AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 19/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Installed scale, basin-to-demand connectivity and firm capacity commitments support a narrow structural advantage. Geographic competition and absent route-level duplication economics prevent a strong company-wide grade.
durability · 2/4 · Physical infrastructure and long-term firm contracts support persistence, but contract durations, renewal economics and supply longevity are not quantified. Finite land-use rights add a disclosed vulnerability.
customer dependency · 2/4 · Majority firm subscription establishes meaningful contractual dependency in Natural Gas Pipelines. Growing processing and refined-products volumes provide indirect evidence of continued demand, while crude shipments declined and broader switching friction remains unmeasured.
erosion resilience · 2/4 · Approximately 90% fee-based earnings and higher consolidated operating income support resilience. Actual NGL quarterly weakness and gathering-and-processing six-month weakness show that costs, volumes and commodity exposure still matter.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher refined-products rates contributed to second-quarter 2026 operating-income growth, demonstrating a favorable realized pricing outcome. The contribution is combined with volumes and marketing, and no sustained company-wide rate record is supplied.
retention · 2/4 · Long-term firm capacity subscriptions and increased processing and refined-products shipments support repeat demand indirectly. Lower crude shipments and absent customer-level renewals prevent a stronger retention conclusion; no retention rate is inferred.
margin resilience · 2/4 · Fee-based earnings and rising consolidated operating income indicate earnings protection, but segment declines from operating costs and realized commodity prices demonstrate incomplete insulation. This assesses economic resilience rather than inferring a moat from margins.
contractual freedom · 2/4 · Market-based rate authority and negotiated long-haul crude tariffs provide meaningful pricing discretion. Regulatory oversight, shipper protests and mandatory reductions when applicable index ceilings fall constrain that discretion.
Predictability77
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 27.91
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.32
Financial strength5
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 20.18
- currentRatioGrade
- 0.00
- Debt / FCF (x)
- 13.41
- Net debt / operating income (x)
- 5.70
- Interest coverage (x)
- 3.22
- Current ratio (x)
- 0.71
Capital allocation59
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 11.87
- 3-year average dilution (%)
- 11.94
- 3-year average SBC / revenue (%)
- 0.37
- cashConversionGrade
- 89.58
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half 2026 operating cash flow of $2.987 billion and $1.6 billion coverage above dividends support financial capacity. Against this stand $1.789 billion of investing outflows, acquisition equity issuance, substantial indebtedness and a disclosed investment impairment. Covenant compliance is positive, but realized acquisition returns are insufficiently established.
incentive alignment · 3/4 · Actual 2025 executive annual equity grants were approximately 70% performance units and 30% time-vesting units. Three-year relative-return awards with payouts ranging from 0% to 200% provide demonstrated alignment mechanisms. Special retention awards and acceleration provisions qualify the assessment; actual executive ownership and subsequent vesting outcomes are not supplied.
execution · 3/4 · Completed plant relocation, increased processing volumes, higher operating cash flow and higher operating income and diluted EPS demonstrate execution. Financial and throughput results are indirect evidence of management effectiveness and include acquisition and market effects; segment weakness and impairment prevent an exceptional grade.
governance · 3/4 · The April 2026 proxy discloses an independent chair, eleven independent directors out of twelve, independent committees, annual evaluations, one-share-one-vote rights, proxy access and majority voting with a resignation policy. These are substantive existing safeguards, although their effectiveness in contested decisions and subsequent board composition are not demonstrated.
Evidence
and around the world. Through our approximately 60,000-mile pipeline network, we transport the natural gas, NGLs, Refined Products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future.
Business: approximately 60,000-mile pipeline network · Filed 24/02/2026
For transportation of crude oil, natural gas, Refined Products and NGLs, pipelines are generally the most reliable, lowest cost, least carbon intensive and safest alternative for intermediate and long-haul movements between markets and end users.
Midstream value chain: pipeline transportation economics · Filed 24/02/2026
Our extensive and integrated assets are located in, and connected with, some of the most productive shale basins, as well as refineries and demand centers, in the United States.
Summary proxy information: integrated asset connectivity · Filed 01/04/2026
Three Months Ended Six Months Ended June 30, June 30, Operating Information 2026 2025 2026 2025 Natural gas processed (MMcf/d) (a) 5,707 5,573 5,585 5,412 (a) - Included volumes for consolidated entities and volumes we processed at company-owned and third-party facilities.
Natural Gas Gathering and Processing: operating volumes · Filed 04/08/2026
Three Months Ended Six Months Ended June 30, June 30, Operating Information (a) 2026 2025 2026 2025 Refined Products volumes shipped (MBbl/d) 1,629 1,503 1,598 1,452 Crude oil volumes shipped (MBbl/d) 1,766 1,782 1,690 1,814 (a) - Included volumes for consolidated entities only.
Refined Products and Crude: shipment volumes · Filed 04/08/2026
Competition - We compete for natural gas, NGL, Refined Products and crude oil volumes with other midstream companies, major integrated oil companies and independent exploration and production companies that have gathering and processing assets, fractionators, pipelines, terminals and storage facilities.
Business: competition categories · Filed 24/02/2026
The factors that typically affect our ability to compete for natural gas, NGL, Refined Products and crude oil volumes are: •quality and quantity of services provided; •producer drilling activity; •proceeds remitted and/or fees charged under our contracts; •proximity of our assets to natural gas, NGL, Refined Products and crude oil supply areas and markets; •proximity of our assets to alternative energy production; •location of our assets relative to those of our competitors; •efficiency and reliability of our operations; •receipt and delivery capabilities for natural gas, NGLs, Refined Products and crude oil that exist in each pipeline system, plant, fractionator, terminal and storage location; •the petrochemical industry’s level of capacity utilization and feedstock requirements; •current and forward natural gas, NGLs, Refined Products and crude oil prices; and •cost of and access to capital.
Business: competitive factors including fees and asset location · Filed 24/02/2026
In such event, if we are unable to secure additional sources, then the volumes that we gather, process, fractionate and transport in the future could be less than anticipated.
Risk factors: replacement supply and future volumes · Filed 24/02/2026
We obtain the rights to construct and operate certain of our pipelines and related facilities on land owned by third parties and governmental agencies for a specific period of time.
Risk factors: finite third-party land-use rights · Filed 24/02/2026
•Natural Gas Liquids - a decrease of $16 million due primarily to higher operating costs and lower transportation and storage volumes, offset partially by higher optimization and marketing and higher exchange services.
Quarterly operating-income discussion: Natural Gas Liquids decline · Filed 04/08/2026
Our Natural Gas Pipelines segment is not exposed to significant volumetric risk due to the majority of our capacity being subscribed under long-term, firm fee-based contracts.
Executive summary: long-term firm Natural Gas Pipelines contracts · Filed 24/02/2026
In addition, our Natural Gas Gathering and Processing and Natural Gas Liquids segments are exposed to volumetric risk as a result of drilling and completion activity, severe weather disruptions, operational outages, global crude oil, NGL and natural gas demand and normal volumetric well declines.
Executive summary: gathering, processing and NGL volume exposure · Filed 24/02/2026
Volatility in commodity prices may have an impact on many of our suppliers and customers, which, in turn, could have a negative impact on their ability to meet their obligations to us.
Risk factors: customer ability to meet obligations · Filed 24/02/2026
Each of our four reportable segments are primarily fee-based, and our consolidated earnings were approximately 90% fee-based in 2025.
Executive summary: 2025 fee-based earnings · Filed 24/02/2026
•Refined Products and Crude - an increase of $103 million due primarily to higher Refined Products volumes and rates, and higher crude marketing earnings, offset partially by higher operating costs.
Quarterly operating-income discussion: higher refined-products volumes and rates · Filed 04/08/2026
When the change in the ceiling level is negative, we are generally required to reduce our rates that are subject to the FERC’s indexing methodology.
Rate regulation: negative index adjustments · Filed 24/02/2026
The FERC and most relevant state regulatory authorities allow us to establish rates based on conditions in competitive markets without regard to the FERC’s index level or our cost-of-service.
Rate regulation: market-based pricing authority · Filed 24/02/2026
The tariffs on most of our long-haul crude oil pipelines are at negotiated rates but are still subject to regulation by the FERC or state agencies and subject to protest by shippers.
Rate regulation: negotiated crude tariffs and shipper protests · Filed 24/02/2026
Adjusted EBITDA decreased $18 million for the six months ended June 30, 2026, compared with the same period in 2025, primarily as a result of the following: •a decrease of $53 million due primarily to lower realized NGL and natural gas prices, net of hedging, offset partially by higher realized condensate prices, net of hedging; and •an increase of $8 million in operating costs due primarily to the growth of our operations; offset by •an increase of $49 million from higher volumes due to increased production in all regions.
Gathering and processing: six-month earnings bridge · Filed 04/08/2026
2025 Financial Results 2026 2025 2026 2025 $ Increase (Decrease) $ Increase (Decrease) (Millions of dollars, except per share amounts) Revenues Commodity sales $ 10,814 $ 6,726 $ 19,259 $ 13,638 4,088 5,621 Services and other 1,235 1,161 2,408 2,292 74 116 Total revenues 12,049 7,887 21,667 15,930 4,162 5,737 Cost of sales and fuel (exclusive of items shown separately below) 9,242 5,360 16,295 11,015 3,882 5,280 Operating costs 823 706 1,569 1,458 117 111 Depreciation and amortization 387 368 765 748 19 17 Transaction costs 4 22 11 64 (18) (53) Other operating expense (income), net — — 6 (6) — (12) Operating income $ 1,593 $ 1,431 $ 3,021 $ 2,651 162 370 Equity in net earnings from investments $ 103 $ 81 $ 192 $ 189 22 3 Impairment of equity investments $ — $ — $ (60) $ — — (60) Interest expense, net of capitalized interest $ (434) $ (438) $ (873) $ (880) (4) (7) Net income $ 967 $ 853 $ 1,743 $ 1,544 114 199 Net income attributable to ONEOK $ 966 $ 841 $ 1,740 $ 1,477 125 263 Diluted EPS $ 1.53 $ 1.34 $ 2.75 $ 2.38 0.19 0.37 Adjusted EBITDA $ 2,121 $ 1,981 $ 4,118 $ 3,756 140 362 Capital expenditures $ 613 $ 749 $ 1,477 $ 1,378 (136) 99 Changes in commodity prices and sales volumes affect both revenues and cost of sales and fuel in our Consolidated Statements of Income and, therefore, the impact is largely offset between these line items.
Consolidated financial results: operating income, EPS, impairment and capital expenditures · Filed 04/08/2026
2025 June 30, $ Increase (Decrease) in Cash 2026 2025 (Millions of dollars) Total cash provided by (used in): Operating activities $ 2,987 $ 2,429 558 Investing activities (1,789) (1,508) (281) Financing activities (1,115) (1,557) 442 Change in cash and cash equivalents 83 (636) 719 Cash and cash equivalents at beginning of period 78 733 (655) Cash and cash equivalents at end of period $ 161 $ 97 64 Operating Cash Flows - Operating cash flows are affected by earnings from our business activities and changes in our operating assets and liabilities.
Cash flow analysis: six-month operating, investing and financing cash flows · Filed 04/08/2026
For the six months ended June 30, 2026, our cash flows from operations exceeded dividends paid by $1.6 billion.
Liquidity and capital resources: operating cash flow above dividends · Filed 04/08/2026
We issued 41 million shares of common stock with a fair value of $4.0 billion as of the closing date of the EnLink Acquisition.
Executive summary: EnLink acquisition share issuance · Filed 24/02/2026
As of December 31, 2025, we had total indebtedness of $34.0 billion.
Risk factors: year-end 2025 indebtedness · Filed 24/02/2026
As of June 30, 2026, we had no outstanding borrowings, our ratio of consolidated indebtedness to adjusted EBITDA was 4.1 to 1, and we were in compliance with all covenants under our $3.5 Billion Credit Agreement.
Debt: credit-agreement borrowings, leverage ratio and covenant compliance · Filed 04/08/2026
Capital expenditures decreased for the three and six months ended June 30, 2026, compared with the same periods in 2025, due primarily to the timing of payments on capital projects and the completion of the Permian Basin plant relocation project that was placed in service during the first quarter of 2026.
Gathering and processing: completed plant relocation · Filed 04/08/2026
In February 2025, consistent with our pay-for-performance philosophy, we granted to our named executive officers annual equity grants consisting of: (1) performance units (having a value equal to approximately 70% of the aggregate annual equity grant value); and (2) time-vesting restricted units (having a value equal to approximately 30% of the aggregate annual equity grant value).
Executive compensation: actual February 2025 annual equity grants · Filed 01/04/2026
Performance Unit Awards - We have granted performance unit awards to key employees that vest at the end of a three-year period.
Stock compensation: granted performance units and three-year vesting · Filed 24/02/2026
Upon vesting, a holder of outstanding performance units is entitled to receive a number of shares of our common stock equal to a percentage (0% to 200%) of the performance units granted, based on our total shareholder return over the performance period, compared with the total shareholder return of a peer group of other energy companies over the same period.
Stock compensation: relative shareholder-return payout terms · Filed 24/02/2026
Our corporate governance practices are designed not only to satisfy regulatory and stock exchange requirements, but also to provide for effective oversight and management of our company, and include: óIndependent Board Chair with robust duties óCurrently a twelve-member Board with diverse experience and expertise óEleven of twelve current directors are independent óRegular executive sessions of independent directors at Board and committee meetings óCommitment to proactive Board refreshment with four new directors added in the last three years óAll Board committees are composed of independent directors óDirectors are limited to two other public company directorships óAnnual Board and committee performance evaluations óNon-employee director stock ownership guidelines require at least 5x annual cash retainer óQuarterly committee oversight of cybersecurity resilience óSuccession planning for senior management óRobust risk management framework with multiple layers of risk assessment and mitigation óBoard and committees regularly review sustainability practices óAnnual review of committee charters and Corporate Governance Guidelines óOne class of outstanding shares with each share entitled to one vote óAnnual advisory approval of executive compensation óShareholder proxy access right by eligible shareholders óMajority voting with director resignation policy for uncontested elections ONEOK 2026 Proxy Statement 9 Summary Proxy Information Board Refreshment Two of our current Board members, Gerald B.
Summary proxy information: existing board and shareholder governance practices · Filed 01/04/2026
ONEOK 2026 Proxy Statement 87 Executive Compensation Discussion and Analysis In order to enhance and support the retention aspect of the awards, the special restricted units granted will not be eligible to vest upon a participant’s voluntary termination from the Company (including upon retirement) or termination by the Company for cause.
Executive compensation: special restricted-unit forfeiture provisions · Filed 01/04/2026
Otherwise, the special restricted units will vest in full in connection with a participant’s death, disability, or qualifying termination within 24 months following a change-in-control ("CIC") of the Company.
Executive compensation: special restricted-unit accelerated vesting provisions · Filed 01/04/2026
