Attached files
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| 8-K - OKS NEW GROWTH PROJECTS IN BAKKEN SHALE AND WOODFORD SHALE - ONEOK Partners LP | form_8-k.htm |
Exhibit 99.1
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April
21, 2010
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Analyst
Contact: Andrew Ziola
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918-588-7163
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Media Contact: Brad Borror
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918-588-7582
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ONEOK Partners to Invest More Than $400 Million in
New
Growth Projects in Bakken Shale and Woodford Shale Plays
Projects
Include New Natural Gas Processing Plant in North Dakota
TULSA,
Okla. – April 21, 2010 – ONEOK Partners, L.P. (NYSE: OKS) today announced that
it 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 the partnership 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 the
partnership has 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 the partnership’s natural
gas processing capacity in the Williston Basin. Completion is expected in the
fourth quarter of 2011.
“Producers
with significant acreage dedications to ONEOK Partners’ assets continue to
aggressively develop these areas and need additional infrastructure,” said Terry
K. Spencer, ONEOK Partners chief operating officer. “Natural gas and natural gas
liquids gathering system expansions, as well as construction of a new natural
gas processing plant in the Bakken Shale region, are necessary to provide the
services our customers expect from us.”
In
aggregate, these projects are expected to generate EBITDA (earnings before
interest, taxes, depreciation and amortization) multiples of five to seven
times. The incremental earnings from these projects are expected to increase
distributable cash flow and value to unitholders in the form of higher
distributions.
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, ONEOK
Partners’ natural gas gathering and processing segment will invest an additional
$200 million to $205
-more-
ONEOK
Partners to Invest More Than $400 Million in
New
Growth Projects in Bakken Shale and Woodford Shale Plays
Page
2
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 the partnership’s Williston Basin natural gas gathering
system.
ONEOK
Partners is the largest independent operator of natural gas gathering and
processing facilities in the Bakken Shale region, with a gathering system of
more than 3,500 miles. In March 2009, it completed a $46 million expansion of
its Grasslands natural gas processing facility in North Dakota and since 2007
has invested more than $80 million in new well connections and related
infrastructure upgrades to existing natural gas gathering systems in the
region.
Investments in the Woodford
Shale in Oklahoma
In 2010
and 2011, the partnership will invest an additional $55 million in the Woodford
Shale in Oklahoma with projects in the natural gas gathering and processing and
the natural gas liquids (NGL) segments.
These
investments include connecting the partnership’s western Oklahoma natural gas
gathering system to its existing Maysville natural gas processing facility in
central Oklahoma, allowing it to optimize its 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 the
partnership’s natural gas liquids segment, capital investments include the
expansion of the partnership’s 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 the partnership’s Arbuckle Pipeline
and Mont Belvieu, Texas, fractionation facilities.
Since
2007, ONEOK Partners has invested approximately $70 million in the Woodford
Shale.
EDITOR’S
NOTE:
View maps
showing the location of the new processing facility, as well as the
infrastructure upgrades.
-more-
ONEOK
Partners to Invest More Than $400 Million in
New
Growth Projects in Bakken Shale and Woodford Shale Plays
Page
3
ONEOK
Partners, L.P. (NYSE: OKS) is one of the largest publicly traded master limited
partnerships, and is a leader in the gathering, processing, storage and
transportation of natural gas in the U.S. and owns one of the nation’s premier
natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent
and Rocky Mountain regions with key market centers. Its general partner is a
wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a diversified energy
company, which owns 42.8 percent of the overall partnership interest. ONEOK is
one of the largest natural gas distributors in the United States, and its energy
services operation focuses primarily on marketing natural gas and related
services throughout the U.S.
Some of
the statements contained and incorporated in this news release are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. The
forward-looking statements relate to our anticipated financial performance,
management’s plans and objectives for our future operations, our business
prospects, the outcome of regulatory and legal proceedings, market conditions
and other matters. We make these forward-looking statements in reliance on the
safe harbor protections provided under the Private Securities Litigation Reform
Act of 1995. The following discussion is intended to identify important factors
that could cause future outcomes to differ materially from those set forth in
the forward-looking statements.
Forward-looking
statements include the items identified in the preceding paragraph, the
information concerning possible or assumed future results of our operations and
other statements contained or incorporated in this news release identified by
words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe,” “should,” “goal,” “forecast,” “guidance,” “could,” “may,” “continue,”
“might,” “potential,” “scheduled” and other words and terms of similar
meaning.
The
forward looking statements in this news release relating to the estimated costs
and completion schedules as well as anticipated EBITDA and distribution levels
with respect to the referenced growth construction projects are subject to known
and unknown risks, uncertainties and other factors that may cause actual project
costs and completion schedules and associated EBITDA and distribution levels to
be materially different from those included in the forward looking statements.
These risks and uncertainties include, but are not limited to, timely receipt of
necessary governmental approvals and permits, our ability to control the costs
of construction, including costs of materials, labor, [and right-of-way], and
other factors that may impact our ability to complete these projects within
budget and on schedule.
OKS-PP
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