ONEOK announces expansions to natural gas and NGL infrastructure

These projects are expected to be financed with cash generated from operations and short- and long-term borrowings. ONEOK continues to expect no equity issuances.

"These low-cost, capital-efficient expansions with attractive returns continue to demonstrate ONEOK's ability to incrementally grow with our customers to meet their needs," said Terry K. Spencer, ONEOK president and chief executive officer.

"The Bear Creek plant expansion in North Dakota will provide needed processing capacity for producers actively developing the highgrowth area of Dunn County while also helping to address natural gas flaring in the state," added Spencer. "Continuing to expand our West Texas LPG pipeline system underscores ONEOK's Permian Basin strategy to provide needed NGL transportation capacity to producers in the highly productive Delaware and Midland basins."

Bear Creek plant and related infrastructure:

The Bear Creek natural gas processing facility expansion and related infrastructure in Dunn County, North Dakota, are expected to cost a total of approximately US$405 million and be completed in the first quarter 2021. The expansion is supported by acreage dedications with primarily fee-based contracts.

ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion ft³/d following the completion of the Bear Creek expansion. The expansion is expected to produce approximately 25 000 bpd of NGLs in ethane rejection, resulting in 225 000 bpd of raw feed contracted since the announcement of the Elk Creek Pipeline.

NGL Projects:

The West Texas LPG pipeline expansion is expected to cost approximately US$145 million and be completed in the first quarter 2021. The expansion is supported by long-term dedicated NGL production from third-party natural gas processing plants in the Permian Basin that are expected to produce up to 45 000 bpd of NGLs.

Since October 2017, ONEOK has announced expansions totaling 160 000 bpd on the West Texas LPG pipeline system, with previous announcements including a 40 000 bpd expansion that was placed in service in the fourth quarter 2018 and an additional 80 000 bpd expansion that is expected to be completed in the first quarter 2020.

The expansions to ONEOK's Mid-Continent NGL fractionation facilities are expected to cost approximately US$150 million, with 15 000 bpd expected to be completed in the third quarter 2020 and 50 000 bpd expected to be completed in the first quarter 2021. In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.

ONEOK, Inc. (pronounced ONE-OAK) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.

ONEOK is a Fortune 500 company and is included in the S&P 500.

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