ONEOK (OKE) Bank of America Global Energy Conference summary

Strategic rationale and M&A approach

• Evaluated 15 companies using nine criteria, with Magellan, EnLink, and Medallion emerging as top fits for long-term strategy.

• Magellan provided scale, demand-pull assets, and credit enhancement, addressing concentration in the Bakken.

• EnLink and Medallion were targeted for their complementary G&P and crude gathering capabilities, especially in the Permian.

• M&A process was disciplined, with criteria updated after each major deal to refine future targets.

• Integration focus remains high, with future M&A likely limited to smaller tuck-in opportunities.

Synergy realization and operational integration

• Magellan synergies categorized as batching, blending, and bundling, with significant logistics and blending cost reductions.

• Pipeline connections and the Easton acquisition accelerated synergy capture, with major benefits expected in 2025 and beyond.

• Customer interest in bundled services is strong, especially with integrated crude and gas offerings in the Permian.

• EnLink and Medallion assets enable more aggressive CapEx in the Permian and support organic and M&A-driven growth.

• Synergies in Louisiana are emerging, particularly for NGLs, with opportunities to serve LNG and industrial demand.

Financial performance and capital allocation

• 2024 guidance raised, with synergy capture exceeding $175 million and run-rate benefits into 2025.

• Capital return framework targets 75%-85% of free cash flow for dividends and buybacks, with flexibility for high-return projects.

• $2 billion stock repurchase planned over four years, with potential for more as debt declines.

• CapEx in 2025 expected to remain steady, with operating leverage from recent expansions and available capacity.

• Free cash flow generation expected to rise, with debt-to-EBITDA trending down over five years.