CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (USD $) | |||
In Thousands, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Income Statement | |||
Revenues | $11,111,651 | $16,157,433 | $13,477,414 |
Cost of sales and fuel | 9,095,705 | 14,221,906 | 11,667,306 |
Net margin | 2,015,946 | 1,935,527 | 1,810,108 |
Operating expenses | |||
Operations and maintenance | 736,125 | 694,597 | 675,575 |
Depreciation and amortization | 288,991 | 243,927 | 227,964 |
General taxes | 100,996 | 82,315 | 85,935 |
Total operating expenses | 1,126,112 | 1,020,839 | 989,474 |
Gain on sale of assets | 4,806 | 2,316 | 1,909 |
Operating income | 894,640 | 917,004 | 822,543 |
Equity earnings from investments (Note P) | 72,722 | 101,432 | 89,908 |
Allowance for equity funds used during construction | 26,868 | 50,906 | 12,538 |
Other income | 22,609 | 16,838 | 21,932 |
Other expense | (17,492) | (27,475) | (7,879) |
Interest expense | (300,822) | (264,167) | (256,325) |
Income before income taxes | 698,525 | 794,538 | 682,717 |
Income taxes (Note M) | (207,321) | (194,071) | (184,597) |
Net income | 491,204 | 600,467 | 498,120 |
Less: Net income attributable to noncontrolling interests | 185,753 | 288,558 | 193,199 |
Net income attributable to ONEOK | $305,451 | $311,909 | $304,921 |
Earnings per share of common stock (Note Q) | |||
Net earnings per share, basic | 2.9 | 2.99 | 2.84 |
Net earnings per share, diluted | 2.87 | 2.95 | 2.79 |
Average shares of common stock (thousands) | |||
Basic | 105,362 | 104,369 | 107,346 |
Diluted | 106,320 | 105,760 | 109,298 |
Dividends declared per share of common stock | 1.64 | 1.56 | 1.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets | ||
Cash and cash equivalents | $29,399 | $510,058 |
Accounts receivable, net | 1,437,994 | 1,265,300 |
Gas and natural gas liquids in storage | 583,127 | 858,966 |
Commodity imbalances | 186,015 | 56,248 |
Energy marketing and risk management assets (Notes C and D) | 113,039 | 362,808 |
Other current assets | 238,890 | 324,222 |
Total current assets | 2,588,464 | 3,377,602 |
Property, plant and equipment | ||
Property, plant and equipment | 10,145,800 | 9,476,619 |
Accumulated depreciation and amortization | 2,352,142 | 2,212,850 |
Net property, plant and equipment (Note E) | 7,793,658 | 7,263,769 |
Investments and other assets | ||
Goodwill and intangible assets (Note F) | 1,030,560 | 1,038,226 |
Energy marketing and risk management assets (Notes C and D) | 23,125 | 45,900 |
Investments in unconsolidated affiliates (Note P) | 765,163 | 755,492 |
Other assets | 626,713 | 645,073 |
Total investments and other assets | 2,445,561 | 2,484,691 |
Total assets | 12,827,683 | 13,126,062 |
Current liabilities | ||
Current maturities of long-term debt (Note I) | 268,215 | 118,195 |
Notes payable (Note H) | 881,870 | 2,270,000 |
Accounts payable | 1,240,207 | 1,122,761 |
Commodity imbalances | 394,971 | 188,030 |
Energy marketing and risk management liabilities (Notes C and D) | 65,162 | 175,006 |
Other current liabilities | 488,487 | 319,772 |
Total current liabilities | 3,338,912 | 4,193,764 |
Long-term debt, excluding current maturities (Note I) | 4,334,204 | 4,112,581 |
Deferred credits and other liabilities | ||
Deferred income taxes | 1,037,665 | 890,815 |
Energy marketing and risk management liabilities (Notes C and D) | 8,926 | 46,311 |
Other deferred credits | 662,514 | 715,052 |
Total deferred credits and other liabilities | 1,709,105 | 1,652,178 |
ONEOK shareholders' equity | ||
Common stock, $0.01 par value: authorized 300,000,000 shares; issued 122,394,015 shares and outstanding 105,906,776 shares at December 31, 2009; issued 121,647,007 shares and outstanding 104,845,231 shares at December 31, 2008 | 1,224 | 1,216 |
Paid in capital | 1,322,340 | 1,301,153 |
Accumulated other comprehensive loss (Note G) | (118,613) | (70,616) |
Retained earnings | 1,685,710 | 1,553,033 |
Treasury stock, at cost: 16,487,239 shares at December 31, 2009 and 16,801,776 shares at December 31, 2008 | (683,467) | (696,616) |
Total ONEOK shareholders' equity | 2,207,194 | 2,088,170 |
Noncontrolling interests in consolidated subsidiaries | 1,238,268 | 1,079,369 |
Total shareholders' equity | 3,445,462 | 3,167,539 |
Total liabilities and shareholders' equity | $12,827,683 | $13,126,062 |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
Dec. 31, 2009
| Dec. 31, 2008
| |
ONEOK shareholders' equity | ||
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares, issued | 122,394,015 | 121,647,007 |
Common stock, shares, outstanding | 105,906,776 | 104,845,231 |
Treasury stock, shares | 16,487,239 | 16,801,776 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Operating activities | |||
Net income | $491,204 | $600,467 | $498,120 |
Depreciation and amortization | 288,991 | 243,927 | 227,964 |
Allowance for equity funds used during construction | (26,868) | (50,906) | (12,538) |
Gain on sale of assets | (4,806) | (2,316) | (1,909) |
Equity earnings from investments | (72,722) | (101,432) | (89,908) |
Distributions received from unconsolidated affiliates | 75,377 | 93,261 | 103,785 |
Deferred income taxes | 198,713 | 165,191 | 65,017 |
Share-based compensation expense | 23,148 | 30,791 | 20,909 |
Allowance for doubtful accounts | 4,232 | 13,476 | 14,578 |
Inventory adjustment, net | 0 | 9,658 | 0 |
Investment securities gains | (3,016) | (11,142) | 0 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (181,426) | 433,859 | (378,876) |
Gas and natural gas liquids in storage | 266,674 | (370,662) | 88,937 |
Accounts payable | 154,039 | (340,584) | 343,144 |
Commodity exchanges and imbalances, net | 77,174 | (37,375) | 40,572 |
Unrecovered purchased gas costs | 23,244 | (35,790) | 9,530 |
Accrued interest | (8,798) | 16,002 | 9,001 |
Energy marketing and risk management assets and liabilities | 113,540 | 60,846 | 41,649 |
Fair value of firm commitments | 176,799 | 505 | 5,631 |
Pension and postretirement benefits | (42,040) | (83,254) | 28,573 |
Other assets and liabilities | (100,765) | (158,845) | 15,481 |
Cash provided by operating activities | 1,452,694 | 475,677 | 1,029,660 |
Investing activities | |||
Changes in investments in unconsolidated affiliates | (12,031) | 3,963 | (3,668) |
Acquisitions | 0 | 2,450 | (299,560) |
Capital expenditures (less allowance for equity funds used during construction) | (791,245) | (1,473,136) | (883,703) |
Proceeds from sale of assets | 10,982 | 2,630 | 4,022 |
Proceeds from insurance | 4,500 | 9,792 | 0 |
Changes in short-term investments | 0 | 0 | 31,125 |
Cash used in investing activities | (787,794) | (1,454,301) | (1,151,784) |
Financing activities | |||
Borrowing (repayment) of notes payable, net | (518,130) | 1,197,400 | 196,600 |
Borrowing (repayment) of notes payable with maturities over 90 days | (870,000) | 870,000 | 0 |
Issuance of debt, net of discounts | 498,325 | 0 | 598,146 |
Long-term debt financing costs | (4,000) | 0 | (5,805) |
Payment of debt | (114,975) | (416,040) | (13,588) |
Repurchase of common stock | (254) | (29) | (390,213) |
Issuance of common stock | 17,317 | 16,495 | 20,730 |
Issuance of common units to noncontrolling interests, net of discounts | 241,642 | 146,969 | 0 |
Dividends paid | (172,774) | (162,785) | (150,188) |
Distributions to noncontrolling interests | (222,710) | (201,658) | (182,891) |
Other financing activities | 0 | 19,225 | 170 |
Cash provided by (used in) financing activities | (1,145,559) | 1,469,577 | 72,961 |
Change in cash and cash equivalents | (480,659) | 490,953 | (49,163) |
Cash and cash equivalents at beginning of period | 510,058 | 19,105 | 68,268 |
Cash and cash equivalents at end of period | 29,399 | 510,058 | 19,105 |
Supplemental cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 314,509 | 237,577 | 253,678 |
Cash paid for income taxes | $30,560 | $82,965 | $57,281 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | |||||||
In Thousands, except Share data | Common Stock
| Paid-in Capital
| Accumulated Other Comprehensive Income (Loss)
| Retained Earnings
| Treasury Stock
| Noncontrolling Interests in Consolidated Subsidiaries
| Total
|
Common stock issued, beginning balance at Dec. 31, 2006 | 120,333,908 | ||||||
Shareholders' equity, beginning balance at Dec. 31, 2006 | $1,203 | $1,258,717 | $39,532 | $1,256,759 | ($340,253) | $800,645 | $3,016,603 |
Net income | 0 | 0 | 0 | 304,921 | 0 | 193,199 | 498,120 |
Other comprehensive loss | 0 | 0 | (46,601) | 0 | 0 | (8,989) | (55,590) |
Repurchase of common stock | 0 | (11,103) | 0 | 0 | (379,110) | 0 | (390,213) |
Common stock issued, shares | 781,309 | ||||||
Common stock issued | 8 | 26,186 | 0 | 0 | 9,237 | 0 | 35,431 |
Common stock dividends | 0 | 0 | 0 | (150,188) | 0 | (182,891) | (333,079) |
Shareholders' equity, ending balance at Dec. 31, 2007 | 1,211 | 1,273,800 | (7,069) | 1,411,492 | (710,126) | 801,964 | 2,771,272 |
Common stock issued, ending balance at Dec. 31, 2007 | 121,115,217 | ||||||
Net income | 0 | 0 | 0 | 311,909 | 0 | 288,558 | 600,467 |
Other comprehensive loss | 0 | 0 | (63,547) | 0 | 0 | 43,536 | (20,011) |
Repurchase of common stock | 0 | 0 | 0 | 0 | (29) | 0 | (29) |
Common stock issued, shares | 531,790 | ||||||
Common stock issued | 5 | 27,353 | 0 | 0 | 13,539 | 0 | 40,897 |
Common stock dividends | 0 | 0 | 0 | (162,785) | 0 | 0 | (162,785) |
Issuance of common unites to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 146,969 | 146,969 |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | (201,658) | (201,658) |
Change in measurement date for employee benefit plans | 0 | 0 | 0 | (7,583) | 0 | 0 | (7,583) |
Shareholders' equity, ending balance at Dec. 31, 2008 | 1,216 | 1,301,153 | (70,616) | 1,553,033 | (696,616) | 1,079,369 | 3,167,539 |
Common stock issued, ending balance at Dec. 31, 2008 | 121,647,007 | ||||||
Net income | 0 | 0 | 0 | 305,451 | 0 | 185,753 | 491,204 |
Other comprehensive loss | 0 | 0 | (47,997) | 0 | 0 | (45,786) | (93,783) |
Repurchase of common stock | 0 | 0 | 0 | 0 | (254) | 0 | (254) |
Common stock issued, shares | 747,008 | ||||||
Common stock issued | 8 | 21,187 | 0 | 0 | 13,403 | 0 | 34,598 |
Common stock dividends | 0 | 0 | 0 | (172,774) | 0 | 0 | (172,774) |
Issuance of common unites to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 241,642 | 241,642 |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | (222,710) | (222,710) |
Shareholders' equity, ending balance at Dec. 31, 2009 | $1,224 | $1,322,340 | ($118,613) | $1,685,710 | ($683,467) | $1,238,268 | $3,445,462 |
Common stock issued, ending balance at Dec. 31, 2009 | 122,394,015 |
1_PARENTHETICAL DATA TO THE CON
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | |||
12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | |
Statement of Stockholders' Equity | |||
Dividends declared per share of common stock | 1.64 | 1.56 | 1.4 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Statement of Comprehensive Income | |||
Net income | $491,204 | $600,467 | $498,120 |
Other comprehensive income (loss), net of tax | |||
Unrealized gains on energy marketing and risk management assets/liabilities, net of tax of $(26,488), $(106,616) and $(26,586), respectively | 24,455 | 213,320 | 13,313 |
Realized gains in net income, net of tax of $48,059, $110,214 and $62,590, respectively | (104,549) | (167,199) | (86,945) |
Unrealized holding gains (losses) on available-for-sale securities, net of tax of $(396), $3,805 and $(671), respectively | 627 | (6,032) | 1,064 |
Gains in investment securities recognized in net income, net of tax of $0, $4,310 and $0, respectively | 0 | (6,832) | 0 |
Change in pension and postretirement benefit plan liability, net of tax of $9,186, $33,601 and $(10,709), respectively | (14,560) | (53,268) | 16,978 |
Other, net of tax of $(84), $0 and $0, respectively | 244 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (93,783) | (20,011) | (55,590) |
Comprehensive income | 397,421 | 580,456 | 442,530 |
Less: Comprehensive income attributable to noncontrolling interests | 139,967 | 332,096 | 184,210 |
Comprehensive income attributable to ONEOK | $257,454 | $248,360 | $258,320 |
2_PARENTHETICAL DATA TO THE CON
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Other comprehensive income (loss), net of tax | |||
Unrealized gains on energy marketing and risk management assets/liabilities, tax | ($26,488) | ($106,616) | ($26,586) |
Realized gains in net income, tax | 48,059 | 110,214 | 62,590 |
Unrealized holding gains (losses) on available-for-sale securities, tax | (396) | 3,805 | (671) |
Gains in investment securities recognized in net income, tax | 0 | 4,310 | 0 |
Change in pension and postretirement benefit plan liability, tax | 9,186 | 33,601 | (10,709) |
Other, tax | ($84) | $0 | $0 |
A. SUMMARY OF ACCOUNTING POLICI
A. SUMMARY OF ACCOUNTING POLICIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Summary of Accounting Policies | A.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations-We are a diversified energy company and successor to the company founded in 1906 known as Oklahoma Natural Gas Company.Our common stock is listed on the NYSE under the trading symbol OKE.We are the sole general partner and as of December 31, 2009, we owned 45.1 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships.As a result of ONEOK Partners February 2010 public offering of common units, we own a 42.9 percent aggregate equity interest in ONEOK Partners. We have divided our operations into three reportable business segments based on similarities in economic characteristics, products and services, types of customers, methods of distribution and regulatory environment.These segments are as follows: ONEOK Partners; Distribution; and Energy Services. Our ONEOK Partners segment is engaged in the gathering and processing of natural gas and transportation and fractionation of NGLs, primarily in the Mid-Continent and Rocky Mountain regions that include the Anadarko Basin of Oklahoma, Fort Worth Basin of Texas, Hugoton and Central Uplift Basins of Kansas; and the Williston Basin of Montana and North Dakota and Powder River Basin of Wyoming, respectively.These operations include the gathering and processing of natural gas produced from crude oil and natural gas wells.Through gathering systems, unprocessed natural gas is aggregated and treated or processed for removal of water vapor, solids and other contaminants, and to extract NGLs in order to provide marketable natural gas, commonly referred to as residue gas.When the NGLs are separated from the unprocessed natural gas at the processing plants, the NGLs are generally in the form of a mixed, unfractionated NGL stream.In the Powder River Basin, the natural gas that ONEOK Partners gathers is coal bed methane, or dry gas, that does not require processing in order to be marketable; dry gas is gathered, compressed and delivered into a pipeline for a fee. ONEOK Partners operates interstate and intrastate natural gas transmission pipelines, natural gas storage facilities and non-processable natural gas gathering facilities.ONEOK Partners also provides natural gas transportation and storage services in accordance with Section 311(a) of the Natural Gas Policy Act.ONEOK Partners interstate assets transport natural gas through FERC-regulated interstate natural gas pipelines that access supply from Canada and from the Mid-Continent, Rocky Mountain and Gulf Coast regions.ONEOK Partners intrastate natural gas pipeline assets are located in Oklahoma, Texas and Kansas, and have access to major natural gas producing areas in those states.ONEOK Partners owns underground natural gas storage facilities in Oklahoma, Kansas and Texas. ONEOK Partners also gathers, treats, fractionates, transports and stores NGLs.ONEOK Partners natural gas liquids gathering pipelines deliver unfractionated NGLs gathered from natural gas processing plants located in Oklahoma, Kansas, Texas and the Rocky Mountain region to fractionators it owns in Oklahoma, Kansas and T |
B. ACQUISITION
B. ACQUISITION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Acquisition | B.ACQUISITION Acquisition of NGL Pipeline - In October 2007, ONEOK Partners completed the acquisition of an interstate natural gas liquids and refined petroleum products pipeline system and related assets from a subsidiary of Kinder Morgan Energy Partners, L.P. for approximately $300 million, before working capital adjustments.The FERC-regulated system extends from Bushton and Conway, Kansas, to Chicago, Illinois, and transports, stores and delivers a full range of NGL and refined petroleum products.The transaction also included a 50 percent ownership interest in Heartland.ConocoPhillips owns the other 50 percent of Heartland and is the managing partner of the Heartland joint venture, which consists primarily of a refined petroleum products terminal and pipelines with access to two other refined petroleum products terminals.ONEOK Partners investment in Heartland is accounted for under the equity method of accounting.Financing for this transaction came from a portion of the proceeds of ONEOK Partners September 2007 issuance of $600 million 6.85 percent Senior Notes due 2037.The working capital settlement was finalized in April 2008, with no material adjustments. |
C. FAIR VALUE MEASUREMENTS
C. FAIR VALUE MEASUREMENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Fair Value Measurements | C.FAIR VALUE MEASUREMENTS See Note A for a discussion of our fair value measurements, the fair value hierarchy and the related accounting treatment.See Note K for our disclosures related to the plan assets of our employee benefit plans. Recurring Fair Value Measurements - The following tables set forth our recurring fair value measurements for the periods indicated: December 31, 2009 Level 1 Level 2 Level 3 Netting Total (Thousands of dollars) Assets Derivatives (a) $ 149,034 $ 4,898 $ 672,631 $ (690,399 ) $ 136,164 Trading securities (b) 7,927 - - - 7,927 Available-for-sale investment securities (c) 2,688 - - - 2,688 Total assets $ 159,649 $ 4,898 $ 672,631 $ (690,399 ) $ 146,779 Liabilities Derivatives (a) $ (109,713 ) $ (8,481 ) $ (535,937 ) $ 580,043 $ (74,088 ) Fair value of firm commitments (d) - - (134,620 ) - (134,620 ) Total liabilities $ (109,713 ) $ (8,481 ) $ (670,557 ) $ 580,043 $ (208,708 ) (a) - Our derivative assets and liabilities are presented in our Consolidated Balance Sheets as energy marketing and risk management assets and liabilities on a net basis.We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between us and the counterparty to a derivative contract.At December 31, 2009, we held $136.5 million of cash collateral and had posted $26.1 million of cash collateral with various counterparties. (b) - Our trading securities are presented in our Consolidated Balance Sheets as other current assets. (c) - Our available-for-sale investment securities are presented in our Consolidated Balance Sheets as other assets. (d) - Our fair value of firm commitments are presented in our Consolidated Balance Sheets as other current liabilities and other deferred credits. December 31, 2008 Level 1 Level 2 Level 3 Netting Total (Thousands of dollars) Assets Derivatives (a) $ 580,029 $ 215,116 $ 454,377 $ (840,814 ) $ 408,708 Trading securities (b) 4,910 - - - 4,910 Available-for-sale investment securities (c) 1,665 - - - 1,665 Fair value of firm commitments (d) - - 42,179 - 42,179 Total assets $ 586,604 $ 215,116 $ 496,556 $ (840,814 ) $ 457,462 Liabilities Derivatives (a) $ (501,726 ) $ (55,705 ) $ (412,022 ) $ 748,136 $ (221,317 ) Long-term debt swapped to floating (e) - - (171,455 ) - (171,455 ) Total liabilities $ (501,726 ) $ (55,705 ) $ (583,477 ) $ 748,136 $ (392,772 ) (a) - Our derivative assets and liabilities are presented in our C |
D. RISK MANAGEMENT AND HEDGING
D. RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Risk Managment and Hedging Activities Using Derivatives | D.RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES See Note A for a discussion of the accounting treatment of our risk management and hedging activities using derivatives. Energy Marketing and Risk Management Activities Our Energy Services and ONEOK Partners segments are exposed to various risks that we manage by periodically entering into derivative instruments.These risks include the following: Commodity price risk - We are exposed to the risk of loss in cash flows and future earnings arising from adverse changes in the price of natural gas, NGLs and condensate.We use commodity derivative instruments such as futures, physical forward contracts, swaps and options to mitigate the commodity price risk associated with a portion of the forecasted purchases and sales of commodities and natural gas and natural gas liquids in storage; Basis risk - We are exposed to the risk of loss in cash flows and future earnings arising from adverse changes in the price differentials between pipeline receipt and delivery locations.Our firm transportation capacity allows us to purchase gas at a pipeline receipt point and sell gas at a pipeline delivery point.Our Energy Services segment periodically enters into basis swaps between the transportation receipt and delivery points in order to protect the fair value of these location price differentials related to our firm commitments; and Currency exchange rate risk - As a result of our Energy Services segments activities in Canada, we are exposed to the risk of loss in cash flows and future earnings from adverse changes in currency exchange rates on our commodity purchases and sales, primarily related to our firm transportation and storage contracts that are transacted in a currency other than our functional currency, the U.S. dollar.To reduce our exposure to exchange-rate fluctuations, we use physical forward transactions, which result in an actual two-way flow of currency on the settlement date in which we exchange U.S. dollars for Canadian dollars with another party. The following derivative instruments are used to manage our exposure to these risks: Futures contracts- Standardized exchange-traded contracts to purchase or sell natural gas and crude oil at a specified price, requiring delivery on or settlement through the sale or purchase of an offsetting contract by a specified future date under the provisions of exchange regulations; Forward contracts- Commitments to purchase or sell natural gas, crude oil or NGLs for delivery at some specified time in the future. We also use currency forward contracts to manage our currency exchange rate risk.Forward contracts are different from futures in that forwards are customized and non-exchange traded; Swaps- Financial trades involving the exchange of payments based on two different pricing structures for a commodity. In a typical commodity swap, parties exchange payments based on changes in the price of a commodity or a market index, while fixing the price they effectively pay or receive for the physical commodity. As a result, one party assumes the risks and benefits of movements in market prices, while t |
E. PROPERTY, PLANT AND EQUIPMEN
E. PROPERTY, PLANT AND EQUIPMENT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Property, Plant and Equipment | E.PROPERTY, PLANT AND EQUIPMENT The following table sets forth our property, plant and equipment by property type, for the periods indicated: Estimated Useful December 31, December 31, Lives (Years) 2009 2008 (Thousands of dollars) Non-Regulated Gathering pipelines and related equipment 5 to 46 $ 982,849 $ 899,169 Processing and fractionation and related equipment 5 to 46 959,339 837,306 Storage and related equipment 5 to 54 219,898 189,212 Transmission pipelines and related equipment 5 to 54 190,734 200,698 General plant and other 2 to 53 303,983 290,047 Construction work in process 181,920 282,323 Regulated Natural gas distribution pipelines and related equipment 15 to 80 2,997,250 2,915,981 Storage and related equipment 5 to 54 134,934 129,484 Natural gas transmission pipelines and related equipment 5 to 80 1,702,839 1,550,443 Natural gas liquids transmission pipelines and related equipment 5 to 80 2,138,017 1,390,545 General plant and other 2 to 80 226,670 216,522 Construction work in process 107,367 574,889 Property, plant and equipment 10,145,800 9,476,619 Accumulated depreciation and amortization 2,352,142 2,212,850 Net property, plant and equipment $ 7,793,658 $ 7,263,769 The average depreciation rates for our regulated property are set forth, by segment, in the following table for the periods indicated: Years Ended December 31, Regulated Property 2009 2008 2007 ONEOK Partners 1.8% - 2.2% 2.0% - 2.4% 2.4% - 2.5% Distribution 2.6% - 2.7% 2.7% - 3.0% 2.7% - 3.0% ONEOK Partners average depreciation rates for its regulated property decreased in 2008, compared with 2007, due to placing in service newly constructed natural gas liquids pipeline assets with longer economic lives. |
F. GOODWILL AND INTANGIBLE ASSE
F. GOODWILL AND INTANGIBLE ASSETS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Goodwill and Intangible Assets | F.GOODWILL AND INTANGIBLE ASSETS Goodwill and Indefinite-lived Intangible Assets Impairment Tests - There were no impairment charges resulting from our July 1, 2009, 2008 or 2007 impairment tests. Goodwill - The following table sets forth our goodwill, by segment, at both December 31, 2009 and 2008: (Thousand of dollars) ONEOK Partners $ 433,537 Distribution 157,953 Energy Services 10,255 Other 1,099 Total Goodwill $ 602,844 Intangible Assets - Our ONEOK Partners segment has $272.2 million of intangible assets related primarily to contracts acquired through acquisition, which are being amortized over an aggregate weighted-average period of 40 years.The remaining intangible asset balance has an indefinite life.Amortization expense for intangible assets for 2009, 2008 and 2007 was $7.7 million each year, and the aggregate amortization expense for each of the next five years is estimated to be approximately $7.7 million.The following table sets forth the gross carrying amount and accumulated amortization of intangible assets for the periods indicated: December 31, December 31, 2009 2008 (Thousands of dollars) Gross Intangible Assets $ 462,214 $ 462,214 Accumulated Amortization (34,498 ) (26,832 ) Net Intangible Assets $ 427,716 $ 435,382 |
G. ACCUMULATED OTHER COMPREHENS
G. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Other Comprehensive Income (Loss) | G.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table sets forth the balance in accumulated other comprehensive income (loss) for the periods indicated: Unrealized Gains (Losses) on Energy Marketing and Risk Management Assets/Liabilities Unrealized Holding Gains (Losses) on Investment Securities Pension and Postretirement Benefit Plan Obligations Accumulated Other Comprehensive Income (Loss) (Thousands of dollars) December 31, 2007 $ 25,328 $ 13,678 $ (46,075) $ (7,069) Other comprehensive income (loss) attributable to ONEOK 2,585 (12,864) (53,268) (63,547) December 31, 2008 27,913 814 (99,343) (70,616) Other comprehensive income (loss) attributable to ONEOK (34,064) 627 (14,560) (47,997) December 31, 2009 $ (6,151) $ 1,441 $ (113,903) $ (118,613) |
H. CREDIT FACILITIES AND SHORT
H. CREDIT FACILITIES AND SHORT TERM NOTES PAYABLE | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Credit Facilities and Short-Term Notes Payable | H.CREDIT FACILITIES AND SHORT-TERM NOTES PAYABLE ONEOK Credit Agreement -Under the ONEOK Credit Agreement, which expires July 2011, ONEOK is required to comply with certain financial, operational and legal covenants.Among other things, these requirements include: a $400 million sublimit for the issuance of standby letters of credit; a limitation on ONEOKs stand-alone debt-to-capital ratio, which may not exceed 67.5 percent at the end of any calendar quarter; a requirement that ONEOK maintains the power to control the management and policies of ONEOK Partners; and a limit on new investments in master limited partnerships. The ONEOK Credit Agreement also contains customary affirmative and negative covenants, including covenants relating to liens, investments, fundamental changes in our businesses, changes in the nature of ONEOKs businesses, transactions with affiliates, the use of proceeds and a covenant that prevents ONEOK from restricting its subsidiaries ability to pay dividends. The debt covenant calculations in the ONEOK Credit Agreement exclude the debt of ONEOK Partners.Upon breach of any covenant by ONEOK, amounts outstanding under the ONEOK Credit Agreement may become immediately due and payable.At December 31, 2009, ONEOKs stand-alone debt-to-capital ratio, as defined by the ONEOK Credit Agreement, was 45.4 percent, and ONEOK was in compliance with all covenants under the ONEOK Credit Agreement. At December 31, 2009, ONEOK had $358.9 million in commercial paper outstanding and $37.0 million in letters of credit issued under the ONEOK Credit Agreement, leaving $804.1 million of credit available under the ONEOK Credit Agreement. The average interest rate on ONEOKs short-term debt outstanding was 0.30 percent and 4.51 percent at December 31, 2009 and 2008, respectively. At December 31, 2008, ONEOK had no commercial paper outstanding, $1.4 billion in borrowings outstanding and $64.6 million in letters of credit issued under the ONEOK Credit Agreement, leaving $135.4 million of credit available under the ONEOK Credit Agreement and the $400 million 364-Day revolving credit facility dated August 6, 2008, which expired on August 5, 2009. ONEOK Partners Credit Agreement - Under the ONEOK Partners Credit Agreement, which expires March 2012, ONEOK Partners is required to comply with certain financial, operational and legal covenants.Among other things, these requirements include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in ONEOK Partners Credit Agreement, as adjusted for all non-cash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5 to 1.If ONEOK Partners consummates one or more acquisitions in which the aggregate purchase price is $25 million or more, the allowable ratio of indebtedness to adjusted EBITDA will be increased to 5.5 to 1 for the three calendar quarters following the acquisition.Upon breach of any covenant, discussed above, amounts outstanding under the ONEOK Partners Credit Agreement may become immediately due and payable.At December 31, 2009, ONEOK Partners ratio of indebtedness |
I. LONG TERM DEBT
I. LONG TERM DEBT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Long-term Debt | I.LONG-TERM DEBT All notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness.The following table sets forth our long-term debt for the periods indicated: December 31, December 31, 2009 2008 (Thousands of dollars) ONEOK $100,000 at 6.0% due 2009 $ - $ 100,000 $400,000 at 7.125% due 2011 400,000 400,000 $400,000 at 5.2% due 2015 400,000 400,000 $100,000 at 6.4% due 2019 90,314 91,371 $100,000 at 6.5% due 2028 88,247 89,970 $100,000 at 6.875% due 2028 100,000 100,000 $400,000 at 6.0% due 2035 400,000 400,000 Other 2,448 2,712 1,481,009 1,584,053 ONEOK Partners $250,000 at 8.875% due 2010 250,000 250,000 $225,000 at 7.10% due 2011 225,000 225,000 $350,000 at 5.90% due 2012 350,000 350,000 $450,000 at 6.15% due 2016 450,000 450,000 $500,000 at 8.625% due 2019 500,000 - $600,000 at 6.65% due 2036 600,000 600,000 $600,000 at 6.85% due 2037 600,000 600,000 2,975,000 2,475,000 Guardian Pipeline Average 7.85%, due 2022 109,780 121,711 Total long-term notes payable 4,565,789 4,180,764 Unamortized portion of terminated swaps and fair value of hedged debt 43,298 55,035 Unamortized debt premium (6,668 ) (5,023 ) Current maturities (268,215 ) (118,195 ) Long-term debt $ 4,334,204 $ 4,112,581 The aggregate maturities of long-term debt outstanding for the years 2010 through 2014 are shown below: Guardian ONEOK ONEOK Partners Pipeline Total (Millions of dollars) 2010 $6.3 $250.0 $11.9 $268.2 2011 $406.3 $225.0 $11.9 $643.2 2012 $6.3 $350.0 $11.1 $367.4 2013 $6.2 $ - $7.7 $ 13.9 2014 $6.0 $ - $7.7 $ 13.7 Additionally, $178.5 million of our debt is callable at par at our option from now until maturity, which is 2019 for $90.3 million and 2028 for $88.2 million. In February 2009, ONEOK repaid $100 million of maturing long-term debt with cash from operations and short-term borrowings. ONEOK Partners Debt Issuance -In March 2009, ONEOK Partners completed an underwritten public offering of $500 million aggregate principal amount of 8.625 percent Senior Notes due 2019 (2019 Notes).The net proceeds from the 2019 Notes of approximately $494.3 million were used to repay indebtedness outstanding under the ONEOK Partners Credit Agreement.The 2019 Notes will mature on March 1, 2019.ONEOK Partners will pay interest on the 2019 Notes on March 1 and September 1 of each year.The first payment of interest on the 2019 Notes was made on September 1, 2009. Debt Covenants - The terms of the ONEOK Partners 2019 Notes are go |
J. CAPITAL STOCK
J. CAPITAL STOCK | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Capital Stock | J.CAPITAL STOCK Series A and B Convertible Preferred Stock - There are no shares of Series A or Series B Preferred Stock currently outstanding. Series C Preferred Stock -Series C Preferred Stock (Series C) is designed to protect our shareholders from coercive or unfair takeover tactics.If issued, holders of shares of Series C are entitled to receive, in preference to the holders of ONEOK Common Stock, quarterly dividends in an amount per share equal to the greater of $0.50 or, subject to adjustment, 100 times the aggregate per share amount of all cash dividends, and 100 times the aggregate per share amount (payable in kind) of all non-cash dividends.No shares of Series C have been issued. Common Stock - At December 31, 2009, we had approximately 175.9 million shares of authorized and unreserved common stock available for issuance. Dividends - Fourth-quarter 2008 and first-quarter 2009 dividends paid on our common stock to shareholders of record at the close of business on January 30, 2009, and April 30, 2009, respectively, were $0.40 per share.Second-quarter 2009 and third-quarter 2009 dividends paid on our common stock to shareholders of record at the close of business on July 31, 2009, and November 13, 2009, respectively, were $0.42 per share.Additionally, a quarterly dividend of $0.44 per share was declared in January 2010, payable in the first quarter of 2010. |
K. EMPLOYEE BENEFIT PLANS
K. EMPLOYEE BENEFIT PLANS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Employee Benefit Plans | K.EMPLOYEE BENEFIT PLANS Retirement and Other Postretirement Benefit Plans Retirement Plans - We have defined benefit retirement plans covering certain full-time employees.Nonbargaining unit employees hired after December 31, 2004, are not eligible for our defined benefit pension plan; however, they are covered by a defined contribution profit-sharing plan.Certain officers and key employees are also eligible to participate in supplemental retirement plans.We generally fund our pension costs at a level needed to maintain or exceed the minimum funding levels required by the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006. Other Postretirement Benefit Plans - We sponsor welfare plans that provide postretirement medical and life insurance benefits to certain employees who retire with at least five years of service.The postretirement medical plan is contributory based on hire date, age and years of service, with retiree contributions adjusted periodically, and contains other cost-sharing features such as deductibles and coinsurance. Regulatory Treatment - The OCC, KCC, and regulatory authorities in Texas have approved the recovery of pension costs and other postretirement benefits costs through rates for Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service, respectively.The costs recovered through rates are based on current funding requirements and the net periodic benefit cost for pension and postretirement costs.Differences, if any, between the expense and the amount recovered through rates are reflected in earnings, net of authorized deferrals. Our regulated entities have historically recovered pension and other postretirement benefit costs through rates. We believe it is probable that regulators will continue to include the net periodic pension and other postretirement benefit costs in our regulated entities cost of service. Accordingly, we have recorded a regulatory asset for the minimum liability associated with our regulated entities pension and other postretirement benefit obligations that otherwise would have been recorded in accumulated other comprehensive income. Measurement Date Change - Effective for our year ended December 31, 2008, we changed our measurement date from September 30 to December 31. We determined our net periodic benefit cost for the period October 1, 2007, through December 31, 2008, based on a measurement date of September 30, 2007.The net periodic benefit cost for the period of October 1, 2007, through December 31, 2007, was reflected as an adjustment to retained earnings as of December 31, 2008.The impact of this adjustment was a $7.6 million reduction to retained earnings, net of taxes. Obligations and Funded Status - The following tables set forth our pension and other postretirement benefit plans benefit obligations and fair value of plan assets for the periods indicated.Due to the change in our measurement date discussed above, the changes in our benefit obligation and plan assets shown in the following tables for 2008 are for the 15-month period from October 1, 2007 through December 31, 2008. Pension Benefits Postretirement B |
L. COMMITMENTS AND CONTINGENCIE
L. COMMITMENTS AND CONTINGENCIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Commitments and Contingencies | L.COMMITMENTS AND CONTINGENCIES Commitments - In March 2008, ONEOK Leasing Company, a subsidiary of ONEOK, purchased ONEOK Plaza for a total purchase price of approximately $48 million, which included $17.1 million for the present value of the remaining lease payments and $30.9 million for the base purchase price. We lease excess office space in ONEOK Plaza.We received rental revenue of $3.3 million in 2009, $2.6 million in 2008 and $2.9 million in 2007.Estimated minimum future rental payments to be received under existing contracts for subleases are $2.3 million in 2010, $2.2 million in 2011, $1.3 million in 2012, $1.2 million in 2013 and $0.9 million in 2014. Operating leases represent future minimum lease payments under non-cancelable operating leases on a gas processing plant, office space, pipeline equipment, rights-of-way and vehicles.Firm transportation and storage contracts are fixed-price contracts that provide us with firm transportation and storage capacity.The following table sets forth our operating lease and firm transportation and storage contract payments for the periods presented: ONEOK Operating Leases Firm Transportation and Storage Contracts Total (Millions of dollars) 2010 $26.5 $144.1 $170.6 2011 $31.6 $120.6 $152.2 2012 $0.4 $114.1 $114.5 2013 $0.2 $84.5 $84.7 2014 $- $69.5 $69.5 ONEOK Partners Operating Leases Firm Transportation and Storage Contracts Total (Millions of dollars) 2010 $3.5 $6.8 $10.3 2011 $2.6 $1.4 $4.0 2012 $2.4 $1.4 $3.8 2013 $2.3 $1.4 $3.7 2014 $1.9 $1.2 $3.1 The amounts in the ONEOK table above include minimum lease payments relating to the lease of a gas processing plant of $24.2 million in 2010 and $30.6 million in 2011.We acquired the lease in a business combination and recorded a liability for uneconomic lease terms.The liability is accreted to rent expense in the amount of $13.0 million per year over the term of the lease; however, the cash outflow under the lease remains the same.The amounts in the ONEOK Partners table above exclude intercompany payments relating to the lease of a gas processing plant. Investment in Northern Border Pipeline- In 2009, ONEOK Partners made equity contributions of $42.3 million to Northern Border.ONEOK Partners does not anticipate any material equity contributions in 2010. Overland Pass Pipeline Company - Overland Pass Pipeline Company is a joint venture between ONEOK Partners and a subsidiary of The Williams Companies, Inc. (Williams).A subsidiary of ONEOK Partners owns 99 percent of the joint venture andoperates the pipeline.On or before November 17, 2010, Williams has the option to increase its ownership in Overland Pass Pipeline Company up to a total of 50 percent, with the purchase price being determined in accordance with the joint ventures o |
M. INCOME TAXES
M. INCOME TAXES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Income Taxes | M.INCOME TAXES The following table sets forth our provisions for income taxes for the periods indicated: Year Ended December 31, 2009 2008 2007 Current income taxes (Thousands of dollars) Federal $ 6,381 $ 18,833 $ 100,517 State 2,227 10,047 19,063 Total current income taxes 8,608 28,880 119,580 Deferred income taxes Federal 170,077 143,807 56,887 State 28,636 21,384 8,130 Total deferred income taxes 198,713 165,191 65,017 Total provision for income taxes $ 207,321 $ 194,071 $ 184,597 The following table is a reconciliation of our income tax provision for the periods indicated: Years Ended December 31, 2009 2008 2007 (Thousands of dollars) Income before income taxes $ 698,525 $ 794,538 $ 682,717 Less: Net income attributable to noncontrolling interest 185,753 288,558 193,199 Income attributable to ONEOK before income taxes 512,772 505,980 489,518 Federal statutory income tax rate 35 % 35 % 35 % Provision for federal income taxes 179,470 177,093 171,331 Amortization of distribution property investment tax credit (410 ) (455 ) (505 ) State income taxes, net of federal tax benefit 20,061 20,431 17,676 Other, net 8,200 (2,998 ) (3,905 ) Income tax provision $ 207,321 $ 194,071 $ 184,597 The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated: December 31, December 31, 2009 2008 Deferred tax assets (Thousands of dollars) Employee benefits and other accrued liabilities $ 118,027 $ 161,947 Net operating loss carryforward 2,559 4,226 Other comprehensive income 78,838 43,747 Other 31,813 23,051 Total deferred tax assets 231,237 232,971 Deferred tax liabilities Excess of tax over book depreciation and depletion 464,788 372,123 Purchased gas adjustment 13,726 20,047 Investment in joint ventures 664,377 564,234 Regulatory assets 159,540 180,037 Other - 746 Total deferred tax liabilities 1,302,431 1,137,187 Net deferred tax liabilities $ 1,071,194 $ 904,216 At December 31, 2009, ONEOK Partners had approximately $2.6 million of tax benefits available related to net operating loss carryforwards, which will expire between the years 2022 and 2028.We believe that it is more likely than not that the tax benefits of the net operating loss carryforwards will be utilized prior to their expiration; therefore, no valuation allowance is necessary. We had income taxes receivable of approximately $94.6 million and $69.9 million at December 31, 2009 and 2008, respectively. |
N. SEGMENTS
N. SEGMENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Segments | N.SEGMENTS Segment Descriptions - Our operations are divided into three reportable business segments based on similarities in economic characteristics, products and services, types of customers, methods of distribution and regulatory environment.These segments are as follows: (i) our ONEOK Partners segment gathers, processes, transports, stores and sells natural gas and gathers, treats, fractionates, stores, distributes and markets NGLs; (ii) our Distribution segment delivers natural gas to residential, commercial and industrial customers, and transports natural gas; and (iii) our Energy Services segment markets natural gas to wholesale and retail customers.Our Distribution segment is comprised of regulated public utilities, and portions of our ONEOK Partners segment are also regulated.Other and eliminations consists of the operating and leasing operations of our headquarters building and related parking facility and other amounts needed to reconcile our reportable segments to our consolidated financial statements. Accounting Policies - The accounting policies of the segments are described in Note A.Intersegment sales are recorded on the same basis as sales to unaffiliated customers and are discussed further at Note R.Net margin is comprised of total revenues less cost of sales and fuel.Cost of sales and fuel includes commodity purchases, fuel, and storage and transportation costs. Customers - The primary customers for our ONEOK Partners segment include major and independent oil and gas production companies, natural gas gathering and processing companies, petrochemical, refining and NGL marketing companies, LDCs, power generating companies, natural gas marketing companies, NGL gathering companies and propane distributors.Our Distribution segment provides natural gas to residential, commercial, industrial, wholesale, public authority and transportation customers.Our Energy Services segment buys natural gas from producers and other marketing companies and sells natural gas to LDCs, municipalities, large industrials, power generators, retail aggregators and other marketing companies, as well as residential and small commercial/industrial companies. In 2009, 2008 and 2007, we had no single external customer from which we received 10 percent or more of our consolidated gross revenues. Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated: Year Ended December 31, 2009 ONEOK Partners (a) Distribution (b) Energy Services Other and Eliminations Total (Thousands of dollars) Sales to unaffiliated customers $ 5,998,726 $ 1,843,429 $ 3,266,517 $ 2,979 $ 11,111,651 Intersegment revenues 475,765 7 329,001 (804,773 ) - Total revenues $ 6,474,491 $ 1,843,436 $ 3,595,518 $ (801,794 ) $ 11,111,651 Net margin $ 1,119,297 $ 716,028 $ 177,643 $ 2,978 $ 2,015,946 Operating costs 411,227 384,125 41,704 65 |
O. STOCK BASED COMPENSATION
O. STOCK BASED COMPENSATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Stock-Based Compensation | O.STOCK-BASED COMPENSATION Equity Compensation Plan The ONEOK, Inc. Equity Compensation Plan provides for the granting of stock-based compensation, including incentive stock options, non-statutory stock options, stock bonus awards, restricted stock awards, restricted stock unit awards, performance stock awards and performance unit awards to eligible employees and the granting of stock awards to non-employee directors.We have reserved a total of 5.0 million shares of common stock for issuance under the plan.In December 2008, we amended the Equity Compensation Plan to allow for the deferral of awards granted in stock or cash, in accordance with Internal Revenue Code section 409A requirements.This deferral option is applicable for certain awards granted in 2006 and later, and vesting after 2008. Restricted Stock Incentive Units - Restricted stock incentive units may be granted to key employees with ownership of the common stock underlying the incentive unit vesting over a period determined by the Executive Compensation Committee (the Committee).Awards granted to date vest over a three-year period.Awards granted in 2009, 2008 and 2007 entitle the grantee to receive shares of our common stock.Restricted stock incentive unit awards are measured at fair value as if they were vested and issued on the grant date, reduced by expected dividend payments and adjusted for estimated forfeitures.No dividends are paid on the restricted stock incentive units.Compensation expense is recognized on a straight-line basis over the vesting period of the award. Performance Unit Awards -Performance unit awards may be granted to key employees.The shares of our common stock underlying the performance units vest at the expiration of a period determined by the Committee if certain performance criteria are met by us.Performance units granted to date vest at the expiration of a three-year period.Upon vesting, a holder of performance units is entitled to receive a number of shares of our common stock equal to a percentage (0 percent to 200 percent) of the performance units granted based on our total shareholder return over the vesting period, compared with the total shareholder return of a peer group of other energy companies over the same period.Compensation expense is recognized on a straight-line basis over the period of the award. If paid, the performance unit awards granted in 2009, 2008 and 2007 entitle the grantee to receive the grant in shares of our common stock.Our 2009, 2008 and 2007 performance unit awards are equity awards with a market-based condition, which results in the compensation cost for these awards being recognized over the requisite service period, provided that the requisite service period is fulfilled, regardless of when, if ever, the market condition is satisfied.The fair value of these performance units was estimated on the grant date based on a Monte Carlo model.The compensation expense on these awards will only be adjusted for changes in forfeitures. Long-Term Incentive Plan The ONEOK, Inc. Long-Term Incentive Plan (the LTIP) provides for the granting of stock awards similar to those described above with respect to the Eq |
P. UNCONSOLIDATED AFFILIATES
P. UNCONSOLIDATED AFFILIATES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Unconsolidated Affiliates | P.UNCONSOLIDATED AFFILIATES Investments in Unconsolidated Affiliates - The following table sets forth our investments in unconsolidated affiliates for the periods indicated: Net Ownership December 31, December 31, Interest 2009 2008 (Thousands of dollars) Northern Border Pipeline 50 % $ 401,773 $ 392,601 Bighorn Gas Gathering, L.L.C. 49 % 96,492 97,289 Fort Union Gas Gathering, L.L.C. 37 % 111,675 108,642 Lost Creek Gathering Company, L.L.C. (a) 35 % 80,041 77,773 Other Various 75,182 79,187 Investments in unconsolidated affiliates (b) $ 765,163 $ 755,492 (a) - ONEOK Partners is entitled to receive an incentive allocation of earnings from third-party gathering services revenue recognized by Lost Creek Gathering Company, L.L.C.As a result of the incentive, ONEOK Partners' share of Lost Creek Gathering Company, L.L.C.'s income exceeds its 35 percent ownership interest. (b) - Equity method goodwill (Note A) was $185.6 million at December 31, 2009 and 2008, respectively. Equity Earnings from Investments -The following table sets forth our equity earnings from investments for the periods indicated.All amounts in the table below are equity earnings from investments in our ONEOK Partners segment: Years Ended December 31, 2009 2008 2007 (Thousands of dollars) Northern Border Pipeline $ 41,300 $ 65,912 $ 62,008 Bighorn Gas Gathering, L.L.C. 7,807 8,195 7,416 Fort Union Gas Gathering, L.L.C. 14,533 14,172 9,681 Lost Creek Gathering Company, L.L.C. 4,872 5,365 4,790 Other 4,210 7,788 6,013 Equity earnings from investments $ 72,722 $ 101,432 $ 89,908 Unconsolidated Affiliates Financial Information - The following tables set forth summarized combined financial information of our unconsolidated affiliates for the periods indicated: December 31, December 31, 2009 2008 (Thousands of dollars) Balance Sheet Current assets $ 84,910 $ 106,833 Property, plant and equipment, net $ 1,717,825 $ 1,777,350 Other noncurrent assets $ 28,675 $ 27,547 Current liabilities $ 70,500 $ 279,996 Long-term debt $ 653,937 $ 543,894 Other noncurrent liabilities $ 12,144 $ 14,360 Accumulated other comprehensive income (loss) $ (3,054 ) $ (5,708 ) Owners' equity $ 1,097,883 $ 1,079,188 Years Ended December 31, 2009 2008 2007 (Thousands of dollars) Income Statement Operating revenues $ 383,625 $ 415,552 $ 404,399 Operating expenses $ 178,194 $ 179,380 $ 172,997 Net income $ 164,002 $ 209,915 $ 184,434 Distributions paid to us $ 109,807 $ 118,010 $ 103,785 Distributions paid to us are classified as operating activities on our Consolidated Statements of Cas |
Q. EARNINGS PER SHARE INFORMATI
Q. EARNINGS PER SHARE INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Earnings Per Share Information | Q.EARNINGS PER SHARE INFORMATION The following tables set forth the computation of basic and diluted EPS from continuing operations for the periods indicated: Year Ended December 31, 2009 Per Share Income Shares Amount (Thousands, except per share amounts) Basic EPS from continuing operations Net income attributable to ONEOK available for common stock $ 305,451 105,362 $ 2.90 Diluted EPS from continuing operations Effect of options and other dilutive securities - 958 Net income attributable to ONEOK available for common stock and common stock equivalents $ 305,451 106,320 $ 2.87 Year Ended December 31, 2008 Per Share Income Shares Amount (Thousands, except per share amounts) Basic EPS from continuing operations Net income attributable to ONEOK available for common stock $ 311,909 104,369 $ 2.99 Diluted EPS from continuing operations Effect of options and other dilutive securities - 1,391 Net income attributable to ONEOK available for common stock and common stock equivalents $ 311,909 105,760 $ 2.95 Years Ended December 31, 2007 Per Share Income Shares Amount (Thousands, except per share amounts) Basic EPS from continuing operations Net income attributable to ONEOK available for common stock $ 304,921 107,346 $ 2.84 Diluted EPS from continuing operations Effect of options and other dilutive securities - 1,952 Net income attributable to ONEOK available for common stock and common stock equivalents $ 304,921 109,298 $ 2.79 There were 192,952, 64,989 and 4,601 option shares excluded from the calculation of diluted EPS for 2009, 2008 and 2007, respectively, since their inclusion would be anti-dilutive. |
R. ONEOK PARTNERS
R. ONEOK PARTNERS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
ONEOK Partners | R.ONEOK PARTNERS Ownership Interest in ONEOK Partners - Our ownership interest in ONEOK Partners is shown in the table below for the periods presented: December 31, December 31, 2009 2008 General partner interest 2.0% 2.0% Limited partner interest (a) 43.1% 45.7% Total ownership interest 45.1% 47.7% (a) - Represents 5.9 million common units and approximately 36.5 million Class B units, which are convertible, at our option, into common units. In July 2009, ONEOK Partners completed an underwritten public offering of 5,486,690 common units, including the partial exercise by the underwriters of their over-allotment option, units at $45.81 per common unit, generating net proceeds of approximately $241.6 millionIn conjunction with the public offering and partial exercise by the underwriters of their over-allotment option, ONEOK Partners GP contributed an aggregate of $5.1 million to ONEOK Partners in order to maintain its 2 percent general partner interest. In February 2010, ONEOK Partners completed an underwritten public offering of 5,500,900 common units, including the partial exercise by the underwriters of their over-allotment option, at $60.75 per common unit, generating net proceeds of approximately $322.6 million. In conjunction with the offering, ONEOK Partners GP contributed $6.8 million in order to maintain its 2 percent general partner interest. ONEOK Partners used the proceeds from the sale of common units and the general partner contribution to repay borrowings under the ONEOK Partners Credit Agreement and for general partnership purposes. As a result of these transactions, we hold a 42.8 percent aggregate equity interest in ONEOK Partners. Cash Distributions - Under the ONEOK Partners partnership agreement, distributions are made to the partners with respect to each calendar quarter in an amount equal to 100 percent of available cash.Available cash generally consists of all cash receipts adjusted for cash disbursements and net changes to cash reserves.Available cash will generally be distributed 98 percent to limited partners and 2 percent to the general partner.The general partners percentage interest in quarterly distributions is increased after certain specified target levels are met.Under the incentive distribution provisions, the general partner receives: 15 percent of amounts distributed in excess of $0.605 per unit; 25 percent of amounts distributed in excess of $0.715 per unit; and 50 percent of amounts distributed in excess of $0.935 per unit. ONEOK Partners income is allocated to the general and limited partners in accordance with their respective partnership ownership percentages.The effect of any incremental income allocations for incentive distributions that are allocated to the general partner is calculated after the income allocation for the general partners partnership interest and before the income allocation to the limited partners. The following table shows ONEOK Partners general partner and incentive distributions declared for the periods indicated: Years Ended December 31, |
S. QUARTERLY FINANCIAL DATA
S. QUARTERLY FINANCIAL DATA (UNAUDITED) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Quarterly Financial Data (Unaudited) | S.QUARTERLY FINANCIAL DATA (UNAUDITED) First Second Third Fourth Year Ended December 31, 2009 Quarter Quarter Quarter Quarter (Thousands of dollars except per share amounts) Total revenues $ 2,789,827 $ 2,227,627 $ 2,364,736 $ 3,729,461 Net margin $ 551,411 $ 432,426 $ 451,854 $ 580,255 Operating income $ 293,003 $ 154,804 $ 173,778 $ 273,055 Net income $ 163,549 $ 81,350 $ 102,308 $ 143,997 Net income attributable to ONEOK $ 122,285 $ 41,679 $ 48,042 $ 93,445 Earnings per share from continuing operations Basic $ 1.16 $ 0.40 $ 0.46 $ 0.88 Diluted $ 1.16 $ 0.39 $ 0.45 $ 0.87 First Second Third Fourth Year Ended December 31, 2008 Quarter Quarter Quarter Quarter (Thousands of dollars except per share amounts) Total revenues $ 4,902,076 $ 4,172,866 $ 4,239,246 $ 2,843,245 Net margin $ 585,912 $ 420,828 $ 455,026 $ 473,761 Operating income $ 333,123 $ 173,012 $ 192,179 $ 218,690 Net income $ 212,797 $ 112,962 $ 153,387 $ 121,321 Net income attributable to ONEOK $ 143,837 $ 41,865 $ 58,033 $ 68,174 Earnings per share from continuing operations Basic $ 1.38 $ 0.40 $ 0.56 $ 0.65 Diluted $ 1.36 $ 0.39 $ 0.55 $ 0.65 |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 15, 2010
| Jun. 30, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | ONEOK INC /NEW/ | ||
Entity Central Index Key | 0001039684 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $3,083,607,184 | ||
Entity Common Stock, Shares Outstanding | 106,140,524 |