Wyoming Pipeline Authority October 28, 2003

1
Wyoming Pipeline Authority October 28, 2003

• Mark Quinlan
• Director Marketing.

2
ONEOK A Diversified Energy Company
Production
Gathering Processing
Transportation Storage
Marketing Trading
Distribution
Business Strategy

• Operate existing assets to improve returns
• Acquire assets that compliment and strengthen our
  core business
• Achieve an average growth of 10 percent in
  earnings annually

3
ProductionStrategy

• Acquire and develop reserves
• Expand footprint
• Looking for Rockies Play
• Exploitation Company

Production Areas
4
Production
Total Production Reserves (Bcfe)
5
Gathering ProcessingStrategy

• Consolidate and rationalize assets
• Business focus
• Fee-based versus commodity spread
• Mitigate processing margin volatility
• Contract renegotiations
• Change in operation

ONEOK Processing Plants ONEOK Gathering Areas
6
Transportation StorageStrategy

• Increase throughput and margins
• Maintain competitive cost structure
• Strategically expand network of storage and
  pipeline assets

Storage Transportation
7
DistributionStrategy

• Focus on costs per customer
• Look for acquisition opportunities

Kansas Gas Service Company Oklahoma Natural Gas
Company Texas Gas Service Company
8
Financial Review
9
Cash FlowNet of Acquisition Capital
(Million)
232.5 (a)
215
341.6(a)
311.4(a)
2000
2002
2001
Estimated 2003
Surplus
Dividends
Shortage
CapEx
(a) Includes amounts reported as discontinued
operations in 2002 Form 10-K.
10
Operating Income Diversity
Gathering
Processing
6
Distribution
26
Transportation Storage
15
Production
6
Marketing Trading
47
2002 Est. 386 Million
11
Strong Credit Quality

• Focus on maintaining strong credit ratings
• A /Baa1 (SP / Moodys)
• Focus on maintaining solid liquidity

2001
2003
Equity35
Equity51
Debt49
Debt65
12
Forward Looking Statement

• Statements contained in this presentation that
  include company expectations or predictions of
  the future are forward-looking statements
  intended to be covered by the safe harbor
  provisions of the Securities Act of 1933 and the
  Securities Exchange Act of 1934. It is important
  to note that the actual results of company
  earnings could differ materially from those
  projected in any forward-looking statements. For
  additional information refer to ONEOKs
  Securities and Exchange Commission filings.

13
Marketing Trading

• Market and trade natural gas, natural gas
  liquids, crude oil and electricity
• Trade around asset base to optimize margins
• Lease gas storage and pipeline capacity assets
• Located in the heart of the natural gas producing
  area
• Provide service to most of the U.S.

14
Marketing TradingStrategy

• Increase leased storage and pipeline capacity
• Grow markets served

Leased Storage
15
Marketing TradingOperating Revenues
16
Marketing TradingStorage Revenue Streams

• Winter and summer spread
• Demand peaking business
• Call option strategy

17
OEMT Strategy

• OEMTs success is derived from its ability to
  optimize and trade around assets

Arbitrage
ONEOK
Reliability
Optionality
18
OEMTs Pricing Methods

• OEMTs Pricing is Market sensitive and Producer
  Friendly
• OEMT can create a portfolio of pricing if desired
  by the producer
• OEMTs utilizes a variety of pricing methods
• Fixed price
• Inside FERC first of the month index
• Gas Daily index
• NYMEX/Basis triggers

19
OEMT Purchases

• Volumes are purchased to fill OEMTs
  transportation position and market commitments.
• Purchases are not weather driven.
• OEMT purchases baseload and swing volumes.
• OEMT provides a reliable market for its
  producers.

20
Rockies Transportation

• OEMT holds a significant amount of long term
  transportation on KMIGT, WIC, Trailblazer, and
  Cheyenne Plains
• Pipeline Volume Term
• - KMIGT 150,000 MMBtu/day
  9/30/07
• WIC 40,000 MMBtu/day 12/31/07
• Trailblazer 50,000 MMBtu/day 3/31/18
• Cheyenne Plains 95,000 MMBtu/day 3/31/15
• - CIG 5,800 MMBtu/day 10/31/23

21
Raton Basin
MT
Powder River Basin
WY
Bighorn Basin
Wind River Basin
Wind River Basin
Glen Rock
Denver-Julesburg Basin
Green River Basin
Kanda
Cheyenne Hub
KS
KS
KS
Uinta Basin
Uinta Basin
Denver
Piceance Basin
Anadarko Basin
UT
CO
AZ
AZ
NM
Raton Basin
TX
TX
TX
CIG WIC PEPL NGPL
Cheyenne Plains Trail Blazer Southern Star
KN/Pony Express
3
22
Mastio Companys
Natural Gas Marketer Customer Satisfaction Study
ONEOK Energy Marketing Trading was rated 3rd in
the Major Marketer Index for 2002.
23
OEMT Conclusion

• Expand Physical Trading
• Grow Financial Trading
• Emphasize Growth in the Rockies
• Secure long term supply
• Maximize transportation position to the
  Mid-continent