8-KRegulation FDExhibits & Filings

ONEOK INC /NEW/ 8-K Report, Regulation FD Disclosure (Oct 24, 2017)

Filed October 24, 2017For Securities:OKE

Summary

ONEOK Inc. (OKE) announced a significant growth initiative through its West Texas LPG Pipeline Limited Partnership joint venture. The partnership plans to invest approximately $200 million to expand its natural gas liquids (NGL) system, specifically targeting the prolific Delaware Basin within the larger Permian Basin. This expansion underscores ONEOK's strategic focus on capitalizing on the robust production growth in key U.S. shale plays.

Key Highlights

  • 1ONEOK's joint venture, West Texas LPG Pipeline Limited Partnership, is investing $200 million to expand its NGL system.
  • 2The expansion will focus on serving the Delaware Basin, a highly productive area within the Permian Basin.
  • 3ONEOK operates the joint venture and holds an 80% ownership stake.
  • 4This investment signals ONEOK's commitment to capturing growing NGL volumes from major production basins.
  • 5The expansion aims to enhance the partnership's infrastructure and capacity to handle increased NGL throughput.

Frequently Asked Questions

The $200 million investment is for the expansion of the West Texas LPG Pipeline Limited Partnership's natural gas liquids (NGL) system. The expansion is specifically designed to extend the system's reach into the Delaware Basin, a significant NGL-producing region.

ONEOK is the operator of the West Texas LPG Pipeline Limited Partnership and holds an 80% ownership stake in the joint venture. This means ONEOK is directly managing the expansion project and will benefit significantly from its success.

The Delaware Basin is part of the larger Permian Basin and is known for its prolific oil and natural gas production, which includes substantial volumes of natural gas liquids. Expanding into this area allows ONEOK to connect with and transport these valuable NGLs.

This expansion is expected to increase ONEOK's NGL transportation volumes and potentially enhance its fee-based revenue streams. It positions the company to benefit from the continued growth in NGL production from one of the most important energy-producing regions in North America.