ONEOK Announces Higher Third-quarter 2014 Results; Updates 2014 Financial Guidance

ONEOK, Inc. (OKE) today announced third-quarter 2014 net income attributable to ONEOK of $64.5 million, or 31 cents per diluted share, which includes a noncash impairment charge of $76.4 million, or 9 cents per diluted share attributable to ONEOK, in the gathering and processing segment at ONEOK Partners (OKS). In the third quarter 2013, net income attributable to ONEOK was $62.4 million, or 30 cents per diluted share, which included a noncash, after-tax charge of $10.4 million, or 5 cents per diluted share, associated with the wind down of ONEOK’s former energy services segment.

The noncash impairment charge, which is included in equity earnings from investments, resulted from ONEOK Partners’ equity investment in Bighorn Gas Gathering, a natural gas gathering system located in the coal-bed methane area of the Powder River Basin in Wyoming, where dry natural gas volumes continue to decline.

Third-quarter 2014 income from continuing operations attributable to ONEOK was $64.6 million, compared with third-quarter 2013 income from continuing operations attributable to ONEOK of $72.5 million.

Third-quarter 2014 cash flow available for dividends was $137.0 million, providing 1.12 times coverage of cash dividends, reflecting higher distributions declared from its general and limited partner interests in ONEOK Partners, which were $162.0 million, a 16 percent increase from the third quarter 2013.

“Our structure, as a pure-play general partner of ONEOK Partners, continues to maximize cash flow available for dividends,” said Terry K. Spencer, president and chief executive officer of ONEOK. “Completed capital-growth projects at the partnership resulted in increased cash flow to ONEOK in the third quarter – creating increased value for our shareholders.”

“With the partnership’s recent announcements of new natural gas processing facilities in North Dakota, Wyoming and Oklahoma, it continues to add natural gas and natural gas liquids infrastructure to better serve customers and producers,” said Spencer. “And, its recently announced acquisition of NGL assets – the West Texas LPG and Mesquite NGL pipelines – in the Permian Basin of West Texas and southeastern New Mexico gives the partnership a significant NGL presence in yet another highly productive NGL-rich basin.”

“Once the acquisition is complete and integrated into the partnership’s existing systems, these assets are expected to generate incremental earnings and cash flow at ONEOK Partners through enhanced customer services and volume increases from pipeline capacity expansions which are expected to cost ONEOK Partners approximately $500 million between 2015 and 2019,” continued Spencer. “Potential margins realized downstream from fee-based fractionation and storage services at the partnership’s Mont Belvieu facilities could further enhance earnings and cash flow at the partnership.”

Year-to-date net income attributable to ONEOK was $219.6 million, or $1.04 per diluted share, which includes the noncash impairment charge of $76.4 million, or 9 cents per diluted share attributable to ONEOK, related to ONEOK Partners’ equity investment in Bighorn Gas Gathering. Net income attributable to ONEOK for the nine-month 2013 period was $175.8 million, or 84 cents per diluted share, which included a year-to-date 2013 noncash, after-tax charge of $82.1 million, or 39 cents per diluted share, in the former energy services segment. Year-to-date 2014 cash flow available for dividends was $478.4 million, providing 1.33 times coverage of cash dividends.

Year-to-date income from continuing operations attributable to ONEOK was $226.0 million, compared with income from continuing operations attributable to ONEOK of $205.0 million in the same period last year.

2014 UPDATED FINANCIAL EARNINGS GUIDANCE

ONEOK updated its 2014 cash flow available for dividends guidance to a range of $590 million to $640 million, compared with a previous guidance range of $560 million to $640 million announced on Dec. 3, 2013.

ONEOK’s free cash flow is expected to be in the range of $120 million to $140 million, compared with the previous guidance range of $100 million to $130 million.

> View guidance midpoint tables

THIRD-QUARTER AND YEAR-TO-DATE 2014 FINANCIAL PERFORMANCE

ONEOK’s third-quarter 2014 operating income was $291.4 million, compared with $231.4 million in the third quarter 2013.

Increases in third-quarter 2014 operating income reflect:

• Higher natural gas volumes gathered, processed and sold, and higher natural gas liquids (NGL) volumes sold in the natural gas gathering and processing segment as a result of recently completed capital-growth projects;
• Higher margin NGL volumes delivered from connections with new natural gas processing plants in the Williston Basin and Mid-Continent regions; and
• Higher natural gas pipeline transportation revenues due to increased rates on intrastate pipelines and higher natural gas volumes transported in the natural gas pipelines segment.

These increases were offset partially by lower net realized NGL and condensate prices in the natural gas gathering and processing segment, increased ethane rejection resulting in lower volumes in the natural gas liquids segment and higher operating costs and depreciation and amortization expense from completed capital-growth projects.

Operating costs were $172.5 million in the third quarter 2014, compared with $131.0 million in the same period last year, primarily as a result of the completed capital-growth projects.

Depreciation and amortization expense was $74.6 million in the third quarter 2014, compared with $61.9 million for the same period last year, due to the growth of ONEOK Partners’ operations.

Third-quarter 2014 equity earnings were a loss of $52.3 million, compared with equity earnings of $27.5 million in the third quarter 2013. The decrease in equity earnings is primarily due to the $76.4 million noncash impairment charge related to ONEOK Partners’ equity investment in Bighorn Gas Gathering.

Capital expenditures were $382.2 million in the third quarter 2014, compared with $537.5 million in the same period in 2013, due primarily to the timing of expenditures on capital-growth projects at the partnership and $83.8 million in capital expenditures for the former natural gas distribution business during the third quarter 2013.

For the first nine months of 2014, operating income was $836.8 million, compared with $634.5 million for the same period last year.

Operating costs for the nine-month 2014 period were $493.6 million, compared with $397.9 million for the same period last year, as a result of completed capital-growth projects at the partnership. Year-to-date 2014 depreciation and amortization expense was $214.1 million, compared with $176.0 million for the same period last year.

The former energy services segment’s future cash expenditures associated with the released natural gas transportation and storage capacity from the wind down are expected to be approximately $53 million on an after-tax basis, with approximately $8 million to be paid in the remainder of 2014; $23 million in 2015; $11 million in 2016; and $11 million from 2017 through 2023.

> View earnings tables

THIRD-QUARTER 2014 SUMMARY:

ONEOK:

• Operating income of $291.4 million, compared with $231.4 million in the third quarter 2013;
• Natural gas gathering and processing operating income of $82.9 million, compared with $58.5 million in the third quarter 2013;
• Natural gas liquids operating income of $173.8 million, compared with $146.2 million in the third quarter 2013;
• Natural gas pipelines operating income of $36.2 million, compared with $35.2 million in the third quarter 2013;
• Declaring in October 2014 a quarterly dividend of 59 cents per share, or $2.36 per share on an annualized basis, a 3 percent increase from the previous quarter, payable on Nov. 14, 2014, to shareholders of record at the close of business Nov. 3, 2014;
• Receiving $85.9 million in distributions from the company’s general partner interest and $70.5 million in distributions from the company’s limited partner interest in ONEOK Partners in the third quarter 2014; and
• Ending the third quarter 2014, on a stand-alone basis, with $97.4 million of cash and cash equivalents, $2.1 million in letters of credit issued and $297.9 million available under its $300 million credit facility.

ONEOK Partners:

• Completing the sale of approximately $81.3 million of common units through the partnership’s at-the-market equity program, which resulted in ONEOK’s aggregate ownership interest in ONEOK Partners decreasing to 38.3 percent at Sept. 30, 2014, from 38.5 percent at June 30, 2014;
• Filing a registration statement with the Securities and Exchange Commission to register an additional $650 million of common units for the partnership’s at-the-market equity program, which was declared effective in September 2014;
• Having $54.0 million of cash and cash equivalents, $14.0 million in letters of credit issued, no commercial paper outstanding and no borrowings outstanding under the partnership’s $1.7 billion revolving credit facility as of Sept. 30, 2014; and
• Increasing in October the third-quarter 2014 distribution to 77.5 cents per unit, or $3.10 per unit on an annualized basis, payable on Nov. 14, 2014, to unitholders of record on Nov. 3, 2014.

RECENTLY ANNOUNCED CAPITAL-GROWTH PROJECTS:

• Increasing the backlog of unannounced capital-growth projects to a range of $4 billion to $5 billion from a previous range of $3 billion to $4 billion;
• Increasing investments in its 2010 to 2016 capital-growth program to a range of $8.3 billion to $9.0 billion by announcing new projects and acquisitions, including:
  • Approximately $800 million to acquire approximately 2,600 miles of NGL pipelines and related assets in the Permian Basin in southeastern New Mexico and West Texas from affiliates of Chevron Corporation, including an 80 percent interest in the West Texas LPG Pipeline Limited Partnership and 100 percent interest in the Mesquite Pipeline. The transaction is expected to close in the fourth quarter 2014;
  • $230 million to $330 million to construct the Bear Creek plant, an 80-million cubic feet per day (MMcf/d) natural gas processing facility and related infrastructure in the Williston Basin in North Dakota, which is expected to be completed during the second quarter 2016; and an additional $35 million to $45 million to construct an NGL pipeline connecting the Bear Creek natural gas processing plant to the partnership’s Bakken NGL Pipeline, which is expected to be completed in the third quarter 2016;
  • $170 million to $245 million to construct the Bronco plant, a 100-MMcf/d natural gas processing facility and related infrastructure in the Powder River Basin in Wyoming; and an additional $45 million to $60 million to construct an NGL pipeline connecting the Bronco plant to the partnership’s Niobrara NGL Lateral. Both projects are expected to be completed during the third quarter 2016;
  • $515 million to $670 million to construct the Demicks Lake plant, a 200-MMcf/d natural gas processing facility and related infrastructure in the Williston Basin in North Dakota; and an additional $10 million to $15 million to construct an NGL pipeline connecting the Demicks Lake plant to the partnerships’ existing Bakken NGL Pipeline. Both projects are expected to be completed in the third quarter 2016;
  • $80 million to $100 million to construct additional natural gas compression to take advantage of additional natural gas processing capacity as a result of better than expected plant performance at the partnership’s existing and planned Garden Creek and Stateline natural gas processing plants in the Williston Basin by a total of 100 MMcf/d, which is expected to be completed in the fourth quarter 2015; and
  • $365 million to $470 million to construct the Knox plant, a 200-MMcf/d natural gas processing facility and related infrastructure in Oklahoma’s SCOOP play, which is expected to be completed in the fourth quarter 2016;
• Completing projects totaling more than $800 million, including:
  • The Garden Creek II and III plants, 100-MMcf/d natural gas processing facilities in the Williston Basin in North Dakota, which were completed in August and October, respectively;
  • The expansion of the Bakken NGL Pipeline, which increases the pipeline’s capacity to 135,000 barrels per day (bpd) from 60,000 bpd, which was completed in September; and
  • The Niobrara NGL Lateral, an NGL pipeline that connects the partnership’s Sage Creek natural gas processing facility in the NGL-rich Niobrara Shale formation in Wyoming’s Powder River Basin to the partnership’s Bakken NGL Pipeline; which was completed in September.

BUSINESS-SEGMENT RESULTS:

Natural Gas Gathering and Processing Segment

The natural gas gathering and processing segment reported third-quarter 2014 operating income of $82.9 million, compared with $58.5 million in the third quarter 2013, which reflects:

• A $50.0 million increase due primarily to natural gas volume growth in the Williston Basin and Cana-Woodford Shale and increased ownership in the Maysville, Oklahoma, natural gas processing plant, which resulted in higher natural gas volumes gathered, compressed, processed, transported and sold, higher NGL volumes sold and higher fees;
• A $3.4 million increase due primarily to changes in contract mix; and
• A $6.1 million decrease due primarily to lower net realized NGL and condensate prices.

Operating costs in the third quarter 2014 were $64.3 million, compared with $45.1 million in the third quarter 2013, due primarily to completed capital-growth projects and acquisitions, which reflect:

• A $10.9 million increase due to higher materials and supplies, and outside services expenses; and
• An $8.5 million increase due to higher labor and employee benefit costs.

Depreciation and amortization expense in the third quarter 2014 was $31.3 million, compared with $27.4 million in 2013, due to the completion of capital-growth projects and acquisitions.

Equity earnings from investments were a loss of $71.1 million, including the noncash impairment charge of $76.4 million, in the third quarter 2014, compared with equity earnings of $4.7 million in the same period in 2013.

Operating income for the nine-month 2014 period was $208.9 million, compared with $147.7 million in the same period last year, which reflects:

• A $111.4 million increase due primarily to natural gas volume growth in the Williston Basin and Cana-Woodford Shale and increased ownership in the Maysville, Oklahoma, natural gas processing plant, which resulted in higher natural gas volumes gathered, compressed, processed, transported and sold, higher NGL volumes sold and higher fees, offset partially by wellhead freeze-offs due to severely cold weather in the first quarter 2014;
• An $8.5 million increase due primarily to changes in contract mix;
• A $7.8 million increase due primarily to higher net realized natural gas and NGL prices; and
• A $6.4 million decrease due to a condensate contract settlement in 2013.

Operating costs for the nine-month 2014 period were $188.5 million, compared with $141.7 million for the same period last year, due primarily to completed capital-growth projects and acquisitions, which reflect:

• A $32.3 million increase due to higher materials and supplies, and outside services expenses; and
• A $17.3 million increase due to higher labor and employee benefit costs.

Depreciation and amortization expense for the nine-month 2014 period was $89.6 million, compared with $76.4 million for the same period last year, due to the completion of capital-growth projects and acquisitions.

Equity earnings from investments for the nine-month 2014 period were a loss of $60.5 million, including the noncash impairment charge of $76.4 million in the third quarter 2014, compared with equity earnings of $16.2 million for the same period last year.

Key Statistics: More detailed information is listed in the tables.

• Natural gas gathered was 1,847 billion British thermal units per day (BBtu/d) in the third quarter 2014, up 33 percent compared with the same period in 2013 due to volume growth from new natural gas processing plants placed in service and increased ownership in the Maysville, Oklahoma, natural gas processing plant, offset partially by continued natural gas production declines in Kansas; and up 12 percent compared with the second quarter 2014;
• Natural gas processed was 1,666 BBtu/d in the third quarter 2014, up 47 percent compared with the same period in 2013 due to volume growth from new natural gas processing plants placed in service and the increased ownership in the Maysville, Oklahoma, natural gas processing plant; and up 15 percent compared with the second quarter 2014;
• NGL sales were 111,000 bpd in the third quarter 2014, up 34 percent compared with the same period in 2013; and up 13 percent compared with the second quarter 2014;
• The realized composite NGL net sales price was 93 cents per gallon in the third quarter 2014, up 3 percent compared with the same period in 2013; and down 3 percent compared with the second quarter 2014;
• The realized condensate net sales price was $81.02 per barrel in the third quarter 2014, down 11 percent compared with the same period in 2013; and up 5 percent compared with the second quarter 2014; and
• The realized residue natural gas net sales price was $3.92 per million British thermal units (MMBtu) in the third quarter 2014, up 17 percent compared with the same period in 2013; and down 4 percent compared with the second quarter 2014.

In March 2014, the Canadian Valley natural gas processing plant in Oklahoma was completed, which has better ethane-rejection capabilities than the partnership’s other processing plants in the Mid-Continent region. As a result, the partnership’s realized composite NGL net sales price for the third quarter 2014 increased compared with the same period in 2013, while most individual NGL product prices were lower compared with the third quarter 2013. The Garden Creek, Garden Creek II, Stateline I and Stateline II natural gas processing plants in the Williston Basin have the capability to recover ethane when economic conditions warrant but did not do so during the first nine months of 2014. As a result, the partnership’s equity NGL volumes were weighted less toward ethane and more toward propane, iso-butane, normal butane and natural gasoline, and are expected to remain this way through at least 2016 due to expected ethane rejection.

In the third quarter 2014, the segment connected approximately 420 wells, compared with approximately 340 in the same period in 2013. Year to date, the partnership has connected approximately 1,010 wells, compared with approximately 950 wells connected in the same period in 2013.

The partnership expects to connect approximately 1,300 wells in 2014, compared with approximately 1,160 wells in 2013. Due to improved producer drilling and recovery techniques, natural gas volumes from new wells have increased, resulting in higher volumes gathered from newer well connections.

The following table contains equity-volume information for the periods indicated:

The natural gas gathering and processing segment is exposed to commodity-price risk as a result of receiving commodities in exchange for services.  The following tables provide hedging information for equity volumes in the natural gas gathering and processing segment in the periods indicated:

The partnership expects its NGL and natural gas commodity-price sensitivities to increase in the future as its capital-growth projects are completed and volumes increase under percent-of-proceeds contracts, with a fee-based component, with its customers.

All of the natural gas gathering and processing segment’s commodity-price sensitivities are estimated as a hypothetical change in the price of natural gas, NGLs and crude oil as of Sept. 30, 2014, excluding the effects of hedging and assuming normal operating conditions.  Condensate sales are based on the price of crude oil.

The natural gas gathering and processing segment estimates the following sensitivities:

• A 10-cent-per-MMBtu change in the price of residue natural gas would change 12-month forward net margin by approximately $5.1 million;
• A 1-cent-per-gallon change in the composite price of NGLs would change 12-month forward net margin by approximately $3.1 million; and
• A $1.00-per-barrel change in the price of crude oil would change 12-month forward net margin by approximately $1.6 million.

These estimates do not include any effects on demand for ONEOK Partners’ services or natural gas processing plant operations that might be caused by, or arise in conjunction with, price changes.  For example, a change in the gross processing spread may cause a change in the amount of ethane extracted from the natural gas stream, affecting natural gas gathering and processing margins for certain contracts.

Natural Gas Liquids Segment

The natural gas liquids segment reported third-quarter 2014 operating income of $173.8 million, compared with $146.2 million in the third quarter 2013, which reflects:

• A $53.0 million increase in exchange-services margins, resulting primarily from increased volumes from new natural gas processing plants connected in the Williston Basin and Mid-Continent regions, and higher fees from contract renegotiations for NGL exchange-services activities, offset partially by lower volumes from the termination of a contract;
• An $11.7 million increase in optimization and marketing margins, which resulted from an $8.7 million increase in margins due primarily to marketing and truck and rail activities, and a $7.5 million increase due primarily to wider NGL product price differentials; offset by a decrease of $4.5 million due primarily to lower optimization volumes; and
• A $5.6 million decrease from the impact of ethane rejection, which resulted in lower NGL volumes.

Operating costs were $77.0 million in the third quarter 2014, compared with $57.0 million in the third quarter 2013, due primarily to completed capital-growth projects, which reflect:

• A $7.5 million increase due to higher labor and employee benefit costs;
• A $5.9 million increase due to higher outside services expenses associated primarily with scheduled maintenance and the growth of operations related to completed capital-growth projects;
• A $3.3 million increase due to higher property taxes related to completed capital-growth projects; and
• A $1.3 million increase due to higher costs for chemicals, materials and supplies.

Depreciation and amortization expense in the third quarter 2014 was $31.7 million, compared with $23.0 million in the same period in 2013, due to the completion of capital-growth projects.

Equity earnings from investments were $4.4 million in the third quarter 2014, compared with $6.3 million in the same period in 2013.

The decrease in equity earnings in the third quarter 2014 was due primarily to increased ethane rejection and higher operating costs, offset partially by higher volumes delivered to the partnership’s 50 percent-owned Overland Pass Pipeline from the Bakken NGL Pipeline, which was placed in service in April 2013.

Operating income for the nine-month 2014 period was $509.5 million, compared with $396.0 million in the same period last year, which reflects:

• A $92.4 million increase in exchange-services margins, resulting primarily from increased volumes from new natural gas processing plants connected in the Williston Basin and Mid-Continent regions, and higher fees from contract renegotiations for NGL exchange-services activities, offset partially by lower volumes from the termination of a contract;
• An $84.1 million increase in optimization and marketing margins, resulting from a $33.7 million increase due primarily to wider NGL product price differentials, a $26.7 million increase in marketing margins, related primarily to increased weather-related seasonal demand for propane during the first quarter 2014, and marketing and truck and rail activities in the second and third quarters 2014; and a $23.7 million increase due primarily to significantly wider NGL location price differentials, primarily related to increased weather-related seasonal demand for propane during the first quarter 2014;
• An $18.7 million increase from higher isomerization volumes, resulting from wider NGL product price differentials between normal butane and iso-butane;
• A $4.5 million increase in storage margins due primarily to contract renegotiations;
• A $9.4 million decrease from the impact of ethane rejection, which resulted in lower NGL volumes; and
• A $5.0 million decrease from the impact of lower operational measurement gains.

Operating costs for the nine-month 2014 period were $218.2 million, compared with $171.1 million for the same period last year, which reflect:

• A $16.9 million increase due to higher outside services expenses associated primarily with scheduled maintenance and the growth of operations related to completed capital-growth projects;
• A $12.5 million increase due to higher labor and employee benefit costs;
• A $9.9 million increase due to higher property taxes related to completed capital-growth projects; and
• A $2.7 million increase due to higher costs for chemicals, materials and supplies.

Depreciation and amortization expense for the nine-month 2014 period was $89.8 million, compared with $65.0 million for the same period last year.

Nine-month 2014 equity earnings from investments were $13.6 million, compared with $15.4 million for the same period last year.

Key Statistics: More detailed information is listed in the tables.

• NGLs transported on gathering lines were 529,000 bpd in the third quarter 2014, down 8 percent compared with the same period in 2013, due primarily to the termination of a contract and increased ethane rejection in the Mid-Continent and Rocky Mountain regions, offset partially by volumes from new plants connected in the Williston Basin and Mid-Continent regions; and up 2 percent compared with the second quarter 2014;
• NGLs fractionated were 553,000 bpd in the third quarter 2014, down 1 percent compared with the same period in 2013, due primarily to the termination of a contract and increased ethane rejection in the Mid-Continent and Rocky Mountain regions, offset partially by volumes from new plants connected in the Williston Basin and Mid-Continent regions; and up 6 percent compared with the second quarter 2014;
• NGLs transported on distribution lines were 377,000 bpd in the third quarter 2014, down 17 percent compared with the same period in 2013, due primarily to lower volumes transported for the partnership’s optimization business due to narrower location price differentials between the Conway and Mont Belvieu market centers and increased ethane rejection, offset partially by an increase in exchange services volumes delivered to Mont Belvieu due to the completed Sterling III pipeline, which was placed in service in March 2014; and down 13 percent compared with the second quarter 2014, due primarily to lower volumes in the partnership’s optimization business due to narrower location price differentials between the Conway and Mont Belvieu market centers and increased ethane rejection; and
• The average Conway-to-Mont Belvieu price differential of ethane in ethane/propane mix, based on Oil Price Information Service (OPIS) pricing, was 3 cents per gallon in the third quarter 2014, compared with 4 cents per gallon in the same period in 2013; and 3 cents per gallon in the second quarter 2014.

Natural Gas Pipelines Segment

The natural gas pipelines segment reported third-quarter 2014 operating income of $36.2 million, compared with $35.2 million for the third quarter 2013, which reflects:

• A $7.7 million increase from higher firm transportation revenues resulting primarily from higher rates on its intrastate natural gas pipelines, increased contracted capacity and rates at Midwestern Gas Transmission Company and increased interruptible transportation revenues from higher natural gas volumes transported;
• A $1.0 million increase from additional storage services to meet utility customers’ peak-day demand; and
• A $4.3 million decrease due to lower storage revenues from lower contracted capacity.

Third-quarter 2014 equity earnings from investments were $14.4 million, compared with $16.5 million in the same period in 2013, due primarily to lower contracted capacity.

Operating income for the nine-month 2014 period was $128.7 million, compared with $102.9 million in the same period last year, which reflects:

• A $21.5 million increase from higher firm transportation revenues resulting primarily from higher rates on its intrastate natural gas pipelines, increased contracted capacity and rates at Midwestern Gas Transmission Company and increased interruptible transportation revenues from higher natural gas volumes transported;
• A $6.0 million increase from higher short-term natural gas storage services due to increased park-and-loan services associated with weather-related seasonal demand primarily in the first quarter 2014;
• A $5.9 million increase from higher net retained fuel due to higher natural gas prices and additional natural gas volumes retained;
• A $5.0 million increase from higher park-and-loan services as a result of weather-related seasonal demand on its interstate natural gas pipelines in the first quarter 2014;
• A $2.6 million increase primarily from additional storage services to meet utility customers’ peak-day demand; and
• A $10.0 million decrease due to lower storage revenues from lower contracted capacity.

Equity earnings from investments for the nine-month 2014 period were $53.7 million, compared with $48.1 million for the same period last year, due primarily to increased park-and-loan services on Northern Border Pipeline as a result of increased weather-related seasonal demand in the first quarter 2014, offset partially by lower contracted capacity in the third quarter 2014.

Key Statistics: More detailed information is listed in the tables.

• Natural gas transportation capacity contracted was 5,725 thousand dekatherms per day in the third quarter 2014, up 5 percent compared with the same period in 2013; and up 1 percent compared with the second quarter 2014;
• Natural gas transportation capacity subscribed was 90 percent in the third quarter 2014, up 1 percent compared with the same period in 2013; and unchanged from the second quarter 2014; and
• The average natural gas price in the Mid-Continent region was $3.77 per MMBtu in the third quarter 2014, up 10 percent compared with the same period in 2013; and down 14 percent compared with the second quarter 2014.

CAPITAL-GROWTH ACTIVITIES:

The partnership has announced approximately $8.3 billion to $9.0 billion in capital-growth projects and acquisitions between 2010 and 2016, of which approximately $4.7 billion have been completed.

In addition, the partnership increased its unannounced project backlog to a range of $4 billion to $5 billion from its previous range of $3 billion to $4 billion.

Of the approximately $4.2 billion to $4.8 billion of announced capital-growth projects and acquisitions in the natural gas gathering and processing segment, projects totaling approximately $2.3 billion have been completed as follows:

Approximately $2.0 billion to $2.5 billion of announced capital-growth projects in the natural gas gathering and processing segment are in various stages of construction as follows:

Of the approximately $4.1 billion of announced capital-growth projects in the natural gas liquids segment, projects totaling approximately $2.4 billion have been completed as follows:

Approximately $1.7 billion of announced capital-growth projects and acquisitions in the natural gas liquids segment are in various stages of completion, as follows:

EARNINGS CONFERENCE CALL AND WEBCAST:

ONEOK and ONEOK Partners executive management will conduct a joint conference call on Wednesday, Nov. 5, 2014, at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time).  The call also will be carried live on ONEOK’s and ONEOK Partners’ websites.

To participate in the telephone conference call, dial 888-554-1424, pass code 6956087, or log on towww.oneokpartners.com or www.oneok.com.

If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK Partners’ website, www.oneokpartners.com, and ONEOK’s website, www.oneok.com, for 30 days.  A recording will be available by phone for seven days.  The playback call may be accessed at 888-203-1112, pass code 6956087.