ONEOK(OKE)2025-02-25 21:21Financial Strategy and Performance - The company aims to maintain investment-grade credit ratings and a strong balance sheet, expecting internally generated cash flows to fund high-return capital projects, grow dividends, reduce debt, and support a $2.0 billion share repurchase program[45]. - The company is focused on maximizing total shareholder return through high-return capital projects and consistent returns on invested capital[45]. - The company completed the sale of three interstate natural gas pipeline systems on December 31, 2024[74]. Natural Gas Operations - The Natural Gas Gathering and Processing segment has a processing capacity of 1.9 Bcf/d in the Rocky Mountain region and 1.0 Bcf/d in the Mid-Continent region, with utilization rates of 84% and 77% for 2024 and 2023, respectively[54]. - The Natural Gas Liquids segment has a processing capacity of 1.4 Bcf/d in the Mid-Continent region, 1.7 Bcf/d in the Permian Basin, and 0.8 Bcf/d in North Texas, with fee-based contracts representing 76% and 72% of supply volumes for 2024 and 2023, respectively[60]. - The company operates a natural gas pipeline system that connects key supply areas and demand centers, supporting low-cost expansions to meet growing demand from data centers and utilities[72]. - The company has a 50% ownership interest in Northern Border, which transports natural gas with a capacity of 2.5 Bcf/d[85]. - The ONEOK Gas Transportation has access to major natural gas production areas in the Mid-Continent region, including the SCOOP and STACK areas[76]. - The Sabine Pipeline, acquired through EnLink Acquisitions, operates as an interstate natural gas pipeline connecting Port Arthur, Texas, to the Henry Hub[75]. Infrastructure and Capacity Expansion - The Natural Gas Liquids segment added 9,300 miles of gathering pipelines and 4,800 miles of distribution pipelines as a result of the EnLink Acquisitions, with NGL fractionators having a combined operating capacity of 960 MBbl/d[64]. - The ongoing Denver area pipeline expansion project will add 35 MBbl/d to the system capacity[89]. - The company has access to 6 MMBbl of combined NGL storage capacity at facilities in Kansas and Texas, enhancing its operational flexibility[63]. - The company is reconstructing a 210 MBbl/d fractionator in Medford, Oklahoma, to improve its NGL processing capabilities[62]. Environmental and Regulatory Compliance - The company is subject to various environmental regulations, including the Clean Air Act and the Clean Water Act, which may require capital expenditures for compliance[106]. - The company is required to satisfy its Renewable Volume Obligation (RVO) under the Renewable Fuel Standard, which may increase compliance costs over time[116]. - The company has completed updates to its pipeline maintenance procedures to minimize methane leaks as part of compliance with the Protecting our Infrastructure of Pipelines and Enhancing Safety Act[113]. - The company does not anticipate a material impact on its operations from the EPA's finalized rule targeting oil and gas section emissions of greenhouse gases[115]. - The company anticipates future governmental legislation may require limits on GHG emissions, potentially impacting capital expenditures and operations[120]. - The company is subject to the EPA's Mandatory Greenhouse Gas Reporting Rule, which requires annual reporting of GHG emissions from affected facilities[114]. Employee Engagement and Benefits - Employee engagement participation rate increased to 93% in 2024 from 90% in 2022, with the overall engagement mean rising to the 80th percentile[134]. - As of December 31, 2024, the company had 5,177 employees, excluding EnLink employees[135]. - The company provides up to $10,000 for reasonable and necessary expenses related to adoption and surrogacy[142]. - The company offers up to $5,250 per year in qualifying tuition expenses for furthering education[145]. - The company maintains a 401(k) Plan with a 100% match on employee contributions up to 6% of eligible compensation, with 96% of eligible employees participating as of December 31, 2024[147]. - Effective January 1, 2025, profit-sharing quarterly contributions will increase from 1% to 6% of quarterly eligible compensation[147]. - The company provides full pay for maternity, paternity, or adoption leave of up to 240 hours per qualifying event[142]. - The ONE Trust Fund allows employees to contribute donated vacation hours or monetary donations to assist fellow employees in times of personal crises[143]. - The company has a charitable giving matching program of $10,000 annually through the ONEOK Foundation[143]. Sustainability and Emissions Reduction - In 2023, GHG emissions were approximately 3.7 million metric tons of carbon dioxide equivalents for Scope 1 and 3.1 million metric tons for Scope 2 emissions[109]. - The company aims for a 30% reduction in combined operational Scope 1 and location-based Scope 2 GHG emissions by 2030, targeting a reduction of 2.2 million metric tons of carbon dioxide equivalents[110]. - As of December 31, 2024, the company has achieved reductions totaling approximately 1.7 million metric tons towards its GHG emissions reduction target[110]. - The company is actively participating in the Our Nation's Energy (ONE) Future Coalition to report methane emission reductions and calculate methane intensity for its natural gas transmission and storage assets[111]. - The company has achieved a reduction of approximately 1.7 million metric tons of GHG emissions towards its target of 2.2 million metric tons by 2030, representing a 30% reduction from 2019 levels[110]. - The company is monitoring potential future regulations that may require it to limit GHG emissions or pay additional fees associated with its emissions[120]. Corporate Culture and Diversity - The company has a zero-incident culture commitment for employee safety and environmental responsibility[137]. - The company has established four employee-led business resource groups to promote inclusion and diversity[139]. - The company has a cross-functional inclusion and diversity strategy aimed at attracting and retaining talent[138]. - The company has implemented a Cybersecurity Implementation Plan, with the last approval in August 2024[132].