ONEOK’s 2016 Financial Performance and 2017 Guidance


ONEOK’s 2016 financial performance benefited as a result of ONEOK Partners increasing net income and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) nearly 81 and 18 percent, respectively, compared with 2015, driven by higher fee-based earnings in all three business segments.

ONEOK ended 2016 with nearly $250 million of cash and cash equivalents, an undrawn $300 million credit facility and full-year dividend coverage of greater than 1.3 times. ONEOK also was the second-best performing stock in the Standard & Poor’s (S&P) 500 index, increasing 133 percent in 2016.

Following the completion of the ONEOK Partners transaction, ONEOK will be well-positioned to profitably grow its existing businesses while creating significant value for our shareholders, old and new. ONEOK expects:

  • Distributable cash flow to approximately double;
  • A dividend coverage target of greater than 1.2 times;
  • A dividend increase of 21 percent to 74.5 cents per share, or $2.98 per share on an annualized basis, for the first dividend following the close of the transaction; and
  • A subsequent 9 to 11 percent annual dividend growth rate through 2021.

We expect the combined entity to receive investment-grade credit ratings, and expect the significant retained cash flow and earnings growth to continue our progress toward improved credit metrics.

All of these benefits will serve our investors well as we continue to focus on growing our business and serving our customers.