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EX-99.1 - OKS NEW GROWTH PROJECTS IN BAKKEN SHALE AND WOODFORD SHALE EXHIBIT - ONEOK Partners LP | exhibit_99-1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
(Date
of report)
|
April
26, 2010
|
|
(Date
of earliest event reported)
|
April 21, 2010
|
ONEOK
PARTNERS, L.P.
(Exact
name of registrant as specified in its charter)
Delaware
|
1-12202
|
93-1120873
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
of
incorporation)
|
File
Number)
|
Identification
No.)
|
100
West Fifth Street; Tulsa, OK
(Address
of principal executive offices)
74103-4298
(Zip
code)
(918)
588-7000
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
[]
Written communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[]
Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR
240.14a-12)
[]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item 8.01
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Other Events
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On
April 21, 2010, we announced that we will invest approximately $405
million to $470 million between now and the end of 2011 for projects in
the Bakken Shale in the Williston Basin in North Dakota and the Woodford
Shale in Oklahoma - enabling us to meet the rapidly growing needs of
producers in these areas. These projects are part of the previously
announced $2.5 billion to $3.5 billion of growth projects that we have
identified for investment between now and the end of 2015.
These
investments include construction of a new 100 million cubic feet per day
(MMcf/d) natural gas processing facility - the Garden Creek
plant - in eastern McKenzie County, N. D., and related expansions
that are estimated to cost between $150 million and $210 million and will
double our natural gas processing capacity in the Williston Basin.
Completion is expected in the fourth quarter of 2011.
Additional Investments
in the Bakken Shale in the Williston Basin in North
Dakota
In
addition to the construction of a new natural gas processing plant, our
natural gas gathering and processing segment will invest an additional
$200 million to $205 million during 2010 and 2011 for new well
connections, expansions and upgrades to its existing natural gas gathering
system infrastructure in the Bakken Shale.
These
investments include an expansion and upgrade of the natural gas gathering
systems and adding new compression to serve the new Garden Creek plant;
natural gas gathering system and compression upgrades to bring the
existing Grasslands natural gas processing plant to its full capacity by
the end of 2010; and $90 million to connect more than 300 wells in 2010
and approximately 400 wells in 2011 to our Williston Basin natural
gas gathering system.
Investments in the
Woodford Shale in Oklahoma
In
2010 and 2011, we will invest an additional $55 million in the Woodford
Shale in Oklahoma with projects in our natural gas gathering and
processing and the natural gas liquids (NGL) segments.
These
investments include connecting our western Oklahoma natural gas gathering
system to our existing Maysville natural gas processing facility in
central Oklahoma, allowing us to optimize our Oklahoma natural gas
processing capacity and accommodate growing volumes in the Woodford Shale
area. The project is currently under construction and expected to be
completed during the fourth quarter of 2010. These investments also
include approximately $20 million for new well connections in 2010 and
2011 to gather additional Woodford Shale natural gas volumes.
In
our natural gas liquids segment, capital investments include the expansion
of our existing Oklahoma NGL gathering system to connect a new natural gas
processing plant currently under construction that is expected to be
completed in the fourth quarter of 2010. This expansion will increase the
accessibility of this new supply source to our Arbuckle Pipeline and Mont
Belvieu, Texas, fractionation facilities.
Non-GAAP
Financial Measure
ONEOK
Partners has disclosed in this news release anticpated EBITDA and
Distributable Cash Flow (DCF) amounts that are non-GAAP financial
measures. We use EBITDA and DCF as measures of our financial
performance. We define EBITDA as net income adjusted for
interest expense, depreciation and amortization, income taxes and
allowance equity funds used during construction. We define DCF
as EBITDA, computed as described above, less interest expense, maintenance
capital expenditures and equity earnings from investments, adjusted for
cash and certain other items.
We
believe that the non-GAAP financial measures described above are useful to
investors because these measurements are used by many companies in our
industry as a measurement of financial performance and are commonly
employed by financial analysts and others to evaluate the financial
performance of the partnership and to compare the financial performance of
the partnership with the performance of other publicly traded partnerships
within our industry.
EBITDA
and DCF should not be considered an alternative to net income, earnings
per unit or any other measure of financial performance presented in
accordance with GAAP.
These
non-GAAP financial measures exclude some, but not all, items that affect
net income. Additionally, these calculations may not be comparable to
similarly titled measures of other companies. Furthermore,
these non-GAAP measures should not be viewed as indicative of the actual
amount of cash that we have available for distributions or that we plan to
distribute for a given period, nor do they equate to available cash as
defined in our partnership agreement.
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Item 9.01
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Financial Statements and
Exhibits
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Exhibits
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99.1 News
release issued by ONEOK Partners, L.P. dated April 21,
2010.
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2
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
ONEOK
Partners, L.P.
By: ONEOK
Partners GP, L.L.C.,
General
Partner
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|||
Date:
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April
26, 2010
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By:
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/s/
Curtis Dinan
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Curtis
Dinan
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|||
Senior
Vice President –
Chief
Financial Officer
and
Treasurer
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3