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Released March 02, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. midstream-services provider ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) will spend $2.3 billion over the next three years to build new natural gas and natural gas liquids (NGLs) systems in North Dakota, Oklahoma and Texas. Industrial Info is tracking $910 million in active ONEOK projects in Colorado, Montana, Oklahoma, Texas and Wyoming.
Proposed projects include the $1.3 billion, 530-mile Arbuckle II Pipeline, with an initial capacity to transport 400,000 barrels per day (BBL/d) of unfractionated NGLs from ONEOK's Midcontinent facilities in Oklahoma to the company's storage hub in Mont Belvieu, Texas. Completion is seen in the first quarter of 2020, and with additional pump facilities could be expanded to 1 million BBL/d.
"With more than $4 billion of announced capital-growth projects since June 2017, we continue to build off of our significant asset footprint," said Terry Spencer, president and chief executive officer. "The Arbuckle II Pipeline and MB-4 fractionator will help meet the needs of NGL producers in all of the basins where we operate, including the STACK and SCOOP areas and the Denver-Julesburg, Powder River, Williston and Permian basins."
The South Central Oklahoma Oil Province (SCOOP) and the Sooner Trend Anadarko Canadian Kingfisher (STACK) are crude oil and condensate shale plays in Oklahoma.
Click on the image at right for a map of the proposed Arbuckle II natural gas liquids pipeline.
The pipeline giant also plans to construct a 125,000-BBL/d NGL fractionator, known as MB-4, and related infrastructure in Mont Belvieu. Once completed, the $575 million fractionator is expected to increase ONEOK's total fractionation capacity to 965,000 BBL/d in the same quarter.
Both projects are supported by long-term contracts with terms ranging between 10-20 years, ONEOK executives said.
In North Dakota, ONEOK plans to build a 200-million-cubic-foot-per-day natural gas-processing facility and related infrastructure in the Williston basin in McKenzie County.
The $400 million Demicks Lake gas-processing plant and associated infrastructure are slated for a fourth-quarter 2019 completion.
"These strategic projects complement our recently announced Elk Creek pipeline, increasing ONEOK's ability to deliver NGLs from the Rocky Mountain region to growing markets in the Gulf Coast," Spencer said.
In January, ONEOK unveiled plans to construct a pipeline and associated infrastructure to ship NGLs from the Rocky Mountain region to its existing Midcontinent NGL facilities.
The Elk Creek pipeline will span 900 miles and transport 240,000 BBL/d of unfractionated NGLs from ONEOK's Riverview, Montana, rail terminal to its Bushton, Kansas, fractionation complex. The pipeline is expected to cost $1.2 billion, and related infrastructure is seen costing another $200 million. With additional pump facilities, the NGLs pipeline could be expanded to 400,000 BBL/d. For more information, see Industrial Info's project report and January 10, 2018, article - ONEOK to Develop $1.4 Billion NGL Pipeline from Montana to Kansas.
Other top ONEOK projects being tracked by Industrial Info include a $200 million expansion of the company's NGLs system into the Delaware basin, part of the larger Permian basin in West Texas. West Texas LPG Pipeline Limited Partnership, a joint venture of ONEOK and Martin Midstream Partners Limited Partnership (NASDAQ:MMLP) (Houston, Texas), plans to build a 120-mile, 16-inch pipeline lateral with an initial capacity of 110,000 BBL/d, as well as two pump stations and pipeline looping along the existing West Texas LPG system to increase its capacity to handle the dedicated volume. See Industrial Info's project reports on the pipeline extension and pump stations for more information.
ONEOK raised its 2018 capital-spending expectations to $1.95 billion-$2.3 billion, versus the previously announced range of $1.27 billion-$1.53 billion.
"We've announced approximately $4.2 billion of organic capital-growth projects with attractive returns since June 2017 that will be highly accretive, complement our existing assets and provide essential services in high-producing regions," Spencer said.
Speaking to investment analysts during the company's fourth-quarter and fiscal-year 2017 earnings conference call earlier this week, Spencer said natural gas and NGLs volume growth in the Williston and Permian basins and SCOOP and STACK areas and higher average fee rates in gas-gathering and processing contributed to the company's profits.
"Producer activity and production results increased across ONEOK's operating footprint in 2017, driving volume growth and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increases compared with 2016," Spencer said. "We continue to see production growth, largely driven by improved producer drilling economics and higher rig efficiencies."
For the 2017 fiscal year, ONEOK reported $387.8 million in earnings, compared with $352 million 2016. For the three months ended December 31, ONEOK earned $63 million--down 34% from earnings of $95.5 million during the same period in 2016.
ONEOK's fourth-quarter operating income rose 16%, versus the year-ago quarter. compared with the year-ago quarter. The midstream company's natural gas volumes processed increased 20%, and NGL volumes gathered was up 17% year-over-year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle TM, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com
Proposed projects include the $1.3 billion, 530-mile Arbuckle II Pipeline, with an initial capacity to transport 400,000 barrels per day (BBL/d) of unfractionated NGLs from ONEOK's Midcontinent facilities in Oklahoma to the company's storage hub in Mont Belvieu, Texas. Completion is seen in the first quarter of 2020, and with additional pump facilities could be expanded to 1 million BBL/d.
"With more than $4 billion of announced capital-growth projects since June 2017, we continue to build off of our significant asset footprint," said Terry Spencer, president and chief executive officer. "The Arbuckle II Pipeline and MB-4 fractionator will help meet the needs of NGL producers in all of the basins where we operate, including the STACK and SCOOP areas and the Denver-Julesburg, Powder River, Williston and Permian basins."
The South Central Oklahoma Oil Province (SCOOP) and the Sooner Trend Anadarko Canadian Kingfisher (STACK) are crude oil and condensate shale plays in Oklahoma.
The pipeline giant also plans to construct a 125,000-BBL/d NGL fractionator, known as MB-4, and related infrastructure in Mont Belvieu. Once completed, the $575 million fractionator is expected to increase ONEOK's total fractionation capacity to 965,000 BBL/d in the same quarter.
Both projects are supported by long-term contracts with terms ranging between 10-20 years, ONEOK executives said.
In North Dakota, ONEOK plans to build a 200-million-cubic-foot-per-day natural gas-processing facility and related infrastructure in the Williston basin in McKenzie County.
The $400 million Demicks Lake gas-processing plant and associated infrastructure are slated for a fourth-quarter 2019 completion.
"These strategic projects complement our recently announced Elk Creek pipeline, increasing ONEOK's ability to deliver NGLs from the Rocky Mountain region to growing markets in the Gulf Coast," Spencer said.
In January, ONEOK unveiled plans to construct a pipeline and associated infrastructure to ship NGLs from the Rocky Mountain region to its existing Midcontinent NGL facilities.
The Elk Creek pipeline will span 900 miles and transport 240,000 BBL/d of unfractionated NGLs from ONEOK's Riverview, Montana, rail terminal to its Bushton, Kansas, fractionation complex. The pipeline is expected to cost $1.2 billion, and related infrastructure is seen costing another $200 million. With additional pump facilities, the NGLs pipeline could be expanded to 400,000 BBL/d. For more information, see Industrial Info's project report and January 10, 2018, article - ONEOK to Develop $1.4 Billion NGL Pipeline from Montana to Kansas.
Other top ONEOK projects being tracked by Industrial Info include a $200 million expansion of the company's NGLs system into the Delaware basin, part of the larger Permian basin in West Texas. West Texas LPG Pipeline Limited Partnership, a joint venture of ONEOK and Martin Midstream Partners Limited Partnership (NASDAQ:MMLP) (Houston, Texas), plans to build a 120-mile, 16-inch pipeline lateral with an initial capacity of 110,000 BBL/d, as well as two pump stations and pipeline looping along the existing West Texas LPG system to increase its capacity to handle the dedicated volume. See Industrial Info's project reports on the pipeline extension and pump stations for more information.
ONEOK raised its 2018 capital-spending expectations to $1.95 billion-$2.3 billion, versus the previously announced range of $1.27 billion-$1.53 billion.
"We've announced approximately $4.2 billion of organic capital-growth projects with attractive returns since June 2017 that will be highly accretive, complement our existing assets and provide essential services in high-producing regions," Spencer said.
Speaking to investment analysts during the company's fourth-quarter and fiscal-year 2017 earnings conference call earlier this week, Spencer said natural gas and NGLs volume growth in the Williston and Permian basins and SCOOP and STACK areas and higher average fee rates in gas-gathering and processing contributed to the company's profits.
"Producer activity and production results increased across ONEOK's operating footprint in 2017, driving volume growth and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increases compared with 2016," Spencer said. "We continue to see production growth, largely driven by improved producer drilling economics and higher rig efficiencies."
For the 2017 fiscal year, ONEOK reported $387.8 million in earnings, compared with $352 million 2016. For the three months ended December 31, ONEOK earned $63 million--down 34% from earnings of $95.5 million during the same period in 2016.
ONEOK's fourth-quarter operating income rose 16%, versus the year-ago quarter. compared with the year-ago quarter. The midstream company's natural gas volumes processed increased 20%, and NGL volumes gathered was up 17% year-over-year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle TM, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com
