TULSA, Okla., Sept. 10, 2018 /PRNewswire/ -- ONEOK, Inc.
(NYSE: OKE) today announced plans to invest approximately
$295 million to expand its West Texas
LPG Limited Partnership (West Texas LPG) pipeline system, which
provides natural gas liquids (NGL) takeaway capacity for Permian
Basin producers.
The expansion project, which is expected to be completed in the
first quarter 2020, is supported by long-term dedicated NGL
production from six third-party natural gas processing plants in
the Permian Basin that are expected to produce up to 60,000 barrels
per day (bpd) of NGLs.
The expansion includes the construction of:
- Four new pump stations, two pump station upgrades and pipeline
looping that will increase the West Texas LPG mainline capacity by
80,000 bpd.
- Additional infrastructure to connect West Texas LPG with
ONEOK's previously announced Arbuckle II Pipeline project.
"This second expansion of the West Texas LPG Pipeline system
will serve continued growth in the Permian Basin and positions
ONEOK for additional future expansion opportunities in the
Permian," said Terry K. Spencer,
ONEOK president and chief executive officer.
Based on the initial contracted volume, the expansion project is
expected to generate an adjusted earnings before interest, taxes,
depreciation and amortization (adjusted EBITDA) multiple of four to
six times. ONEOK continues discussions with producers and
processors in the region for additional potential volume
commitments.
ONEOK's previously announced 110,000 bpd pipeline lateral
extension of the West Texas LPG system into the Delaware Basin and expansion of the existing
mainline system is currently under construction and expected to be
in service this month.
The West Texas LPG Pipeline is an NGL pipeline system that
provides takeaway capacity to Permian Basin producers and consists
of approximately 2,600 miles of NGL pipeline in Texas and New
Mexico. The system provides transportation services to the
Mont Belvieu market center from
nearly 40 third-party natural gas processing plants located in the
Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas
producing basin in the U.S.
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL
MEASURES:
ONEOK has disclosed in this news release forward-looking
estimates for adjusted EBITDA expected to be generated by the
announced capital-growth projects. Adjusted EBITDA is a non-GAAP
financial metric used to measure the company's financial
performance. Adjusted EBITDA is defined as net income from
continuing operations adjusted for interest expense, depreciation
and amortization, noncash impairment charges, income taxes, noncash
compensation expense, allowance for equity funds used during
construction (equity AFUDC), and other noncash items.
Adjusted EBITDA is useful to investors because it and similar
measures, are used by many companies in the industry as a measure
of financial performance and commonly employed by financial
analysts and others to evaluate ONEOK's financial performance and
to compare the financial performance of ONEOK with the performance
of other companies within its industry. Adjusted EBITDA should not
be considered in isolation or as a substitute for net income or any
other measure of financial performance presented in accordance with
GAAP. Additionally, this calculation may not be comparable with
similarly titled measures of other companies.
A reconciliation of estimated adjusted EBITDA to GAAP net income
is not provided because the GAAP net income generated by the
projects is not available without unreasonable efforts.
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 information about ONEOK, visit the website:
www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook
and Twitter.
Some of the statements contained herein are forward-looking
statements as defined under federal securities laws. The
forward-looking statements relate to our anticipated financial
performance (including projected net income, capital expenditures,
cash flow and projected levels of dividends), liquidity,
management's plans and objectives for our future growth projects
and other future operations (including plans to construct
additional natural gas and natural gas liquids facilities and
related cost estimates), our business prospects, the outcome of
regulatory and legal proceedings, market conditions and other
matters. We make these forward-looking statements in reliance on
the safe harbor protections provided under federal securities
legislation and other applicable laws.
Forward-looking statements include the items identified in the
preceding paragraph, the information concerning possible or assumed
future results of our operations and other statements contained
herein identified by words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," "should," "goal,"
"forecast," "guidance," "could," "may," "continue," "might,"
"potential," "scheduled" and other words and terms of similar
meaning.
You should not place undue reliance on the forward-looking
statements. Known and unknown risks, uncertainties and other
factors may cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Those factors may affect our operations, markets,
products, services and prices. In addition to any assumptions and
other factors referred to specifically in connection with the
forward-looking statements, factors that could cause our actual
results to differ materially from those contemplated in any
forward-looking statement include, among others, those factors
listed under "Forward-looking Statements" in our Quarterly Report
on Form 10-Q for the quarter ended June 30,
2018, and in our other filings that we make with the SEC,
which are available via the SEC's website at www.sec.gov and our
website at www.oneok.com.
These factors are not necessarily all of the important factors
that could cause actual results to differ materially from those
expressed in any of our forward-looking statements. Other factors
could also have material adverse effects on our future results.
These and other risks are described in greater detail under the
caption "Risk Factors" in our Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2017 and
in our other filings that we make with the SEC, which are available
via the SEC's website at www.sec.gov and our website at
www.oneok.com. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by these factors. Any such forward-looking statement
speaks only as of the date on which such statement is made, and
other than as required under securities laws, we undertake no
obligation to update publicly any forward-looking statement whether
as a result of new information, subsequent events or change in
circumstances, expectations or otherwise.
Analyst
Contact:
|
Megan
Patterson
|
|
918-561-5325
|
Media
Contact:
|
Stephanie
Higgins
|
|
918-591-5026
|
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SOURCE ONEOK, Inc.