005 2006 2007 2008

Commodity Sensitivity

-$3.5-$2.7

-$1.6

2003 2004 2005 2006 2007 2008GFee Based Percent of ProceedsKeep Whole Keep Whole w/conditioningPage | 44

Commodity SensitivityNatural Gas Liquids 1 cent/gallon increase

Natural Gas 10 cent/MMBtu increase

Crude Oil $1/barrel increase

Natural Gas PipelinesNatural Gas Pipelines

• Provides fee-based income

Key Points

Viking Gas Transmission

– Over 70 percent is demand/firm• Pipelines connect to key supply

aggregation points:G ardian Viking and Northern Guardian

Northern Border Pipeline

Transmission

– Guardian, Viking and Northern Border

• Midwestern Gas acts as a hub, offering numerous

Midwestern Gas Transmission

Pipeline

, ginterconnects for receipts and deliveries

• Storage provides premium “swing” i f i t t t i liservices for intrastate pipelines

• Intrastate pipelines are diversified through connections to numerous supply and market points

Natural Gas Interstate PipelineNatural Gas Intrastate PipelineNatural Gas Storage

Pipelines 6 920 miles 5 3 Bcf/d peak capacity

Page | 45

supply and market points Pipelines 6,920 miles, 5.3 Bcf/d peak capacityStorage 51.6 Bcf active working capacityEquity Investment 50% Northern Border Pipeline


• Connect raw-blended NGL production from gas processing plants to markets

What We Do

through:– Gathering via extensive pipeline systems– Fractionating to convert raw-blended NGLs to purity products

Storage services through underground caverns– Storage services through underground caverns– Marketing NGL products to end-users– Distributing purity product to markets

imiza

tion

imiza

tionMarkets

Gathering & Fractionation Storage Distribution

Opt

Opti

Petrochemical Heating RefiningNGLs EthanePropaneIsobutane

Normal ButaneNatural Gasoline

Purity Products

Page | 46


• Two segments

Largest Gatherer and Fractionator of NGLs in the Mid-Continent

– NGL Gathering & Fractionation– NGL Pipelines

• Connected to over 90 percent



pof the Mid-Continent region’s processing plants

• Allows us to provide a full range

Piceance Lateral

NGL Upgrade

Piceance Lateral

NGL Upgrade p gof services to our customers

• Integrated asset base creates opportunities for growth through

NGL Upgrade Projects

NGL Upgrade Projects Woodford Extension

major expansions into new supply areas– More than $1.4 billion of internal

th j t d

Arbuckle PipelineArbuckle Pipeline

NGL PipelinesNGL Gathering & Fractionation

NGL StorageNGL Fractionator

growth projects under way through 2009

gNGL Growth Projects NGL Market Hub

Page | 47

NGL Gathering & FractionationNGL Gathering & Fractionation

• Extensive raw NGL gathering t ith t 78

Key Points

system with access to 78 gas processing plants

• Mid-Continent supply growth since July 2005: July 2005: – Gathering volume up 31 percent– Fractionation volume up 20 percent– Fifteen new gas processing plant g g

connections completed• New supply commitments drive

infrastructure upgrades and expansions NGL Gathering Pipeline

NGL Stexpansions– Rockies– Barnett Shale– Woodford Shale

Gathering 2,570 miles of pipeFractionation 399,000 Bpd capacity


Isomerization 9,000 Bpd capacityStorage 24.6 MMBbls capacity

Page | 48

NGL Gathering & FractionationNGL Gathering & Fractionation

• Volume growth since acquisition of Koch’s NGL system in July 2005

Supply

g q y y– New processing plant connections– Growth from existing connections

246246251251 253253

370370385385 391391

371371

Gathering VolumeMBpd

Fractionation VolumeMBpd

213213208208 210210 210210

224224232232

309309

275275 281281

333333 326326312312 319319

349349370370 371371

p 31

%p

31%

p 20

%p

20%

193193 189189 193193

3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08

Up

Up Up

Up

Page | 49

Q Q Q Q Q Q Q Q Q Q Q Q

NGL Gathering & FractionationNGL Gathering & FractionationSources of Margin

Exchange and Optimization Isomerization MarketingStorage Services Optimization Isomerization Marketing

Gather, fractionate, transport and store NGLs and deliver to market hubs

Obtain highest product price by directing product movement between Conway and Mont Belvieu

Convert normal butane to isobutane

Purchase approximately one-half of exchange volumes in the Mid-Continent for resale on an index-related basisand Mont Belvieu on an index related basis

Fee-based Spread-based Spread-based Fee- and Commodity-based

73%8%6% 13%70%18%

4% 8%

2007 Gross Margin Contribution$206 million

2008 Gross Margin Guidance$260 million

Page | 50

$206 million $260 million

NGL PipelinesNGL Pipelines

• Links key NGL market centers

Key Points

at Conway, Kansas, and Mont Belvieu, Texas

• Connects Mid-Continent to upper Midwest

• Significant supply sources in Mid-Continent– Connected to 23 gas processing

plants with access to another 55– Connected to seven

fractionatorsfractionators• Regulation

– FERC-approved tariffsNGL PipelineNGL Market Hub

Distribution 3 350 miles of pipe withDistribution 3,350 miles of pipe with 434,000 Bpd capacity

Gathering 720 miles of pipe with 93,000 Bpd capacity

Page | 51


Growth ProjectsGrowth Projects

Page | 52

ONEOK Partners ONEOK Partners -- GrowthGrowth

• $2 Billion of internal growth

Complements Existing Infrastructure and Core Operating Capabilities

$2 Billion of internal growth projects under way, 2007-2009

• Growth EBITDA* generated is $84

$1,314

....................Capital Expenditures....................

primarily fee based– 2009: $260 million– 2010: $360 million $

In M

illio

ns

$1,230 $60 $710

$285

$300-$500/year2010: $360 million

• $300 - $500 million of growth projects indentified per

2010 2015

$650

$210 $75

2007 2008 2009 2010-2015

$285

year, 2010-2015 Maintenance Growth

Page | 53

* EBITDA contributions assume projects are completed on schedule* Does not include WMB exercising its 50/50 option in OPPL or Piceance Lateral* Offsets natural declines in natural gas gathering and processing supplies


Grasslands Processing Plant Expansion

Growth Projects

Plant ExpansionProject Status

Costs $40 - $45 Million

Completion Dates

On line in phases by second half 2008

Phase 1 Phase 2

Grasslands Expansion

Processing plant tie-ins completed

Permits approved

Construction completed

Equipment ordered

Phase 1: Processing Increased from 63 to 100 MMcf/d capacity

Phase 2: Fractionation Increased from 8 to 12 MBpd capacity

Page | 54

Natural Gas Gathering & ProcessingNatural Gas Gathering & ProcessingGrowth Projects

Fort Union Gas GatheringP j t St tProject Status

Costs $120 - $130 Million (Project Financed)

Completion Dates In ServiceDates

Phase 1 Phase 2

Customerscommitted *

Customerscommitted *

Constructioncomplete

Constructioncomplete

In service 11/07 In service 7/08ONEOK Partners GatheringFort Union (37%)Lost Creek (35%)Bi H (49%)

• Backed by volume commitments *• Doubled capacity

Big Horn (49%)

Fort Union Gas GatheringPhase 1: Adds 44 miles of pipe and 200 MMcf/d capacity

Phase 2: Adds 104 miles of pipe and 450 MMcf/d capacity

Page | 55

Natural Gas PipelinesNatural Gas Pipelines

Guardian Pipeline

Growth Projects

Project Status

Costs $277 - $305 Million

Completion Date

• Notice to Proceed received May 2008• In service during fourth quarter 2008

Customerscommitted * Pipe ordered

Right of way possession Pipe delivered

Permits Construction contracts let

• Fully subscribed *• Anchored by two 15-year agreements *

Guardian PipelineCapacity Incremental of 537 MMcf/d to eastern WisconsinExtension 119 miles from Ixonia to Green Bay

Existing PipelineProposed Extension

Page | 56

Extension 119 miles from Ixonia to Green Bay

NGL PipelinesNGL PipelinesGrowth Projects


Project StatusCost $575 - $590 Million

Completion Date

Partial start-up in third quarter 2008, remaining in fourth quarter 2008

OpalEcho Springs

Date remaining in fourth quarter 2008

Anchor customers committed *

Pipe ordered

Public right of i d

Constructiont t l t



way acquired contracts let

Permit approved and federal right of way acquired

730 miles

Construction complete


Pipeline 760 miles, 14-16”

Capacity • 110,000 Bpd of raw NGLs with two pump stations

• Expandable to 255,000 Bpd with additional pump stations

• 99/1% joint venture with 50/50 option within two years of first flow

• Dedicated supplies from two Williams plants (~60,000 Bpd) in WamsutterArea and two Williams plants in Piceance Basin (~30,000 Bpd) *

• Additional commitments of 110,000 Bpd in various stages of negotiation

Page | 57

Overland Pass PipelineOverland Pass Pipeline760-Mile Natural Gas Liquids Pipeline from Opal, Wyoming, to Conway, Kansas

Page | 58

Overland Pass PipelineOverland Pass Pipeline760-Mile Natural Gas Liquids Pipeline from Opal, Wyoming, to Conway, Kansas

Page | 59


Piceance Lateral

Cost $110 - $140 Million

Completion Second Quarter 2009

Project Status

Date Second Quarter 2009


Late2008

Permitting expected

I Right of way Mid ConstructionIn progress g yacquired 2008 contracts let

• 99/1% joint venture with 50/50 option within two years of first flow

• Dedicated supplies from two Williams plants (~30,000 Bpd) *Overland Pass PipelinePiceance Lateral

Piceance LateralPipeline 150 miles, 14”Capacity 100,000 Bpd of raw NGLs

• Additional commitments in various stages of negotiation

Page | 60

Natural Gas LiquidsNatural Gas LiquidsGrowth Projects

Infrastructure Upgrades


Project Status

Infrastructure Upgrades

Bushton Fractionator

Expand facility from 80,000 to 150,000 BpdPhase I - complete

• Phase II - third quarter 2008

Bushton StorageUpgrade facility to accommodate additionalethane/propane mix


Bushton-to-Medford Pipeline

Construct 135-mile pipeline with a capacity of 120,000 Bpd of ethane/propane mix


Sterling Expansion Expand pipeline by 60,000 BpdConstruction completeg p Construction complete

Bushton-to-Conway Expansion

Expand pipeline by 14,000 BpdConstruction complete

NGL Gathering & FractionationNGL PipelinesNGL Storage

Page | 61

NGL FractionatorNGL Market Hub

NGL Infrastructure UpgradesNGL Infrastructure UpgradesBushton, Kansas

Page | 62

NGL Infrastructure UpgradesNGL Infrastructure UpgradesBushton, Kansas

Page | 63

NGL Gathering & FractionationNGL Gathering & FractionationGrowth Projects

Woodford Shale Pi li E t i


Project Status

Pipeline Extension

Completion Date In Service


Pipe delivered

Right of way acquired


• Connecting to two processing plants, operated by Devon

NGL Gathering PipelineWoodford Extension g p g p , p y

Energy and Antero Resources, in southeast Oklahoma

Woodford Shale Pipeline Extension


Page | 64

Pipeline 78 miles, 6-8”Expected Volume 25,000 Bpd of raw NGLs


Arbuckle Pipeline


Completion

Project Status

Completion Date Early 2009


Pipe delivered

In progress Right of way acquired In progress Construction

• Expect approximately 65,000 Bpd at start up, and indications of interest that could add 145,000 Bpd of supply within the next three to five years

NGL Gathering PipelineNGL PipelineNGL Arbuckle PipelineNGL Storage

supply within the next three to five years• Major expansion into one of the most active drilling areas

in the U.S. • Allows delivery to Gulf Coast fractionatorsArbuckle Pipeline

Pipeline 440 miles, 12-16”Capacity • 160 000 Bpd of raw NGLs with four pump

NGL FractionatorNGL Market Hub

Page | 65

Capacity • 160,000 Bpd of raw NGLs with four pump stations

• Expandable to 210,000 Bpd with additional pump stations

NGL PipelinesNGL PipelinesStrategic Acquisition

NGL d R fi d P t l

Project Status

NGL and Refined PetroleumProducts System Acquisition

Cost $300 Million

Closing Date October 2007

Geographically and in NGL Value Chain:

Footprint Expansion

• Connects Bushton and Conway, Kansas,to Chicago, Illinois

• Adds a refined petroleum products line to our portfolio

Revenues > 90% fee-basedNGL PipelinesNGL Gathering & Fractionation

• First entrance into refined petroleum products market

• Creates growth opportunities in Midwest markets

NGL GrowthAcquired NGL Pipeline SystemNGL StorageNGL FractionatorNGL Market Hub

Page | 66

Pipelines 1,627 miles, primarily 8-10”Capacity for Purity & Refined Products

134,000 Bpd of transport 978,000 Bbl of storage

Economy & Finance

oneok ONEOK to Present at Lehman CEO Conference