Financial Data and Key Metrics Changes - First quarter 2025 net income attributable to ONEOK totaled $636 million or $1.04 per share [11] - Adjusted EBITDA for the first quarter was $1.78 billion, or $1.81 billion excluding transaction costs, driven by higher NGL and natural gas processing volumes [11][12] - The acquired EnLink and Medallion assets contributed nearly $450 million during the first quarter [12] - The company ended the quarter with no borrowings under its $3.5 billion facility and over $140 million in cash [13] Business Line Data and Key Metrics Changes - NGL volumes increased by 4% year over year, with a 15% increase in the Rocky Mountain region and an 8% increase in the Gulf Coast Permian region [17] - Refined product volumes were nearly unchanged year over year, with expectations for increased volumes in the coming months due to seasonal demand [20] - Midland crude gathered volumes were up more than 20% year over year, including contributions from the EnLink and Medallion systems [21] Market Data and Key Metrics Changes - The company is seeing increased demand for natural gas due to ongoing negotiations related to power demand for data centers and industrial demand along the Mississippi River [26] - The Oklahoma natural gas storage expansion project was completed, adding an additional 4 Bcf of working storage capacity, which is 80% committed with third-party contracts [27] Company Strategy and Development Direction - ONEOK is focused on optimizing existing assets and expanding strategically in high-growth areas like the Permian Basin [28] - The company is committed to capital discipline and maintaining a strong balance sheet, with plans to adjust capital expenditures if necessary [50][51] - The integration of acquired assets is expected to provide significant synergies and growth opportunities, with a focus on operational efficiencies and commercial alignment [12][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the evolving macroeconomic environment but expressed confidence in the company's ability to navigate through various cycles [6][10] - The company expects seasonal refined product demand and volume growth from completed capital projects to enhance results in the coming quarters [14] - Management remains optimistic about long-term fundamentals and the strength of integrated assets [28] Other Important Information - The company is nearing completion of several organic growth projects, including pipeline expansions in the Permian and Rocky Mountain regions [5] - The strategic Texas City LPG export joint venture is expected to provide customers with a fully integrated solution for their products [19] Q&A Session Summary Question: Can you elaborate on the synergies and outlook for 2025 and 2026? - Management highlighted that LNG exports and data center demand are expected to drive growth, with synergies not dependent on production volume [34][36] Question: How are producer conversations going regarding concessions? - Management indicated constructive conversations with producers, focusing on win-win solutions through bundling strategies [41] Question: How has the potential for tariffs on LPGs impacted commercialization? - Management stated that tariffs have not impacted their LPG export project or contracting approach [44] Question: How flexible can capital expenditures be if the macro environment worsens? - Management noted that they can flex down about $1 billion of their annual capital expenditures if necessary [50] Question: How much of the synergies for 2025 are already underway? - Management confirmed that a substantial amount of synergies are already in progress, with ongoing capital projects to connect systems [53][56] Question: What is the outlook for Bakken volumes? - Management indicated that low single-digit growth in Bakken volumes is expected, with confidence in recovery as winter issues subside [63] Question: How sensitive is ethane recovery to market pricing? - Management explained that ethane recovery is affected by pricing, but they have flexibility to adjust based on market conditions [66] Question: What is the outlook for the gas pipeline business? - Management expressed optimism about the natural gas pipeline segment, which performed well in Q1 and is expected to continue strong performance [98]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $135.2 million, down from $143.1 million in the fourth quarter, and slightly down from $136.9 million in the first quarter of 2024 [18] - Adjusted EBITDA increased by 42% year over year to $15.5 million, with a margin of 11.4%, a significant improvement over the same period last year [5][19] - Free cash flow during the quarter was $3.4 million or $0.15 per share [19] Business Line Data and Key Metrics Changes - High Specification Rigs reported revenue of $87.5 million, with adjusted EBITDA of $17.4 million, an increase of 28% from the first quarter of 2024 [20] - Ancillary services segment revenue was $30.5 million, up 25% from the first quarter of 2024, while adjusted EBITDA for this segment was $5.6 million, up $3.1 million from the prior year [20][21] - Wireline revenue decreased by 24% quarter over quarter and 48% year over year, reporting an EBITDA loss of $2.3 million due to severe weather impacts [21] Market Data and Key Metrics Changes - The company has maintained strong relationships with major operators in the Lower 48, which has allowed for market share gains despite broader market challenges [12][13] - The company has not seen material reductions in well services production, although some customers are making contingency plans for reduced activity [9] Company Strategy and Development Direction - The company aims to maximize free cash flow, prioritize shareholder returns, defend the balance sheet, and grow through disciplined M&A [13] - Capital expenditures in Q1 were directed towards enhancing service offerings, with a focus on maintaining capital allocation flexibility [14] - The company announced a 20% increase in dividends to $0.06 per share, reaffirming its commitment to capital returns [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience through market volatility, emphasizing a production-oriented focus and a strong balance sheet [4][5] - The macroeconomic environment is currently uncertain, but the company has experienced limited impact so far [12] - Management believes that the company is well-positioned to take advantage of opportunities during market downturns [33] Other Important Information - As of March 31, the company had zero long-term debt, $104.4 million in liquidity, and $40 million in cash [15][22] - The company is evaluating strategic growth opportunities, although the bid-ask spread remains an obstacle [15] Q&A Session Summary Question: Differentiation between workover projects and new drills - Management indicated that about 80% of revenues are associated with production focus, which aligns with OpEx budgets, making the company more resilient through cycles [25][26] Question: Wireline segment performance and margin recovery - Management acknowledged challenges in the wireline segment due to severe weather but expects to move into positive territory in the second quarter [28][29] Question: Balance sheet management and M&A potential - Management highlighted the importance of balance sheet strength for weathering market challenges and indicated ongoing interest in M&A opportunities as market conditions evolve [30][33] Question: Impact of rising costs and tariffs on the coil business - Management noted that while there is recognition of rising costs, passing those through to customers may be limited at this time [41] Question: Market pressure on smaller competitors - Management confirmed that smaller players are under pressure, leading to potential opportunities for consolidation as the market evolves [45][46]