Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | ONEOK INC /NEW/ | ||
Entity Central Index Key | 1,039,684 | ||
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 | $ 8.1 | ||
Entity Common Stock, Shares Outstanding | 209,989,711 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commodity Sales | $ 6,098,343 | $ 10,724,981 | $ 10,549,157 |
Services | 1,664,863 | 1,470,110 | 1,322,722 |
Total revenues | 7,763,206 | 12,195,091 | 11,871,879 |
Cost of sales and fuel (exclusive of items shown separately below) | 5,641,052 | 10,088,548 | 10,222,213 |
Operations and maintenance | 605,748 | 599,143 | 479,165 |
Depreciation and amortization | 354,620 | 294,684 | 239,343 |
Impairment of long-lived assets (Note F) | 83,673 | 0 | 0 |
General taxes | 87,583 | 75,744 | 62,421 |
Gain (loss) on sale of assets | 5,629 | 6,599 | 11,881 |
Operating income | 996,159 | 1,143,571 | 880,618 |
Equity in net earnings from investments (Note P) | 125,300 | 117,415 | 110,517 |
Impairment of equity investments (Note P) | (180,583) | (76,412) | 0 |
Allowance for equity funds used during construction | 2,179 | 14,937 | 30,522 |
Other income | 368 | 5,598 | 18,158 |
Other expense | (4,760) | (29,073) | (13,999) |
Interest Expense (net of capitalized interest of $36,572, $54,813 and $56,506, respectively) | (416,787) | (356,163) | (270,646) |
Income before income taxes | 521,876 | 819,873 | 755,170 |
Income taxes (Note O) | (136,600) | (151,158) | (166,080) |
Income from continuing operations | 385,276 | 668,715 | 589,090 |
Income (loss) from discontinued operations, net of tax (Note B) | (6,081) | (5,607) | (12,129) |
Net income | 379,195 | 663,108 | 576,961 |
Less: Net income attributable to noncontrolling interests | 134,218 | 349,001 | 310,428 |
Net income attributable to ONEOK | 244,977 | 314,107 | 266,533 |
Amounts attributable to ONEOK: | |||
Income from continuing operations | 251,058 | 319,714 | 278,662 |
Income (loss) from discontinued operations | (6,081) | (5,607) | (12,129) |
Net Income | $ 244,977 | $ 314,107 | $ 266,533 |
Basic earnings per share: | |||
Income from continuing operations (Note L) | $ 1.19 | $ 1.53 | $ 1.35 |
Income (loss) from discontinued operations | (0.02) | (0.03) | (0.06) |
Net Income | 1.17 | 1.50 | 1.29 |
Diluted earnings per share: | |||
Income from continuing operations (Note L) | 1.19 | 1.52 | 1.33 |
Income (loss) from discontinued operations | (0.03) | (0.03) | (0.06) |
Net Income | $ 1.16 | $ 1.49 | $ 1.27 |
Average shares (thousands) | |||
Basic | 210,208 | 209,391 | 206,044 |
Diluted | 210,541 | 210,427 | 209,695 |
Dividends declared per share of common stock | $ 2.43 | $ 2.125 | $ 1.48 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Costs, Capitalized During Period | $ 36,572 | $ 54,813 | $ 56,506 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 379,195 | $ 663,108 | $ 576,961 |
Other comprehensive income (loss), net of tax | |||
Unrealized gains (losses) on energy marketing and risk management assets/liabilities, net of tax of $(5,845) $10,029 and $(5,574), respectively | 39,730 | (58,307) | 25,609 |
Realized (gains) losses in net income, net of tax of $8,815, $(14,098) and $(1,905), respectively | (54,709) | 41,723 | 7,926 |
Unrealized holding gains (losses) on available-for-sale securities, net of tax of $648, $(106) and $112, respectively | (955) | 98 | (177) |
Change in pension and postretirement benefit plan liability, net of tax of $(10,278), $15,781 and $(52,436), respectively | 15,416 | (23,672) | 83,126 |
Total other comprehensive income (loss), net of tax | (518) | (40,158) | 116,484 |
Comprehensive income | 378,677 | 622,950 | 693,445 |
Less: Comprehensive income attributable to noncontrolling interests | 124,589 | 326,598 | 332,101 |
Comprehensive income attributable to ONEOK | $ 254,088 | $ 296,352 | $ 361,344 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrealized gain (losses) on energy marketing and risk management assets/liabilities, tax | $ (5,845) | $ 10,029 | $ (5,574) |
Realized (gains) losses in net income, tax | 8,815 | (14,098) | (1,905) |
Unrealized holding gains (losses) on available-for-sale securities, tax | 648 | (106) | 112 |
Change in pension and postretirement benefit plan liability, tax | $ (10,278) | $ 15,781 | $ (52,436) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 97,619 | $ 172,812 |
Accounts receivable, net | 593,979 | 745,494 |
Materials and supplies | 76,696 | 55,833 |
Natural gas and natural gas liquids in storage | 128,084 | 134,134 |
Commodity imbalances | 38,681 | 64,788 |
Other current assets | 39,946 | 117,466 |
Assets of discontinued operations (Note B) | 205 | 16,717 |
Total current assets | 975,210 | 1,307,244 |
Property, plant and equipment | ||
Property, plant and equipment | 14,530,460 | 13,602,647 |
Accumulated depreciation and amortization | 2,156,471 | 1,940,210 |
Net property, plant and equipment (Note F) | 12,373,989 | 11,662,437 |
Investments and other assets | ||
Investments in unconsolidated affiliates (Note P) | 948,221 | 1,132,653 |
Goodwill and intangible assets (Note G) | 1,017,258 | 1,014,740 |
Other assets | 112,598 | 124,679 |
Assets of discontinued operations (Note B) | 18,835 | 20,020 |
Total investments and other assets | 2,096,912 | 2,292,092 |
Total assets | 15,446,111 | 15,261,773 |
Current liabilities | ||
Current maturities of long-term debt (Note I) | 110,650 | 10,650 |
Short-term borrowings (Note H) | 546,340 | 1,055,296 |
Accounts payable | 615,982 | 891,413 |
Commodity imbalances | 74,460 | 104,650 |
Accrued interest | 129,043 | 104,877 |
Other current liabilities | 132,556 | 180,558 |
Liabilities of discontinued operations (Note B) | 29,235 | 44,901 |
Total current liabilities | 1,638,266 | 2,392,345 |
Long-term debt, excluding current maturities (Note I) | 8,323,582 | 7,150,142 |
Deferred credits and other liabilities | ||
Deferred income taxes (Note O) | 1,436,715 | 1,395,222 |
Other deferred credits | 264,248 | 281,757 |
Liabilities of discontinued operations (Note B) | 16,964 | 36,424 |
Total deferred credits and other liabilities | $ 1,717,927 | $ 1,713,403 |
Commitments and contingencies (Note R) | ||
Equity (Note J) | ||
Common stock, $0.01 par value: authorized 600,000,000 shares; issued 245,811,180 shares and outstanding 209,731,028 shares at December 31, 2015; issued 245,811,180 shares and outstanding 208,322,247 shares at December 31, 2014 | $ 2,458 | $ 2,458 |
Paid-in capital | 1,378,444 | 1,541,583 |
Accumulated other comprehensive loss (Note K) | (127,242) | (136,353) |
Retained earnings | 0 | 138,128 |
Treasury stock, at cost: 36,080,152 shares at December 31, 2015 and 37,488,933 shares at December 31, 2014 | (917,862) | (953,701) |
Total ONEOK shareholders' equity | 335,798 | 592,115 |
Noncontrolling interests in consolidated subsidiaries | 3,430,538 | 3,413,768 |
Total equity | 3,766,336 | 4,005,883 |
Total liabilities and equity | $ 15,446,111 | $ 15,261,773 |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Equity (Note J) | ||
Common stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares, issued (in shares) | 245,811,180 | 245,811,180 |
Common stock, shares, outstanding (in shares) | 209,731,028 | 208,322,247 |
Treasury stock, shares (in shares) | 36,080,152 | 37,488,933 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 379,195 | $ 663,108 | $ 576,961 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 354,620 | 306,038 | 384,377 |
Impairment Charges | 264,256 | 76,412 | 0 |
Business Exit Costs | 0 | 1,739 | 138,559 |
Equity in net earnings from investments | (125,300) | (117,415) | (110,517) |
Distributions received from unconsolidated affiliates | 122,003 | 117,912 | 106,364 |
Deferred income taxes | 137,737 | 156,728 | 151,515 |
Share-based compensation expense | 16,435 | 26,226 | 46,194 |
Pension and postretirement benefit expense, net of contributions | 14,814 | 18,093 | 56,600 |
Allowance for equity funds used during construction | (2,179) | (14,937) | (30,522) |
Gain on sale of assets | 5,629 | 6,599 | 11,881 |
Other | 0 | 0 | (5,656) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 157,051 | 381,513 | (189,809) |
Natural gas and natural gas liquids in storage | 6,050 | 160,860 | 99,937 |
Accounts payable | (205,143) | (417,993) | 165,076 |
Commodity imbalances, net | (4,083) | (90,354) | (52,233) |
Settlement of exit activities liabilities | (38,536) | (51,757) | (17,756) |
Accrued interest | 24,166 | (4,351) | 15,977 |
Increase (Decrease) in Derivative Assets and Liabilities | 32,370 | (59,539) | (25,072) |
Other assets and liabilities, net | (56,107) | 20,848 | (53,491) |
Cash provided by operating activities | 1,006,980 | 1,285,610 | 1,294,767 |
Investing Activities | |||
Capital expenditures (less allowance for equity funds used during construction) | (1,188,312) | (1,779,150) | (2,256,585) |
Cash paid for acquisitions, net of cash received | 0 | (814,934) | (394,889) |
Contributions to unconsolidated affiliates | (27,540) | (1,063) | (35,308) |
Distributions received from unconsolidated affiliates | 33,915 | 21,107 | 31,134 |
Proceeds from sale of assets | 3,825 | 7,817 | 13,617 |
Other | (12,607) | 0 | 0 |
Cash used in investing activities | (1,190,719) | (2,566,223) | (2,642,031) |
Proceeds from (Repayments of) Short-term Debt | (508,956) | 490,834 | (252,708) |
Financing Activities | |||
Issuance of ONE Gas debt, net of discounts | 0 | 1,199,994 | 0 |
Issuance of long-term debt, net of discounts | 1,291,506 | 0 | 1,247,822 |
ONE Gas long-term debt financing costs | 0 | (9,663) | 0 |
Debt financing costs | (17,515) | 0 | (10,246) |
Repayment of long-term debt | (7,753) | (557,679) | (7,868) |
Issuance of common stock | 20,669 | 19,150 | 20,602 |
Issuance of common units, net of issuance costs | 375,660 | 1,113,139 | 583,929 |
Dividends paid | (509,197) | (443,817) | (304,742) |
Cash of ONE Gas at separation | 0 | (60,000) | 0 |
Distributions to noncontrolling interests | (535,825) | (447,459) | (374,142) |
Excess tax benefit from share-based awards | 0 | 0 | 10,312 |
Cash provided by financing activities | 108,589 | 1,304,499 | 912,959 |
Change in cash and cash equivalents | (75,150) | 23,886 | (434,305) |
Change in cash and cash equivalents included in discontinued operations | (43) | 3,361 | 2,848 |
Change in cash and cash equivalents from continuing operations | (75,193) | 27,247 | (431,457) |
Cash and cash equivalents at beginning of period | 172,812 | 145,565 | 577,022 |
Cash and cash equivalents at end of period | 97,619 | 172,812 | 145,565 |
Supplemental cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 367,835 | 340,144 | 294,240 |
Cash paid (refunds received) for income taxes | $ 3,324 | $ (11,881) | $ (16,640) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests in Consolidated Subsidiaries [Member] |
Common stock issued, beginning balance (in shares) at Dec. 31, 2012 | 245,811,180 | ||||||
Shareholders' equity, beginning balance at Dec. 31, 2012 | $ 4,232,450 | $ 2,458 | $ 1,324,698 | $ (216,798) | $ 2,059,024 | $ (1,039,773) | $ 2,102,841 |
Net income | 576,961 | 0 | 0 | 0 | 266,533 | 0 | 310,428 |
Other comprehensive income (loss) | 116,484 | $ 0 | 0 | 94,811 | 0 | 0 | 21,673 |
Common stock issued (in shares) | 0 | ||||||
Common stock issued, ending balance (in shares) at Dec. 31, 2013 | 245,811,180 | ||||||
Common stock issued | 26,189 | $ 0 | (16,549) | 0 | 0 | 42,738 | 0 |
Common stock dividends - $1.48, $2.125 and $2.43 per share (Note J) | (304,742) | 0 | 0 | 0 | (304,742) | 0 | 0 |
Issuance of common units of ONEOK Partners (Note Q) | 533,824 | 0 | 87,295 | 0 | 0 | 0 | 446,529 |
Distributions to noncontrolling interests | (374,142) | 0 | 0 | 0 | 0 | 0 | (374,142) |
Other | 38,156 | 0 | 38,156 | 0 | 0 | 0 | 0 |
Shareholders' equity, ending balance at Dec. 31, 2013 | 4,845,180 | 2,458 | 1,433,600 | (121,987) | 2,020,815 | (997,035) | 2,507,329 |
Net income | 663,108 | 0 | 0 | 0 | 314,107 | 0 | 349,001 |
Other comprehensive income (loss) | (40,158) | $ 0 | 0 | (17,755) | 0 | 0 | (22,403) |
Common stock issued (in shares) | 0 | ||||||
Common stock issued, ending balance (in shares) at Dec. 31, 2014 | 245,811,180 | ||||||
Common stock issued | 25,027 | $ 0 | (18,307) | 0 | 0 | 43,334 | 0 |
Common stock dividends - $1.48, $2.125 and $2.43 per share (Note J) | (443,817) | 0 | 0 | 0 | (443,817) | 0 | 0 |
Issuance of common units of ONEOK Partners (Note Q) | 1,020,530 | 0 | 156,143 | 0 | 0 | 0 | 864,387 |
Distribution of ONE Gas to shareholders (Note B) | (1,749,588) | 0 | 0 | 3,389 | (1,752,977) | 0 | 0 |
Distributions to noncontrolling interests | (447,459) | 0 | 0 | 0 | 0 | 0 | (447,459) |
West Texas LPG noncontrolling interest (Note C) | 162,913 | 0 | 0 | 0 | 0 | 0 | 162,913 |
Other | (29,853) | 0 | (29,853) | 0 | 0 | 0 | 0 |
Shareholders' equity, ending balance at Dec. 31, 2014 | 4,005,883 | 2,458 | 1,541,583 | (136,353) | 138,128 | (953,701) | 3,413,768 |
Net income | 379,195 | 0 | 0 | 0 | 244,977 | 0 | 134,218 |
Other comprehensive income (loss) | (518) | $ 0 | 0 | 9,111 | 0 | 0 | (9,629) |
Common stock issued (in shares) | 0 | ||||||
Common stock issued, ending balance (in shares) at Dec. 31, 2015 | 245,811,180 | ||||||
Common stock issued | 28,289 | $ 0 | (7,550) | 0 | 0 | 35,839 | 0 |
Common stock dividends - $1.48, $2.125 and $2.43 per share (Note J) | (509,197) | 0 | (126,090) | 0 | (383,107) | 0 | 0 |
Issuance of common units of ONEOK Partners (Note Q) | 393,997 | 0 | (34,446) | 0 | 0 | 0 | 428,443 |
Distributions to noncontrolling interests | (535,825) | 0 | 0 | 0 | 0 | 0 | (535,825) |
Other | 4,512 | 0 | 4,947 | 0 | 2 | 0 | (437) |
Shareholders' equity, ending balance at Dec. 31, 2015 | $ 3,766,336 | $ 2,458 | $ 1,378,444 | $ (127,242) | $ 0 | $ (917,862) | $ 3,430,538 |
CONSOLIDATED STATEMENT OF CHA10
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividend paid (in dollars per share) | $ 0.615 | $ 0.605 | $ 0.605 | $ 0.605 | $ 0.59 | $ 0.575 | $ 0.56 | $ 0.40 | $ 0.38 | $ 0.38 | $ 0.36 | $ 0.36 | $ 2.430 | $ 2.125 | $ 1.480 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | A . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations - We are the sole general partner and owned 41.2 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded master limited partnerships, at December 31, 2015 . We are a corporation incorporated under the laws of the state of Oklahoma, and our common stock is listed on the NYSE under the trading symbol “OKE.” ONEOK Partners is a publicly traded master limited partnership involved in the gathering, processing, storage and transportation of natural gas in the United States. In addition, ONEOK Partners owns one of the nation’s premier natural gas liquids systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers. The Natural Gas Gathering and Processing segment gathers and processes natural gas in the Mid-Continent region, which includes the NGL-rich Cana-Woodford Shale, Woodford Shale, Springer Shale, Stack, SCOOP areas of Oklahoma, the Mississippian Lime formation of Oklahoma and Kansas, and the Hugoton and Central Kansas Uplift Basins of Kansas. ONEOK Partners also gathers and/or processes natural gas in two producing basins in the Rocky Mountain region: the Williston Basin, which spans portions of Montana and North Dakota and includes the oil-producing, NGL-rich Bakken Shale and Three Forks formations; and the Powder River Basin of Wyoming, which includes the NGL-rich Frontier, Turner, Sussex and Niobrara Shale formations. The natural gas ONEOK Partners gathers from wells that supply its Sage Creek plant contains NGL-rich natural gas from the Niobrara Shale area of the Powder River Basin. The Natural Gas Liquids segment consists of facilities that gather, fractionate and treat NGLs and store NGL products primarily in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region where it provides nondiscretionary services to producers of NGLs. The natural gas liquids business owns or has an ownership interest in FERC-regulated natural gas liquids gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming and Colorado, and terminal and storage facilities in Missouri, Nebraska, Iowa and Illinois. It also owns FERC-regulated natural gas liquids distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois and Indiana that connect its Mid-Continent assets with Midwest markets, including Chicago, Illinois. ONEOK Partners’ natural gas liquids business also owns and operates truck- and rail-loading and -unloading facilities that interconnect with its NGL fractionation and pipeline assets. The Natural Gas Pipeline segment operates interstate and intrastate natural gas transmission pipelines and natural gas storage facilities. ONEOK Partners’ FERC-regulated interstate natural gas pipeline assets transport natural gas through pipelines in North Dakota, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Tennessee, Oklahoma, Texas and New Mexico. ONEOK Partners’ intrastate natural gas pipeline assets in Oklahoma transport natural gas throughout the state and have access to the major natural gas producing formations, including the Cana-Woodford Shale, Woodford Shale, Springer Shale, Granite Wash, Stack, SCOOP and Mississippian Lime areas. During 2015, ONEOK Partners entered into a 50-50 joint venture, Roadrunner, which will transport natural gas from the Permian Basin in West Texas to the Mexican border near El Paso, Texas. The Roadrunner pipeline is currently under construction, with Phase I expected to be completed in the first quarter 2016. ONEOK Partners owns underground natural gas storage facilities in Oklahoma and Texas, which are connected to its intrastate natural gas pipeline assets, as well as underground natural gas storage facilities in Kansas. On January 31, 2014, we completed the separation of our former natural gas distribution business into a stand-alone publicly traded company, ONE Gas. In addition, we completed the wind down of our former energy services business on March 31, 2014. Following the separation of the natural gas distribution business and the wind down of our energy services business, our primary source of income and cash flows is generated from our investment in ONEOK Partners. See Note B for additional discussion of the separation of the natural gas distribution business and the wind down of the energy services business. For all periods presented, the accompanying consolidated financial statements and notes reflect the results of operations and financial position of our former natural gas distribution and energy services businesses as discontinued operations. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates to our continuing operations. Consolidation - Our consolidated financial statements include the accounts of ONEOK and our subsidiaries over which we have control or are the primary beneficiary. We have recorded noncontrolling interests in consolidated subsidiaries on our Consolidated Balance Sheets to recognize the portion of ONEOK Partners that we do not own. We reflected our ownership interest in ONEOK Partners’ accumulated other comprehensive income (loss) in our consolidated accumulated other comprehensive income (loss). The remaining portion is reflected as an adjustment to noncontrolling interests in consolidated subsidiaries. ONEOK Partners provides natural gas sales and transportation and storage services to our former natural gas distribution business. Prior to the completion of the energy services wind down, ONEOK Partners provided natural gas sales and transportation and storage services to our former energy services business. While these transactions were eliminated in consolidation in previous periods, they are reflected now as affiliate transactions and not eliminated in consolidation for all periods presented as these transactions have continued with third parties. See Note B for additional information. All significant intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated affiliates are accounted for using the equity method if we have the ability to exercise significant influence over operating and financial policies of our investee. Under this method, an investment is carried at its acquisition cost and adjusted each period for contributions made, distributions received and our share of the investee’s comprehensive income. For the investments we account for under the equity method, the premium or excess cost over underlying fair value of net assets is referred to as equity-method goodwill. Impairment of equity investments is recorded when the impairments are other than temporary. These amounts are recorded as investments in unconsolidated affiliates on our accompanying Consolidated Balance Sheets. See Note P for disclosures of our unconsolidated affiliates. Distributions paid to us from our unconsolidated affiliates are classified as operating activities on our Consolidated Statements of Cash Flows until the cumulative distributions exceed our proportionate share of income from the unconsolidated affiliate since the date of our initial investment. The amount of cumulative distributions paid to us that exceeds our cumulative proportionate share of income in each period represents a return of investment and is classified as an investing activity on our Consolidated Statements of Cash Flows. Use of Estimates - The preparation of our consolidated financial statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. These estimates and assumptions also affect the reported amounts of revenue and expenses during the reporting period. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets, liabilities and equity-method investments, obligations under employee benefit plans, provisions for uncollectible accounts receivable, unbilled revenues and cost of goods sold, expenses for services received but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. We evaluate these estimates on an ongoing basis using historical experience, consultation with experts and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known. Fair Value Measurements - We define fair value as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. We use market and income approaches to determine the fair value of our assets and liabilities and consider the markets in which the transactions are executed. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. While many of the contracts in ONEOK Partners’ portfolio are executed in liquid markets where price transparency exists, some contracts are executed in markets for which market prices may exist, but the market may be relatively inactive. This results in limited price transparency that requires management’s judgment and assumptions to estimate fair values. For certain transactions, we utilize modeling techniques using NYMEX-settled pricing data and implied forward LIBOR curves. Inputs into our fair value estimates include commodity-exchange prices, over-the-counter quotes, historical correlations of pricing data, data obtained from third-party pricing services and LIBOR and other liquid money-market instrument rates. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. In addition, as prescribed by the income approach, we compute the fair value of our and ONEOK Partners’ derivative portfolio by discounting the projected future cash flows from our and ONEOK Partners’ derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from LIBOR, Eurodollar futures and interest-rate swaps. We also take into consideration the potential impact on market prices of liquidating positions in an orderly manner over a reasonable period of time under current market conditions. We consider current market data in evaluating counterparties’, as well as our own, nonperformance risk, net of collateral, by using specific and sector bond yields and monitoring the credit default swap markets. Although we use our best estimates to determine the fair value of the derivative contracts we and ONEOK Partners have executed, the ultimate market prices realized could differ from our estimates, and the differences could be material. The fair value of our forward-starting interest-rate swaps are determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest swap settlements. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - fair value measurements are based on unadjusted quoted prices for identical securities in active markets including NYMEX-settled prices. These balances are comprised predominantly of exchange-traded derivative contracts for natural gas and crude oil. • Level 2 - fair value measurements are based on significant observable pricing inputs, such as NYMEX-settled prices for natural gas and crude oil and financial models that utilize implied forward LIBOR yield curves for interest-rate swaps. • Level 3 - fair value measurements are based on inputs that may include one or more unobservable inputs, including internally developed natural gas basis and NGL price curves that incorporate observable and unobservable market data from broker quotes, third-party pricing services, market volatilities derived from the most recent NYMEX close spot prices and forward LIBOR curves, and adjustments for the credit risk of our counterparties. We corroborate the data on which our fair value estimates are based using our market knowledge of recent transactions, analysis of historical correlations and validation with independent broker quotes. These balances categorized as Level 3 are comprised of derivatives for natural gas and NGLs. We do not believe that our Level 3 fair value estimates have a material impact on our results of operations, as the majority of our derivatives are accounted for as hedges for which ineffectiveness has not been material. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives for which fair value is determined using multiple inputs within a single level, based on the lowest level input that is significant to the fair value measurement in its entirety. See Note D for discussion of our fair value measurements. Cash and Cash Equivalents - Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. Revenue Recognition - Our reportable segments recognize revenue when services are rendered or product is delivered. The Natural Gas Gathering and Processing segment records revenues when natural gas is processed in or transported through ONEOK Partners’ facilities. The Natural Gas Liquids segment records revenues based upon contracted services and actual volumes exchanged or stored under service agreements in the period services are provided. A portion of revenues for the Natural Gas Pipelines segment and the Natural Gas Liquids segment are recognized based upon contracted capacity and contracted volumes transported and stored under service agreements in the period services are provided. We disaggregate revenue on the Consolidated Statements of Income as follows: • Commodity sales - Commodity sales represent the sale of NGLs, condensate and residue natural gas. The commodities are primarily obtained as compensation for or related to providing services. Commodity sales are recognized upon delivery or title transfer to the customer, when revenue recognition criteria are met. • Service revenue - Service revenue represents the fees generated from the performance of our services listed above. ONEOK Partners enters into a variety of contract types that provide commodity sales and service revenue. ONEOK Partners provides services primarily under the following types of contracts: • Fee based - Under fee-based arrangements, ONEOK Partners receives a fee or fees for one or more of the following services: gathering, compression, processing, transmission and storage of natural gas; and gathering, transportation, fractionation, exchange and storage of NGLs. The revenue ONEOK Partners earns from these arrangements generally is directly related to the volume of natural gas and NGLs that flow through ONEOK Partners’ systems and facilities, and is not normally directly dependent on commodity prices. However, to the extent a sustained decline in commodity prices results in a decline in volumes, ONEOK Partners’ revenues from these arrangements would be reduced. In addition, many of ONEOK Partners’ arrangements provide for fixed fee, minimum volume or firm demand charges. Fee-based arrangements are reported as service revenue on the Consolidated Statements of Income. • Percent-of-proceeds - Under POP arrangements in the Natural Gas Gathering and Processing segment, ONEOK Partners gathers and processes natural gas on behalf of producers; sells the resulting residue natural gas, condensate and NGLs at market prices; and remits to producers an agreed-upon percentage of the net proceeds resulting from the sale. The agreed-upon percentage remitted to the producer is reported as cost of sales on the Consolidated Statements of Income. In other cases, instead of remitting cash payments to the producer, ONEOK Partners delivers an agreed-upon percentage of the commodities to the producer (take-in-kind agreements) and sells the volumes ONEOK Partners retains to third parties. Typically, ONEOK Partners’ POP arrangements also include a fee-based component. In many cases, ONEOK Partners provides services under contracts that contain a combination of the arrangements described above. When fees are charged (in addition to commodities received) under POP with fee contracts, ONEOK Partners records such fees as service revenue on the Consolidated Statements of Income. The terms of ONEOK Partners’ contracts vary based on natural gas quality conditions, the competitive environment when the contracts are signed and customer requirements. Cost of Sales and Fuel - Cost of sales and fuel primarily includes (i) the cost of purchased commodities, including NGLs, natural gas and condensate, (ii) fees incurred for third-party transportation, fractionation and storage of commodities, and (iii) fuel and power costs incurred to operate ONEOK Partners’ facilities that gather, process, transport and store commodities. Operations and Maintenance - Operations and maintenance primarily includes (i) payroll and benefit costs, (ii) third-party costs for operations, maintenance and integrity management, regulatory compliance and environmental and safety, and (iii) other business related service costs. Accounts Receivable - Accounts receivable represent valid claims against nonaffiliated customers for products sold or services rendered, net of allowances for doubtful accounts. We assess the creditworthiness of our counterparties on an ongoing basis and require security, including prepayments and other forms of collateral, when appropriate. Outstanding customer receivables are reviewed regularly for possible nonpayment indicators and allowances for doubtful accounts are recorded based upon management’s estimate of collectability at each balance sheet date. At December 31, 2015 and 2014 , the allowance for doubtful accounts was not material. Inventory - The values of current natural gas and NGLs in storage are determined using the lower of weighted-average cost or market method. Noncurrent natural gas and NGLs are classified as property and valued at cost. Materials and supplies are valued at average cost. Commodity Imbalances - Commodity imbalances represent amounts payable or receivable for NGL exchange contracts and natural gas pipeline imbalances and are valued at market prices. Under the majority of ONEOK Partners’ NGL exchange agreements, it physically receive volumes of unfractionated NGLs, including the risk of loss and legal title to such volumes, from the exchange counterparty. In turn, ONEOK Partners delivers NGL products back to the customer and charges them gathering and fractionation fees. To the extent that the volumes ONEOK Partners receives under such agreements differ from those it delivers, we record a net exchange receivable or payable position with the counterparties. These net exchange receivables and payables are settled with movements of NGL products rather than with cash. Natural gas pipeline imbalances are settled in cash or in-kind, subject to the terms of the pipelines’ tariffs or by agreement. Derivatives and Risk Management - We and ONEOK Partners utilize derivatives to reduce our market-risk exposure to commodity price and interest-rate fluctuations and to achieve more predictable cash flows. We and ONEOK Partners record all derivative instruments at fair value, with the exception of normal purchases and normal sales transactions that are expected to result in physical delivery. Commodity price and interest-rate volatility may have a significant impact on the fair value of derivative instruments as of a given date. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our consolidated financial statements: Recognition and Measurement Accounting Treatment Balance Sheet Income Statement Normal purchases and normal sales - Fair value not recorded - Change in fair value not recognized in earnings Mark-to-market - Recorded at fair value - Change in fair value recognized in earnings Cash flow hedge - Recorded at fair value - Ineffective portion of the gain or loss on the derivative instrument is recognized in earnings - Effective portion of the gain or loss on the derivative instrument is reported initially as a component of accumulated other comprehensive income (loss) - Effective portion of the gain or loss on the derivative instrument is reclassified out of accumulated other comprehensive income (loss) into earnings when the forecasted transaction affects earnings Fair value hedge - Recorded at fair value - The gain or loss on the derivative instrument is recognized in earnings - Change in fair value of the hedged item is recorded as an adjustment to book value - Change in fair value of the hedged item is recognized in earnings To reduce its exposure to fluctuations in natural gas, NGLs and condensate prices, ONEOK Partners periodically enters into futures, forward purchases and sales, options or swap transactions in order to hedge anticipated purchases and sales of natural gas, NGLs and condensate. Interest-rate swaps are used from time to time to manage interest-rate risk. Under certain conditions, we designate these derivative instruments as a hedge of exposure to changes in fair values or cash flows. We formally document all relationships between hedging instruments and hedged items, as well as risk-management objectives and strategies for undertaking various hedge transactions, and methods for assessing and testing correlation and hedge ineffectiveness. We specifically identify the forecasted transaction that has been designated as the hedged item in a cash flow hedge relationship. We assess the effectiveness of hedging relationships quarterly by performing an effectiveness analysis on our fair value and cash flow hedging relationships to determine whether the hedge relationships are highly effective on a retrospective and prospective basis. ONEOK Partners also documents its normal purchases and normal sales transactions that are expected to result in physical delivery and that ONEOK Partners elects to exempt from derivative accounting treatment. The realized revenues and purchase costs of our and ONEOK Partners derivative instruments not considered held for trading purposes and derivatives that qualify as normal purchases or normal sales that are expected to result in physical delivery are reported on a gross basis. Cash flows from futures, forwards and swaps that are accounted for as hedges are included in the same Consolidated Statements of Cash Flows category as the cash flows from the related hedged items. See Notes D and E for more discussion of our fair value measurements and risk-management and hedging activities using derivatives. Property, Plant and Equipment - Our properties are stated at cost, including AFUDC. Generally, the cost of regulated property retired or sold, plus removal costs, less salvage, is charged to accumulated depreciation. Gains and losses from sales or transfers of nonregulated properties or an entire operating unit or system of our regulated properties are recognized in income. Maintenance and repairs are charged directly to expense. The interest portion of AFUDC represents the cost of borrowed funds used to finance construction activities. We capitalize interest costs during the construction or upgrade of qualifying assets. Capitalized interest is recorded as a reduction to interest expense. The equity portion of AFUDC represents the capitalization of the estimated average cost of equity used during the construction of major projects and is recorded in the cost of our regulated properties and as a credit to the allowance for equity funds used during construction. Our properties are depreciated using the straight-line method over their estimated useful lives. Generally, we apply composite depreciation rates to functional groups of property having similar economic circumstances. We periodically conduct depreciation studies to assess the economic lives of our assets. For ONEOK Partners’ regulated assets, these depreciation studies are completed as a part of our rate proceedings or tariff filings, and the changes in economic lives, if applicable, are implemented prospectively when the new rates are billed. For our nonregulated assets, if it is determined that the estimated economic life changes, the changes are made prospectively. Changes in the estimated economic lives of our property, plant and equipment could have a material effect on our financial position or results of operations. Property, plant and equipment on our Consolidated Balance Sheets includes construction work in process for capital projects that have not yet been placed in service and therefore are not being depreciated. Assets are transferred out of construction work in process when they are substantially complete and ready for their intended use. See Note F for disclosures of our property, plant and equipment. Impairment of Goodwill and Long-Lived Assets, Including Intangible Assets - We assess our goodwill and indefinite-lived intangible assets for impairment at least annually on July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. At July 1, 2015, due to the current commodity price environment, we elected to perform a quantitative assessment, or Step 1 analysis, to test our goodwill for impairment. The assessment included our commodity price assumptions, expected contractual terms, anticipated operating costs and volume estimates. Our goodwill impairment analysis performed as of July 1, 2015, did not result in an impairment charge nor did our analysis reflect any reporting units at risk. In each reporting unit, the fair value substantially exceeded the carrying value. At December 31, 2015, we performed a qualitative review given the decline in commodity prices, ONEOK Partners’ common unit price and our share price since our assessment as of July 1, 2015, and determined that no event has occurred indicating that the implied fair value of each of our reporting units is less than the carrying value of its net assets. As part of our impairment test, we may first assess qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance) to determine whether it is more likely than not that the fair value of each of our reporting units is less than its carrying amount. If further testing is necessary or a quantitative test is elected, we perform a two-step impairment test for goodwill. In the first step, an initial assessment is made by comparing the fair value of a reporting unit with its book value, including goodwill. If the fair value is less than the book value, an impairment is indicated, and we must perform a second test to measure the amount of the impairment. In the second test, we calculate the implied fair value of the goodwill by deducting the fair value of all tangible and intangible net assets of the reporting unit from the fair value determined in step one of the assessment. If the carrying value of the goodwill exceeds the implied fair value of the goodwill, we will record an impairment charge. To estimate the fair value of our reporting units, we use two generally accepted valuation approaches, an income approach and a market approach, using assumptions consistent with a market participant’s perspective. Under the income approach, we use anticipated cash flows over a period of years plus a terminal value and discount these amounts to their present value using appropriate discount rates. Under the market approach, we apply EBITDA multiples to forecasted EBITDA. The multiples used are consistent with historical asset transactions. The forecasted cash flows are based on average forecasted cash flows for a reporting unit over a period of years. As part of our indefinite-lived intangible asset impairment test, we first assess qualitative factors similar to those considered in the goodwill impairment test to determine whether it is more likely than not that the indefinite-lived intangible asset was impaired. If further testing is necessary, we compare the estimated fair value of our indefinite-lived intangible asset with its book value. The fair value of our indefinite-lived intangible asset is estimated using the market approach. Under the market approach, we apply multiples to forecasted cash flows of the assets associated with our indefinite-lived intangible asset. The multiples used are consistent with historical asset transactions. After assessing qualitative and quantitative factors, we determined that there were no impairments to our indefinite-lived intangible asset in 2015. There were also no impairment charges resulting from our 2014 and 2013 annual impairment tests. We assess our long-lived assets, including intangible assets with finite useful lives, for impairment whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. An impairment is indicated if the carrying amount of a long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. For the investments we account for under the equity method, the impairment test considers whether the fair value of the equity investment as a whole, not the underlying net assets, has declined and whether that decline is other than temporary. Therefore, we periodically reevaluate the amount at which we carry our equity-method investments to determine whether current events or circumstances warrant adjustments to our carrying value. See Notes F , G and P for our long-lived assets, goodwill and intangible assets and investments in unconsolidated affiliates disclosures. Regulation - ONEOK Partners’ intrastate natural gas transmission and natural gas liquids pipelines are subject to the rate regulation and accounting requirements of the OCC, KCC, RRC and various municipalities in Texas. ONEOK Partners’ interstate natural gas and natural gas liquids pipelines are subject to regulation by the FERC. In Kansas and Texas, natural gas storage may be regulated by the state and the FERC for certain types of services. Portions of the Natural Gas Liquids and Natural Gas Pipelines segments follow the accounting and reporting guidance for regulated operations. During the rate-making process for certain of ONEOK Partners’ assets, regulatory authorities set the framework for what ONEOK Partners can charge customers for its services and establish the manner that its costs are accounted for, including allowing ONEOK Partners to defer recognition of certain costs and permitting recovery of the amounts through rates over time, as opposed to expensing such costs as incurred. Certain examples of types of regulatory guidance include costs for fuel and losses, acquisition costs, contributions in aid of construction, charges for depreciation and gains or losses on disposition of assets. This allows ONEOK Partners to stabilize rates over time rather than passing such costs on to the customer for immediate recovery. Actions by regulatory authorities could have an effect on the amount recovered from rate payers. Any difference in the amount recoverable and the amount deferred is recor |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | B . DISCONTINUED OPERATIONS Separation of ONE Gas - On January 31, 2014, we completed the separation of ONE Gas. ONE Gas consists of our former natural gas distribution business. ONEOK shareholders of record at the close of business on January 21, 2014, retained their shares of ONEOK stock and received one share of ONE Gas stock for every four shares of ONEOK stock owned in a transaction that was tax-free to ONEOK and its shareholders. We retained no ownership interest in ONE Gas. Excluding cash of ONE Gas at separation, the separation was accounted for as a noncash activity. Wind Down of Energy Services Business - On March 31, 2014, we completed the wind down of our energy services business. We executed agreements in 2013 and the first quarter 2014 to release a significant portion of our nonaffiliated natural gas transportation and storage contracts to third parties that resulted in noncash charges, which are included in income (loss) from discontinued operations, net of tax, in our Consolidated Statements of Income. The following table summarizes the change in our liability related to released capacity contracts for the period indicated: Years Ended December 31, 2015 2014 ( Millions of dollars ) Beginning balance $ 73.8 $ 122.0 Noncash charges — 1.7 Settlements (38.5 ) (51.8 ) Accretion 1.0 1.9 Ending balance $ 36.3 $ 73.8 We recorded these charges in income from discontinued operations, net of tax in our Consolidated Statements of Income. The total charge attributable to severance benefits was not material. We expect future cash payments associated with released transportation and storage capacity from the wind down of our former energy services business to total approximately $37 million , which consists of approximately $19 million paid in 2016, $10 million in 2017, $4 million in 2018, and $4 million during the period from 2019 through 2023. Results of Operations of Discontinued Operations - The results of operations for our former natural gas distribution business and energy services business have been reported as discontinued operations for all periods presented. Income (loss) from discontinued operations, net of tax, in the Consolidated Statements of Income for the year ended December 31, 2015, consists of accretion expense, net of tax benefit, on the released contracts for our former energy services business and certain tax-related adjustments. The tables below provide selected financial information reported in discontinued operations in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013: Year Ended December 31, 2014 Natural Gas Distribution Energy Services Total ( Thousands of dollars ) Revenues $ 287,249 $ 353,404 $ 640,653 Cost of sales and fuel (exclusive of items shown separately below) 190,893 364,648 555,541 Operating costs 60,847 (a) 5,051 65,898 Depreciation and amortization 11,035 319 11,354 Operating income (loss) 24,474 (16,614 ) 7,860 Other income (expense), net (888 ) (7 ) (895 ) Interest expense, net (4,592 ) (413 ) (5,005 ) Income tax benefit (expense) (16,415 ) 8,848 (7,567 ) Income (loss) from discontinued operations, net $ 2,579 $ (8,186 ) $ (5,607 ) (a) - Includes approximately $23.0 million for the year ended December 31, 2014, of costs related to the ONE Gas separation. Year Ended December 31, 2013 Natural Gas Distribution Energy Services Total ( Thousands of dollars ) Revenues $ 1,689,945 $ 1,381,636 $ 3,071,581 Cost of sales and fuel (exclusive of items shown separately below) 876,944 1,554,621 2,431,565 Operating costs 436,281 (a) 12,586 448,867 Depreciation and amortization 144,758 276 145,034 Operating income (loss) 231,962 (185,847 ) 46,115 Other income (expense), net 2,484 135 2,619 Interest expense, net (61,366 ) (2,195 ) (63,561 ) Income tax benefit (expense) (64,307 ) 67,005 2,698 Income (loss) from discontinued operations, net $ 108,773 $ (120,902 ) $ (12,129 ) (a) - Includes approximately $9.4 million for the year ended December 31, 2013, of costs related to the ONE Gas separation. Prior to the ONE Gas separation, natural gas sales and transportation and storage services provided to our former natural gas distribution business by ONEOK Partners were $7.5 million and $64.5 million for the years ended December 31, 2014 and 2013, respectively. Prior to February 1, 2014, these revenues and related costs were eliminated in consolidation. Beginning February 1, 2014, these revenues represent third-party transactions with ONE Gas and are not eliminated in consolidation for all periods presented, as such sales and services have continued subsequent to the separation and are expected to continue in future periods. Prior to the completion of the energy services wind down, natural gas sales and transportation and storage services provided to our energy services business by ONEOK Partners were $46.0 million and $276.3 million for the years ended December 31, 2014 and 2013, respectively. While these transactions were eliminated in consolidation in previous periods, they are reflected now as affiliate transactions and are not eliminated in consolidation for all periods presented as these transactions have continued with third parties. Regulation - Our former natural gas distribution business is subject to the rate regulation and accounting requirements of the OCC, KCC, RRC and various municipalities in Texas. Oklahoma Natural Gas, Kansas Gas Service, Texas Gas Service, which are all part of our former natural gas distribution business, follow the accounting and reporting guidance for regulated operations. In December 2013, the KCC approved a settlement agreement for the separation of our Kansas Gas Service natural gas distribution business to ONE Gas from ONEOK. The terms of the settlement agreement provided that amounts previously recorded as a regulatory asset related to ONEOK’s acquisition of Kansas Gas Service in 1997 would no longer be recovered in rates. As a result, the carrying amount of the regulatory asset was written off, and we recorded a noncash charge to income from discontinued operations of approximately $10.2 million in the fourth quarter 2013. Statement of Financial Position of Discontinued Operations - At December 31, 2015 and 2014 , assets and liabilities of discontinued operations in our Consolidated Balance Sheets relate primarily to deferred tax assets and capacity release obligations associated with our former energy services business. |
ACQUISITIONS ACQUISITIONS
ACQUISITIONS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
ACQUISITIONS | C . ACQUISITIONS West Texas LPG - In November 2014 , ONEOK Partners completed the acquisition of an 80 percent interest in WTLPG and a 100 percent interest in the Mesquite Pipeline for approximately $800 million from affiliates of Chevron Corporation, and ONEOK Partners became the operator of both pipelines. Financing to close this transaction came from available cash on hand and borrowings under its existing commercial paper program. The acquisition consists of approximately 2,600 miles of natural gas liquids gathering pipelines extending from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas. The acquired pipelines access NGL supply from producers actively developing the Delaware, Midland and Central Basins in the Permian Basin, in addition to the Barnett Shale, East Texas and north Louisiana regions. The pipeline system increased ONEOK Partners’ natural gas liquids gathering system by approximately 60 percent to nearly 7,100 miles of natural gas liquids gathering pipelines and added approximately 285,000 barrels per day of NGL capacity. These assets provide ONEOK Partners with additional fee-based earnings and its natural gas liquids infrastructure with access to a new natural gas liquids supply basin. We accounted for the West Texas LPG acquisition as a business combination which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition-date fair values. Our Consolidated Balance Sheet as of December 31, 2015, reflects the final purchase price allocation. Adjustments to the preliminary purchase price allocation reported in Note C in the Notes to the Consolidated Financial Statements in our 2014 Annual Report were not material and prior period financial statements have not been recast. The final purchase price allocation and assessment of the fair value of the assets acquired as of the acquisition date were as follows: ( Thousands of dollars ) Cash $ 13,839 Accounts receivable 9,132 Other current assets 3,369 Property, plant and equipment Regulated 812,716 Nonregulated 157,643 Total property, plant and equipment 970,359 Total fair value of assets acquired 996,699 Accounts payable (8,621 ) Other liabilities (10,867 ) Total fair value of liabilities acquired (19,488 ) Less: Fair value of noncontrolling interest (162,438 ) Net assets acquired 814,773 Less: Cash received (13,839 ) Net cash paid for acquisition $ 800,934 Beginning November 29, 2014, the results of operations for West Texas LPG are included in the Natural Gas Liquids segment. We consolidate WTLPG and have recorded noncontrolling interests in consolidated subsidiaries on our Consolidated Statements of Income and Consolidated Balance Sheets to recognize the portion of WTLPG that ONEOK Partners does not own. The portion of the assets and liabilities of WTLPG acquired attributable to noncontrolling interests was accounted for as noncash activity. The fair value of the noncontrolling interest of WTLPG was estimated by applying a market approach. Revenues and earnings related to West Texas LPG have been included within our Consolidated Statements of Income since the acquisition date. Supplemental pro forma revenue and earnings reflecting this acquisition as if it had occurred as of January 1, 2013, are not materially different from the information presented in the accompanying Consolidated Statements of Income and are, therefore, not presented. The limited partnership agreement of WTLPG provides that distributions to the partners are to be made on a pro rata basis according to each partner’s ownership interest. Cash distributions to the partners are currently declared and paid by WTLPG each calendar quarter. Any changes to, or suspension of, the cash distributions from WTLPG requires the approval of a minimum of 90 percent of the ownership interest and a minimum of two general partners of WTLPG. Cash distributions are equal to 100 percent of distributable cash as defined in the limited partnership agreement of WTLPG. Sage Creek - On September 30, 2013 , ONEOK Partners completed for $305 million the acquisition of certain natural gas gathering and processing, and natural gas liquids facilities in Converse and Campbell counties, Wyoming, in the NGL-rich Niobrara Shale area of the Powder River Basin. The Sage Creek acquisition consists primarily of a 50 MMcf/d natural gas processing facility, the Sage Creek plant, and related natural gas gathering and natural gas liquids infrastructure. Included in the acquisition were supply contracts providing for long-term acreage dedications from producers in the area, which are structured with POP and fee-based contractual terms. The acquisition is complementary to ONEOK Partners’ existing natural gas liquids assets and provides additional natural gas gathering and processing and natural gas liquids gathering capacity in the region. This acquisition was accounted for as a business combination. The excess of cost over those fair values was recorded as goodwill. The purchase price and assessment of the fair value of the assets acquired were as follows: Natural Gas Gathering and Processing Natural Gas Liquids Total Property, plant and equipment ( Thousands of dollars ) Gathering pipelines and related equipment $ 41,129 $ 18,045 $ 59,174 Processing and fractionation and related equipment 50,595 — 50,595 General plant and other 120 — 120 Intangible assets 40,000 63,000 103,000 Identifiable assets acquired 131,844 81,045 212,889 Goodwill 20,000 72,000 92,000 Total purchase price $ 151,844 $ 153,045 $ 304,889 Identifiable intangible assets recognized in the Sage Creek acquisition are primarily related to natural gas gathering and processing and natural gas liquids gathering and fractionation supply contracts with acreage dedications and customer relationships. The basis for determining the value of these intangible assets is the estimated future net cash flows to be derived from acquired supply contracts and customer relationships, which are offset with appropriate charges for the use of contributory assets and discounted using a risk-adjusted discount rate. Those intangible assets are being amortized on a straight-line basis over an initial 20 -year period for the Natural Gas Gathering and Processing segment and an initial 30 -year period for the Natural Gas Liquids segment, which represents a portion of the term over which the customer contracts and relationships are expected to contribute to ONEOK Partners’ cash flows. Revenues and earnings related to the Sage Creek acquisition are included within the Consolidated Statements of Income since the acquisition date. Supplemental pro forma revenue and earnings reflecting this acquisition as if it had occurred as of January 1, 2012, are not materially different from the information presented in the accompanying Consolidated Statements of Income and are, therefore, not presented. Maysville - In December 2013, ONEOK Partners acquired the remaining 30 percent undivided interest in the Maysville, Oklahoma, natural gas processing facility for $90 million . Beginning December 1, 2013 , the results of operations for its 100 percent interest are included in the Natural Gas Gathering and Processing segment. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | D . FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements - The following tables set forth our recurring fair value measurements for the periods indicated: December 31, 2015 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 38,921 $ — $ 7,253 $ 46,174 $ (42,414 ) $ 3,760 Physical contracts — — 3,591 3,591 — 3,591 Total derivative assets $ 38,921 $ — $ 10,844 $ 49,765 $ (42,414 ) $ 7,351 Derivative liabilities Commodity contracts Financial contracts $ (4,513 ) $ — $ (3,513 ) $ (8,026 ) $ 8,026 $ — Interest-rate contracts — (9,936 ) — (9,936 ) — (9,936 ) Total derivative liabilities $ (4,513 ) $ (9,936 ) $ (3,513 ) $ (17,962 ) $ 8,026 $ (9,936 ) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and ONEOK Partners. At December 31, 2015 , ONEOK Partners had $34.4 million of cash held from various counterparties and no cash collateral posted. (b) - Included in other current assets or other current liabilities in our Consolidated Balance Sheets. December 31, 2014 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Assets Derivatives Commodity contracts Financial contracts $ 42,880 $ — $ 354 $ 43,234 $ (25,979 ) $ 17,255 Physical contracts — — 9,922 9,922 — 9,922 Interest-rate contracts — 2,288 — 2,288 — 2,288 Total derivative assets 42,880 2,288 10,276 55,444 (25,979 ) 29,465 Available-for-sale investment securities 1,773 — — 1,773 — 1,773 Total assets $ 44,653 $ 2,288 $ 10,276 $ 57,217 $ (25,979 ) $ 31,238 Liabilities Derivatives Commodity contracts Financial contracts $ (169 ) $ — $ (968 ) $ (1,137 ) $ 1,137 $ — Physical contracts — — (23 ) (23 ) — (23 ) Interest-rate contracts — (44,843 ) — (44,843 ) — (44,843 ) Total derivative liabilities $ (169 ) $ (44,843 ) $ (991 ) $ (46,003 ) $ 1,137 $ (44,866 ) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and ONEOK Partners. At December 31, 2014 , ONEOK Partners had $24.8 million of cash held from various counterparties and no cash collateral posted. (b) - Included in other current assets, other assets or other current liabilities in our Consolidated Balance Sheets. The following table sets forth the reconciliation of our Level 3 fair value measurements for our continuing operations for the periods indicated: Years Ended December 31, Derivative Assets (Liabilities) 2015 2014 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ 9,285 $ (782 ) Total realized/unrealized gains (losses): Included in earnings (a) 216 (927 ) Included in other comprehensive income (loss) (2,170 ) 7,260 Settlements — 3,734 Net assets (liabilities) at end of period $ 7,331 $ 9,285 (a) - Included in commodity sales revenues in our Consolidated Statements of Income. Realized/unrealized gains (losses) include the realization of ONEOK Partners’ derivative contracts through maturity. During the years ended December 31, 2015 and 2014 , gains or losses included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the end of each reporting period were not material. We recognize transfers into and out of the levels in the fair value hierarc hy as of the end of each reporting period. During the years ended December 31, 2015 and 2014 , there were no transfers between levels. Other Financial Instruments - The approximate fair value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings is equal to book value, due to the short-term nature of these items. Our cash and cash equivalents are comprised of bank and money market accounts and are classified as Level 1. Our short-term borrowings are classified as Level 2 since the estimated fair value of the short-term borrowings can be determined using information available in the commercial paper market. The estimated fair value of our consolidated long-term debt, including current maturities, was $7.4 billion and $7.5 billion at December 31, 2015 and 2014 , respectively. The book value of long-term debt, including current maturities, was $8.4 billion and $7.2 billion at December 31, 2015 and 2014 , respectively. The estimated fair value of the aggregate of ONEOK’s and ONEOK Partners’ long-term debt outstanding was determined using quoted market prices for similar issues with similar terms and maturities. The estimated fair value of our consolidated long-term debt is classified as Level 2. During 2015 and 2014, ONEOK Partners recorded noncash impairment charges, primarily related to its equity investments in the dry natural gas area of the Powder River Basin. The valuation of these investments required use of significant unobservable inputs. ONEOK Partners used an income approach to estimate the fair value of its investments. ONEOK Partners’ discounted cash flow analysis included the following inputs that are not readily available: a discount rate reflective of its cost of capital and estimated contract rates, volumes, operating and maintenance costs and capital expenditures. The estimated fair value of these investments is classified as Level 3. See Note P for additional information about ONEOK Partners’ equity investments and the impairment charges. |
RISK MANAGEMENT AND HEDGING ACT
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | E . RISK-MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Risk-Management Activities - ONEOK Partners is sensitive to changes in natural gas, crude oil and NGL prices, principally as a result of contractual terms under which these commodities are processed, purchased and sold. ONEOK Partners uses physical-forward purchases and sales and financial derivatives to secure a certain price for a portion of its natural gas, condensate and NGL products; to reduce its exposure to interest-rate fluctuations; and to achieve more predictable cash flows. ONEOK Partners follows established policies and procedures to assess risk and approve, monitor and report its risk-management activities. ONEOK Partners has not used these instruments for trading purposes. We and ONEOK Partners are also subject to the risk of interest-rate fluctuation in the normal course of business. Commodity price risk - Commodity price risk refers to the risk of loss in cash flows and future earnings arising from adverse changes in the price of natural gas, NGLs and condensate. ONEOK Partners uses the following commodity derivative instruments to mitigate the near-term commodity price risk associated with a portion of the forecasted sales of these commodities: • Futures contracts - Standardized contracts to purchase or sell natural gas and crude oil for future delivery or settlement under the provisions of exchange regulations; • Forward contracts - Nonstandardized commitments between two parties to purchase or sell natural gas, crude oil or NGLs for future physical delivery. These contracts are typically nontransferable and can only be canceled with the consent of both parties; and • Swaps - Exchange of one or more payments based on the value of one or more commodities. These instruments transfer the financial risk associated with a future change in value between the counterparties of the transaction, without also conveying ownership interest in the asset or liability. ONEOK Partners may also use other instruments including options or collars to mitigate commodity price risk. Options are contractual agreements that give the holder the right, but not the obligation, to buy or sell a fixed quantity of a commodity at a fixed price within a specified period of time. Options may either be standardized and exchange traded or customized and nonexchange traded. A collar is a combination of a purchased put option and a sold call option, which places a floor and a ceiling price for commodity sales being hedged. The Natural Gas Gathering and Processing segment is exposed to commodity price risk as a result of receiving commodities as a portion of ONEOK Partners’ compensation for services associated with its POP with fee contracts. ONEOK Partners also is exposed to basis risk between the various production and market locations where it receives and sells commodities. As part of ONEOK Partners’ hedging strategy, it uses the previously described commodity derivative financial instruments and physical-forward contracts to reduce the impact of price fluctuations related to natural gas, NGLs and condensate. The Natural Gas Liquids segment is exposed to location price differential risk, primarily as a result of the relative value of NGL purchases at one location and sales at another location. ONEOK Partners is also exposed to commodity price risk resulting from the relative values of the various NGL products to each other, NGLs in storage and the relative value of NGLs to natural gas. ONEOK Partners utilizes physical-forward contracts and commodity derivative financial instruments to reduce the impact of price fluctuations related to NGLs. The Natural Gas Pipelines segment is exposed to commodity price risk because its intrastate and interstate natural gas pipelines retain natural gas from its customers for operations or as part of its fee for services provided. When the amount of natural gas consumed in operations by these pipelines differs from the amount provided by its customers, ONEOK Partners’ pipelines must buy or sell natural gas, or store or use natural gas from inventory, which can expose it to commodity price risk depending on the regulatory treatment for this activity. To the extent that commodity price risk in the Natural Gas Pipelines segment is not mitigated by fuel cost-recovery mechanisms, ONEOK Partners uses physical-forward sales or purchases to reduce the impact of price fluctuations related to natural gas. At December 31, 2015 and 2014 , there were no financial derivative instruments with respect to ONEOK Partners’ natural gas pipeline operations. Interest-rate risk - We and ONEOK Partners manage interest-rate risk through the use of fixed-rate debt, floating-rate debt and interest-rate swaps. Interest-rate swaps are agreements to exchange interest payments at some future point based on specified notional amounts. At December 31, 2015 and 2014 , ONEOK Partners had forward-starting interest-rate swaps with notional amounts totaling $400 million and $900 million , respectively, that have been designated as cash flow hedges of the variability of interest payments on a portion of forecasted debt issuances that may result from changes in the benchmark interest rate before the debt is issued. Upon ONEOK Partners’ debt issuance in March 2015, it settled $500 million of its interest-rate swaps and realized a loss of $55.1 million , which is included in accumulated other comprehensive loss and will be amortized to interest expense over the term of the related debt. At December 31, 2015, ONEOK Partners’ remaining interest-rate swaps with notional amounts totaling $400 million have settlement dates of less than 12 months. In January 2016, ONEOK Partners entered into forward-starting interest-rate swaps with notional amounts totaling $1.0 billion for the period of April 2016 through July 2018 and forward-starting interest-rate swaps with notional amounts totaling $500 million for the period of July 2018 through January 2019 that were designated as cash flow hedges to hedge the variability on LIBOR-based interest payments. Fair Values of Derivative Instruments - The following table sets forth the fair values of our derivative instruments for our continuing operations for the periods indicated: December 31, 2015 December 31, 2014 Assets (a) (Liabilities) (a) Assets (b) (Liabilities) (b) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts Financial contracts $ 39,255 $ (1,440 ) $ 43,234 $ (1,137 ) Physical contracts 3,591 — 9,922 — Interest-rate contracts — (9,936 ) 2,288 (44,843 ) Total derivatives designated as hedging instruments 42,846 (11,376 ) 55,444 (45,980 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts 6,919 (6,586 ) — — Physical contracts — — — (23 ) Total derivatives not designated as hedging instruments 6,919 (6,586 ) — (23 ) Total derivatives $ 49,765 $ (17,962 ) $ 55,444 $ (46,003 ) (a) - Included on a net basis in other current assets or other current liabilities in our Consolidated Balance Sheets. (b) - Included on a net basis in other current assets, other assets or other current liabilities on our Consolidated Balance Sheets. Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held for our continuing operations for the periods indicated: December 31, 2015 December 31, 2014 Contract Type Purchased/ Payor Sold/ Receiver Purchased/ Payor Sold/ Receiver Derivatives designated as hedging instruments: Cash flow hedges Fixed price -Natural gas ( Bcf ) Futures and swaps — (27.1 ) — (41.2 ) -Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps — (2.3 ) — (0.5 ) Basis -Natural gas ( Bcf ) Futures and swaps — (27.1 ) — (41.2 ) Interest-rate contracts ( Millions of dollars ) Forward-starting swaps $ 400.0 $ — $ 900.0 $ — Derivatives not designated as hedging instruments: Fixed price - Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps 0.6 (0.6 ) — — These notional amounts are used to summarize the volume of financial instruments; however, they do not reflect the extent to which the positions offset one another and, consequently, do not reflect our actual exposure to market or credit risk. Cash Flow Hedges - ONEOK Partners uses derivative instruments to hedge the cash flows associated with anticipated purchases and sales of natural gas, NGLs and condensate and cost of fuel used in the transportation of natural gas. Accumulated other comprehensive loss at December 31, 2015 , includes gains of approximately $10.8 million , net of tax, related to these hedges that will be recognized within the next 12 months as the forecasted transactions affect earnings and if commodity prices remain at current levels. The amount deferred in accumulated other comprehensive loss attributable to our settled interest-rate swaps is a loss of $49.1 million , net of tax, which will be recognized over the life of the long-term, fixed-rate debt. We expect that losses of $6.2 million , net of tax, will be reclassified into earnings during the next 12 months as the hedged items affect earnings. The remaining amounts in accumulated other comprehensive loss are attributable primarily to ONEOK Partners’ forward-starting interest-rate swaps with future settlement dates, which will be amortized over the life of long-term, fixed-rate debt upon issuance of ONEOK Partners’ debt. For the year ended December 31, 2013, income from discontinued operations in our Consolidated Statement of Income related to our former energy services business included $10.1 million reflecting an adjustment to natural gas inventory at the lower of cost or market value. We also reclassified $8.0 million of deferred gains, before income taxes, on associated cash flow hedges from accumulated other comprehensive loss into earnings. The following table sets forth the unrealized effect of cash flow hedges recognized in other comprehensive income (loss) for the periods indicated: Derivatives in Cash Flow Hedging Relationships Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Continuing Operations Commodity contracts $ 70,065 $ 32,354 $ (14,475 ) Interest-rate contracts (22,565 ) (96,993 ) 46,616 Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) for continuing operations $ 47,500 $ (64,639 ) $ 32,141 Unrealized gain (loss) related to ONEOK Partners’ equity-method investments are not included in the table above and were not material. The following table sets forth the effect of cash flow hedges on our Consolidated Statements of Income for the periods indicated: Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Continuing Operations Commodity contracts Commodity sales revenues $ 81,089 $ (21,052 ) $ 1,689 Interest-rate contracts Interest expense (17,565 ) (21,966 ) (14,560 ) Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income from continuing operations on derivatives (effective portion) $ 63,524 $ (43,018 ) $ (12,871 ) For the years ended December 31, 2014 and 2013, an unrealized loss of $3.7 million and $1.0 million , respectively, was recognized in other comprehensive income (loss) and a realized loss of $12.8 million and realized gain of $3.0 million , respectively, was reclassified from accumulated other comprehensive loss into net income related to cash flow hedges for our former energy services and natural gas distribution businesses. Ineffectiveness related to our former energy services business’ and ONEOK Partners’ cash flow hedges was not material for the years ended December 31, 2014 and 2013, and for ONEOK Partners’ for the year ended December 31, 2015. In the event that it becomes probable that a forecasted transaction will not occur, we will discontinue cash flow hedge treatment, which will affect earnings. For the year ended December 31, 2014, we reclassified losses of $4.6 million , net of taxes of $3.1 million , to interest expense from accumulated other comprehensive loss due to the discontinuance of cash flow hedge treatment from the de-designation of interest-rate swaps related to the early retirement of long-term debt. See Note I for additional information. For the years ended December 31, 2015 and 2013, there were no gains or losses due to the discontinuance of cash flow hedge treatment in our continuing operations as a result of the underlying transactions being no longer probable. Credit Risk - We and ONEOK Partners monitor the creditworthiness of counterparties and compliance with policies and limits established by our Risk Oversight and Strategy Committee. We and ONEOK Partners maintain credit policies with regard to counterparties that we believe minimize overall credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit ratings, bond yields and credit default swap rates), collateral requirements under certain circumstances and the use of standardized master-netting agreements that allow us to net the positive and negative exposures associated with a single counterparty. ONEOK Partners has counterparties whose credit is not rated, and for those customers, it uses internally developed credit ratings. From time to time, ONEOK Partners may enter into financial derivative instruments that contain provisions that require it to maintain an investment-grade credit rating from S&P and/or Moody’s. If ONEOK Partners’ credit ratings on its senior unsecured long-term debt were to decline below investment grade, the counterparties to the derivative instruments could request collateralization on derivative instruments in net liability positions. There were no financial derivative instruments with contingent features related to credit risk as of December 31, 2015 . The counterparties to ONEOK Partners’ derivative contracts consist primarily of major energy companies, financial institutions and commercial and industrial end users. This concentration of counterparties may affect ONEOK Partners’ overall exposure to credit risk, either positively or negatively, in that the counterparties may be affected similarly by changes in economic, regulatory or other conditions. Based on ONEOK Partners’ policies, exposures, credit and other reserves, it does not anticipate a material adverse effect on its financial position or results of operations as a result of counterparty nonperformance. At December 31, 2015 , the net credit exposure from our derivative assets is primarily with investment-grade companies in the financial services sector. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | F . PROPERTY, PLANT AND EQUIPMENT The following table sets forth our property, plant and equipment for our continuing operations by property type, for the periods indicated: Estimated Useful Lives (Years) December 31, December 31, ( Thousands of dollars ) Nonregulated Gathering pipelines and related equipment 5 to 40 $ 2,961,388 $ 2,449,343 Processing and fractionation and related equipment 3 to 40 3,627,062 2,880,572 Storage and related equipment 5 to 54 456,437 478,276 Transmission pipelines and related equipment 5 to 54 416,391 518,585 General plant and other 2 to 60 407,544 364,976 Construction work in process — 691,907 1,236,138 Regulated Storage and related equipment 5 to 54 76,468 115,799 Natural gas transmission pipelines and related equipment 5 to 77 1,507,220 1,478,035 Natural gas liquids transmission pipelines and related equipment 5 to 88 4,208,121 3,822,799 General plant and other 2 to 54 94,461 63,424 Construction work in process — 83,461 194,700 Property, plant and equipment 14,530,460 13,602,647 Accumulated depreciation and amortization - nonregulated (1,325,151 ) (1,221,387 ) Accumulated depreciation and amortization - regulated (831,320 ) (718,823 ) Net property, plant and equipment $ 12,373,989 $ 11,662,437 The average depreciation rates for ONEOK Partners’ regulated property are set forth, by segment, in the following table for the periods indicated: Years Ended December 31, 2015 2014 2013 Natural Gas Liquids 1.9% 2.0% 2.0% Natural Gas Pipelines 2.1% 2.1% 2.2% We and ONEOK Partners incurred liabilities for construction work in process that had not been paid at December 31, 2015, 2014 and 2013 , of $115.7 million , $187.2 million and $237.2 million , respectively. Such amounts are not included in capital expenditures (less allowance for equity funds used during construction) on the Consolidated Statements of Cash Flows. Impairment Charges - Crude oil and natural gas producers have primarily focused their development efforts on crude oil and NGL-rich supply basins rather than in areas with dry natural gas production, such as the coal-bed methane production areas in the Powder River Basin. The reduced development activities and production declines in the dry natural gas area of the Powder River Basin have resulted in lower natural gas volumes available to be gathered. Due to the continued and greater than expected decline in volumes gathered in the coal-bed methane area of the Powder River Basin, ONEOK Partners evaluated its assets and investments in this area for impairment and determined that it will cease operations of its wholly owned coal-bed methane natural gas gathering system in 2016. ONEOK Partners recorded $63.5 million of noncash impairment charges on these long-lived assets in the fourth quarter 2015 in the Natural Gas Gathering and Processing segment. In addition, ONEOK Partners recorded noncash impairment charges of approximately $20.2 million for previously idled assets in the Natural Gas Gathering and Processing and Natural Gas Liquids segments in the fourth quarter 2015, as the expectation for future use of these assets changed. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | G . GOODWILL AND INTANGIBLE ASSETS Goodwill - The following table sets forth our goodwill by segment for the periods indicated: December 31, December 31, 2015 2014 ( Thousands of dollars ) Natural Gas Gathering and Processing $ 122,291 $ 122,291 Natural Gas Liquids 268,544 268,544 Natural Gas Pipelines 134,700 134,700 Total goodwill $ 525,535 $ 525,535 Intangible Assets - The following table sets forth the gross carrying amount and accumulated amortization of intangible assets for our continuing operations for the periods indicated: December 31, December 31, 2015 2014 ( Thousands of dollars ) Gross intangible assets $ 581,632 $ 567,215 Accumulated amortization (89,909 ) (78,010 ) Net intangible assets $ 491,723 $ 489,205 At December 31, 2015 and 2014 , ONEOK Partners has $336.2 million and $333.6 million , respectively, of intangible assets related primarily to contracts acquired through acquisitions in the Natural Gas Gathering and Processing and Natural Gas Liquids segments, which are being amortized over periods of 20 to 40 years. The remaining intangible asset balance has an indefinite life. Amortization expense for intangible assets for 2015, 2014 and 2013 was $11.9 million , $11.8 million and $8.7 million , respectively, and the aggregate amortization expense for each of the next five years is estimated to be approximately $11.9 million. |
SHORT-TERM BORROWINGS SHORT-TER
SHORT-TERM BORROWINGS SHORT-TERM BORROWINGS (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
CREDIT FACILITIES AND SHORT-TERM NOTES PAYABLE [Abstract] | |
SHORT-TERM BORROWINGS | H . SHORT-TERM BORROWINGS ONEOK Credit Agreement - In January 2016, we extended the term of the ONEOK Credit Agreement by one year to January 2020. The ONEOK Credit Agreement is a $300 million revolving credit facility and contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining a ratio of indebtedness to Consolidated EBITDA (EBITDA, as defined in our ONEOK Credit Agreement) of no more than 4.0 to 1. Upon breach of certain covenants by us in our ONEOK Credit Agreement, amounts outstanding under our ONEOK Credit Agreement, if any, may become due and payable immediately. At December 31, 2015, ONEOK’s ratio of indebtedness to Consolidated EBITDA was 2.3 to 1, and ONEOK was in compliance with all covenants under the ONEOK Credit Agreement. As a result of a reduction in the borrowing capacity of the ONEOK Credit Agreement due to the ONE Gas separation, we wrote off approximately $2.9 million in interest expense of previously deferred credit agreement issuance costs in the first quarter 2014. This ONEOK Credit Agreement includes a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans. Under the terms of the ONEOK Credit Agreement, ONEOK may request an increase in the size of the facility to an aggregate of $500 million from $300 million by either commitments from new lenders or increased commitments from existing lenders. The ONEOK Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in our credit rating. Based on our current credit rating, borrowings, if any, will accrue interest at LIBOR plus 145 b asis points , and the annual facility fee is 30 basis points . At December 31, 2015 , ONEOK had $1.1 million letters of credit issued and no borrowings under the ONEOK Credit Agreement. In February 2014, we repaid all amounts outstanding under our commercial paper program, with a portion of the proceeds received from ONE Gas in connection with the separation, and terminated the program. See Note I for additional information. ONEOK Partners Credit Agreement - In January 2016, ONEOK Partners extended the term of the ONEOK Partners Credit Agreement by one year to January 2020. The ONEOK Partners Credit Agreement is a $2.4 billion revolving credit facility and includes a $100 million sublimit for the issuance of standby letters of credit and a $150 million swingline sublimit. The ONEOK Partners Credit Agreement is available for general partnership purposes. During the first quarter 2015, ONEOK Partners increased the size of the ONEOK Partners Credit Agreement to $2.4 billion from $1.7 billion by exercising its option to increase the capacity of the facility through increased commitments from existing lenders and a commitment from one new lender. ONEOK Partners had $14 million of letters of credit issued December 31, 2015 and 2014 , $300.0 million of borrowings outstanding and approximately $1.8 billion capacity available at December 31, 2015 , and no borrowings outstanding at December 31, 2014 , under the ONEOK Partners Credit Agreement. The interest rate on ONEOK Partners’ borrowings at December 31, 2015 , was 1.60 percent . The ONEOK Partners Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in its credit rating. Under the terms of the ONEOK Partners Credit Agreement, based on ONEOK Partners’ current credit ratings, borrowings, if any, will accrue at LIBOR plus 117.5 basis points , and the annual facility fee is 20 basis points . The ONEOK Partners Credit Agreement is guaranteed fully and unconditionally by the Intermediate Partnership. Borrowings under the ONEOK Partners Credit Agreement are nonrecourse to ONEOK. The ONEOK Partners Credit Agreement contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in ONEOK Partners Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.0 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 increase to 5.5 to 1 for the quarter in which the acquisition was completed and the two following quarters. As a result of the West Texas LPG acquisition ONEOK Partners completed in the fourth quarter 2014, the allowable ratio of indebtedness to adjusted EBITDA increased to 5.5 to 1 through the second quarter 2015. If ONEOK Partners were to breach certain covenants in the ONEOK Partners Credit Agreement, amounts outstanding under the ONEOK Partners Credit Agreement, if any, may become due and payable immediately. At December 31, 2015 , ONEOK Partners’ ratio of indebtedness to adjusted EBITDA was 4.4 to 1, and it was in compliance with all covenants under the ONEOK Partners Credit Agreement. Neither ONEOK nor ONEOK Partners guarantees the debt or other similar commitments of unaffiliated parties. ONEOK does not guarantee the debt, commercial paper or other similar commitments of ONEOK Partners, and ONEOK Partners does not guarantee the debt or other similar commitments of ONEOK. ONEOK Partners Commercial Paper Program - During the first quarter 2015, ONEOK Partners increased the size of its commercial paper program to $2.4 billion from $ 1.7 billion . Amounts outstanding under ONEOK Partners’ commercial paper program reduce the borrowing capacity under the ONEOK Partners Credit Agreement. At December 31, 2015 and 2014 , ONEOK Partners had $246.3 million and $1.1 billion of commercial paper outstanding with weighted-average interest rates of 1.23 percent and 0.54 percent , respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [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, 2015 2014 ( Thousands of dollars ) ONEOK $700,000 at 4.25% due 2022 $ 547,397 $ 547,397 $500,000 at 7.5% due 2023 500,000 — $100,000 at 6.5% due 2028 87,516 87,619 $100,000 at 6.875% due 2028 100,000 100,000 $400,000 at 6.0% due 2035 400,000 400,000 Total ONEOK senior notes payable 1,634,913 1,135,016 ONEOK Partners $650,000 at 3.25% due 2016 650,000 650,000 $450,000 at 6.15% due 2016 450,000 450,000 $400,000 at 2.0% due 2017 400,000 400,000 $425,000 at 3.2% due 2018 425,000 425,000 $500,000 at 8.625% due 2019 500,000 500,000 $300,000 at 3.8% due 2020 300,000 — $900,000 at 3.375 % due 2022 900,000 900,000 $425,000 at 5.0 % due 2023 425,000 425,000 $500,000 at 4.9 % due 2025 500,000 — $600,000 at 6.65% due 2036 600,000 600,000 $600,000 at 6.85% due 2037 600,000 600,000 $650,000 at 6.125% due 2041 650,000 650,000 $400,000 at 6.2% due 2043 400,000 400,000 Guardian Pipeline Average 7.88% due 2022 51,907 59,557 Total ONEOK Partners senior notes payable 6,851,907 6,059,557 Total long-term notes payable 8,486,820 7,194,573 Unamortized portion of terminated swaps 21,904 23,622 Unamortized debt issuance costs and discounts (74,492 ) (57,403 ) Current maturities (110,650 ) (10,650 ) Long-term debt $ 8,323,582 $ 7,150,142 The aggregate maturities of long-term debt outstanding as of December 31, 2015, for the years 2016 through 2020 are shown below: ONEOK ONEOK Partners Guardian Pipeline Total ( Millions of dollars ) 2016 $ 3.0 $ 1,100.0 $ 7.7 $ 1,110.7 2017 $ 3.0 $ 400.0 $ 7.7 $ 410.7 2018 $ 3.0 $ 425.0 $ 7.7 $ 435.7 2019 $ 3.0 $ 500.0 $ 7.7 $ 510.7 2020 $ 3.0 $ 300.0 $ 7.7 $ 310.7 Additionally, our 6.5 percent senior notes due 2028 are callable at par at our option from now until maturity. ONE Gas Debt Issuance - In January 2014, ONE Gas, which at the time was our wholly owned subsidiary, completed a private placement of three series of senior notes aggregating $1.2 billion , consisting of $300 million of five-year senior notes at 2.07 percent ; $300 million of 10-year senior notes at 3.61 percent ; and $600 million of 30-year senior notes at 4.658 percent . ONE Gas received approximately $1.19 billion from the offering, net of issuance costs. Our obligations related to the ONE Gas Senior Notes terminated in connection with the completion of the separation of ONE Gas. ONEOK Debt Repayment - ONE Gas made a cash payment to us of approximately $1.13 billion from the proceeds of the ONE Gas senior notes offering. In February 2014, we retired approximately $152.5 million of the 4.25 percent senior notes due 2022 through a tender offer. The total amount paid, including fees and other charges, was approximately $150 million . In February 2014, we called our $400 million , 5.2 percent senior notes due in 2015. The full repayment occurred in March 2014 and totaled $430.1 million , including accrued but unpaid interest to the redemption date. We recorded a loss on extinguishment of $24.8 million related to the debt retirements, which is included in other expense in our Consolidated Statements of Income. ONEOK Debt Issuance - In August 2015, we completed an underwritten public offering of $500 million , 7.5 percent senior notes due 2023. The net proceeds, after deducting underwriting discounts, commissions and other expenses, were approximately $487.1 million . We used the proceeds together with cash on hand to purchase $650 million of additional common units from ONEOK Partners. ONEOK Debt Covenants - The indentures governing ONEOK’s 6.5 percent and 6.875 percent senior notes due 2028 include an event of default upon acceleration of other indebtedness of $15 million or more, and the indentures governing the senior notes due 2022, 2023 and 2035 include an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25 percent in aggregate principal amount of the outstanding senior notes due 2022, 2023, 2028 and 2035 to declare those senior notes immediately due and payable in full. The indenture for the notes due 2023 also contains a provision that allows the holders of the notes to require ONEOK to offer to repurchase all or any part of their notes if a change of control and a credit rating downgrade occur at a purchase price of 101 percent of the principal amount, plus accrued and unpaid interest, if any. ONEOK may redeem the 6.875 percent senior notes due 2028 and the senior notes due 2035, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. ONEOK may redeem the 6.5 percent senior notes due 2028, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest. ONEOK may redeem the remaining balance of its senior notes due 2022 and 2023 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting three months before the maturity date. Prior to this date, ONEOK may redeem these senior notes on the same basis as the 6.875 percent senior notes due 2028 and the senior notes due 2035. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. ONEOK’s senior notes are senior unsecured obligations, ranking equally in right of payment with all of ONEOK’s existing and future unsecured senior indebtedness. ONEOK Partners’ Debt Issuances and Maturities - In January 2016, ONEOK Partners entered into the $1.0 billion senior unsecured delayed-draw Term Loan Agreement with a syndicate of banks, which may be drawn by April 7, 2016. The Term Loan Agreement is intended to effectively refinance $1.0 billion of ONEOK Partners’ $650 million , 3.25 percent senior notes, which matured February 1, 2016, and $450 million , 6.15 percent senior notes due October 1, 2016. The Term Loan Agreement matures in January 2019 and bears interest at LIBOR plus a margin that is based on the credit ratings assigned to ONEOK Partners’ senior, unsecured, long-term indebtedness. Based on ONEOK Partners’ current applicable credit rating, borrowings on the Term Loan Agreement will accrue at LIBOR plus 130.0 basis points . The Term Loan Agreement contains an option, which may be exercised up to two times, to extend the term of the loan, in each case, for an additional one-year term, subject to approval of the banks. The Term Loan Agreement provides an option to prepay, without penalty or premium, the amount outstanding, or any portion thereof. At December 31, 2015, $1.0 billion of ONEOK Partners’ senior notes due in 2016 have been reflected as long-term debt in our Consolidated Balance Sheet, as ONEOK Partners has the intent and ability to refinance the debt, and the remaining $100.0 million is reflected in current maturities of long-term debt. In March 2015, ONEOK Partners completed an underwritten public offering of $800 million of senior notes, consisting of $300 million , 3.8 percent senior notes due 2020, and $500 million , 4.9 percent senior notes due 2025. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were approximately $792.3 million . ONEOK Partners used the proceeds to repay amounts outstanding under its commercial paper program and for general partnership purposes. In September 2013, ONEOK Partners completed an underwritten public offering of $1.25 billion of senior notes, consisting of $425 million , 3.2 percent senior notes due 2018, $425 million , 5.0 percent senior notes due 2023 and $400 million , 6.2 percent senior notes due 2043. A portion of the net proceeds from the offering of approximately $1.24 billion was used to repay amounts outstanding under its commercial paper program, and the balance was used for general partnership purposes, including but not limited to capital expenditures and acquisitions. ONEOK Partners’ Debt Covenants - ONEOK Partners’ Term Loan Agreement contains substantially the same covenants as the ONEOK Partners Credit Agreement. ONEOK Partners senior notes are governed by an indenture, dated as of September 25, 2006, between ONEOK Partners and Wells Fargo Bank, N.A., the trustee, as supplemented. The indenture does not limit the aggregate principal amount of debt securities that may be issued and provides that debt securities may be issued from time to time in one or more additional series. The indenture contains covenants including, among other provisions, limitations on ONEOK Partners’ ability to place liens on its property or assets and to sell and lease back its property. The indenture includes an event of default upon acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25 percent in aggregate principal amount of any of ONEOK Partners’ outstanding senior notes to declare those notes immediately due and payable in full. ONEOK Partners may redeem its 6.15 percent senior notes due 2016 and its senior notes due 2019, 2036 and 2037, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. ONEOK Partners may redeem its senior notes due 2017 and its senior notes due 2022 at par starting one month and three months, respectively, before their maturity dates. ONEOK Partners may redeem its senior notes due 2041 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting six months before its maturity date. Prior to that date, ONEOK Partners may redeem these senior notes, in whole or in part, at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. ONEOK Partners may redeem its senior notes due 2018, 2020, 2023, 2025 and 2043 at par, plus accrued and unpaid interest to the redemption date, starting one month, one month, three months, three months, and six months, respectively, before their maturity dates. Prior to these dates, ONEOK Partners may redeem these notes, in whole or in part, at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. ONEOK Partners’ senior notes are senior unsecured obligations, ranking equally in right of payment with all of ONEOK Partners’ existing and future unsecured senior indebtedness, and are structurally subordinate to any of the existing and future debt and other liabilities of any nonguarantor subsidiaries. ONEOK Partners’ senior notes are nonrecourse to ONEOK. ONEOK Partners’ Debt Guarantee - ONEOK Partners’ senior notes are guaranteed fully and unconditionally on a senior unsecured basis by the Intermediate Partnership. The Intermediate Partnership’s guarantee is full and unconditional, subject to certain customary automatic release provisions. The guarantee ranks equally in right of payment to all of the Intermediate Partnership’s existing and future unsecured senior indebtedness. ONEOK Partners, L.P. has no significant assets or operations other than its investment in the Intermediate Partnership, which is also consolidated. At December 31, 2015, the Intermediate Partnership held the equity of ONEOK Partners’ subsidiaries, as well as a 50 percent interest in Northern Border Pipeline. ONEOK Partners’ long-term debt is nonrecourse to ONEOK. Guardian Pipeline Senior Notes - These senior notes were issued under a master shelf agreement dated November 8, 2001, with certain financial institutions. Principal payments are due quarterly through 2022. Guardian Pipeline’s senior notes contain financial covenants that require the maintenance of certain financial ratios as defined in the master shelf agreement based on Guardian Pipeline’s financial position and results of operations. Upon any breach of these covenants, all amounts outstanding under the master shelf agreement may become due and payable immediately. At December 31, 2015, Guardian Pipeline was in compliance with its financial covenants. Other - We amortize premiums, discounts and expenses incurred in connection with the issuance of long-term debt consistent with the terms of the respective debt instrument. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
EQUITY | J . EQUITY Series A and B Convertible Preferred Stock - There are no shares of Series A or Series B Preferred Stock currently issued or outstanding. Common Stock - At December 31, 2015 , we had approximately 372.7 million shares of authorized and unreserved common stock available for issuance. Dividends - Dividends paid totaled $509.2 million , $443.8 million and $304.7 million for 2015, 2014 and 2013 , respectively. The following table sets forth the quarterly dividends per share declared and paid on our common stock for the periods indicated: Years Ended December 31, 2015 2014 2013 First Quarter $ 0.605 $ 0.40 $ 0.36 Second Quarter 0.605 0.56 0.36 Third Quarter 0.605 0.575 0.38 Fourth Quarter 0.615 0.59 0.38 Total $ 2.43 $ 2.125 $ 1.48 Additionally, a quarterly dividend of $0.615 per share was declared in January 2016 , payable in the first quarter 2016 . Stock Repurchase Program - We did not repurchase any shares of our common stock in 2013 under a stock repurchase program that expired on December 31, 2013. See Note Q for a discussion of ONEOK Partners’ issuance of common units and distributions to noncontrolling interests. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | K . 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 (a) Unrealized Holding Gains (Losses) on Investment Securities (a) Pension and Postretirement Benefit Plan Obligations (a) (b) Accumulated Other Comprehensive Income (Loss) (a) ( Thousands of dollars ) January 1, 2014 $ (43,168 ) $ 857 $ (79,676 ) $ (121,987 ) Other comprehensive income (loss) before reclassifications (16,225 ) 98 (33,987 ) (50,114 ) Amounts reclassified from accumulated other comprehensive income (loss) 22,044 — 10,315 32,359 Other comprehensive income (loss) attributable to ONEOK 5,819 98 (23,672 ) (17,755 ) Transfer to ONE Gas — — 3,389 3,389 December 31, 2014 (37,349 ) 955 (99,959 ) (136,353 ) Other comprehensive income (loss) before reclassifications 9,944 (955 ) 5,722 14,711 Amounts reclassified from accumulated other comprehensive income (loss) (15,294 ) — 9,694 (5,600 ) Other comprehensive income (loss) attributable to ONEOK (5,350 ) (955 ) 15,416 9,111 December 31, 2015 $ (42,699 ) $ — $ (84,543 ) $ (127,242 ) (a) All amounts are presented net of tax. (b) Includes amounts related to supplemental executive retirement plan. The following table sets forth the effect of reclassifications from accumulated other comprehensive income (loss) on our Consolidated Statements of Income for the periods indicated: Details about Accumulated Other Comprehensive Income (Loss) Components Years Ended December 31, Affected Line Item in the Consolidated Statements of Income 2015 2014 2013 ( Thousands of dollars ) Unrealized (gains) losses on energy marketing and risk-management assets/liabilities Commodity contracts $ (81,089 ) $ 21,052 $ (1,689 ) Commodity sales revenues Interest-rate contracts 17,565 21,966 14,560 Interest expense (63,524 ) 43,018 12,871 Income before income taxes 8,815 (8,977 ) (3,081 ) Income tax expense (54,709 ) 34,041 9,790 Income from continuing operations — 7,682 (1,864 ) Income (loss) from discontinued operations (54,709 ) 41,723 7,926 Net income Noncontrolling interest (39,415 ) 19,679 4,906 Less: Net income attributable to noncontrolling interest $ (15,294 ) $ 22,044 $ 3,020 Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ 17,724 $ 15,914 $ 21,407 Amortization of unrecognized prior service cost (1,568 ) (1,469 ) (1,560 ) Amortization of unrecognized net asset at adoption — — 49 16,156 14,445 19,896 Income before income taxes (6,462 ) (5,778 ) (7,958 ) Income tax expense 9,694 8,667 11,938 Income from continuing operations — 1,648 34,044 Income (loss) from discontinued operations $ 9,694 $ 10,315 $ 45,982 Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (5,600 ) $ 32,359 $ 49,002 Net income attributable to ONEOK (a) These components of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost. See Note N for additional detail of our net periodic benefit cost. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | L . EARNINGS PER SHARE The following tables set forth the computation of basic and diluted EPS from continuing operations for the periods indicated: Year Ended December 31, 2015 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS from continuing operations Income from continuing operations attributable to ONEOK available for common stock $ 251,058 210,208 $ 1.19 Diluted EPS from continuing operations Effect of options and other dilutive securities — 333 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 251,058 210,541 $ 1.19 Year Ended December 31, 2014 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS from continuing operations Income from continuing operations attributable to ONEOK available for common stock $ 319,714 209,391 $ 1.53 Diluted EPS from continuing operations Effect of options and other dilutive securities — 1,036 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 319,714 210,427 $ 1.52 Year Ended December 31, 2013 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS from continuing operations Income from continuing operations attributable to ONEOK available for common stock $ 278,662 206,044 $ 1.35 Diluted EPS from continuing operations Effect of options and other dilutive securities — 3,651 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 278,662 209,695 $ 1.33 There were no opti on shares excluded from the calculation of diluted earnings per share for 2015, 2014 and 2013 . |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED PAYMENTS | M . SHARE-BASED PAYMENTS The ONEOK, Inc. Equity Compensation Plan (ECP) and the ONEOK, Inc. Long-Term Incentive Plan (LTIP) provide for the granting of stock-based compensation, including incentive stock options, nonstatutory 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 nonemployee directors. We have reserved 10.0 million and 15.6 million shares of common stock for issuance under the ECP and LTIP, respectively. At December 31, 2015 , we had approximately 2.9 million and 0.8 million shares available for issuance under the ECP and LTIP, respectively, which reflect shares issued and estimated shares expected to be issued upon vesting of outstanding awards granted under these plans, less forfeitures. These plans allow for the deferral of awards granted in stock or cash, in accordance with Internal Revenue Code section 409A requirements. Restricted Stock Units - We have granted restricted stock units to key employees that vest over a three -year period and entitle the grantee to receive shares of our common stock. Restricted stock 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 were paid prior to vesting on the restricted stock units granted prior to 2013. Beginning in 2013, restricted stock unit awards granted accrue dividend equivalents in the form of additional restricted stock units prior to vesting. Compensation expense is recognized on a straight-line basis over the vesting period of the award. Performance-Unit Awards - We have granted performance-unit awards to key employees. The shares of our common stock underlying the performance units vest at the expiration of a period determined by the Executive Compensation Committee if certain performance criteria are met by the company. Outstanding performance units vest at the expiration of a three -year period. Upon vesting, a holder of outstanding 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 outstanding performance unit awards entitle the grantee to receive the grant in shares of our common stock. Our outstanding 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. No dividends were paid prior to vesting on performance stock units granted prior to 2013. Beginning in 2013, performance stock unit awards granted accrue dividend equivalents in the form of additional performance units prior to vesting. The compensation expense on these awards only will be adjusted for changes in forfeitures. Options - No stock options have been granted since 2003. Stock option activity was not material in 2013. All previously issued stock options expired or were exercised as of February 2013. Stock Compensation Plan for Non-Employee Directors The ONEOK, Inc. Stock Compensation Plan for Non-Employee Directors (the DSCP) provides for the granting of stock options, stock bonus awards, including performance-unit awards, restricted stock awards and restricted stock unit awards. Under the DSCP, these awards may be granted by the Executive Compensation Committee at any time, until grants have been made for all shares authorized under the DSCP. We have reserved a total of 1.4 million shares of common stock for issuance under the DSCP, and at December 31, 2015 , we had approximately 1.0 million shares available for issuance under the plan. The maximum number of shares of common stock that can be issued to a participant under the DSCP during any year is 40,000 . No performance unit awards, restricted stock unit awards or restricted stock awards have been made to nonemployee directors under the DSCP. General For all awards outstanding, we used a 3 percent forfeiture rate based on historical forfeitures under our share-based payment plans. We primarily use treasury stock to satisfy our share-based payment obligations. Compensation cost expensed for our share-based payment plans described above was $6.8 million , $11.1 million and $22.8 million during 2015, 2014 and 2013 , respectively, which is net of tax benefits of $4.2 million , $6.8 million and $13.9 million , respectively. Compensation cost expensed included in income from continuing operations for each respective year was $6.8 million , $8.4 million , and $9.4 million , net of tax benefits. Impact of ONE Gas Separation on Stock Compensation Plans In connection with the separation of our former natural gas distribution business on January 31, 2014, ONEOK entered into an Employee Matters Agreement with ONE Gas, which provides that employees of ONE Gas no longer participate in stock compensation plans sponsored or maintained by ONEOK. Pursuant to the Employee Matters Agreement, we made certain adjustments to the number of our share-based compensation awards, with the intention of preserving the intrinsic value of each award immediately prior to the separation. Unless otherwise indicated, information presented below reflects employees and costs of both continuing and discontinued operations. Restricted Stock Unit Activity As of December 31, 2015 , we had $9.8 million of total unrecognized compensation cost related to our nonvested restricted stock unit awards, which is expected to be recognized over a weighted-average period of 1.9 years . The following tables set forth activity and various statistics for our restricted stock unit awards: Number of Units Weighted Average Price Nonvested December 31, 2014 447,932 $ 41.54 Granted 236,974 $ 42.98 Released to participants (199,830 ) $ 32.32 Forfeited (21,507 ) $ 48.97 Nonvested December 31, 2015 463,569 $ 45.88 2015 2014 2013 Weighted-average grant date fair value (per share) $ 42.98 $ 58.23 $ 47.46 Fair value of units granted (thousands of dollars) $ 10,186 $ 8,463 $ 7,940 Fair value of units vested (thousands of dollars) $ 6,458 $ 10,649 $ 7,334 Restricted stock units held by an employee who separated from ONEOK and became an employee of ONE Gas were surrendered as a result of the separation. The number of restricted stock units held by employees who remained with ONEOK following the separation was adjusted by issuing additional units to preserve the intrinsic value of the units immediately prior to the separation. Performance-Unit Activity As of December 31, 2015 , we had $13.5 million of total unrecognized compensation cost related to the nonvested performance-unit awards, which is expected to be recognized over a weighted-average period of 1.8 years . The following tables set forth activity and various statistics related to the performance-unit awards and the assumptions used in the valuations of the 2015, 2014 and 2013 grants at the grant date: Number of Units Weighted Average Price Nonvested December 31, 2014 872,730 $ 44.55 Granted 265,818 $ 50.30 Released to participants (375,895 ) $ 36.54 Forfeited (71,393 ) $ 44.94 Nonvested December 31, 2015 691,260 $ 51.01 2015 2014 2013 Volatility (a) 26.70% 25.48% 22.27% Dividend Yield 5.02% 2.63% 3.04% Risk-free Interest Rate 1.00% 0.69% 0.42% (a) - Volatility was based on historical volatility over three years using daily stock price observations. 2015 2014 2013 Weighted-average grant date fair value (per share) $ 50.30 $ 64.75 $ 52.34 Fair value of units granted (thousands of dollars) $ 13,370 $ 12,071 $ 19,742 Fair value of units vested (thousands of dollars) $ 13,736 $ 25,795 $ 19,269 Performance-unit awards held by employees who separated from ONEOK and became employees of ONE Gas were surrendered as a result of the separation. The number of performance unit awards held by employees who remained with ONEOK following the separation was adjusted by issuing additional units to preserve the intrinsic value of the performance units immediately prior to the separation. Employee Stock Purchase Plan We have reserved a total of 11.6 million shares of common stock for issuance under our ONEOK, Inc. Employee Stock Purchase Plan (the ESPP). Subject to certain exclusions, all full-time employees are eligible to participate in the ESPP. Employees can choose to have up to 10 percent of their annual base pay withheld to purchase our common stock, subject to terms and limitations of the plan. The purchase price of the stock is 85 percent of the lower of its grant date or exercise date market price. Approximately 53 percent , 67 percent and 52 percent of employees participated in the plan in 2015, 2014 and 2013 , respectively. Compensation expense for continuing operations for the ESPP was not material in 2015, 2014 and 2013 . Under the plan, we sold 222,872 shares at $25.51 per share in 2015 , 110,592 shares at $43.85 per share in 2014 and 254,960 shares at $35.97 per share in 2013 . For those employees who separated from ONEOK and became employees of ONE Gas, their enrollment in the plan was terminated upon the separation. Employees who separated from ONEOK and became employees of ONE Gas received shares of ONEOK common stock at the end of the offering period based upon the contributions made while employed at ONEOK. There was no impact to enrollment for those employees who remained at ONEOK. The grant date market price for ONEOK stock was adjusted to reflect the impact of the distribution of ONE Gas shares. Employee Stock Award Program Under our Employee Stock Award Program, we issued, for no monetary consideration, to all eligible employees one share of our common stock when the per-share closing price of our common stock on the NYSE was for the first time at or above $13 per share, and one additional share of common stock when the per-share closing price of our common stock on the NYSE was at or above each one dollar increment above $13. The total number of shares of our common stock available for issuance under this program was 900,000 . No shares were issued to employees under this program during 2015. Shares issued to employees under this program during 2014 and 2013 totaled 49,864 and 63,975 , respectively, and compensation expense related to the Employee Stock Award Plan was $2.1 million and $3.6 million in 2014 and 2013, respectively. Deferred Compensation Plan for Non-Employee Directors The ONEOK, Inc. Nonqualified Deferred Compensation Plan for Non-Employee Directors provides our nonemployee directors the option to defer all or a portion of their compensation for their service on our Board of Directors. Under the plan, directors may elect either a cash deferral option or a phantom stock option. Under the cash deferral option, directors may defer the receipt of all or a portion of their annual retainer fees, plus accrued interest. Under the phantom stock option, directors may defer all or a portion of their annual retainer fees and receive such fees on a deferred basis in the form of shares of common stock under our Long-Term Incentive Plan or Equity Compensation Plan. Shares are distributed to nonemployee directors at the fair market value of our common stock at the date of distribution. Deferred shares associated with vested restricted stock unit awards or performance unit awards held by directors or employees were treated in the same manner as regular shareholders in connection with the ONE Gas separation, by crediting one deferred share of ONE Gas common stock for every four deferred shares of ONEOK common stock. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | N . EMPLOYEE BENEFIT PLANS Retirement and Postretirement Benefit Plans Retirement Plans - We have a defined benefit pension plan covering employees hired before January 1, 2005. Employees hired after December 31, 2004, and employees who accepted a one-time opportunity to opt out of our pension plan are covered by our Profit Sharing Plan. In addition, we have a supplemental executive retirement plan for the benefit of certain officers. No new participants in our supplemental executive retirement plan have been approved since 2005, and effective January 2014, the plan was formally closed to new participants. We 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, as amended, and the Pension Protection Act of 2006. Postretirement Benefit Plans - We sponsor health and 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. Obligations and Funded Status - The following tables set forth our pension and postretirement benefit plans benefit obligations and fair value of plan assets for our continuing operations for the periods indicated: Pension Benefits Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 Change in benefit obligation ( Thousands of dollars ) Benefit obligation, beginning of period $ 414,181 $ 361,578 $ 56,663 $ 50,232 Service cost 7,565 7,238 743 710 Interest cost 18,218 18,324 2,347 2,433 Plan participants’ contributions — — 1,005 1,537 Actuarial loss (gain) (34,826 ) 42,891 (6,473 ) 6,822 Benefits paid (12,574 ) (12,101 ) (4,433 ) (4,815 ) Other adjustments (1,876 ) (3,749 ) (356 ) (256 ) Benefit obligation, end of period 390,688 414,181 49,496 56,663 Change in plan assets Fair value of plan assets, beginning of period 277,568 274,936 29,429 28,626 Actual return on plan assets (4,266 ) 17,619 174 1,765 Employer contributions — — 2,000 2,000 Plan participants’ contributions — — 1,005 1,233 Benefits paid (12,574 ) (12,101 ) (3,728 ) (3,968 ) Other adjustments (2,093 ) (2,886 ) (239 ) (227 ) Fair value of assets, end of period 258,635 277,568 28,641 29,429 Balance at December 31 $ (132,053 ) $ (136,613 ) $ (20,855 ) $ (27,234 ) Current liabilities $ (4,616 ) $ (4,634 ) $ — $ — Noncurrent liabilities (127,437 ) (131,979 ) (20,855 ) (27,234 ) Balance at December 31 $ (132,053 ) $ (136,613 ) $ (20,855 ) $ (27,234 ) The table above includes the supplemental executive retirement plan obligation. ONEOK has investments included in other assets on the Consolidated Balance Sheets, which totaled $81.1 million and $82.4 million at December 31, 2015 and 2014, respectively, for the purpose of funding the obligation. These assets are excluded from the table above as those are not assets of the supplemental executive retirement plan. In connection with the separation of the natural gas distribution business, ONEOK entered into an Employee Matters Agreement with ONE Gas, which provides that employees of ONE Gas no longer participate in benefit plans sponsored or maintained by ONEOK as of January 1, 2014. The ONEOK defined benefit pension plans and postretirement benefit plans transferred an allocable portion of assets and obligations related to those employees transferring as employees to ONE Gas to newly established trusts for the ONE Gas plans. This resulted in a decrease in ONEOK’s sponsored qualified and nonqualified pension and postretirement plan obligations of approximately $1.1 billion and a decrease in ONEOK’s sponsored pension and postretirement plan assets of approximately $1.0 billion . Additionally, as a result of the transfer of unrecognized losses to ONE Gas, ONEOK’s deferred income taxes and regulatory assets decreased approximately $86.0 million and $331.1 million , respectively. The accumulated benefit obligation for our pension plans for our continuing operations was $370.8 million and $393.3 million at December 31, 2015 and 2014 , respectively. There are no plan assets expected to be withdrawn and returned to us in 2016 . Components of Net Periodic Benefit Cost - The following tables set forth the components of net periodic benefit cost for our pension and postretirement benefit plans for our continuing operations for the periods indicated: Pension Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 7,565 $ 7,238 $ 6,127 Interest cost 18,218 18,324 15,626 Expected return on assets (20,900 ) (19,526 ) (19,874 ) Amortization of prior service cost 94 193 239 Amortization of net loss 15,981 15,078 19,016 Net periodic benefit cost $ 20,958 $ 21,307 $ 21,134 Postretirement Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 743 $ 710 $ 458 Interest cost 2,347 2,433 1,164 Expected return on assets (2,253 ) (2,163 ) (1,218 ) Amortization of unrecognized net asset at adoption — — 49 Amortization of prior service cost (1,662 ) (1,662 ) (1,799 ) Amortization of net loss 1,743 836 2,391 Net periodic benefit cost $ 918 $ 154 $ 1,045 Other Comprehensive Income (Loss) - The following tables set forth the amounts recognized in other comprehensive income (loss) related to our pension benefits and postretirement benefits for our continuing operations for the periods indicated: Pension Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Net gain (loss) arising during the period $ 5,145 $ (49,293 ) $ 51,874 Amortization of prior service credit 94 193 239 Amortization of net loss 15,981 15,078 19,016 Deferred income taxes (8,488 ) 13,609 (28,452 ) Total recognized in other comprehensive income (loss) $ 12,732 $ (20,413 ) $ 42,677 Postretirement Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Net gain (loss) arising during the period $ 4,393 $ (7,220 ) $ 9,096 Amortization of transition obligation — — 49 Amortization of prior service cost (1,662 ) (1,662 ) (1,799 ) Amortization of net loss 1,743 836 2,391 Deferred income taxes (1,790 ) 3,218 (3,895 ) Total recognized in other comprehensive income (loss) $ 2,684 $ (4,828 ) $ 5,842 The table below sets forth the amounts in accumulated other comprehensive income (loss) that had not yet been recognized as components of net periodic benefit expense for our continuing operations for the periods indicated: Pension Benefits Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 ( Thousands of dollars ) Prior service credit (cost) $ — $ (94 ) $ 5,212 $ 6,873 Accumulated loss (135,858 ) (156,985 ) (10,259 ) (16,396 ) Accumulated other comprehensive loss (135,858 ) (157,079 ) (5,047 ) (9,523 ) Deferred income taxes 54,343 62,832 2,019 3,811 Accumulated other comprehensive loss, net of tax $ (81,515 ) $ (94,247 ) $ (3,028 ) $ (5,712 ) The following table sets forth the amounts recognized in accumulated comprehensive income (loss) expected to be recognized as components of net periodic benefit expense for our continuing operations in the next fiscal year. Pension Benefits Postretirement Benefits Amounts to be recognized in 2016 ( Thousands of dollars ) Prior service (credit) cost $ — $ (1,662 ) Net loss $ 10,966 $ 1,045 Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for pension and postretirement benefits for the periods indicated: Pension Benefits Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 Discount rate 5.25% 4.50% 5.00% 4.25% Compensation increase rate 3.10% 3.15% N/A N/A The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated: Years Ended December 31, 2015 2014 2013 Discount rate - pension plans 4.50% 5.25% 4.25% Discount rate - postretirement plans 4.25% 5.00% 4.00% Expected long-term return on plan assets 8.00% 7.75% 8.25% Compensation increase rate 3.15% 3.20% 3.50% We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our pension and postretirement obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated: 2015 2014 Health care cost-trend rate assumed for next year 4.0% - 7.50% 4.0% - 7.75% Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) 4.0% - 5.0% 4.0% - 5.0% Year that the rate reaches the ultimate trend rate 2022 2022 Assumed health care cost-trend rates have an impact on the amounts reported for our health care plans. A one percentage point change in assumed health care cost-trend rates would have the following effects on our continuing operations: One Percentage Point Increase One Percentage Point Decrease ( Thousands of dollars ) Effect on total of service and interest cost $ 80 $ (72 ) Effect on postretirement benefit obligation $ 900 $ (821 ) Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment policy follows a glide path approach toward liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan's funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, insurance contracts and venture capital. The target allocation for the assets of our pension plan as of December 31, 2015, is as follows: U.S. large-cap equities 37 % Long duration bonds 30 % Developed foreign large-cap equities 10 % Alternative investments 8 % Mid-cap equities 6 % Emerging markets equities 5 % Small-cap equities 4 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. All investment managers for the plan are subject to certain restrictions on the securities they purchase and, with the exception of indexing purposes, are prohibited from owning our stock. The following tables set forth our pension benefits and postretirement benefits plan assets by fair value category for our continuing operations as of the measurement date: Pension Benefits December 31, 2015 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 143,515 $ 13,517 $ — $ 157,032 Government obligations — 20,241 — 20,241 Corporate obligations (b) — 55,495 — 55,495 Common/collective trusts — 5,076 — 5,076 Cash 525 — — 525 Other investments (c) — — 20,266 20,266 Total assets $ 144,040 $ 94,329 $ 20,266 $ 258,635 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments. Pension Benefits December 31, 2014 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 160,421 $ 15,315 $ — $ 175,736 Government obligations — 21,044 — 21,044 Corporate obligations (b) — 55,948 — 55,948 Cash and money market funds (c) 4,610 — — 4,610 Other investments (d) — — 20,230 20,230 Total assets $ 165,031 $ 92,307 $ 20,230 $ 277,568 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category is primarily money market funds. (d) - This category represents alternative investments. Postretirement Benefits December 31, 2015 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 1,632 $ — $ — $ 1,632 Cash and money market funds 1,398 — — 1,398 Insurance and group annuity contracts — 25,611 — 25,611 Total assets $ 3,030 $ 25,611 $ — $ 28,641 (a) - This category represents securities of the respective market sector from diverse industries. Postretirement Benefits December 31, 2014 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 1,599 $ — $ — $ 1,599 Cash and money market funds 1,644 — — 1,644 Insurance and group annuity contracts — 26,186 — 26,186 Total assets $ 3,243 $ 26,186 $ — $ 29,429 (a) - This category represents securities of the respective market sector from diverse industries. The following tables set forth the reconciliation of Level 3 fair value measurements of our pension plan for our continuing operations for the periods indicated: Pension Benefits Years Ended December 31, 2015 2014 ( Thousands of dollars ) Fair value of plan assets at beginning of period $ 20,230 $ 19,375 Net realized and unrealized gains (losses) 36 855 Fair value of plan assets at end of period $ 20,266 $ 20,230 Contributions - During 2015 , we made no contributions to our defined benefit pension plan and $2.0 million in contributions to our postretirement benefit plans. At December 31, 2015 , we expect to make no contributions to our defined benefit pension plan and approximately $2.0 million in contributions to our postretirement plans in 2016. Pension and Postretirement Benefit Payments - Benefit payments for our pension and postretirement benefit plans for the period ending December 31, 2015 , were $12.6 million and $4.4 million , respectively. The following table sets forth the pension benefits and postretirement benefits payments expected to be paid in 2016 through 2025: Pension Benefits Postretirement Benefits Benefits to be paid in: ( Thousands of dollars ) 2016 $ 14,753 $ 2,826 2017 $ 15,765 $ 3,056 2018 $ 16,883 $ 3,246 2019 $ 17,941 $ 3,402 2020 $ 18,859 $ 3,558 2021 through 2025 $ 108,878 $ 18,094 The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2015 , and include estimated future employee service. Other Employee Benefit Plans 401(k) Plan - We have a 401(k) Plan covering all employees, and employee contributions are discretionary. We match 100 percent of employee contributions up to 6 percent of each participant’s eligible compensation, subject to certain limits. Our contributions made to the plan for our continuing operations were $12.0 million , $9.3 million and $8.4 million in 2015, 2014 and 2013 , respectively. Profit Sharing Plan - We have a profit-sharing plan (Profit Sharing Plan) for all employees hired after December 31, 2004. Employees who were employed prior to January 1, 2005, were given a one-time opportunity to make an irrevocable election to participate in the Profit Sharing Plan and not accrue any additional benefits under our defined benefit pension plan after December 31, 2004. We plan to make a contribution to the Profit Sharing Plan each quarter equal to 1 percent of each participant’s eligible compensation during the quarter. Additional discretionary employer contributions may be made at the end of each year. Employee contributions are not allowed under the plan. Our contributions made to the plan for our continuing operations were $4.9 million , $4.6 million and $3.4 million in 2015, 2014 and 2013 , respectively. Nonqualified Deferred Compensation Plan - The Nonqualified Deferred Compensation Plan provides select employees, as approved by our Chief Executive Officer, with the option to defer portions of their compensation and provides nonqualified deferred compensation benefits that are not available due to limitations on employer and employee contributions to qualified defined contribution plans under the federal tax laws. Our contributions made to the plan were not material in 2015, 2014 and 2013 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | O . INCOME TAXES The following table sets forth our provisions for income taxes for the periods indicated: Years Ended December 31, 2015 2014 2013 Current income taxes ( Thousands of dollars ) Federal $ 13,191 $ 10,180 $ (9,531 ) State 2,967 3,311 1,812 Total current income taxes from continuing operations 16,158 13,491 (7,719 ) Deferred income taxes Federal 116,681 152,352 156,818 State 3,761 (14,685 ) 16,981 Total deferred income taxes from continuing operations 120,442 137,667 173,799 Total provision for income taxes from continuing operations 136,600 151,158 166,080 Discontinued operations 2,031 7,567 (2,698 ) Total provision for income taxes $ 138,631 $ 158,725 $ 163,382 The following table is a reconciliation of our income tax provision from continuing operations for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Income from continuing operations before income taxes $ 521,876 $ 819,873 $ 755,170 Less: Net income attributable to noncontrolling interest 134,218 349,001 310,428 Income from continuing operations attributable to ONEOK before income taxes 387,658 470,872 444,742 Federal statutory income tax rate 35 % 35 % 35 % Provision for federal income taxes 135,680 164,805 155,660 State income taxes, net of federal tax benefit 5,800 14,278 12,102 State deferred tax rate change, net of valuation allowance 928 (25,653 ) — Other, net (5,808 ) (2,272 ) (1,682 ) Income tax provision from continuing operations $ 136,600 $ 151,158 $ 166,080 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, Deferred tax assets ( Thousands of dollars ) Employee benefits and other accrued liabilities $ 97,719 $ 81,905 Federal net operating loss 76,805 80,851 State net operating loss and benefits 39,363 38,429 Derivative instruments 26,132 22,511 Other 12,386 13,133 Total deferred tax assets 252,405 236,829 Valuation allowance for state tax credits Carryforward expected to expire prior to utilization (10,223 ) (8,807 ) Net deferred tax assets 242,182 228,022 Deferred tax liabilities Excess of tax over book depreciation 93,421 89,379 Investment in partnerships 1,585,427 1,466,456 Regulatory assets 49 1,961 Total deferred tax liabilities 1,678,897 1,557,796 Net deferred tax liabilities before discontinued operations 1,436,715 1,329,774 Discontinued operations (18,265 ) (35,559 ) Net deferred tax liabilities $ 1,418,450 $ 1,294,215 Tax benefits related to net operating loss (NOL) carryforwards will begin expiring in 2030. 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 expirations; therefore, no valuation allowance is necessary. Deferred tax assets related to tax benefits of employee share-based compensation have been reduced for performance share units and restricted share units that vested in periods in which ONEOK was in an NOL position. This vesting resulted in tax deductions in excess of previously recorded benefits based on the performance share unit and restricted share unit value at the time of grant. Although these additional tax benefits are reflected in NOL carryforwards in the tax return, the additional tax benefit is not recognized until the deduction reduces taxes payable. A portion of the tax benefit does not reduce ONEOK’s current taxes payable due to NOL carryforwards; accordingly, these tax benefits are not reflected in ONEOK’s NOLs in deferred tax assets. Cumulative tax benefits included in NOL carryforwards but not reflected in deferred tax assets were $75.1 million as of December 31, 2015 , and $72.5 million as of December 31, 2014 . ONE Gas Separation - ONE Gas was included in our consolidated federal and state income tax returns through the date of the separation. Any changes to the estimated ONE Gas taxes at the separation date will result in a reimbursement between us and ONE Gas under the terms of the tax sharing agreement. We are principally responsible for managing any income tax audits by the various tax jurisdictions for periods prior to the separation. Deferred tax liabilities and deferred income tax expense were reduced by $34.6 million in the first quarter 2014 due primarily to a reduction in our estimate of the effective state income tax rate to reflect a change in the mix of taxable income in the states in which we now operate, resulting from the separation of our former natural gas distribution business and the wind down of our energy services business. We also recorded a valuation allowance of $8.2 million in the first quarter 2014 for state tax credits as it is more likely than not that we will not be able to utilize these credits as a result of the separation of our former natural gas distribution business and the wind down of our energy services business. Together, these adjustments resulted in a net $26.4 million reduction in deferred tax liabilities and deferred income tax expense. |
UNCONSOLIDATED AFFILIATES
UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED AFFILIATES | P . UNCONSOLIDATED AFFILIATES Investments in Unconsolidated Affiliates - The following table sets forth ONEOK Partners’ investments in unconsolidated affiliates for the periods indicated: Net Ownership Interest December 31, December 31, ( Thousands of dollars ) Northern Border Pipeline 50% $ 363,231 $ 387,253 Overland Pass Pipeline Company 50% 459,354 466,977 Other Various 125,636 278,423 Investments in unconsolidated affiliates (a) $ 948,221 $ 1,132,653 (a) - Equity-method goodwill (Note A ) was $40.1 million and $170.9 million at December 31, 2015 and 2014 , respectively. Equity in Net Earnings from Investments and Impairments - The following table sets forth ONEOK Partners’ equity in net earnings from investments for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Northern Border Pipeline $ 66,941 $ 69,819 $ 65,046 Overland Pass Pipeline Company 37,783 25,906 20,461 Other 20,576 21,690 25,010 Equity in net earnings from investments $ 125,300 $ 117,415 $ 110,517 Impairment of equity investments $ (180,583 ) $ (76,412 ) $ — Unconsolidated Affiliates Financial Information - The following tables set forth summarized combined financial information of ONEOK Partners’ unconsolidated affiliates for the periods indicated: December 31, December 31, ( Thousands of dollars ) Balance Sheet Current assets $ 149,439 $ 153,293 Property, plant and equipment, net $ 2,556,559 $ 2,440,714 Other noncurrent assets $ 23,722 $ 35,668 Current liabilities $ 211,037 $ 95,026 Long-term debt $ 425,521 $ 428,385 Other noncurrent liabilities $ 69,356 $ 73,767 Accumulated other comprehensive loss $ (5,669 ) $ (2,063 ) Owners’ equity $ 2,029,475 $ 2,034,560 Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Income Statement Operating revenues $ 524,496 $ 548,491 $ 528,665 Operating expenses (a) $ 304,930 $ 309,990 $ 256,292 Net income (a) $ 200,064 $ 214,410 $ 248,998 Distributions paid to us $ 155,918 $ 139,019 $ 137,498 (a) Includes long-lived asset impairment charges in 2015 and 2014. ONEOK Partners’ incurred expenses in transactions with unconsolidated affiliates of $104.7 million , $62.0 million and $53.8 million for 2015, 2014 and 2013 , respectively, primarily related to Overland Pass Pipeline Company and Northern Border Pipeline. Accounts payable to ONEOK Partners’ equity-method investees at December 31, 2015 and 2014, was $8.0 million and $20.5 million , respectively. Overland Pass Pipeline Company - The Overland Pass Pipeline Company limited liability company agreement provides that distributions to Overland Pass Pipeline Company’s members are to be made on a pro rata basis according to each member’s percentage interest. The Overland Pass Pipeline Company Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, cash distributions from Overland Pass Pipeline Company requires the unanimous approval of the Overland Pass Pipeline Management Committee. Cash distributions are equal to 100 percent of available cash as defined in the limited liability company agreement. Northern Border Pipeline - The Northern Border Pipeline partnership agreement provides that distributions to Northern Border Pipeline’s partners are to be made on a pro rata basis according to each partner’s percentage interest. The Northern Border Pipeline Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distribution policy of Northern Border Pipeline requires the unanimous approval of the Northern Border Pipeline Management Committee. Cash distributions are equal to 100 percent of distributable cash flow as determined from Northern Border Pipeline’s financial statements based upon EBITDA, less interest expense and maintenance capital expenditures. Loans or other advances from Northern Border Pipeline to its partners or affiliates are prohibited under its credit agreement. During 2013, ONEOK Partners made equity contributions to Northern Border Pipeline of $30.8 million . Roadrunner Gas Transmission - In March 2015, ONEOK Partners entered into a 50-50 joint venture with a subsidiary of Fermaca, a Mexico City-based natural gas infrastructure company, to construct a pipeline to transport natural gas from the Permian Basin in West Texas to the Mexican border near El Paso, Texas. During year ended December 31, 2015, ONEOK Partners contributed approximately $30 million to Roadrunner. The Roadrunner limited liability agreement provides that distributions to members are made on a pro rata basis according to each member’s ownership interest. Cash distributions are paid within 45 days following the end of each quarter. Any changes to, or suspension of, the cash distributions from Roadrunner requires approval of the Roadrunner Management Committee. Voting rights for the Roadrunner Management Committee are allocated on a pro rata basis according to each member’s ownership interest. Cash distributions are equal to 100 percent of available cash, as defined in the limited liability company agreement. Impairment Charges - Crude oil and natural gas producers have primarily focused their development efforts on crude oil and NGL-rich supply basins rather than in areas with dry natural gas production, such as the coal-bed methane production areas in the Powder River Basin. The reduced development activities and production declines in the dry natural gas area of the Powder River Basin have resulted in lower natural gas volumes available to be gathered. Due to the continued and greater than expected decline in volumes gathered in the coal-bed methane area of the Powder River Basin, ONEOK Partners evaluated its assets and investments in this area and determined that it will cease operations of its wholly owned coal-bed methane natural gas gathering system in 2016. Bighorn Gas Gathering, in which ONEOK Partners owns a 49 percent equity interest, and Fort Union Gas Gathering, in which ONEOK Partners owns a 37 percent equity interest, are both partially supplied with volumes from ONEOK Partners’ wholly owned coal-bed methane natural gas gathering system. ONEOK Partners owns a 35 percent equity interest in Lost Creek Gathering Company, which also is located in a dry natural gas area . ONEOK Partners reviewed its Bighorn Gas Gathering, Fort Union Gas Gathering and Lost Creek Gathering Company equity investments and recorded noncash impairment charges of $180.6 million in the fourth quarter 2015. The remaining net book value of ONEOK Partners’ equity investments in this dry natural gas area is $35.0 million . During 2014, Bighorn Gas Gathering recorded an impairment of its underlying assets when the operator determined that the volume decline would be sustained for the foreseeable future. As a result, ONEOK Partners reviewed its equity investment in Bighorn Gas Gathering for impairment and recorded noncash impairment charges of $76.4 million in 2014. The 2014 impairment charges have been reclassified in the consolidated financial statements and notes to conform to the current year presentation. There were no impairments to investments in unconsolidated affiliates in 2013. |
ONEOK PARTNERS ONEOK PARTNERS (
ONEOK PARTNERS ONEOK PARTNERS (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |
ONEOK PARTNERS | Q . ONEOK PARTNERS Ownership Interest in ONEOK Partners - Our ownership interest in ONEOK Partners is shown in the table below as of December 31, 2015 : General partner interest 2.0 % Limited partner interest (a) 39.2 % Total ownership interest 41.2 % (a) - Represents 41.3 million common units and approximately 73.0 million Class B units, which are convertible, at our option, into common units. Equity Issuances - In August 2015, ONEOK Partners completed the sale to us in a private placement of 21.5 million common units at a price of $30.17 per unit. Additionally, ONEOK Partners completed a concurrent sale of approximately 3.3 million common units at a price of $30.17 per unit to funds managed by Kayne Anderson Capital Advisors in a registered direct offering, which were issued through ONEOK Partners’ existing “at-the-market” equity program. The combined offerings generated net cash proceeds of approximately $749 million to ONEOK Partners. In conjunction with these issuances, ONEOK Partners GP contributed approximately $15.3 million in order to maintain our 2 percent general partner interest in ONEOK Partners. ONEOK Partners used the proceeds for general partnership purposes, including capital expenditures and repayment of commercial paper borrowings. ONEOK Partners has an “at-the-market” equity program for the offer and sale from time to time of its common units, up to an aggregate amount of $650 million . The program allows ONEOK Partners to offer and sell its common units at prices it deems appropriate through a sales agent. Sales of common units are made by means of ordinary brokers’ transactions on the NYSE, in block transactions or as otherwise agreed to between ONEOK Partners and the sales agent. ONEOK Partners is under no obligation to offer and sell common units under the program. At December 31, 2015 , ONEOK Partners had approximately $138 million of registered common units available for issuance through its “at-the-market” equity program. During the year ended December 31, 2015 , ONEOK Partners sold 10.5 million common units through its “at-the-market” equity program, including the units sold to funds managed by Kayne Anderson Capital Advisors in the offering discussed above. The net proceeds, including ONEOK Partners GP’s contribution to maintain our 2 percent general partner interest in ONEOK Partners, were approximately $381.6 million to ONEOK Partners, which were used for general partnership purposes, including repayment of commercial paper borrowings. As a result of these transactions, our aggregate ownership interest in ONEOK Partners increased to 41.2 percent at December 31, 2015 , from 37.8 percent at December 31, 2014 . In May 2014, ONEOK Partners completed an underwritten public offering of 13.9 million common units at a public offering price of $52.94 per common unit, generating net proceeds of approximately $714.5 million . In conjunction with this issuance, ONEOK Partners GP contributed approximately $15.0 million in order to maintain our 2 percent general partner interest in ONEOK Partners. ONEOK Partners used the proceeds to repay commercial paper, fund its capital expenditures and for general partnership purposes. During the year ended December 31, 2014 , ONEOK Partners sold 7.9 million common units through its “at-the-market” equity program. The net proceeds, including ONEOK Partner GP’s contribution to maintain our 2 percent general partner interest in ONEOK Partners, were approximately $402.1 million to ONEOK Partners, which were used for general partnership purposes. In August 2013, ONEOK Partners completed an underwritten public offering of 11.5 million common units at a public offering price of $49.61 per common unit, generating net proceeds of approximately $553.4 million . In conjunction with this issuance, ONEOK Partners GP contributed approximately $11.6 million in order to maintain its 2 percent general partner interest in ONEOK Partners. ONEOK Partners used a portion of the proceeds from its August 2013 equity issuance to repay amounts outstanding under its commercial paper program, and the balance was used for general partnership purposes. During the year ended December 31, 2013, ONEOK Partners sold 681,000 common units through its “at-the-market” equity program. The net proceeds, including ONEOK Partners GP’s contribution to maintain our 2 percent general partner interest in ONEOK Partners, were approximately $36.1 million to ONEOK Partners, which were used for general partnership purposes. We account for the difference between the carrying amount of our investment in ONEOK Partners and the underlying book value arising from issuance of common units by ONEOK Partners as an equity transaction. If ONEOK Partners issues common units at a price different than our carrying value per unit, we account for the premium or deficiency as an adjustment to paid-in capital. As a result of ONEOK Partners’ issuance of common units, we recognized a decrease to paid-in capital of approximately $34.4 million , net of taxes, in 2015 and an increase to paid-in capital of approximately $156.1 million and $87.3 million , net of taxes, in 2014 and 2013 , respectively. Cash Distributions - We receive distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which includes our incentive distribution rights. Under the Partnership Agreement, distributions are made to the partners with respect to each calendar quarter in an amount equal to 100 percent of available cash as defined in the Partnership Agreement. Available cash generally will be distributed 98 percent to limited partners and 2 percent to the general partner. The general partner’s percentage interest in quarterly distributions is increased after certain specified target levels are met during the quarter. Under the incentive distribution provisions, as set forth in the Partnership Agreement, the general partner receives: • 15 percent of amounts distributed in excess of $0.3025 per unit; • 25 percent of amounts distributed in excess of $0.3575 per unit; and • 50 percent of amounts distributed in excess of $0.4675 per unit. The following table shows ONEOK Partners’ distributions paid during the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands, except per unit amounts ) Distribution per unit $ 3.16 $ 3.01 $ 2.87 General partner distributions $ 24,610 $ 21,044 $ 18,193 Incentive distributions 371,500 304,999 251,664 Distributions to general partner 396,110 326,043 269,857 Limited partner distributions to ONEOK 310,230 279,292 266,302 Limited partner distributions to noncontrolling interest 524,135 446,910 373,554 Total distributions paid $ 1,230,475 $ 1,052,245 $ 909,713 ONEOK Partners’ distributions are declared and paid within 45 days of the end of each quarter. The following table shows ONEOK Partners’ distributions declared for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands, except per unit amounts ) Distribution per unit $ 3.16 $ 3.07 $ 2.89 General partner distributions $ 25,356 $ 22,109 $ 18,625 Incentive distributions 382,759 326,022 259,466 Distributions to general partner 408,115 348,131 278,091 Limited partner distributions to ONEOK 327,250 284,860 268,157 Limited partner distributions to noncontrolling interest 532,405 472,466 384,988 Total distributions declared $ 1,267,770 $ 1,105,457 $ 931,236 Relationship - We consolidate ONEOK Partners in our consolidated financial statements; however, we are restricted from the assets and cash flows of ONEOK Partners except for the distributions we receive. Distributions are declared quarterly by ONEOK Partners GP based on the terms of the Partnership Agreement. See Note S for more information on ONEOK Partners’ results. Affiliate Transactions - We provide a variety of services to our affiliates, including cash management and financial services, employee benefits, legal and administrative services by our employees and management, insurance and office space leased in our headquarters building and other field locations. Where costs are incurred specifically on behalf of an affiliate, the costs are billed directly to the affiliate by us. In other situations, the costs may be allocated to the affiliates through a variety of methods, depending upon the nature of the expenses and the activities of the affiliates. Beginning in the second quarter 2014, we allocate substantially all of our general overhead costs to ONEOK Partners as a result of the separation of our natural gas distribution business and the wind down of our energy services business in the first quarter 2014. For the first quarter 2014 and year ended December 31, 2013, it is not practicable to determine what these general overhead costs would be on a stand-alone basis. The following table shows ONEOK Partners’ transactions with us for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Revenues $ — $ 53,526 $ 340,743 Expenses Cost of sales and fuel $ — $ 10,835 $ 37,963 Operating expenses 368,346 330,541 265,448 Total expenses $ 368,346 $ 341,376 $ 303,411 Prior to the ONE Gas separation, ONEOK Partners provided natural gas sales and transportation and storage services to our former natural gas distribution business. Prior to February 1, 2014, these revenues and related costs were eliminated in consolidation. Beginning February 1, 2014, these revenues represent third-party transactions with ONE Gas and are not eliminated in consolidation, as such sales and services have continued subsequent to the separation and are expected to continue in future periods. Prior to the completion of the energy services wind down, ONEOK Partners provided natural gas and natural gas liquids sales and transportation and storage services to our energy services business. While these transactions were eliminated in consolidation in previous periods, they are now reflected as affiliate transactions and not eliminated in consolidation as these transactions have continued with third parties. See Note B for additional detail on these revenues. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | R . COMMITMENTS AND CONTINGENCIES Commitments - Operating leases represent future minimum lease payments under noncancelable leases covering office space and pipeline equipment. Rental expense in 2015, 2014 and 2013 was not material. ONEOK and ONEOK Partners have no material operating leases. Firm transportation and storage contracts are fixed-price contracts that provide us with firm transportation and storage capacity. The following table sets forth ONEOK Partners’ firm transportation and storage contract payments for our continuing operations for the periods indicated: ONEOK Firm Transportation and Storage Contracts ( Millions of dollars ) 2016 $ 45.8 2017 42.1 2018 40.6 2019 36.2 2020 35.8 Thereafter 47.9 Total $ 248.4 Environmental Matters and Pipeline Safety - The operation of pipelines, plants and other facilities for the gathering, processing, transportation and storage of natural gas, NGLs, condensate, and other products is subject to numerous and complex laws and regulations pertaining to health, safety and the environment. As an owner and/or operator of these facilities, ONEOK Partners must comply with United States laws and regulations at the federal, state and local levels that relate to air and water quality, hazardous and solid waste management and disposal, and other environmental matters. The cost of planning, designing, constructing and operating pipelines, plants and other facilities must incorporate compliance with environmental laws and regulations and safety standards. Failure to comply with these laws and regulations may trigger a variety of administrative, civil and potentially criminal enforcement measures, including citizen suits, which can include the assessment of monetary penalties, the imposition of remedial requirements and the issuance of injunctions or restrictions on operation. Management believes that, based on currently known information, compliance with these laws and regulations will not have a material adverse effect on our or ONEOK Partners’ results of operations, financial condition or cash flows. Legal Proceedings - Gas Index Pricing Litigation - As previously reported, ONEOK and its subsidiary, ONEOK Energy Services Company, L.P. (OESC), along with several other energy companies, are defending multiple lawsuits arising from alleged market manipulation or false reporting of natural gas prices to natural gas-index publications alleged to have occurred prior to 2003. On April 10, 2013, the United States Court of Appeals for the Ninth Circuit reversed the summary judgments that had been granted in favor of ONEOK, OESC and other unaffiliated defendants in the following cases: Reorganized FLI, Learjet, Arandell, Heartland and NewPage . The Ninth Circuit also reversed the summary judgment that had been granted in favor of OESC on all state law claims asserted in the Sinclair case. On April 21, 2015, the United States Supreme Court affirmed the decision of the Ninth Circuit. The cases have now been remanded back to the trial court (the United States District Court for the District of Nevada) for further proceedings. Because of the uncertainty surrounding the Gas Index Pricing Litigation, including an insufficient description of the purported classes and other related matters, we cannot reasonably estimate a range of potential exposures at this time. However, it is reasonably possible that the ultimate resolution of these matters could result in future charges that may be material to our results of operations. Other Legal Proceedings - We and ONEOK Partners are party to various other litigation matters and claims that have arisen in the normal course of our operations. While the results of these various other litigation matters and claims cannot be predicted with certainty, we believe the reasonably possible losses from such matters, individually and in the aggregate, are not material. Additionally, we believe the probable final outcome of such matters will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. ONE Gas Separation - In connection with the separation of ONE Gas, we entered into a Separation and Distribution Agreement with ONE Gas, which sets forth the agreements between us and ONE Gas regarding the principal transactions necessary to effect the separation, including cross-indemnities between us and ONE Gas. In general, we agreed to indemnify ONE Gas for any liabilities relating to our business following the separation, including ONEOK Partners and our energy services business, and ONE Gas agreed to indemnify us for liabilities relating to the natural gas distribution business. If a liability does not relate to either our remaining business or to ONE Gas, then we and ONE Gas will each be responsible for a portion of such liability. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
SEGMENTS | S . SEGMENTS Segment Descriptions - Our reportable business segments are the following: • the Natural Gas Gathering and Processing segment gathers, treats and processes natural gas; • the Natural Gas Liquids segment gathers, treats, fractionates and transports NGLs and stores, markets and distributes NGL products; and • the Natural Gas Pipelines segment operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities. Other and eliminations consist 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 - We evaluate performance based principally on each segment’s operating income and equity in net earnings. The accounting policies of the segments are described in Note A . Intersegment and affiliate sales are recorded on the same basis as sales to unaffiliated customers and are discussed further in Note Q . Revenues from sales and services provided by ONEOK Partners to our former natural gas distribution business prior to the separation and to our former energy services business prior to the completion of the wind down, which were previously eliminated in consolidation, are now reported as sales to affiliated customers for the years ended December 31, 2014 and 2013, and are no longer eliminated in consolidation. Revenues from sales and services provided by ONEOK Partners to our former natural gas distribution business after the separation are reported as sales to unaffiliated customers as these now represent third-party transactions. Customers - The primary customers of the Natural Gas Gathering and Processing segment are major and independent crude oil and natural gas production companies. The Natural Gas Liquids segment’s customers are primarily NGL and natural gas gathering and processing companies, major and independent crude oil and natural gas production companies, propane distributors, ethanol producers and petrochemical, refining and NGL marketing companies. The Natural Gas Pipelines segment’s customers include natural gas distribution, electric-generation, natural gas marketing, industrial and major and independent crude oil and natural gas production companies. For the years ended December 31, 2015, 2014 and 2013 , ONEOK Partners had no single customer from which it received 10 percent or more of our consolidated 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, 2015 Natural Gas Natural Gas Natural Gas Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 1,187,390 $ 6,248,002 $ 325,676 $ 2,138 $ 7,763,206 Intersegment revenues 649,726 331,697 6,771 (988,194 ) — Total revenues $ 1,837,116 $ 6,579,699 $ 332,447 $ (986,056 ) $ 7,763,206 Cost of sales and fuel (exclusive of items shown separately below) 1,265,617 5,328,256 34,481 (987,302 ) 5,641,052 Operating costs 272,418 314,505 105,720 688 693,331 Depreciation and amortization 150,008 158,709 43,479 2,424 354,620 Impairment of long-lived assets 73,681 9,992 — — 83,673 Gain (loss) on sale of assets 2,775 (939 ) 4,272 (479 ) 5,629 Operating income $ 78,167 $ 767,298 $ 153,039 $ (2,345 ) $ 996,159 Equity in net earnings from investments $ 17,863 $ 38,696 $ 68,741 $ — $ 125,300 Impairment of equity investments $ (180,583 ) $ — $ — $ — $ (180,583 ) Investments in unconsolidated affiliates $ 73,920 $ 482,672 $ 391,629 $ — $ 948,221 Total assets $ 5,123,450 $ 8,017,799 $ 1,844,401 $ 460,461 $ 15,446,111 Noncontrolling interests in consolidated subsidiaries $ 4,041 $ 160,084 $ — $ 3,266,413 $ 3,430,538 Capital expenditures $ 887,938 $ 226,135 $ 58,215 $ 16,024 $ 1,188,312 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $954.8 million , of which $770.1 million was related to sales within the segment, cost of sales and fuel of $412.6 million and operating income of $306.9 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $266.9 million , cost of sales and fuel of $31.1 million and operating income of $103.7 million . (c) - Other and Eliminations includes assets of discontinued operations of $19.0 million . Year Ended December 31, 2014 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Eliminations (c) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 1,478,729 $ 10,329,609 $ 329,801 $ 3,426 $ 12,141,565 Sales to affiliated customers 41,214 — 12,312 — 53,526 Intersegment revenues 1,447,665 215,772 8,343 (1,671,780 ) — Total revenues $ 2,967,608 $ 10,545,381 $ 350,456 $ (1,668,354 ) $ 12,195,091 Cost of sales and fuel (exclusive of items shown separately below) 2,305,723 9,435,296 21,935 (1,674,406 ) 10,088,548 Operating costs 257,658 296,402 111,037 9,790 674,887 Depreciation and amortization 123,847 124,071 43,318 3,448 294,684 Gain (loss) on sale of assets 219 (572 ) 6,786 166 6,599 Operating income $ 280,599 $ 689,040 $ 180,952 $ (7,020 ) $ 1,143,571 Equity in net earnings from investments $ 20,271 $ 27,326 $ 69,818 $ — $ 117,415 Impairment of equity investments $ (76,412 ) $ — $ — $ — $ (76,412 ) Investments in unconsolidated affiliates $ 254,818 $ 490,582 $ 387,253 $ — $ 1,132,653 Total assets $ 4,911,283 $ 8,143,575 $ 1,823,713 $ 383,202 $ 15,261,773 Noncontrolling interests in consolidated subsidiaries $ 4,251 $ 163,671 $ — $ 3,245,846 $ 3,413,768 Capital expenditures $ 898,896 $ 798,048 $ 42,991 $ 39,215 $ 1,779,150 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $695.9 million , of which $598.1 million was related to sales within the segment, cost of sales and fuel of $309.4 million and operating income of $196.1 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $290.0 million , cost of sales and fuel of $47.7 million and operating income of $106.5 million . (c) - Other and Eliminations includes assets and capital expenditures of discontinued operations of $36.7 million and $23.9 million , respectively. Year Ended December 31, 2013 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Eliminations (c) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 665,169 $ 10,644,117 $ 219,244 $ 2,606 $ 11,531,136 Sales to affiliated customers 238,600 — 102,143 — 340,743 Intersegment revenues 1,147,713 133,910 4,127 (1,285,750 ) — Total revenues $ 2,051,482 $ 10,778,027 $ 325,514 $ (1,283,144 ) $ 11,871,879 Cost of sales and fuel (exclusive of items shown separately below) 1,550,855 9,908,089 39,795 (1,276,526 ) 10,222,213 Operating costs 193,293 236,638 101,182 10,473 541,586 Depreciation and amortization 103,962 89,240 43,541 2,600 239,343 Gain (loss) on sale of assets 436 843 10,602 — 11,881 Operating income $ 203,808 $ 544,903 $ 151,598 $ (19,691 ) $ 880,618 Equity in net earnings from investments $ 23,493 $ 21,978 $ 65,046 $ — $ 110,517 Investments in unconsolidated affiliates $ 333,179 $ 491,856 $ 404,803 $ — $ 1,229,838 Total assets $ 3,949,813 $ 6,938,633 $ 1,817,445 $ 4,986,274 $ 17,692,165 Noncontrolling interests in consolidated subsidiaries $ 4,521 $ — $ — $ 2,502,808 $ 2,507,329 Capital expenditures $ 774,379 $ 1,128,345 $ 34,699 $ 319,162 $ 2,256,585 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $534.8 million , of which $449.9 million related to sales within the segment, cost of sales and fuel of $207.4 million and operating income of $190.5 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $246.9 million , cost of sales and fuel of $29.3 million and operating income of $90.5 million . (c) - Other and Eliminations includes assets and capital expenditures of discontinued operations of $4.4 billion and $292.1 million , respectively. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | T . QUARTERLY FINANCIAL DATA (UNAUDITED) First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2015 ( Thousands of dollars except per share amounts ) Total revenues $ 1,805,306 $ 2,128,052 $ 1,898,946 $ 1,930,902 Income from continuing operations $ 95,837 $ 151,020 $ 164,698 $ (26,279 ) Income (loss) from discontinued operations, net of tax $ (144 ) $ (140 ) $ (3,860 ) $ (1,937 ) Net income $ 95,693 $ 150,880 $ 160,838 $ (28,216 ) Net income attributable to ONEOK $ 60,800 $ 76,505 $ 82,157 $ 25,515 Earnings per share total Basic $ 0.29 $ 0.36 $ 0.39 $ 0.13 Diluted $ 0.29 $ 0.36 $ 0.39 $ 0.12 The fourth quarter 2015 includes noncash impairment charges of $264.3 million related to long-lived assets and equity investments. First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2014 ( Thousands of dollars except per share amounts ) Total revenues $ 3,163,296 $ 3,066,882 $ 3,120,145 $ 2,844,768 Income from continuing operations $ 204,737 $ 148,760 $ 114,452 $ 200,766 Income (loss) from discontinued operations, net of tax $ 1,774 $ (8,009 ) $ (171 ) $ 799 Net income $ 206,511 $ 140,751 $ 114,281 $ 201,565 Net income attributable to ONEOK $ 93,515 $ 61,590 $ 64,458 $ 94,544 Earnings per share total Basic $ 0.45 $ 0.29 $ 0.31 $ 0.45 Diluted $ 0.45 $ 0.29 $ 0.31 $ 0.45 The third quarter 2014 includes noncash impairment charges of $76.4 million related to equity investments. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation - Our consolidated financial statements include the accounts of ONEOK and our subsidiaries over which we have control or are the primary beneficiary. We have recorded noncontrolling interests in consolidated subsidiaries on our Consolidated Balance Sheets to recognize the portion of ONEOK Partners that we do not own. We reflected our ownership interest in ONEOK Partners’ accumulated other comprehensive income (loss) in our consolidated accumulated other comprehensive income (loss). The remaining portion is reflected as an adjustment to noncontrolling interests in consolidated subsidiaries. ONEOK Partners provides natural gas sales and transportation and storage services to our former natural gas distribution business. Prior to the completion of the energy services wind down, ONEOK Partners provided natural gas sales and transportation and storage services to our former energy services business. While these transactions were eliminated in consolidation in previous periods, they are reflected now as affiliate transactions and not eliminated in consolidation for all periods presented as these transactions have continued with third parties. See Note B for additional information. All significant intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated affiliates are accounted for using the equity method if we have the ability to exercise significant influence over operating and financial policies of our investee. Under this method, an investment is carried at its acquisition cost and adjusted each period for contributions made, distributions received and our share of the investee’s comprehensive income. For the investments we account for under the equity method, the premium or excess cost over underlying fair value of net assets is referred to as equity-method goodwill. Impairment of equity investments is recorded when the impairments are other than temporary. These amounts are recorded as investments in unconsolidated affiliates on our accompanying Consolidated Balance Sheets. See Note P for disclosures of our unconsolidated affiliates. Distributions paid to us from our unconsolidated affiliates are classified as operating activities on our Consolidated Statements of Cash Flows until the cumulative distributions exceed our proportionate share of income from the unconsolidated affiliate since the date of our initial investment. The amount of cumulative distributions paid to us that exceeds our cumulative proportionate share of income in each period represents a return of investment and is classified as an investing activity on our Consolidated Statements of Cash Flows. |
Use of Estimates | Use of Estimates - The preparation of our consolidated financial statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. These estimates and assumptions also affect the reported amounts of revenue and expenses during the reporting period. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets, liabilities and equity-method investments, obligations under employee benefit plans, provisions for uncollectible accounts receivable, unbilled revenues and cost of goods sold, expenses for services received but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. We evaluate these estimates on an ongoing basis using historical experience, consultation with experts and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known. |
Fair Value Measurements | Fair Value Measurements - We define fair value as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. We use market and income approaches to determine the fair value of our assets and liabilities and consider the markets in which the transactions are executed. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. While many of the contracts in ONEOK Partners’ portfolio are executed in liquid markets where price transparency exists, some contracts are executed in markets for which market prices may exist, but the market may be relatively inactive. This results in limited price transparency that requires management’s judgment and assumptions to estimate fair values. For certain transactions, we utilize modeling techniques using NYMEX-settled pricing data and implied forward LIBOR curves. Inputs into our fair value estimates include commodity-exchange prices, over-the-counter quotes, historical correlations of pricing data, data obtained from third-party pricing services and LIBOR and other liquid money-market instrument rates. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. In addition, as prescribed by the income approach, we compute the fair value of our and ONEOK Partners’ derivative portfolio by discounting the projected future cash flows from our and ONEOK Partners’ derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from LIBOR, Eurodollar futures and interest-rate swaps. We also take into consideration the potential impact on market prices of liquidating positions in an orderly manner over a reasonable period of time under current market conditions. We consider current market data in evaluating counterparties’, as well as our own, nonperformance risk, net of collateral, by using specific and sector bond yields and monitoring the credit default swap markets. Although we use our best estimates to determine the fair value of the derivative contracts we and ONEOK Partners have executed, the ultimate market prices realized could differ from our estimates, and the differences could be material. The fair value of our forward-starting interest-rate swaps are determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest swap settlements. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - fair value measurements are based on unadjusted quoted prices for identical securities in active markets including NYMEX-settled prices. These balances are comprised predominantly of exchange-traded derivative contracts for natural gas and crude oil. • Level 2 - fair value measurements are based on significant observable pricing inputs, such as NYMEX-settled prices for natural gas and crude oil and financial models that utilize implied forward LIBOR yield curves for interest-rate swaps. • Level 3 - fair value measurements are based on inputs that may include one or more unobservable inputs, including internally developed natural gas basis and NGL price curves that incorporate observable and unobservable market data from broker quotes, third-party pricing services, market volatilities derived from the most recent NYMEX close spot prices and forward LIBOR curves, and adjustments for the credit risk of our counterparties. We corroborate the data on which our fair value estimates are based using our market knowledge of recent transactions, analysis of historical correlations and validation with independent broker quotes. These balances categorized as Level 3 are comprised of derivatives for natural gas and NGLs. We do not believe that our Level 3 fair value estimates have a material impact on our results of operations, as the majority of our derivatives are accounted for as hedges for which ineffectiveness has not been material. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives for which fair value is determined using multiple inputs within a single level, based on the lowest level input that is significant to the fair value measurement in its entirety. See Note D for discussion of our fair value measurements. |
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. |
Revenue Recognition | Revenue Recognition - Our reportable segments recognize revenue when services are rendered or product is delivered. The Natural Gas Gathering and Processing segment records revenues when natural gas is processed in or transported through ONEOK Partners’ facilities. The Natural Gas Liquids segment records revenues based upon contracted services and actual volumes exchanged or stored under service agreements in the period services are provided. A portion of revenues for the Natural Gas Pipelines segment and the Natural Gas Liquids segment are recognized based upon contracted capacity and contracted volumes transported and stored under service agreements in the period services are provided. We disaggregate revenue on the Consolidated Statements of Income as follows: • Commodity sales - Commodity sales represent the sale of NGLs, condensate and residue natural gas. The commodities are primarily obtained as compensation for or related to providing services. Commodity sales are recognized upon delivery or title transfer to the customer, when revenue recognition criteria are met. • Service revenue - Service revenue represents the fees generated from the performance of our services listed above. ONEOK Partners enters into a variety of contract types that provide commodity sales and service revenue. ONEOK Partners provides services primarily under the following types of contracts: • Fee based - Under fee-based arrangements, ONEOK Partners receives a fee or fees for one or more of the following services: gathering, compression, processing, transmission and storage of natural gas; and gathering, transportation, fractionation, exchange and storage of NGLs. The revenue ONEOK Partners earns from these arrangements generally is directly related to the volume of natural gas and NGLs that flow through ONEOK Partners’ systems and facilities, and is not normally directly dependent on commodity prices. However, to the extent a sustained decline in commodity prices results in a decline in volumes, ONEOK Partners’ revenues from these arrangements would be reduced. In addition, many of ONEOK Partners’ arrangements provide for fixed fee, minimum volume or firm demand charges. Fee-based arrangements are reported as service revenue on the Consolidated Statements of Income. • Percent-of-proceeds - Under POP arrangements in the Natural Gas Gathering and Processing segment, ONEOK Partners gathers and processes natural gas on behalf of producers; sells the resulting residue natural gas, condensate and NGLs at market prices; and remits to producers an agreed-upon percentage of the net proceeds resulting from the sale. The agreed-upon percentage remitted to the producer is reported as cost of sales on the Consolidated Statements of Income. In other cases, instead of remitting cash payments to the producer, ONEOK Partners delivers an agreed-upon percentage of the commodities to the producer (take-in-kind agreements) and sells the volumes ONEOK Partners retains to third parties. Typically, ONEOK Partners’ POP arrangements also include a fee-based component. In many cases, ONEOK Partners provides services under contracts that contain a combination of the arrangements described above. When fees are charged (in addition to commodities received) under POP with fee contracts, ONEOK Partners records such fees as service revenue on the Consolidated Statements of Income. The terms of ONEOK Partners’ contracts vary based on natural gas quality conditions, the competitive environment when the contracts are signed and customer requirements. |
Cost of Sales and Fuel | Cost of Sales and Fuel - Cost of sales and fuel primarily includes (i) the cost of purchased commodities, including NGLs, natural gas and condensate, (ii) fees incurred for third-party transportation, fractionation and storage of commodities, and (iii) fuel and power costs incurred to operate ONEOK Partners’ facilities that gather, process, transport and store commodities. |
Income Tax Disclosure [Abstract] | |
Operations and Maintenance | Operations and Maintenance - Operations and maintenance primarily includes (i) payroll and benefit costs, (ii) third-party costs for operations, maintenance and integrity management, regulatory compliance and environmental and safety, and (iii) other business related service costs. |
Accounts Receivable | Accounts Receivable - Accounts receivable represent valid claims against nonaffiliated customers for products sold or services rendered, net of allowances for doubtful accounts. We assess the creditworthiness of our counterparties on an ongoing basis and require security, including prepayments and other forms of collateral, when appropriate. Outstanding customer receivables are reviewed regularly for possible nonpayment indicators and allowances for doubtful accounts are recorded based upon management’s estimate of collectability at each balance sheet date. At December 31, 2015 and 2014 , the allowance for doubtful accounts was not material. |
Inventories | Inventory - The values of current natural gas and NGLs in storage are determined using the lower of weighted-average cost or market method. Noncurrent natural gas and NGLs are classified as property and valued at cost. Materials and supplies are valued at average cost. |
Commodity Imbalances | Commodity Imbalances - Commodity imbalances represent amounts payable or receivable for NGL exchange contracts and natural gas pipeline imbalances and are valued at market prices. Under the majority of ONEOK Partners’ NGL exchange agreements, it physically receive volumes of unfractionated NGLs, including the risk of loss and legal title to such volumes, from the exchange counterparty. In turn, ONEOK Partners delivers NGL products back to the customer and charges them gathering and fractionation fees. To the extent that the volumes ONEOK Partners receives under such agreements differ from those it delivers, we record a net exchange receivable or payable position with the counterparties. These net exchange receivables and payables are settled with movements of NGL products rather than with cash. Natural gas pipeline imbalances are settled in cash or in-kind, subject to the terms of the pipelines’ tariffs or by agreement. |
Derivatives and Risk Management Activities | Derivatives and Risk Management - We and ONEOK Partners utilize derivatives to reduce our market-risk exposure to commodity price and interest-rate fluctuations and to achieve more predictable cash flows. We and ONEOK Partners record all derivative instruments at fair value, with the exception of normal purchases and normal sales transactions that are expected to result in physical delivery. Commodity price and interest-rate volatility may have a significant impact on the fair value of derivative instruments as of a given date. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our consolidated financial statements: Recognition and Measurement Accounting Treatment Balance Sheet Income Statement Normal purchases and normal sales - Fair value not recorded - Change in fair value not recognized in earnings Mark-to-market - Recorded at fair value - Change in fair value recognized in earnings Cash flow hedge - Recorded at fair value - Ineffective portion of the gain or loss on the derivative instrument is recognized in earnings - Effective portion of the gain or loss on the derivative instrument is reported initially as a component of accumulated other comprehensive income (loss) - Effective portion of the gain or loss on the derivative instrument is reclassified out of accumulated other comprehensive income (loss) into earnings when the forecasted transaction affects earnings Fair value hedge - Recorded at fair value - The gain or loss on the derivative instrument is recognized in earnings - Change in fair value of the hedged item is recorded as an adjustment to book value - Change in fair value of the hedged item is recognized in earnings To reduce its exposure to fluctuations in natural gas, NGLs and condensate prices, ONEOK Partners periodically enters into futures, forward purchases and sales, options or swap transactions in order to hedge anticipated purchases and sales of natural gas, NGLs and condensate. Interest-rate swaps are used from time to time to manage interest-rate risk. Under certain conditions, we designate these derivative instruments as a hedge of exposure to changes in fair values or cash flows. We formally document all relationships between hedging instruments and hedged items, as well as risk-management objectives and strategies for undertaking various hedge transactions, and methods for assessing and testing correlation and hedge ineffectiveness. We specifically identify the forecasted transaction that has been designated as the hedged item in a cash flow hedge relationship. We assess the effectiveness of hedging relationships quarterly by performing an effectiveness analysis on our fair value and cash flow hedging relationships to determine whether the hedge relationships are highly effective on a retrospective and prospective basis. ONEOK Partners also documents its normal purchases and normal sales transactions that are expected to result in physical delivery and that ONEOK Partners elects to exempt from derivative accounting treatment. The realized revenues and purchase costs of our and ONEOK Partners derivative instruments not considered held for trading purposes and derivatives that qualify as normal purchases or normal sales that are expected to result in physical delivery are reported on a gross basis. Cash flows from futures, forwards and swaps that are accounted for as hedges are included in the same Consolidated Statements of Cash Flows category as the cash flows from the related hedged items. See Notes D and E for more discussion of our fair value measurements and risk-management and hedging activities using derivatives. |
Property, Plant and Equipment | Property, Plant and Equipment - Our properties are stated at cost, including AFUDC. Generally, the cost of regulated property retired or sold, plus removal costs, less salvage, is charged to accumulated depreciation. Gains and losses from sales or transfers of nonregulated properties or an entire operating unit or system of our regulated properties are recognized in income. Maintenance and repairs are charged directly to expense. The interest portion of AFUDC represents the cost of borrowed funds used to finance construction activities. We capitalize interest costs during the construction or upgrade of qualifying assets. Capitalized interest is recorded as a reduction to interest expense. The equity portion of AFUDC represents the capitalization of the estimated average cost of equity used during the construction of major projects and is recorded in the cost of our regulated properties and as a credit to the allowance for equity funds used during construction. Our properties are depreciated using the straight-line method over their estimated useful lives. Generally, we apply composite depreciation rates to functional groups of property having similar economic circumstances. We periodically conduct depreciation studies to assess the economic lives of our assets. For ONEOK Partners’ regulated assets, these depreciation studies are completed as a part of our rate proceedings or tariff filings, and the changes in economic lives, if applicable, are implemented prospectively when the new rates are billed. For our nonregulated assets, if it is determined that the estimated economic life changes, the changes are made prospectively. Changes in the estimated economic lives of our property, plant and equipment could have a material effect on our financial position or results of operations. Property, plant and equipment on our Consolidated Balance Sheets includes construction work in process for capital projects that have not yet been placed in service and therefore are not being depreciated. Assets are transferred out of construction work in process when they are substantially complete and ready for their intended use. See Note F for disclosures of our property, plant and equipment. |
Impairment of Goodwill and Long-Lived Assets, including Intangible Assets | Impairment of Goodwill and Long-Lived Assets, Including Intangible Assets - We assess our goodwill and indefinite-lived intangible assets for impairment at least annually on July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. At July 1, 2015, due to the current commodity price environment, we elected to perform a quantitative assessment, or Step 1 analysis, to test our goodwill for impairment. The assessment included our commodity price assumptions, expected contractual terms, anticipated operating costs and volume estimates. Our goodwill impairment analysis performed as of July 1, 2015, did not result in an impairment charge nor did our analysis reflect any reporting units at risk. In each reporting unit, the fair value substantially exceeded the carrying value. At December 31, 2015, we performed a qualitative review given the decline in commodity prices, ONEOK Partners’ common unit price and our share price since our assessment as of July 1, 2015, and determined that no event has occurred indicating that the implied fair value of each of our reporting units is less than the carrying value of its net assets. As part of our impairment test, we may first assess qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance) to determine whether it is more likely than not that the fair value of each of our reporting units is less than its carrying amount. If further testing is necessary or a quantitative test is elected, we perform a two-step impairment test for goodwill. In the first step, an initial assessment is made by comparing the fair value of a reporting unit with its book value, including goodwill. If the fair value is less than the book value, an impairment is indicated, and we must perform a second test to measure the amount of the impairment. In the second test, we calculate the implied fair value of the goodwill by deducting the fair value of all tangible and intangible net assets of the reporting unit from the fair value determined in step one of the assessment. If the carrying value of the goodwill exceeds the implied fair value of the goodwill, we will record an impairment charge. To estimate the fair value of our reporting units, we use two generally accepted valuation approaches, an income approach and a market approach, using assumptions consistent with a market participant’s perspective. Under the income approach, we use anticipated cash flows over a period of years plus a terminal value and discount these amounts to their present value using appropriate discount rates. Under the market approach, we apply EBITDA multiples to forecasted EBITDA. The multiples used are consistent with historical asset transactions. The forecasted cash flows are based on average forecasted cash flows for a reporting unit over a period of years. As part of our indefinite-lived intangible asset impairment test, we first assess qualitative factors similar to those considered in the goodwill impairment test to determine whether it is more likely than not that the indefinite-lived intangible asset was impaired. If further testing is necessary, we compare the estimated fair value of our indefinite-lived intangible asset with its book value. The fair value of our indefinite-lived intangible asset is estimated using the market approach. Under the market approach, we apply multiples to forecasted cash flows of the assets associated with our indefinite-lived intangible asset. The multiples used are consistent with historical asset transactions. After assessing qualitative and quantitative factors, we determined that there were no impairments to our indefinite-lived intangible asset in 2015. There were also no impairment charges resulting from our 2014 and 2013 annual impairment tests. We assess our long-lived assets, including intangible assets with finite useful lives, for impairment whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. An impairment is indicated if the carrying amount of a long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. For the investments we account for under the equity method, the impairment test considers whether the fair value of the equity investment as a whole, not the underlying net assets, has declined and whether that decline is other than temporary. Therefore, we periodically reevaluate the amount at which we carry our equity-method investments to determine whether current events or circumstances warrant adjustments to our carrying value. See Notes F , G and P for our long-lived assets, goodwill and intangible assets and investments in unconsolidated affiliates disclosures. |
Regulation | Regulation - ONEOK Partners’ intrastate natural gas transmission and natural gas liquids pipelines are subject to the rate regulation and accounting requirements of the OCC, KCC, RRC and various municipalities in Texas. ONEOK Partners’ interstate natural gas and natural gas liquids pipelines are subject to regulation by the FERC. In Kansas and Texas, natural gas storage may be regulated by the state and the FERC for certain types of services. Portions of the Natural Gas Liquids and Natural Gas Pipelines segments follow the accounting and reporting guidance for regulated operations. During the rate-making process for certain of ONEOK Partners’ assets, regulatory authorities set the framework for what ONEOK Partners can charge customers for its services and establish the manner that its costs are accounted for, including allowing ONEOK Partners to defer recognition of certain costs and permitting recovery of the amounts through rates over time, as opposed to expensing such costs as incurred. Certain examples of types of regulatory guidance include costs for fuel and losses, acquisition costs, contributions in aid of construction, charges for depreciation and gains or losses on disposition of assets. This allows ONEOK Partners to stabilize rates over time rather than passing such costs on to the customer for immediate recovery. Actions by regulatory authorities could have an effect on the amount recovered from rate payers. Any difference in the amount recoverable and the amount deferred is recorded as income or expense at the time of the regulatory action. A write-off of regulatory assets and costs not recovered may be required if all or a portion of the regulated operations have rates that are no longer: • established by independent, third-party regulators; • designed to recover the specific entity’s costs of providing regulated services; and • set at levels that will recover our costs when considering the demand and competition for our services. At December 31, 2015 and 2014 , we recorded regulatory assets of approximately $5.8 million and $6.1 million , respectively, which are currently being recovered and are expected to be recovered from ONEOK Partners’ customers. Regulatory assets are being recovered as a result of approved rate proceedings over varying time periods up to 40 years. These assets are reflected in other assets on our Consolidated Balance Sheets. |
Pension and Postretirement Employee Benefits | Pension and Postretirement Employee Benefits - We have a defined benefit retirement plan covering certain full-time employees. 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 expense and liability related to these plans is calculated using statistical and other factors that attempt to anticipate future events. These factors include assumptions about the discount rate, expected return on plan assets, rate of future compensation increases, mortality and employment length. In determining the projected benefit obligations and costs, assumptions can change from period to period and may result in material changes in the costs and liabilities we recognize. See Note N for more discussion of pension and postretirement employee benefits. We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our pension and postretirement obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. |
Income Taxes | Income Taxes - Deferred income taxes are provided for the difference between the financial statement and income tax basis of assets and liabilities and carryforward items based on income tax laws and rates existing at the time the temporary differences are expected to reverse. Generally, the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date of the rate change. For regulated companies, the effect on deferred tax assets and liabilities of a change in tax rates is recorded as regulatory assets and regulatory liabilities in the period that includes the enactment date, if, as a result of an action by a regulator, it is probable that the effect of the change in tax rates will be recovered from or returned to customers through future rates. We utilize a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position that is taken or expected to be taken in a tax return. We reflect penalties and interest as part of income tax expense as they become applicable for tax provisions that do not meet the more-likely-than-not recognition threshold and measurement attribute. During 2015, 2014 and 2013 , our tax positions did not require an establishment of a material reserve. We utilize the “with-and-without” approach for intra-period tax allocation for purposes of allocating total tax expense (or benefit) for the year among the various financial statement components. We file numerous consolidated and separate income tax returns with federal tax authorities of the United States along with the tax authorities of several states. There are no United States federal audits or statute waivers at this time. See Note O for additional discussion of income taxes. |
Asset Retirement Obligations | Asset Retirement Obligations - Asset retirement obligations represent legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset. Certain long-lived assets that comprise ONEOK Partners’ natural gas gathering and processing, natural gas liquids and pipeline facilities are subject to agreements or regulations that give rise to asset retirement obligations for removal or other disposition costs associated with retiring the assets in place upon the discontinued use of the assets. We recognize the fair value of a liability for an asset-retirement obligation in the period when it is incurred if a reasonable estimate of the fair value can be made. We are not able to estimate reasonably the fair value of the asset retirement obligations for portions of ONEOK Partners’ assets, primarily certain pipeline assets, because the settlement dates are indeterminable given the expected continued use of the assets with proper maintenance. We expect ONEOK Partners’ pipeline assets, for which we are unable to estimate reasonably the fair value of the asset retirement obligation, will continue in operation as long as supply and demand for natural gas and natural gas liquids exists. Based on the widespread use of natural gas for heating and cooking activities for residential users and electric-power generation for commercial users, as well as use of natural gas liquids by the petrochemical industry, we expect supply and demand to exist for the foreseeable future. For our assets that we are able to make an estimate, the fair value of the liability is added to the carrying amount of the associated asset, and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. If the obligation is settled for an amount other than the carrying amount of the liability, we will recognize a gain or loss on settlement. The depreciation and accretion expense are immaterial to our consolidated financial statements. In accordance with long-standing regulatory treatment, ONEOK Partners collects, through rates, the estimated costs of removal on certain regulated properties through depreciation expense, with a corresponding credit to accumulated depreciation and amortization. These removal costs collected through rates include legal and nonlegal removal obligations; however, the amounts collected in excess of the asset-removal costs incurred are accounted for as a regulatory liability for financial reporting purposes. Historically, the regulatory authorities that have jurisdiction over our regulated operations have not required us to quantify this amount; rather, these costs are addressed prospectively in depreciation rates and are set in each general rate order. We have made an estimate of our regulatory liability using current rates since the last general rate order in each of our jurisdictions; however, for financial reporting purposes, significant uncertainty exists regarding the ultimate disposition of this regulatory liability, pending, among other issues, clarification of regulatory intent. We continue to monitor regulatory requirements, and the liability may be adjusted as more information is obtained. |
Contingencies | Contingencies - Our accounting for contingencies covers a variety of business activities, including contingencies for legal and environmental exposures. We accrue these contingencies when our assessments indicate that it is probable that a liability has been incurred or an asset will not be recovered and an amount can be estimated reasonably. We expense legal fees as incurred and base our legal liability estimates on currently available facts and our estimates of the ultimate outcome or resolution. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of a remediation feasibility study. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Our expenditures for environmental evaluation, mitigation, remediation and compliance to date have not been significant in relation to our financial position or results of operations, and our expenditures related to environmental matters had no material effect on earnings or cash flows during 2015, 2014 and 2013 . Actual results may differ from our estimates resulting in an impact, positive or negative, on earnings. See Note R for additional discussion of contingencies. |
Share-Based Payments | Share-Based Payments - We expense the fair value of share-based payments net of estimated forfeitures. We estimate forfeiture rates based on historical forfeitures under our share-based payment plans. |
Earnings per Common Share | Earnings per Common Share - Basic EPS is calculated based on the daily weighted-average number of shares of common stock outstanding during the period. Diluted EPS is calculated based on the daily weighted-average number of shares of common stock outstanding during the period plus potentially dilutive components. The dilutive components are calculated based on the dilutive effect for each quarter. For fiscal-year periods, the dilutive components for each quarter are averaged to arrive at the fiscal year-to-date dilutive component. |
Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation and requires that deferred tax liabilities and assets be classified as noncurrent in the balance sheet. This guidance is effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period. We elected to adopt this guidance beginning in the fourth quarter 2015. Prior periods were not retrospectively adjusted. The impact of adopting this guidance was not material. See Note O for additional disclosures. |
Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In March 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” which amended the SEC paragraphs of ASC Subtopic 835-30 to include the language from the SEC Staff Announcement indicating that the SEC would not object to presenting deferred debt issuance costs related to line-of-credit agreements as assets and subsequently amortizing the deferred debt issuance costs ratably over the term of the agreement. This guidance is effective for public companies for fiscal years beginning after December 15, 2015, with early adoption permitted. We elected to adopt this guidance beginning in the second quarter 2015. Retrospective adjustment of prior periods presented was required. Therefore, the December 31, 2014, balance sheet was recast to reclassify $42.8 million of debt issuance costs from other assets to long-term debt. See Note I for additional disclosures. |
Accounting Standards Update 2014-08 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which alters the definition of a discontinued operation to include only asset disposals that represent a strategic shift with a major effect on an entity’s operations and financial results. The amendment also requires more extensive disclosures about a discontinued operation’s assets, liabilities, income, expenses and cash flows. We adopted this guidance beginning in the first quarter 2015, and it could impact us in the future if we dispose of any individually significant components. |
Accounting Standards Update 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires all equity investments other than those accounted for using the equity method of accounting or those that result in consolidation of the investee to be measured at fair value with changes in fair value recognized in net income, eliminates the available-for-sale classification for equity securities with readily determinable fair values and eliminates the cost method for equity investments without readily determinable fair values. Additionally, this guidance eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments carried at amortized cost and requires the use of the exit price when measuring the fair value of such instruments for disclosure purposes. This guidance will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is only permitted for certain portions of the ASU. We expect to adopt this guidance in the first quarter 2018 and are evaluating the impact on us. |
Accounting Standards Update 2015-16 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendment also requires the acquirer to record the income statement effects of changes to provisional amounts in the financial statements in the period in which the adjustments occurred. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. We expect to adopt this guidance in the first quarter 2016, and it could impact us in the future if we complete any acquisitions with subsequent measurement period adjustments. |
Accounting Standards Update 2015-11 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which requires that inventory, excluding inventory measured using last-in, first-out (LIFO) or the retail inventory method, be measured at the lower of cost or net realizable value. This guidance will be effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We expect to adopt this guidance in the first quarter 2017, and we are evaluating the impact on us. |
Accounting Standards Update 2015-07 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. This guidance is effective for public companies for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We expect to adopt this guidance in the first quarter 2016, and we are evaluating the impact on us. |
Accounting Standards Update 2015-05 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In April 2015, the FASB issued ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which clarifies whether a cloud computing arrangement includes a software license. If it does, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses; if not, the customer should not account for the arrangement as a service contract. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. We expect to adopt this guidance in the first quarter 2016, and we do not expect it to materially impact us. |
Accounting Standards Update 2015-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which eliminates the presumption that a general partner should consolidate a limited partnership. It also modifies the evaluation of whether limited partnerships are variable interest entities or voting interest entities and adds requirements that limited partnerships must meet to qualify as voting interest entities. This guidance is effective for public companies for fiscal years beginning after December 15, 2015. We expect to adopt this guidance in the first quarter 2016, and we are evaluating the impact on us. |
Accounting Standards Update 2014-15 [Domain] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements- Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The standard applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We expect to adopt this guidance beginning in the fourth quarter 2016, and we do not expect it to materially impact us. |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines the principles an entity must apply to measure and recognize revenue for entities that enter into contracts to provide goods or services to their customers. The core principle is that an entity should recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. The amendment also requires more extensive disaggregated revenue disclosures in interim and annual financial statements. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” that deferred the effective date of ASU 2014-09 by one year. This update is now effective for interim and annual periods that begin after December 15, 2017, with either retrospective application for all periods presented or retrospective application with a cumulative effect adjustment. We expect to adopt this guidance beginning in the first quarter 2018, and we are evaluating the impact on us. |
ACQUISITIONS ACQUISITIONS (Poli
ACQUISITIONS ACQUISITIONS (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Sage Creek Acquisition [Member] | |
Business Acquisition [Line Items] | |
Business Combinations Policy [Policy Text Block] | This acquisition was accounted for as a business combination. The excess of cost over those fair values was recorded as goodwill. |
West Texas LPG Acquisition [Member] | |
Business Acquisition [Line Items] | |
Business Combinations Policy [Policy Text Block] | We accounted for the West Texas LPG acquisition as a business combination which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition-date fair values. |
LONG-TERM DEBT LONG-TERM DEBT (
LONG-TERM DEBT LONG-TERM DEBT (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Debt, Policy [Policy Text Block] | We amortize premiums, discounts and expenses incurred in connection with the issuance of long-term debt consistent with the terms of the respective debt instrument. |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Postretirement Employee Benefits - We have a defined benefit retirement plan covering certain full-time employees. 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 expense and liability related to these plans is calculated using statistical and other factors that attempt to anticipate future events. These factors include assumptions about the discount rate, expected return on plan assets, rate of future compensation increases, mortality and employment length. In determining the projected benefit obligations and costs, assumptions can change from period to period and may result in material changes in the costs and liabilities we recognize. See Note N for more discussion of pension and postretirement employee benefits. We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our pension and postretirement obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. |
ONEOK PARTNERS ONEOK PARTNERS35
ONEOK PARTNERS ONEOK PARTNERS (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |
Allocation of Costs Incurred by Related Party, Policy [Policy Text Block] | We provide a variety of services to our affiliates, including cash management and financial services, employee benefits, legal and administrative services by our employees and management, insurance and office space leased in our headquarters building and other field locations. Where costs are incurred specifically on behalf of an affiliate, the costs are billed directly to the affiliate by us. In other situations, the costs may be allocated to the affiliates through a variety of methods, depending upon the nature of the expenses and the activities of the affiliates. Beginning in the second quarter 2014, we allocate substantially all of our general overhead costs to ONEOK Partners as a result of the separation of our natural gas distribution business and the wind down of our energy services business in the first quarter 2014. For the first quarter 2014 and year ended December 31, 2013, it is not practicable to determine what these general overhead costs would be on a stand-alone basis. |
Incentive Distribution Policy, Managing Member or General Partner, Description [Policy Text Block] | We receive distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which includes our incentive distribution rights. Under the Partnership Agreement, distributions are made to the partners with respect to each calendar quarter in an amount equal to 100 percent of available cash as defined in the Partnership Agreement. Available cash generally will be distributed 98 percent to limited partners and 2 percent to the general partner. The general partner’s percentage interest in quarterly distributions is increased after certain specified target levels are met during the quarter. Under the incentive distribution provisions, as set forth in the Partnership Agreement, the general partner receives: • 15 percent of amounts distributed in excess of $0.3025 per unit; • 25 percent of amounts distributed in excess of $0.3575 per unit; and • 50 percent of amounts distributed in excess of $0.4675 per unit. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | We account for the difference between the carrying amount of our investment in ONEOK Partners and the underlying book value arising from issuance of common units by ONEOK Partners as an equity transaction. If ONEOK Partners issues common units at a price different than our carrying value per unit, we account for the premium or deficiency as an adjustment to paid-in capital. As a result of ONEOK Partners’ issuance of common units, we recognized a decrease to paid-in capital of approximately $34.4 million , net of taxes, in 2015 and an increase to paid-in capital of approximately $156.1 million and $87.3 million , net of taxes, in 2014 and 2013 , respectively. |
SEGMENTS Accounting Policies (P
SEGMENTS Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Segment Accounting Policy [Text Block] | We evaluate performance based principally on each segment’s operating income and equity in net earnings. The accounting policies of the segments are described in Note A . Intersegment and affiliate sales are recorded on the same basis as sales to unaffiliated customers and are discussed further in Note Q . Revenues from sales and services provided by ONEOK Partners to our former natural gas distribution business prior to the separation and to our former energy services business prior to the completion of the wind down, which were previously eliminated in consolidation, are now reported as sales to affiliated customers for the years ended December 31, 2014 and 2013, and are no longer eliminated in consolidation. Revenues from sales and services provided by ONEOK Partners to our former natural gas distribution business after the separation are reported as sales to unaffiliated customers as these now represent third-party transactions. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the change in our liability related to released capacity contracts for the period indicated: Years Ended December 31, 2015 2014 ( Millions of dollars ) Beginning balance $ 73.8 $ 122.0 Noncash charges — 1.7 Settlements (38.5 ) (51.8 ) Accretion 1.0 1.9 Ending balance $ 36.3 $ 73.8 |
Components of Net Income (Loss) [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations | Results of Operations of Discontinued Operations - The results of operations for our former natural gas distribution business and energy services business have been reported as discontinued operations for all periods presented. Income (loss) from discontinued operations, net of tax, in the Consolidated Statements of Income for the year ended December 31, 2015, consists of accretion expense, net of tax benefit, on the released contracts for our former energy services business and certain tax-related adjustments. The tables below provide selected financial information reported in discontinued operations in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013: Year Ended December 31, 2014 Natural Gas Distribution Energy Services Total ( Thousands of dollars ) Revenues $ 287,249 $ 353,404 $ 640,653 Cost of sales and fuel (exclusive of items shown separately below) 190,893 364,648 555,541 Operating costs 60,847 (a) 5,051 65,898 Depreciation and amortization 11,035 319 11,354 Operating income (loss) 24,474 (16,614 ) 7,860 Other income (expense), net (888 ) (7 ) (895 ) Interest expense, net (4,592 ) (413 ) (5,005 ) Income tax benefit (expense) (16,415 ) 8,848 (7,567 ) Income (loss) from discontinued operations, net $ 2,579 $ (8,186 ) $ (5,607 ) (a) - Includes approximately $23.0 million for the year ended December 31, 2014, of costs related to the ONE Gas separation. Year Ended December 31, 2013 Natural Gas Distribution Energy Services Total ( Thousands of dollars ) Revenues $ 1,689,945 $ 1,381,636 $ 3,071,581 Cost of sales and fuel (exclusive of items shown separately below) 876,944 1,554,621 2,431,565 Operating costs 436,281 (a) 12,586 448,867 Depreciation and amortization 144,758 276 145,034 Operating income (loss) 231,962 (185,847 ) 46,115 Other income (expense), net 2,484 135 2,619 Interest expense, net (61,366 ) (2,195 ) (63,561 ) Income tax benefit (expense) (64,307 ) 67,005 2,698 Income (loss) from discontinued operations, net $ 108,773 $ (120,902 ) $ (12,129 ) (a) - Includes approximately $9.4 million for the year ended December 31, 2013, of costs related to the ONE Gas separation. |
ACQUISITIONS ACQUISITIONS (Tabl
ACQUISITIONS ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
West Texas LPG Acquisition [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The final purchase price allocation and assessment of the fair value of the assets acquired as of the acquisition date were as follows: ( Thousands of dollars ) Cash $ 13,839 Accounts receivable 9,132 Other current assets 3,369 Property, plant and equipment Regulated 812,716 Nonregulated 157,643 Total property, plant and equipment 970,359 Total fair value of assets acquired 996,699 Accounts payable (8,621 ) Other liabilities (10,867 ) Total fair value of liabilities acquired (19,488 ) Less: Fair value of noncontrolling interest (162,438 ) Net assets acquired 814,773 Less: Cash received (13,839 ) Net cash paid for acquisition $ 800,934 |
Sage Creek Acquisition [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price and assessment of the fair value of the assets acquired were as follows: Natural Gas Gathering and Processing Natural Gas Liquids Total Property, plant and equipment ( Thousands of dollars ) Gathering pipelines and related equipment $ 41,129 $ 18,045 $ 59,174 Processing and fractionation and related equipment 50,595 — 50,595 General plant and other 120 — 120 Intangible assets 40,000 63,000 103,000 Identifiable assets acquired 131,844 81,045 212,889 Goodwill 20,000 72,000 92,000 Total purchase price $ 151,844 $ 153,045 $ 304,889 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurments | Recurring Fair Value Measurements - The following tables set forth our recurring fair value measurements for the periods indicated: December 31, 2015 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 38,921 $ — $ 7,253 $ 46,174 $ (42,414 ) $ 3,760 Physical contracts — — 3,591 3,591 — 3,591 Total derivative assets $ 38,921 $ — $ 10,844 $ 49,765 $ (42,414 ) $ 7,351 Derivative liabilities Commodity contracts Financial contracts $ (4,513 ) $ — $ (3,513 ) $ (8,026 ) $ 8,026 $ — Interest-rate contracts — (9,936 ) — (9,936 ) — (9,936 ) Total derivative liabilities $ (4,513 ) $ (9,936 ) $ (3,513 ) $ (17,962 ) $ 8,026 $ (9,936 ) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and ONEOK Partners. At December 31, 2015 , ONEOK Partners had $34.4 million of cash held from various counterparties and no cash collateral posted. (b) - Included in other current assets or other current liabilities in our Consolidated Balance Sheets. December 31, 2014 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Assets Derivatives Commodity contracts Financial contracts $ 42,880 $ — $ 354 $ 43,234 $ (25,979 ) $ 17,255 Physical contracts — — 9,922 9,922 — 9,922 Interest-rate contracts — 2,288 — 2,288 — 2,288 Total derivative assets 42,880 2,288 10,276 55,444 (25,979 ) 29,465 Available-for-sale investment securities 1,773 — — 1,773 — 1,773 Total assets $ 44,653 $ 2,288 $ 10,276 $ 57,217 $ (25,979 ) $ 31,238 Liabilities Derivatives Commodity contracts Financial contracts $ (169 ) $ — $ (968 ) $ (1,137 ) $ 1,137 $ — Physical contracts — — (23 ) (23 ) — (23 ) Interest-rate contracts — (44,843 ) — (44,843 ) — (44,843 ) Total derivative liabilities $ (169 ) $ (44,843 ) $ (991 ) $ (46,003 ) $ 1,137 $ (44,866 ) (a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and ONEOK Partners. At December 31, 2014 , ONEOK Partners had $24.8 million of cash held from various counterparties and no cash collateral posted. (b) - Included in other current assets, other assets or other current liabilities in our Consolidated Balance Sheets. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth the reconciliation of our Level 3 fair value measurements for our continuing operations for the periods indicated: Years Ended December 31, Derivative Assets (Liabilities) 2015 2014 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ 9,285 $ (782 ) Total realized/unrealized gains (losses): Included in earnings (a) 216 (927 ) Included in other comprehensive income (loss) (2,170 ) 7,260 Settlements — 3,734 Net assets (liabilities) at end of period $ 7,331 $ 9,285 (a) - Included in commodity sales revenues in our Consolidated Statements of Income. |
RISK MANAGEMENT AND HEDGING A40
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivatives | Fair Values of Derivative Instruments - The following table sets forth the fair values of our derivative instruments for our continuing operations for the periods indicated: December 31, 2015 December 31, 2014 Assets (a) (Liabilities) (a) Assets (b) (Liabilities) (b) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts Financial contracts $ 39,255 $ (1,440 ) $ 43,234 $ (1,137 ) Physical contracts 3,591 — 9,922 — Interest-rate contracts — (9,936 ) 2,288 (44,843 ) Total derivatives designated as hedging instruments 42,846 (11,376 ) 55,444 (45,980 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts 6,919 (6,586 ) — — Physical contracts — — — (23 ) Total derivatives not designated as hedging instruments 6,919 (6,586 ) — (23 ) Total derivatives $ 49,765 $ (17,962 ) $ 55,444 $ (46,003 ) (a) - Included on a net basis in other current assets or other current liabilities in our Consolidated Balance Sheets. (b) - Included on a net basis in other current assets, other assets or other current liabilities on our Consolidated Balance Sheets. |
Notional amounts of derivative instruments | Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held for our continuing operations for the periods indicated: December 31, 2015 December 31, 2014 Contract Type Purchased/ Payor Sold/ Receiver Purchased/ Payor Sold/ Receiver Derivatives designated as hedging instruments: Cash flow hedges Fixed price -Natural gas ( Bcf ) Futures and swaps — (27.1 ) — (41.2 ) -Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps — (2.3 ) — (0.5 ) Basis -Natural gas ( Bcf ) Futures and swaps — (27.1 ) — (41.2 ) Interest-rate contracts ( Millions of dollars ) Forward-starting swaps $ 400.0 $ — $ 900.0 $ — Derivatives not designated as hedging instruments: Fixed price - Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps 0.6 (0.6 ) — — |
Schedule of cash flow hedging instruments effect on comprehensive income (loss) | The following table sets forth the unrealized effect of cash flow hedges recognized in other comprehensive income (loss) for the periods indicated: Derivatives in Cash Flow Hedging Relationships Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Continuing Operations Commodity contracts $ 70,065 $ 32,354 $ (14,475 ) Interest-rate contracts (22,565 ) (96,993 ) 46,616 Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) for continuing operations $ 47,500 $ (64,639 ) $ 32,141 |
Schedule of cash flow hedging instruments effect on income | The following table sets forth the effect of cash flow hedges on our Consolidated Statements of Income for the periods indicated: Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Continuing Operations Commodity contracts Commodity sales revenues $ 81,089 $ (21,052 ) $ 1,689 Interest-rate contracts Interest expense (17,565 ) (21,966 ) (14,560 ) Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income from continuing operations on derivatives (effective portion) $ 63,524 $ (43,018 ) $ (12,871 ) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table sets forth our property, plant and equipment for our continuing operations by property type, for the periods indicated: Estimated Useful Lives (Years) December 31, December 31, ( Thousands of dollars ) Nonregulated Gathering pipelines and related equipment 5 to 40 $ 2,961,388 $ 2,449,343 Processing and fractionation and related equipment 3 to 40 3,627,062 2,880,572 Storage and related equipment 5 to 54 456,437 478,276 Transmission pipelines and related equipment 5 to 54 416,391 518,585 General plant and other 2 to 60 407,544 364,976 Construction work in process — 691,907 1,236,138 Regulated Storage and related equipment 5 to 54 76,468 115,799 Natural gas transmission pipelines and related equipment 5 to 77 1,507,220 1,478,035 Natural gas liquids transmission pipelines and related equipment 5 to 88 4,208,121 3,822,799 General plant and other 2 to 54 94,461 63,424 Construction work in process — 83,461 194,700 Property, plant and equipment 14,530,460 13,602,647 Accumulated depreciation and amortization - nonregulated (1,325,151 ) (1,221,387 ) Accumulated depreciation and amortization - regulated (831,320 ) (718,823 ) Net property, plant and equipment $ 12,373,989 $ 11,662,437 |
Average Depreciation Rates for Regulated Property | The average depreciation rates for ONEOK Partners’ regulated property are set forth, by segment, in the following table for the periods indicated: Years Ended December 31, 2015 2014 2013 Natural Gas Liquids 1.9% 2.0% 2.0% Natural Gas Pipelines 2.1% 2.1% 2.2% |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Segment | The following table sets forth our goodwill by segment for the periods indicated: December 31, December 31, 2015 2014 ( Thousands of dollars ) Natural Gas Gathering and Processing $ 122,291 $ 122,291 Natural Gas Liquids 268,544 268,544 Natural Gas Pipelines 134,700 134,700 Total goodwill $ 525,535 $ 525,535 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The following table sets forth the gross carrying amount and accumulated amortization of intangible assets for our continuing operations for the periods indicated: December 31, December 31, 2015 2014 ( Thousands of dollars ) Gross intangible assets $ 581,632 $ 567,215 Accumulated amortization (89,909 ) (78,010 ) Net intangible assets $ 491,723 $ 489,205 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | The following table sets forth our long-term debt for the periods indicated: December 31, December 31, 2015 2014 ( Thousands of dollars ) ONEOK $700,000 at 4.25% due 2022 $ 547,397 $ 547,397 $500,000 at 7.5% due 2023 500,000 — $100,000 at 6.5% due 2028 87,516 87,619 $100,000 at 6.875% due 2028 100,000 100,000 $400,000 at 6.0% due 2035 400,000 400,000 Total ONEOK senior notes payable 1,634,913 1,135,016 ONEOK Partners $650,000 at 3.25% due 2016 650,000 650,000 $450,000 at 6.15% due 2016 450,000 450,000 $400,000 at 2.0% due 2017 400,000 400,000 $425,000 at 3.2% due 2018 425,000 425,000 $500,000 at 8.625% due 2019 500,000 500,000 $300,000 at 3.8% due 2020 300,000 — $900,000 at 3.375 % due 2022 900,000 900,000 $425,000 at 5.0 % due 2023 425,000 425,000 $500,000 at 4.9 % due 2025 500,000 — $600,000 at 6.65% due 2036 600,000 600,000 $600,000 at 6.85% due 2037 600,000 600,000 $650,000 at 6.125% due 2041 650,000 650,000 $400,000 at 6.2% due 2043 400,000 400,000 Guardian Pipeline Average 7.88% due 2022 51,907 59,557 Total ONEOK Partners senior notes payable 6,851,907 6,059,557 Total long-term notes payable 8,486,820 7,194,573 Unamortized portion of terminated swaps 21,904 23,622 Unamortized debt issuance costs and discounts (74,492 ) (57,403 ) Current maturities (110,650 ) (10,650 ) Long-term debt $ 8,323,582 $ 7,150,142 |
Aggregate maturities of long-term debt outstanding | The aggregate maturities of long-term debt outstanding as of December 31, 2015, for the years 2016 through 2020 are shown below: ONEOK ONEOK Partners Guardian Pipeline Total ( Millions of dollars ) 2016 $ 3.0 $ 1,100.0 $ 7.7 $ 1,110.7 2017 $ 3.0 $ 400.0 $ 7.7 $ 410.7 2018 $ 3.0 $ 425.0 $ 7.7 $ 435.7 2019 $ 3.0 $ 500.0 $ 7.7 $ 510.7 2020 $ 3.0 $ 300.0 $ 7.7 $ 310.7 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Quarterly dividends per share paid on common stock | The following table sets forth the quarterly dividends per share declared and paid on our common stock for the periods indicated: Years Ended December 31, 2015 2014 2013 First Quarter $ 0.605 $ 0.40 $ 0.36 Second Quarter 0.605 0.56 0.36 Third Quarter 0.605 0.575 0.38 Fourth Quarter 0.615 0.59 0.38 Total $ 2.43 $ 2.125 $ 1.48 |
ACCUMULATED OTHER COMPREHENSI45
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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 (a) Unrealized Holding Gains (Losses) on Investment Securities (a) Pension and Postretirement Benefit Plan Obligations (a) (b) Accumulated Other Comprehensive Income (Loss) (a) ( Thousands of dollars ) January 1, 2014 $ (43,168 ) $ 857 $ (79,676 ) $ (121,987 ) Other comprehensive income (loss) before reclassifications (16,225 ) 98 (33,987 ) (50,114 ) Amounts reclassified from accumulated other comprehensive income (loss) 22,044 — 10,315 32,359 Other comprehensive income (loss) attributable to ONEOK 5,819 98 (23,672 ) (17,755 ) Transfer to ONE Gas — — 3,389 3,389 December 31, 2014 (37,349 ) 955 (99,959 ) (136,353 ) Other comprehensive income (loss) before reclassifications 9,944 (955 ) 5,722 14,711 Amounts reclassified from accumulated other comprehensive income (loss) (15,294 ) — 9,694 (5,600 ) Other comprehensive income (loss) attributable to ONEOK (5,350 ) (955 ) 15,416 9,111 December 31, 2015 $ (42,699 ) $ — $ (84,543 ) $ (127,242 ) (a) All amounts are presented net of tax. (b) Includes amounts related to supplemental executive retirement plan. |
Reclassification out of Accumulated Other Comprehensive Income | The following table sets forth the effect of reclassifications from accumulated other comprehensive income (loss) on our Consolidated Statements of Income for the periods indicated: Details about Accumulated Other Comprehensive Income (Loss) Components Years Ended December 31, Affected Line Item in the Consolidated Statements of Income 2015 2014 2013 ( Thousands of dollars ) Unrealized (gains) losses on energy marketing and risk-management assets/liabilities Commodity contracts $ (81,089 ) $ 21,052 $ (1,689 ) Commodity sales revenues Interest-rate contracts 17,565 21,966 14,560 Interest expense (63,524 ) 43,018 12,871 Income before income taxes 8,815 (8,977 ) (3,081 ) Income tax expense (54,709 ) 34,041 9,790 Income from continuing operations — 7,682 (1,864 ) Income (loss) from discontinued operations (54,709 ) 41,723 7,926 Net income Noncontrolling interest (39,415 ) 19,679 4,906 Less: Net income attributable to noncontrolling interest $ (15,294 ) $ 22,044 $ 3,020 Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ 17,724 $ 15,914 $ 21,407 Amortization of unrecognized prior service cost (1,568 ) (1,469 ) (1,560 ) Amortization of unrecognized net asset at adoption — — 49 16,156 14,445 19,896 Income before income taxes (6,462 ) (5,778 ) (7,958 ) Income tax expense 9,694 8,667 11,938 Income from continuing operations — 1,648 34,044 Income (loss) from discontinued operations $ 9,694 $ 10,315 $ 45,982 Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (5,600 ) $ 32,359 $ 49,002 Net income attributable to ONEOK (a) These components of accumulated other comprehensive income (loss) are included in the computation of net periodic benefit cost. See Note N for additional detail of our net periodic benefit cost. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following tables set forth the computation of basic and diluted EPS from continuing operations for the periods indicated: Year Ended December 31, 2015 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS from continuing operations Income from continuing operations attributable to ONEOK available for common stock $ 251,058 210,208 $ 1.19 Diluted EPS from continuing operations Effect of options and other dilutive securities — 333 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 251,058 210,541 $ 1.19 Year Ended December 31, 2014 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS from continuing operations Income from continuing operations attributable to ONEOK available for common stock $ 319,714 209,391 $ 1.53 Diluted EPS from continuing operations Effect of options and other dilutive securities — 1,036 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 319,714 210,427 $ 1.52 Year Ended December 31, 2013 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS from continuing operations Income from continuing operations attributable to ONEOK available for common stock $ 278,662 206,044 $ 1.35 Diluted EPS from continuing operations Effect of options and other dilutive securities — 3,651 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 278,662 209,695 $ 1.33 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Activity | The following tables set forth activity and various statistics for our restricted stock unit awards: Number of Units Weighted Average Price Nonvested December 31, 2014 447,932 $ 41.54 Granted 236,974 $ 42.98 Released to participants (199,830 ) $ 32.32 Forfeited (21,507 ) $ 48.97 Nonvested December 31, 2015 463,569 $ 45.88 2015 2014 2013 Weighted-average grant date fair value (per share) $ 42.98 $ 58.23 $ 47.46 Fair value of units granted (thousands of dollars) $ 10,186 $ 8,463 $ 7,940 Fair value of units vested (thousands of dollars) $ 6,458 $ 10,649 $ 7,334 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Activity | The following tables set forth activity and various statistics related to the performance-unit awards and the assumptions used in the valuations of the 2015, 2014 and 2013 grants at the grant date: Number of Units Weighted Average Price Nonvested December 31, 2014 872,730 $ 44.55 Granted 265,818 $ 50.30 Released to participants (375,895 ) $ 36.54 Forfeited (71,393 ) $ 44.94 Nonvested December 31, 2015 691,260 $ 51.01 2015 2014 2013 Volatility (a) 26.70% 25.48% 22.27% Dividend Yield 5.02% 2.63% 3.04% Risk-free Interest Rate 1.00% 0.69% 0.42% (a) - Volatility was based on historical volatility over three years using daily stock price observations. 2015 2014 2013 Weighted-average grant date fair value (per share) $ 50.30 $ 64.75 $ 52.34 Fair value of units granted (thousands of dollars) $ 13,370 $ 12,071 $ 19,742 Fair value of units vested (thousands of dollars) $ 13,736 $ 25,795 $ 19,269 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and postretirement benefit plans obligations and fair value of plan assets | Obligations and Funded Status - The following tables set forth our pension and postretirement benefit plans benefit obligations and fair value of plan assets for our continuing operations for the periods indicated: Pension Benefits Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 Change in benefit obligation ( Thousands of dollars ) Benefit obligation, beginning of period $ 414,181 $ 361,578 $ 56,663 $ 50,232 Service cost 7,565 7,238 743 710 Interest cost 18,218 18,324 2,347 2,433 Plan participants’ contributions — — 1,005 1,537 Actuarial loss (gain) (34,826 ) 42,891 (6,473 ) 6,822 Benefits paid (12,574 ) (12,101 ) (4,433 ) (4,815 ) Other adjustments (1,876 ) (3,749 ) (356 ) (256 ) Benefit obligation, end of period 390,688 414,181 49,496 56,663 Change in plan assets Fair value of plan assets, beginning of period 277,568 274,936 29,429 28,626 Actual return on plan assets (4,266 ) 17,619 174 1,765 Employer contributions — — 2,000 2,000 Plan participants’ contributions — — 1,005 1,233 Benefits paid (12,574 ) (12,101 ) (3,728 ) (3,968 ) Other adjustments (2,093 ) (2,886 ) (239 ) (227 ) Fair value of assets, end of period 258,635 277,568 28,641 29,429 Balance at December 31 $ (132,053 ) $ (136,613 ) $ (20,855 ) $ (27,234 ) Current liabilities $ (4,616 ) $ (4,634 ) $ — $ — Noncurrent liabilities (127,437 ) (131,979 ) (20,855 ) (27,234 ) Balance at December 31 $ (132,053 ) $ (136,613 ) $ (20,855 ) $ (27,234 ) |
Components of net periodic benefit cost for pension and postretirement benefit plans | Components of Net Periodic Benefit Cost - The following tables set forth the components of net periodic benefit cost for our pension and postretirement benefit plans for our continuing operations for the periods indicated: Pension Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 7,565 $ 7,238 $ 6,127 Interest cost 18,218 18,324 15,626 Expected return on assets (20,900 ) (19,526 ) (19,874 ) Amortization of prior service cost 94 193 239 Amortization of net loss 15,981 15,078 19,016 Net periodic benefit cost $ 20,958 $ 21,307 $ 21,134 Postretirement Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 743 $ 710 $ 458 Interest cost 2,347 2,433 1,164 Expected return on assets (2,253 ) (2,163 ) (1,218 ) Amortization of unrecognized net asset at adoption — — 49 Amortization of prior service cost (1,662 ) (1,662 ) (1,799 ) Amortization of net loss 1,743 836 2,391 Net periodic benefit cost $ 918 $ 154 $ 1,045 |
Amounts recognized in other comprehensive income (loss) | Other Comprehensive Income (Loss) - The following tables set forth the amounts recognized in other comprehensive income (loss) related to our pension benefits and postretirement benefits for our continuing operations for the periods indicated: Pension Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Net gain (loss) arising during the period $ 5,145 $ (49,293 ) $ 51,874 Amortization of prior service credit 94 193 239 Amortization of net loss 15,981 15,078 19,016 Deferred income taxes (8,488 ) 13,609 (28,452 ) Total recognized in other comprehensive income (loss) $ 12,732 $ (20,413 ) $ 42,677 Postretirement Benefits Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Net gain (loss) arising during the period $ 4,393 $ (7,220 ) $ 9,096 Amortization of transition obligation — — 49 Amortization of prior service cost (1,662 ) (1,662 ) (1,799 ) Amortization of net loss 1,743 836 2,391 Deferred income taxes (1,790 ) 3,218 (3,895 ) Total recognized in other comprehensive income (loss) $ 2,684 $ (4,828 ) $ 5,842 |
Amounts in accumulated other comprehensive income (loss) | The table below sets forth the amounts in accumulated other comprehensive income (loss) that had not yet been recognized as components of net periodic benefit expense for our continuing operations for the periods indicated: Pension Benefits Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 ( Thousands of dollars ) Prior service credit (cost) $ — $ (94 ) $ 5,212 $ 6,873 Accumulated loss (135,858 ) (156,985 ) (10,259 ) (16,396 ) Accumulated other comprehensive loss (135,858 ) (157,079 ) (5,047 ) (9,523 ) Deferred income taxes 54,343 62,832 2,019 3,811 Accumulated other comprehensive loss, net of tax $ (81,515 ) $ (94,247 ) $ (3,028 ) $ (5,712 ) |
Amounts in accumulated comprehensive income (loss) expected to be recognized as components of net periodic benefit expense | The following table sets forth the amounts recognized in accumulated comprehensive income (loss) expected to be recognized as components of net periodic benefit expense for our continuing operations in the next fiscal year. Pension Benefits Postretirement Benefits Amounts to be recognized in 2016 ( Thousands of dollars ) Prior service (credit) cost $ — $ (1,662 ) Net loss $ 10,966 $ 1,045 |
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs | Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for pension and postretirement benefits for the periods indicated: Pension Benefits Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 Discount rate 5.25% 4.50% 5.00% 4.25% Compensation increase rate 3.10% 3.15% N/A N/A The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated: Years Ended December 31, 2015 2014 2013 Discount rate - pension plans 4.50% 5.25% 4.25% Discount rate - postretirement plans 4.25% 5.00% 4.00% Expected long-term return on plan assets 8.00% 7.75% 8.25% Compensation increase rate 3.15% 3.20% 3.50% |
Assumed health care cost trend rates | Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated: 2015 2014 Health care cost-trend rate assumed for next year 4.0% - 7.50% 4.0% - 7.75% Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) 4.0% - 5.0% 4.0% - 5.0% Year that the rate reaches the ultimate trend rate 2022 2022 |
Effects of a one percentage point change in assumed health care costs trend rates | Assumed health care cost-trend rates have an impact on the amounts reported for our health care plans. A one percentage point change in assumed health care cost-trend rates would have the following effects on our continuing operations: One Percentage Point Increase One Percentage Point Decrease ( Thousands of dollars ) Effect on total of service and interest cost $ 80 $ (72 ) Effect on postretirement benefit obligation $ 900 $ (821 ) |
Schedule of allocation of plan assets | Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment policy follows a glide path approach toward liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan's funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, insurance contracts and venture capital. The target allocation for the assets of our pension plan as of December 31, 2015, is as follows: U.S. large-cap equities 37 % Long duration bonds 30 % Developed foreign large-cap equities 10 % Alternative investments 8 % Mid-cap equities 6 % Emerging markets equities 5 % Small-cap equities 4 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. All investment managers for the plan are subject to certain restrictions on the securities they purchase and, with the exception of indexing purposes, are prohibited from owning our stock. The following tables set forth our pension benefits and postretirement benefits plan assets by fair value category for our continuing operations as of the measurement date: Pension Benefits December 31, 2015 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 143,515 $ 13,517 $ — $ 157,032 Government obligations — 20,241 — 20,241 Corporate obligations (b) — 55,495 — 55,495 Common/collective trusts — 5,076 — 5,076 Cash 525 — — 525 Other investments (c) — — 20,266 20,266 Total assets $ 144,040 $ 94,329 $ 20,266 $ 258,635 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments. Pension Benefits December 31, 2014 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 160,421 $ 15,315 $ — $ 175,736 Government obligations — 21,044 — 21,044 Corporate obligations (b) — 55,948 — 55,948 Cash and money market funds (c) 4,610 — — 4,610 Other investments (d) — — 20,230 20,230 Total assets $ 165,031 $ 92,307 $ 20,230 $ 277,568 (a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category is primarily money market funds. (d) - This category represents alternative investments. Postretirement Benefits December 31, 2015 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 1,632 $ — $ — $ 1,632 Cash and money market funds 1,398 — — 1,398 Insurance and group annuity contracts — 25,611 — 25,611 Total assets $ 3,030 $ 25,611 $ — $ 28,641 (a) - This category represents securities of the respective market sector from diverse industries. Postretirement Benefits December 31, 2014 Asset Category Level 1 Level 2 Level 3 Total ( Thousands of dollars ) Investments: Equity securities (a) $ 1,599 $ — $ — $ 1,599 Cash and money market funds 1,644 — — 1,644 Insurance and group annuity contracts — 26,186 — 26,186 Total assets $ 3,243 $ 26,186 $ — $ 29,429 (a) - This category represents securities of the respective market sector from diverse industries. |
Reconciliation of Level 3 fair value measurements of pension plan | The following tables set forth the reconciliation of Level 3 fair value measurements of our pension plan for our continuing operations for the periods indicated: Pension Benefits Years Ended December 31, 2015 2014 ( Thousands of dollars ) Fair value of plan assets at beginning of period $ 20,230 $ 19,375 Net realized and unrealized gains (losses) 36 855 Fair value of plan assets at end of period $ 20,266 $ 20,230 |
Pension benefits and postretirement benefit payments expected to be paid | The following table sets forth the pension benefits and postretirement benefits payments expected to be paid in 2016 through 2025: Pension Benefits Postretirement Benefits Benefits to be paid in: ( Thousands of dollars ) 2016 $ 14,753 $ 2,826 2017 $ 15,765 $ 3,056 2018 $ 16,883 $ 3,246 2019 $ 17,941 $ 3,402 2020 $ 18,859 $ 3,558 2021 through 2025 $ 108,878 $ 18,094 |
INCOME TAXES INCOME TAXES (Tabl
INCOME TAXES INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The following table sets forth our provisions for income taxes for the periods indicated: Years Ended December 31, 2015 2014 2013 Current income taxes ( Thousands of dollars ) Federal $ 13,191 $ 10,180 $ (9,531 ) State 2,967 3,311 1,812 Total current income taxes from continuing operations 16,158 13,491 (7,719 ) Deferred income taxes Federal 116,681 152,352 156,818 State 3,761 (14,685 ) 16,981 Total deferred income taxes from continuing operations 120,442 137,667 173,799 Total provision for income taxes from continuing operations 136,600 151,158 166,080 Discontinued operations 2,031 7,567 (2,698 ) Total provision for income taxes $ 138,631 $ 158,725 $ 163,382 |
Reconciliation of Income Tax Provision | The following table is a reconciliation of our income tax provision from continuing operations for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Income from continuing operations before income taxes $ 521,876 $ 819,873 $ 755,170 Less: Net income attributable to noncontrolling interest 134,218 349,001 310,428 Income from continuing operations attributable to ONEOK before income taxes 387,658 470,872 444,742 Federal statutory income tax rate 35 % 35 % 35 % Provision for federal income taxes 135,680 164,805 155,660 State income taxes, net of federal tax benefit 5,800 14,278 12,102 State deferred tax rate change, net of valuation allowance 928 (25,653 ) — Other, net (5,808 ) (2,272 ) (1,682 ) Income tax provision from continuing operations $ 136,600 $ 151,158 $ 166,080 |
Schedule of Deferred Tax Assets and Liabilities | 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, Deferred tax assets ( Thousands of dollars ) Employee benefits and other accrued liabilities $ 97,719 $ 81,905 Federal net operating loss 76,805 80,851 State net operating loss and benefits 39,363 38,429 Derivative instruments 26,132 22,511 Other 12,386 13,133 Total deferred tax assets 252,405 236,829 Valuation allowance for state tax credits Carryforward expected to expire prior to utilization (10,223 ) (8,807 ) Net deferred tax assets 242,182 228,022 Deferred tax liabilities Excess of tax over book depreciation 93,421 89,379 Investment in partnerships 1,585,427 1,466,456 Regulatory assets 49 1,961 Total deferred tax liabilities 1,678,897 1,557,796 Net deferred tax liabilities before discontinued operations 1,436,715 1,329,774 Discontinued operations (18,265 ) (35,559 ) Net deferred tax liabilities $ 1,418,450 $ 1,294,215 |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments | Investments in Unconsolidated Affiliates - The following table sets forth ONEOK Partners’ investments in unconsolidated affiliates for the periods indicated: Net Ownership Interest December 31, December 31, ( Thousands of dollars ) Northern Border Pipeline 50% $ 363,231 $ 387,253 Overland Pass Pipeline Company 50% 459,354 466,977 Other Various 125,636 278,423 Investments in unconsolidated affiliates (a) $ 948,221 $ 1,132,653 (a) - Equity-method goodwill (Note A ) was $40.1 million and $170.9 million at December 31, 2015 and 2014 , respectively. |
Equity In Net Earnings From Investments [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments | Equity in Net Earnings from Investments and Impairments - The following table sets forth ONEOK Partners’ equity in net earnings from investments for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Northern Border Pipeline $ 66,941 $ 69,819 $ 65,046 Overland Pass Pipeline Company 37,783 25,906 20,461 Other 20,576 21,690 25,010 Equity in net earnings from investments $ 125,300 $ 117,415 $ 110,517 Impairment of equity investments $ (180,583 ) $ (76,412 ) $ — |
Summarized Financial Information Of Unconsolidated Affiliates [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments | Unconsolidated Affiliates Financial Information - The following tables set forth summarized combined financial information of ONEOK Partners’ unconsolidated affiliates for the periods indicated: December 31, December 31, ( Thousands of dollars ) Balance Sheet Current assets $ 149,439 $ 153,293 Property, plant and equipment, net $ 2,556,559 $ 2,440,714 Other noncurrent assets $ 23,722 $ 35,668 Current liabilities $ 211,037 $ 95,026 Long-term debt $ 425,521 $ 428,385 Other noncurrent liabilities $ 69,356 $ 73,767 Accumulated other comprehensive loss $ (5,669 ) $ (2,063 ) Owners’ equity $ 2,029,475 $ 2,034,560 Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Income Statement Operating revenues $ 524,496 $ 548,491 $ 528,665 Operating expenses (a) $ 304,930 $ 309,990 $ 256,292 Net income (a) $ 200,064 $ 214,410 $ 248,998 Distributions paid to us $ 155,918 $ 139,019 $ 137,498 (a) Includes long-lived asset impairment charges in 2015 and 2014. |
ONEOK PARTNERS (Tables)
ONEOK PARTNERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |
ONEOK Partners Transactions | Ownership Interest in ONEOK Partners - Our ownership interest in ONEOK Partners is shown in the table below as of December 31, 2015 : General partner interest 2.0 % Limited partner interest (a) 39.2 % Total ownership interest 41.2 % (a) - Represents 41.3 million common units and approximately 73.0 million Class B units, which are convertible, at our option, into common units. |
ONEOK Partners' Distributions Paid | The following table shows ONEOK Partners’ distributions paid during the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands, except per unit amounts ) Distribution per unit $ 3.16 $ 3.01 $ 2.87 General partner distributions $ 24,610 $ 21,044 $ 18,193 Incentive distributions 371,500 304,999 251,664 Distributions to general partner 396,110 326,043 269,857 Limited partner distributions to ONEOK 310,230 279,292 266,302 Limited partner distributions to noncontrolling interest 524,135 446,910 373,554 Total distributions paid $ 1,230,475 $ 1,052,245 $ 909,713 |
ONEOK Partners' Distributions Declared | The following table shows ONEOK Partners’ distributions declared for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands, except per unit amounts ) Distribution per unit $ 3.16 $ 3.07 $ 2.89 General partner distributions $ 25,356 $ 22,109 $ 18,625 Incentive distributions 382,759 326,022 259,466 Distributions to general partner 408,115 348,131 278,091 Limited partner distributions to ONEOK 327,250 284,860 268,157 Limited partner distributions to noncontrolling interest 532,405 472,466 384,988 Total distributions declared $ 1,267,770 $ 1,105,457 $ 931,236 |
Affiliated Entity [Member] | |
Related Party Transaction [Line Items] | |
ONEOK Partners Transactions | The following table shows ONEOK Partners’ transactions with us for the periods indicated: Years Ended December 31, 2015 2014 2013 ( Thousands of dollars ) Revenues $ — $ 53,526 $ 340,743 Expenses Cost of sales and fuel $ — $ 10,835 $ 37,963 Operating expenses 368,346 330,541 265,448 Total expenses $ 368,346 $ 341,376 $ 303,411 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments for Firm Transportation and Storage Contracts | The following table sets forth ONEOK Partners’ firm transportation and storage contract payments for our continuing operations for the periods indicated: ONEOK Firm Transportation and Storage Contracts ( Millions of dollars ) 2016 $ 45.8 2017 42.1 2018 40.6 2019 36.2 2020 35.8 Thereafter 47.9 Total $ 248.4 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segments | Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated: Year Ended December 31, 2015 Natural Gas Natural Gas Natural Gas Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 1,187,390 $ 6,248,002 $ 325,676 $ 2,138 $ 7,763,206 Intersegment revenues 649,726 331,697 6,771 (988,194 ) — Total revenues $ 1,837,116 $ 6,579,699 $ 332,447 $ (986,056 ) $ 7,763,206 Cost of sales and fuel (exclusive of items shown separately below) 1,265,617 5,328,256 34,481 (987,302 ) 5,641,052 Operating costs 272,418 314,505 105,720 688 693,331 Depreciation and amortization 150,008 158,709 43,479 2,424 354,620 Impairment of long-lived assets 73,681 9,992 — — 83,673 Gain (loss) on sale of assets 2,775 (939 ) 4,272 (479 ) 5,629 Operating income $ 78,167 $ 767,298 $ 153,039 $ (2,345 ) $ 996,159 Equity in net earnings from investments $ 17,863 $ 38,696 $ 68,741 $ — $ 125,300 Impairment of equity investments $ (180,583 ) $ — $ — $ — $ (180,583 ) Investments in unconsolidated affiliates $ 73,920 $ 482,672 $ 391,629 $ — $ 948,221 Total assets $ 5,123,450 $ 8,017,799 $ 1,844,401 $ 460,461 $ 15,446,111 Noncontrolling interests in consolidated subsidiaries $ 4,041 $ 160,084 $ — $ 3,266,413 $ 3,430,538 Capital expenditures $ 887,938 $ 226,135 $ 58,215 $ 16,024 $ 1,188,312 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $954.8 million , of which $770.1 million was related to sales within the segment, cost of sales and fuel of $412.6 million and operating income of $306.9 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $266.9 million , cost of sales and fuel of $31.1 million and operating income of $103.7 million . (c) - Other and Eliminations includes assets of discontinued operations of $19.0 million . Year Ended December 31, 2014 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Eliminations (c) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 1,478,729 $ 10,329,609 $ 329,801 $ 3,426 $ 12,141,565 Sales to affiliated customers 41,214 — 12,312 — 53,526 Intersegment revenues 1,447,665 215,772 8,343 (1,671,780 ) — Total revenues $ 2,967,608 $ 10,545,381 $ 350,456 $ (1,668,354 ) $ 12,195,091 Cost of sales and fuel (exclusive of items shown separately below) 2,305,723 9,435,296 21,935 (1,674,406 ) 10,088,548 Operating costs 257,658 296,402 111,037 9,790 674,887 Depreciation and amortization 123,847 124,071 43,318 3,448 294,684 Gain (loss) on sale of assets 219 (572 ) 6,786 166 6,599 Operating income $ 280,599 $ 689,040 $ 180,952 $ (7,020 ) $ 1,143,571 Equity in net earnings from investments $ 20,271 $ 27,326 $ 69,818 $ — $ 117,415 Impairment of equity investments $ (76,412 ) $ — $ — $ — $ (76,412 ) Investments in unconsolidated affiliates $ 254,818 $ 490,582 $ 387,253 $ — $ 1,132,653 Total assets $ 4,911,283 $ 8,143,575 $ 1,823,713 $ 383,202 $ 15,261,773 Noncontrolling interests in consolidated subsidiaries $ 4,251 $ 163,671 $ — $ 3,245,846 $ 3,413,768 Capital expenditures $ 898,896 $ 798,048 $ 42,991 $ 39,215 $ 1,779,150 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $695.9 million , of which $598.1 million was related to sales within the segment, cost of sales and fuel of $309.4 million and operating income of $196.1 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $290.0 million , cost of sales and fuel of $47.7 million and operating income of $106.5 million . (c) - Other and Eliminations includes assets and capital expenditures of discontinued operations of $36.7 million and $23.9 million , respectively. Year Ended December 31, 2013 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Eliminations (c) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 665,169 $ 10,644,117 $ 219,244 $ 2,606 $ 11,531,136 Sales to affiliated customers 238,600 — 102,143 — 340,743 Intersegment revenues 1,147,713 133,910 4,127 (1,285,750 ) — Total revenues $ 2,051,482 $ 10,778,027 $ 325,514 $ (1,283,144 ) $ 11,871,879 Cost of sales and fuel (exclusive of items shown separately below) 1,550,855 9,908,089 39,795 (1,276,526 ) 10,222,213 Operating costs 193,293 236,638 101,182 10,473 541,586 Depreciation and amortization 103,962 89,240 43,541 2,600 239,343 Gain (loss) on sale of assets 436 843 10,602 — 11,881 Operating income $ 203,808 $ 544,903 $ 151,598 $ (19,691 ) $ 880,618 Equity in net earnings from investments $ 23,493 $ 21,978 $ 65,046 $ — $ 110,517 Investments in unconsolidated affiliates $ 333,179 $ 491,856 $ 404,803 $ — $ 1,229,838 Total assets $ 3,949,813 $ 6,938,633 $ 1,817,445 $ 4,986,274 $ 17,692,165 Noncontrolling interests in consolidated subsidiaries $ 4,521 $ — $ — $ 2,502,808 $ 2,507,329 Capital expenditures $ 774,379 $ 1,128,345 $ 34,699 $ 319,162 $ 2,256,585 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $534.8 million , of which $449.9 million related to sales within the segment, cost of sales and fuel of $207.4 million and operating income of $190.5 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $246.9 million , cost of sales and fuel of $29.3 million and operating income of $90.5 million . (c) - Other and Eliminations includes assets and capital expenditures of discontinued operations of $4.4 billion and $292.1 million , respectively. |
QUARTERLY FINANCIAL DATA (UNA54
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial disclosure | First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2015 ( Thousands of dollars except per share amounts ) Total revenues $ 1,805,306 $ 2,128,052 $ 1,898,946 $ 1,930,902 Income from continuing operations $ 95,837 $ 151,020 $ 164,698 $ (26,279 ) Income (loss) from discontinued operations, net of tax $ (144 ) $ (140 ) $ (3,860 ) $ (1,937 ) Net income $ 95,693 $ 150,880 $ 160,838 $ (28,216 ) Net income attributable to ONEOK $ 60,800 $ 76,505 $ 82,157 $ 25,515 Earnings per share total Basic $ 0.29 $ 0.36 $ 0.39 $ 0.13 Diluted $ 0.29 $ 0.36 $ 0.39 $ 0.12 The fourth quarter 2015 includes noncash impairment charges of $264.3 million related to long-lived assets and equity investments. First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2014 ( Thousands of dollars except per share amounts ) Total revenues $ 3,163,296 $ 3,066,882 $ 3,120,145 $ 2,844,768 Income from continuing operations $ 204,737 $ 148,760 $ 114,452 $ 200,766 Income (loss) from discontinued operations, net of tax $ 1,774 $ (8,009 ) $ (171 ) $ 799 Net income $ 206,511 $ 140,751 $ 114,281 $ 201,565 Net income attributable to ONEOK $ 93,515 $ 61,590 $ 64,458 $ 94,544 Earnings per share total Basic $ 0.45 $ 0.29 $ 0.31 $ 0.45 Diluted $ 0.45 $ 0.29 $ 0.31 $ 0.45 The third quarter 2014 includes noncash impairment charges of $76.4 million related to equity investments. |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Entity [Line Items] | |||
Ownership interest | 41.20% | 37.80% | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 0 |
Regulatory assets | $ 5,800,000 | 6,100,000 | |
Maximum Time Period Regulatory Assets Are Being Recovered (In Years) | 40 years | ||
Number of years of service employees must work to be entitled to postretirement medical and life insurance benefits (in years) | 5 years | ||
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member] | |||
Entity [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 42,800,000 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Accumulated Charges Attributable To Exit Activities | $ 73,800 | $ 122,000 | $ 73,800 | $ 122,000 | |||||||
Noncash charges | 0 | 1,739 | $ 138,559 | ||||||||
Settlements | (38,500) | (51,800) | |||||||||
Accretion | 1,000 | 1,900 | |||||||||
Accumulated Charges Attributable To Exit Activities | $ 36,300 | $ 73,800 | 36,300 | 73,800 | 122,000 | ||||||
Revenues | 640,653 | 3,071,581 | |||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 555,541 | 2,431,565 | |||||||||
Operating costs | 65,898 | 448,867 | |||||||||
Depreciation and amortization | 11,354 | 145,034 | |||||||||
Operating income (loss) | 7,860 | 46,115 | |||||||||
Other income (expense), net | (895) | 2,619 | |||||||||
Interest expense, net | (5,005) | (63,561) | |||||||||
Income tax benefit (expense) | (7,567) | 2,698 | |||||||||
Income (loss) from discontinued operations, net | $ (1,937) | $ (3,860) | $ (140) | $ (144) | $ 799 | $ (171) | $ (8,009) | $ 1,774 | (6,081) | (5,607) | (12,129) |
Costs related to the ONE Gas separation | 23,000 | 9,400 | |||||||||
Discontinued Application of Specialized Accounting for Regulated Operations | 10,200 | ||||||||||
Natural Gas Distribution [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | 287,249 | 1,689,945 | |||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 190,893 | 876,944 | |||||||||
Operating costs | 60,847 | 436,281 | |||||||||
Depreciation and amortization | 11,035 | 144,758 | |||||||||
Operating income (loss) | 24,474 | 231,962 | |||||||||
Other income (expense), net | (888) | 2,484 | |||||||||
Interest expense, net | (4,592) | (61,366) | |||||||||
Income tax benefit (expense) | (16,415) | (64,307) | |||||||||
Income (loss) from discontinued operations, net | $ 2,579 | 108,773 | |||||||||
Description and timing of discontinued operations | On January 31, 2014, we completed the separation of ONE Gas. ONE Gas consists of our former natural gas distribution business. ONEOK shareholders of record at the close of business on January 21, 2014, retained their shares of ONEOK stock and received one share of ONE Gas stock for every four shares of ONEOK stock owned in a transaction that was tax-free to ONEOK and its shareholders. We retained no ownership in ONE Gas. Excluding cash of ONE Gas at separation, the separation was accounted for as a noncash activity. | ||||||||||
Energy Services [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | $ 353,404 | 1,381,636 | |||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 364,648 | 1,554,621 | |||||||||
Operating costs | 5,051 | 12,586 | |||||||||
Depreciation and amortization | 319 | 276 | |||||||||
Operating income (loss) | (16,614) | (185,847) | |||||||||
Other income (expense), net | (7) | 135 | |||||||||
Interest expense, net | (413) | (2,195) | |||||||||
Income tax benefit (expense) | 8,848 | 67,005 | |||||||||
Income (loss) from discontinued operations, net | $ (8,186) | (120,902) | |||||||||
Description and timing of discontinued operations | On March 31, 2014, we completed the wind down of our energy services business. We executed agreements in 2013 and the first quarter 2014 to release a significant portion of our nonaffiliated natural gas transportation and storage contracts to third parties that resulted in noncash charges, which are included in income (loss) from discontinued operations, net of tax, in our Consolidated Statements of Income. | ||||||||||
2016 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Effect on Future Cash Flows, Amount | 19,000 | ||||||||||
2017 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Effect on Future Cash Flows, Amount | 10,000 | ||||||||||
2018 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Effect on Future Cash Flows, Amount | 4,000 | ||||||||||
2019 - 2023 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Effect on Future Cash Flows, Amount | 4,000 | ||||||||||
2016 - 2023 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Effect on Future Cash Flows, Amount | $ 37,000 | ||||||||||
ONEOK Partners [Member] | Natural Gas Distribution [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | $ 7,500 | 64,500 | |||||||||
ONEOK Partners [Member] | Energy Services [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | $ 46,000 | $ 276,300 |
ACQUISITIONS ACQUISITIONS (Deta
ACQUISITIONS ACQUISITIONS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014USD ($)Rate | Dec. 31, 2013USD ($)RateMMcf | |
West Texas LPG and Mesquite Systems [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cash | $ 13,839 | |
Accounts Receivable | 9,132 | |
Other current assets | 3,369 | |
Property, plant and equipment | 970,359 | |
Fair value of assets acquired | 996,699 | |
Accounts payable | (8,621) | |
Other liabilities | (10,867) | |
Fair value of liabilities acquired | (19,488) | |
Less: Fair value of noncontrolling interest | (162,438) | |
Net assets acquired | 814,773 | |
Less: Cash received | (13,839) | |
Net cash paid for acquisition | $ 800,934 | |
Acquisition date | Nov. 30, 2014 | |
Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of assets acquired | $ 212,889 | |
Goodwill | 92,000 | |
Net cash paid for acquisition | $ 304,889 | |
Acquisition date | Sep. 30, 2013 | |
Intangible assets | $ 103,000 | |
Processing capacity of natural gas processing plant, per day | MMcf | 50 | |
Sage Creek Natural Gas Gathering And Processing [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Sage Creek Natural Gas Gathering And Processing [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 30 years | |
Maysville Natural Gas Processing Facility [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net cash paid for acquisition | $ 90,000 | |
Business Acquisition, Percentage of Voting Interests Acquired | Rate | 30.00% | |
Acquisition date | Dec. 1, 2013 | |
Current ownership share in Maysville natural gas processing facility | Rate | 100.00% | |
West Texas LPG Pipeline Limited Partnership [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Acquisition, Description of Acquired Entity | 80 percent interest | |
Mesquite Pipeline [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | Rate | 100.00% | |
Regulated Operation [Member] | West Texas LPG and Mesquite Systems [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | $ 812,716 | |
Nonregulated Operation [Member] | West Texas LPG and Mesquite Systems [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | $ 157,643 | |
Pipelines [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | $ 59,174 | |
Processing and fractionation and related equipment [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 50,595 | |
Manufacturing Facility [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 120 | |
Natural Gas Gathering And Processing [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of assets acquired | 131,844 | |
Goodwill | 20,000 | |
Net cash paid for acquisition | 151,844 | |
Intangible assets | 40,000 | |
Natural Gas Gathering And Processing [Member] | Pipelines [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 41,129 | |
Natural Gas Gathering And Processing [Member] | Processing and fractionation and related equipment [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 50,595 | |
Natural Gas Gathering And Processing [Member] | Manufacturing Facility [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 120 | |
Natural Gas Liquids [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of assets acquired | 81,045 | |
Goodwill | 72,000 | |
Net cash paid for acquisition | 153,045 | |
Intangible assets | 63,000 | |
Natural Gas Liquids [Member] | Pipelines [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 18,045 | |
Natural Gas Liquids [Member] | Processing and fractionation and related equipment [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | 0 | |
Natural Gas Liquids [Member] | Manufacturing Facility [Member] | Sage Creek Natural Gas Gathering And Processing [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Property, plant and equipment | $ 0 |
FAIR VALUE MEASUREMENTS - Part
FAIR VALUE MEASUREMENTS - Part 1 (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 7,400,000 | $ 7,500,000 |
Commodity contracts | ||
Cash collateral held | 34,400 | 24,800 |
Cash collateral posted | 0 | 0 |
Long-term Debt | 8,400,000 | 7,200,000 |
Fair Value, Measurements, Recurring [Member] | ||
Commodity contracts | ||
Financial contracts | 3,760 | 17,255 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | 3,591 | 9,922 |
Interest Rate Derivative Assets, at Fair Value | 2,288 | |
Total derivatives assets | 7,351 | 29,465 |
Available-for-sale investment securities | 1,773 | |
Assets, Fair Value Disclosure | 31,238 | |
Commodity contracts | ||
Financial contracts | 0 | 0 |
Physical contracts | (23) | |
Interest Rate Derivative Liabilities, at Fair Value | (9,936) | (44,843) |
Derivative Liability | (9,936) | (44,866) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Commodity contracts | ||
Financial contracts | 38,921 | 42,880 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Total derivatives assets | 38,921 | 42,880 |
Available-for-sale investment securities | 1,773 | |
Assets, Fair Value Disclosure | 44,653 | |
Commodity contracts | ||
Financial contracts | (4,513) | (169) |
Physical contracts | 0 | |
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 |
Derivative Liability | (4,513) | (169) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Commodity contracts | ||
Financial contracts | 0 | 0 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 2,288 | |
Total derivatives assets | 0 | 2,288 |
Available-for-sale investment securities | 0 | |
Assets, Fair Value Disclosure | 2,288 | |
Commodity contracts | ||
Financial contracts | 0 | 0 |
Physical contracts | 0 | |
Interest Rate Derivative Liabilities, at Fair Value | (9,936) | (44,843) |
Derivative Liability | (9,936) | (44,843) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Commodity contracts | ||
Financial contracts | 7,253 | 354 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | 3,591 | 9,922 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Total derivatives assets | 10,844 | 10,276 |
Available-for-sale investment securities | 0 | |
Assets, Fair Value Disclosure | 10,276 | |
Commodity contracts | ||
Financial contracts | (3,513) | (968) |
Physical contracts | (23) | |
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 |
Derivative Liability | (3,513) | (991) |
Fair Value, Measurements, Recurring [Member] | Total Gross | ||
Commodity contracts | ||
Financial contracts | 46,174 | 43,234 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | 3,591 | 9,922 |
Interest Rate Derivative Assets, at Fair Value | 2,288 | |
Total derivatives assets | 49,765 | 55,444 |
Available-for-sale investment securities | 1,773 | |
Assets, Fair Value Disclosure | 57,217 | |
Commodity contracts | ||
Financial contracts | (8,026) | (1,137) |
Physical contracts | (23) | |
Interest Rate Derivative Liabilities, at Fair Value | (9,936) | (44,843) |
Derivative Liability | (17,962) | (46,003) |
Fair Value, Measurements, Recurring [Member] | Netting [Member] | ||
Commodity contracts | ||
Financial contracts | (42,414) | (25,979) |
Financial Instruments, Owned, Physical Commodities, at Fair Value | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Total derivatives assets | (42,414) | (25,979) |
Available-for-sale investment securities | 0 | |
Assets, Fair Value Disclosure | (25,979) | |
Commodity contracts | ||
Financial contracts | 8,026 | 1,137 |
Physical contracts | 0 | |
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 |
Derivative Liability | $ 8,026 | $ 1,137 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Part 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers between levels | $ 0 | $ 0 |
Derivative Financial Instruments Assets Liabilities Net [Member] | ||
Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net assets (liabilities) at beginning of period | 9,285 | (782) |
Total realized/unrealized gains (losses): [Abstract] | ||
Included in Earnings | 216 | (927) |
Included in other comprehensive income (loss) | (2,170) | 7,260 |
Settlements | 0 | 3,734 |
Net assets (liabilities) at end of period | $ 7,331 | $ 9,285 |
RISK MANAGEMENT AND HEDGING A60
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES - Part 1 (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 0 | |
Assets | 49,765,000 | $ 55,444,000 |
(Liabilities) | (17,962,000) | (46,003,000) |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 42,846,000 | 55,444,000 |
(Liabilities) | (11,376,000) | (45,980,000) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 6,919,000 | 0 |
(Liabilities) | (6,586,000) | (23,000) |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 2,288,000 |
(Liabilities) | (9,936,000) | (44,843,000) |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Physical Derivative Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 3,591,000 | 9,922,000 |
(Liabilities) | 0 | 0 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Financial Derivative Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 39,255,000 | 43,234,000 |
(Liabilities) | (1,440,000) | (1,137,000) |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Physical Derivative Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
(Liabilities) | 0 | (23,000) |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Financial Derivative Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 6,919,000 | 0 |
(Liabilities) | (6,586,000) | 0 |
Natural Gas Pipelines [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ 0 | $ 0 |
RISK MANAGEMENT AND HEDGING A61
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES - Part 2 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)MMcfMMBbls | Mar. 31, 2016USD ($) | Dec. 31, 2014USD ($)MMcfMMBbls | |
Derivative [Line Items] | |||
Notional Amount Of Cash Flow Hedge Instruments Settled | $ 500 | ||
Interest Rate Contract [Member] | Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional Amount Of Cash Flow Hedge Instruments Less Than 12 Months | $ 400 | ||
Designated as Hedging Instrument [Member] | Fixed Price [Member] | Natural Gas [Member] | Sold [Member] | Futures and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMcf | (27,100) | (41,200) | |
Designated as Hedging Instrument [Member] | Fixed Price [Member] | Natural Gas [Member] | Purchased [Member] | Futures and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMcf | 0 | 0 | |
Designated as Hedging Instrument [Member] | Fixed Price [Member] | Crude oil and NGLs [Member] | Sold [Member] | Futures, forwards and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMBbls | (2.3) | (0.5) | |
Designated as Hedging Instrument [Member] | Fixed Price [Member] | Crude oil and NGLs [Member] | Purchased [Member] | Futures, forwards and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMBbls | 0 | 0 | |
Designated as Hedging Instrument [Member] | Basis [Member] | Natural Gas [Member] | Sold [Member] | Futures and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMcf | (27,100) | (41,200) | |
Designated as Hedging Instrument [Member] | Basis [Member] | Natural Gas [Member] | Purchased [Member] | Futures and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMcf | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Fixed Price [Member] | Crude oil and NGLs [Member] | Sold [Member] | Futures, forwards and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMBbls | (0.6) | 0 | |
Not Designated as Hedging Instrument [Member] | Fixed Price [Member] | Crude oil and NGLs [Member] | Purchased [Member] | Futures, forwards and swaps [Member] | |||
Derivative [Line Items] | |||
Notional amount | MMBbls | 0.6 | 0 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Sold [Member] | Forward Starting Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 0 | $ 0 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Purchased [Member] | Forward Starting Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 400 | $ 900 | |
For Period July 2018 through January 2019 [Member] | Subsequent Event [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 500 | ||
For Period April 2016 through July 2018 [Member] | Subsequent Event [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 1,000 |
RISK MANAGEMENT AND HEDGING A62
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES - Part 3 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Loss On Settled Interest Rate Swaps Recorded in AOCI | $ 55,100,000 | ||
Total gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | 9,944,000 | $ (16,225,000) | |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Price Risk Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 8,000,000 | ||
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | (4,600,000) | 0 |
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Tax | 3,100,000 | ||
Income (Loss) From Discontinued Operations [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Inventory Write-down | 10,100,000 | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain Loss On Cash Flow Hedges Net Of Tax Accumulated Other Comprehensive Income Loss | 10,800,000 | ||
Amount recognized in the next 12 months | 10,800,000 | ||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of accumulated other comprehensive income (loss) attributable primarily to settled interest-rate swaps. | (49,100,000) | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | (6,200,000) | ||
Continuing Operations [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | 47,500,000 | (64,639,000) | 32,141,000 |
Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income on derivatives (effective portion) | 63,524,000 | (43,018,000) | (12,871,000) |
Continuing Operations [Member] | Commodity Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | 70,065,000 | 32,354,000 | (14,475,000) |
Continuing Operations [Member] | Commodity Contract [Member] | Sales [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income on derivatives (effective portion) | 81,089,000 | (21,052,000) | 1,689,000 |
Continuing Operations [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | (22,565,000) | (96,993,000) | 46,616,000 |
Continuing Operations [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income on derivatives (effective portion) | $ (17,565,000) | (21,966,000) | (14,560,000) |
Discontinued Operations [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | (3,700,000) | (1,000,000) | |
Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income on derivatives (effective portion) | $ (12,800,000) | $ 3,000,000 |
PROPERTY, PLANT AND EQUIPMENT63
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | $ 14,530,460 | $ 13,602,647 | |
Accumulated Depreciation | (2,156,471) | (1,940,210) | |
Net property, plant and equipment | 12,373,989 | 11,662,437 | |
Construction in Progress Expenditures Incurred but Not yet Paid | 115,700 | 187,200 | $ 237,200 |
Impairment of long-lived assets | 83,673 | 0 | $ 0 |
Non-Regulated Property, Plant and Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Accumulated Depreciation | (1,325,151) | (1,221,387) | |
Non-Regulated Property, Plant and Equipment [Member] | Gathering pipelines and related equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 2,961,388 | 2,449,343 | |
Non-Regulated Property, Plant and Equipment [Member] | Processing and fractionation and related equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 3,627,062 | 2,880,572 | |
Non-Regulated Property, Plant and Equipment [Member] | Storage and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 456,437 | 478,276 | |
Non-Regulated Property, Plant and Equipment [Member] | Transmission Pipelines and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 416,391 | 518,585 | |
Non-Regulated Property, Plant and Equipment [Member] | General plant and other [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 407,544 | 364,976 | |
Non-Regulated Property, Plant and Equipment [Member] | Construction Work in Process [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 691,907 | 1,236,138 | |
Regulated Property Plant and Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Accumulated Depreciation | (831,320) | (718,823) | |
Regulated Property Plant and Equipment [Member] | Storage and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 76,468 | 115,799 | |
Regulated Property Plant and Equipment [Member] | General plant and other [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 94,461 | 63,424 | |
Regulated Property Plant and Equipment [Member] | Construction Work in Process [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 83,461 | 194,700 | |
Regulated Property Plant and Equipment [Member] | Natural Gas Transmission Pipelines and Regulated Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | 1,507,220 | 1,478,035 | |
Regulated Property Plant and Equipment [Member] | Natural Gas Liquids Transmission Pipelines and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Property, plant and equipment | $ 4,208,121 | $ 3,822,799 | |
Minimum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Gathering pipelines and related equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 5 years | ||
Minimum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Processing and fractionation and related equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 3 years | ||
Minimum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Storage and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 5 years | ||
Minimum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Transmission Pipelines and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 5 years | ||
Minimum [Member] | Non-Regulated Property, Plant and Equipment [Member] | General plant and other [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 2 years | ||
Minimum [Member] | Regulated Property Plant and Equipment [Member] | Storage and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 5 years | ||
Minimum [Member] | Regulated Property Plant and Equipment [Member] | General plant and other [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 2 years | ||
Minimum [Member] | Regulated Property Plant and Equipment [Member] | Natural Gas Transmission Pipelines and Regulated Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 5 years | ||
Minimum [Member] | Regulated Property Plant and Equipment [Member] | Natural Gas Liquids Transmission Pipelines and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 5 years | ||
Maximum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Gathering pipelines and related equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 40 years | ||
Maximum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Processing and fractionation and related equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 40 years | ||
Maximum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Storage and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 54 years | ||
Maximum [Member] | Non-Regulated Property, Plant and Equipment [Member] | Transmission Pipelines and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 54 years | ||
Maximum [Member] | Non-Regulated Property, Plant and Equipment [Member] | General plant and other [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 60 years | ||
Maximum [Member] | Regulated Property Plant and Equipment [Member] | Storage and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 54 years | ||
Maximum [Member] | Regulated Property Plant and Equipment [Member] | General plant and other [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 54 years | ||
Maximum [Member] | Regulated Property Plant and Equipment [Member] | Natural Gas Transmission Pipelines and Regulated Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 77 years | ||
Maximum [Member] | Regulated Property Plant and Equipment [Member] | Natural Gas Liquids Transmission Pipelines and Related Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Estimated Useful Lives | 88 years | ||
Natural Gas Gathering And Processing [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Impairment of long-lived assets | $ 63,500 | ||
Natural Gas Pipelines [Member] | Regulated Property Plant and Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Average Depreciation Rate | 2.10% | 2.10% | 2.20% |
Natural Gas Liquids [Member] | Regulated Property Plant and Equipment [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Average Depreciation Rate | 1.90% | 2.00% | 2.00% |
Natural Gas Gathering And Processing and Natural Gas Liquids [Member] | |||
Property, plant and equipment by type [Abstract] | |||
Impairment of long-lived assets | $ 20,200 |
GOODWILL AND INTANGIBLE ASSET64
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 525,535 | $ 525,535 | |
Amortization expense for intangible assets | 11,900 | 11,800 | $ 8,700 |
Gross Intangible Assets | 581,632 | 567,215 | |
Accumulated Amortization | (89,909) | (78,010) | |
Net Intangible Assets | 491,723 | 489,205 | |
Future amortization expense for next five years [Abstract] | |||
Future amortization expense, year one | 11,900 | ||
Future amortization expense, year two | 11,900 | ||
Future amortization expense, year three | 11,900 | ||
Future amortization expense, year four | 11,900 | ||
Future amortization expense, year five | 11,900 | ||
ONEOK Partners [Member] | |||
Segment Reporting Information [Line Items] | |||
Finite-Lived Intangible Assets, Net | $ 336,200 | 333,600 | |
Minimum [Member] | Natural Gas Gathering And Processing and Natural Gas Liquids [Member] | |||
Segment Reporting Information [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Maximum [Member] | Natural Gas Gathering And Processing and Natural Gas Liquids [Member] | |||
Segment Reporting Information [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 40 years | ||
Natural Gas Gathering And Processing [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 122,291 | 122,291 | |
Natural Gas Liquids [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 268,544 | 268,544 | |
Natural Gas Pipelines [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 134,700 | $ 134,700 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Rate | Dec. 31, 2014USD ($)Rate | |
Partnership Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 2,400,000,000 | $ 1,700,000,000 |
Indebtedness To Adjusted EBITDA Maximum | 5 | |
Indebtedness To Adjusted EBITDA Current | 4.4 | |
Partnership Credit Agreement sublimit for issuance of standby letters of credit | $ 100,000,000 | |
Line of credit facility swingline subfacility | 150,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,800,000,000 | |
Line Of Credit Facility, Annual Facility Fee Description | the annual facility fee is 20 basis points | |
Interest Rate Description | borrowings, if any, will accrue at LIBOR plus 117.5 basis points | |
Letters of credit issued | $ 14,000,000 | 14,000,000 |
Short-term Bank Loans and Notes Payable | $ 300,000,000 | 0 |
Average interest rate, Partnership Credit Agreement | Rate | 1.60% | |
Indebtedness To Adjusted EBITDA From Acquisitions Maximum | 5.5 | |
Acquisition price threshold for increase in permitted debt to EBITDA covenant ratio | $ 25,000,000 | |
ONEOK Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 300,000,000 | |
Indebtedness To Adjusted EBITDA Maximum | 4 | |
Indebtedness To Adjusted EBITDA Current | 2.3 | |
Write off of Deferred Debt Issuance Cost | 2,900,000 | |
Partnership Credit Agreement sublimit for issuance of standby letters of credit | $ 50,000,000 | |
Line of credit facility swingline subfacility | $ 50,000,000 | |
Line Of Credit Facility, Annual Facility Fee Description | the annual facility fee is 30 basis points | |
Interest Rate Description | borrowings, if any, will accrue interest at LIBOR plus 145 basis points | |
Letters of credit issued | $ 1,100,000 | |
Short-term Bank Loans and Notes Payable | 0 | |
Option to increase borrowing capacity | 500,000,000 | |
Commercial Paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Commercial paper | $ 246,300,000 | $ 1,100,000,000 |
Weighted average interest rate, Commercial Paper Program | Rate | 1.23% | 0.54% |
Maximum Amount Of Commercial Paper | $ 2,400,000,000 | $ 1,700,000,000 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | Mar. 31, 2016 | Dec. 31, 2014 | Jan. 31, 2014 | |
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 8,486,820 | $ 7,194,573 | |||||
Unamortized portion of terminated swaps | 21,904 | 23,622 | |||||
Unamortized debt discount | (74,492) | (57,403) | |||||
Current maturities | (110,650) | (10,650) | |||||
Long-term debt | 8,323,582 | 7,150,142 | |||||
Long-term Debt, by Maturity [Abstract] | |||||||
2,016 | 1,110,700 | ||||||
2,017 | 410,700 | ||||||
2,018 | 435,700 | ||||||
2,019 | 510,700 | ||||||
2,020 | 310,700 | ||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 650,000 | ||||||
Amount of debt classified as short-term | 546,340 | 1,055,296 | |||||
ONEOK [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | 1,634,913 | 1,135,016 | |||||
Long-term Debt, by Maturity [Abstract] | |||||||
2,016 | 3,000 | ||||||
2,017 | 3,000 | ||||||
2,018 | 3,000 | ||||||
2,019 | 3,000 | ||||||
2,020 | 3,000 | ||||||
ONEOK [Member] | Note Payable from Public Offering Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 547,397 | 547,397 | |||||
Interest Rate (in hundredths) | 4.25% | ||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Extinguishment of Debt, Amount | $ 152,500 | ||||||
Early Repayment of Senior Debt | 150,000 | ||||||
ONEOK [Member] | Note Payable 2 from Public Offering Due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 500,000 | 0 | |||||
Interest Rate (in hundredths) | 7.50% | ||||||
ONEOK [Member] | Note Payables 1 due 2028 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 87,516 | 87,619 | |||||
Interest Rate (in hundredths) | 6.50% | ||||||
ONEOK [Member] | Note Payables 2 due 2028 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 100,000 | 100,000 | |||||
Interest Rate (in hundredths) | 6.875% | ||||||
ONEOK [Member] | Notes Payables due 2035 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 400,000 | $ 400,000 | |||||
Interest Rate (in hundredths) | 6.00% | ||||||
ONEOK [Member] | Note Payable Due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 500,000 | ||||||
Interest Rate (in hundredths) | 7.50% | ||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Net proceeds from public offering | $ 487,100 | ||||||
ONEOK [Member] | Notes Payables due 2015 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate (in hundredths) | 5.20% | ||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Extinguishment of Debt, Amount | 400,000 | ||||||
Gains (Losses) on Extinguishment of Debt | 24,800 | ||||||
Early Repayment of Senior Debt | 430,100 | ||||||
ONE Gas [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 1,200,000 | ||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Net proceeds from public offering | 1,190,000 | ||||||
Related Party Transaction, Amounts of Transaction | $ 1,130,000 | ||||||
ONE Gas [Member] | Note Payables 2 due 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 300,000 | ||||||
Interest Rate (in hundredths) | 2.07% | ||||||
ONE Gas [Member] | Note Payables due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 300,000 | ||||||
Interest Rate (in hundredths) | 3.61% | ||||||
ONE Gas [Member] | Note Payables due 2044 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 600,000 | ||||||
Interest Rate (in hundredths) | 4.658% | ||||||
Guardian Pipeline [Member] | Notes Payables 1 due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 51,907 | $ 59,557 | |||||
Long-term Debt, by Maturity [Abstract] | |||||||
2,016 | 7,700 | ||||||
2,017 | 7,700 | ||||||
2,018 | 7,700 | ||||||
2,019 | 7,700 | ||||||
2,020 | $ 7,700 | ||||||
Average interest rate (in hundredths) | 7.88% | ||||||
Debt instrument covenant description | Guardian Pipeline’s senior notes contain financial covenants that require the maintenance of certain financial ratios as defined in the master shelf agreement based on Guardian Pipeline’s financial position and results of operations. Upon any breach of these covenants, all amounts outstanding under the master shelf agreement may become due and payable immediately. | ||||||
Debt Instrument, Covenant Compliance | At December 31, 2015, Guardian Pipeline was in compliance with its financial covenants. | ||||||
Partnership Interest [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 6,851,907 | 6,059,557 | |||||
Debt Instrument, Interest Rate Terms | LIBOR plus 130.0 basis points | ||||||
Long-term Debt, by Maturity [Abstract] | |||||||
2,016 | $ 1,100,000 | ||||||
2,017 | 400,000 | ||||||
2,018 | 425,000 | ||||||
2,019 | 500,000 | ||||||
2,020 | 300,000 | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 650,000 | 650,000 | |||||
Interest Rate (in hundredths) | 3.25% | ||||||
Partnership Interest [Member] | Notes Payable due 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 450,000 | 450,000 | |||||
Current maturities | $ 100,000 | ||||||
Interest Rate (in hundredths) | 6.15% | ||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Amount of debt classified as long-term | $ 1,000,000 | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 400,000 | 400,000 | |||||
Interest Rate (in hundredths) | 2.00% | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 425,000 | $ 425,000 | 425,000 | ||||
Interest Rate (in hundredths) | 3.20% | 3.20% | |||||
Partnership Interest [Member] | Notes Payables due 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 500,000 | 500,000 | |||||
Interest Rate (in hundredths) | 8.625% | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 300,000 | 0 | |||||
Interest Rate (in hundredths) | 3.80% | ||||||
Partnership Interest [Member] | Note Payable 2 from Public Offering Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 900,000 | 900,000 | |||||
Interest Rate (in hundredths) | 3.375% | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 425,000 | $ 425,000 | 425,000 | ||||
Interest Rate (in hundredths) | 5.00% | 5.00% | |||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 500,000 | 0 | |||||
Interest Rate (in hundredths) | 4.90% | ||||||
Partnership Interest [Member] | Notes Payables due 2036 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 600,000 | 600,000 | |||||
Interest Rate (in hundredths) | 6.65% | ||||||
Partnership Interest [Member] | Notes Payables due 2037 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 600,000 | 600,000 | |||||
Interest Rate (in hundredths) | 6.85% | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2041 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 650,000 | 650,000 | |||||
Interest Rate (in hundredths) | 6.125% | ||||||
Partnership Interest [Member] | Note Payable from Public Offering Due 2043 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 400,000 | $ 400,000 | $ 400,000 | ||||
Interest Rate (in hundredths) | 6.20% | 6.20% | |||||
Senior Notes [Member] | ONEOK [Member] | |||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Debt instrument call feature | ONEOK may redeem the 6.875 percent senior notes due 2028 and the senior notes due 2035, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. ONEOK may redeem the 6.5 percent senior notes due 2028, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest. ONEOK may redeem the remaining balance of its senior notes due 2022 and 2023 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting three months before the maturity date. Prior to this date, ONEOK may redeem these senior notes on the same basis as the 6.875 percent senior notes due 2028 and the senior notes due 2035. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. ONEOK’s senior notes are senior unsecured obligations, ranking equally in right of payment with all of ONEOK’s existing and future unsecured senior indebtedness. | ||||||
Debt instrument covenant description | The indentures governing ONEOK’s 6.5 percent and 6.875 percent senior notes due 2028 include an event of default upon acceleration of other indebtedness of $15 million or more, and the indentures governing the senior notes due 2022, 2023 and 2035 include an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25 percent in aggregate principal amount of the outstanding senior notes due 2022, 2023, 2028 and 2035 to declare those senior notes immediately due and payable in full. The indenture for the notes due 2023 also contains a provision that allows the holders of the notes to require ONEOK to offer to repurchase all or any part of their notes if a change of control and a credit rating downgrade occur at a purchase price of 101 percent of the principal amount, plus accrued and unpaid interest, if any. | ||||||
Senior Notes [Member] | Partnership Interest [Member] | |||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Net proceeds from public offering | $ 792,300 | $ 1,240,000 | |||||
Underwritten public offering | $ 800,000 | $ 1,250,000 | |||||
Debt instrument call feature | ONEOK Partners may redeem its 6.15 percent senior notes due 2016 and its senior notes due 2019, 2036 and 2037, in whole or in part, at any time prior to their maturity at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. ONEOK Partners may redeem its senior notes due 2017 and its senior notes due 2022 at par starting one month and three months, respectively, before their maturity dates. ONEOK Partners may redeem its senior notes due 2041 at a redemption price equal to the principal amount, plus accrued and unpaid interest, starting six months before its maturity date. Prior to that date, ONEOK Partners may redeem these senior notes, in whole or in part, at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. ONEOK Partners may redeem its senior notes due 2018, 2020, 2023, 2025 and 2043 at par, plus accrued and unpaid interest to the redemption date, starting one month, one month, three months, three months, and six months, respectively, before their maturity dates. Prior to these dates, ONEOK Partners may redeem these notes, in whole or in part, at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. | ||||||
Debt instrument covenant description | ONEOK Partners senior notes are governed by an indenture, dated as of September 25, 2006, between ONEOK Partners and Wells Fargo Bank, N.A., the trustee, as supplemented. The indenture does not limit the aggregate principal amount of debt securities that may be issued and provides that debt securities may be issued from time to time in one or more additional series. The indenture contains covenants including, among other provisions, limitations on ONEOK Partners’ ability to place liens on its property or assets and to sell and lease back its property. The indenture includes an event of default upon acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25 percent in aggregate principal amount of any of ONEOK Partners’ outstanding senior notes to declare those notes immediately due and payable in full. | ||||||
Subsequent Event [Member] | Term Loan Agreement [Member] | Partnership Interest [Member] | |||||||
Long-term Debt, by Maturity [Abstract] | |||||||
Delayed-Draw Unsecured Senior Term Loan | $ 1,000,000 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock authorized and unreserved common stock available for issuance. (in shares) | 372.7 | 372.7 | ||||||||||||||
Dividends paid | $ 509.2 | $ 443.8 | $ 304.7 | |||||||||||||
Dividend paid (in dollars per share) | $ 0.615 | $ 0.605 | $ 0.605 | $ 0.605 | $ 0.59 | $ 0.575 | $ 0.56 | $ 0.40 | $ 0.38 | $ 0.38 | $ 0.36 | $ 0.36 | $ 2.430 | $ 2.125 | $ 1.480 | |
Dividend declared (in dollars per share) | $ 2.43 | $ 2.125 | $ 1.48 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Dividend paid (in dollars per share) | $ 0.615 |
ACCUMULATED OTHER COMPREHENSI68
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other comprehensive income (loss) before reclassifications | $ 9,944 | $ (16,225) | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | (955) | 98 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 5,722 | (33,987) | |
Other comprehensive income (loss) before reclassifications | 14,711 | (50,114) | |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment included in Net Income, Net of Tax | (5,600) | 32,359 | $ 49,002 |
Income tax expense | 8,815 | (14,098) | (1,905) |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (54,709) | 41,723 | 7,926 |
Balance of accumulated other comprehensive income (loss) [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (42,699) | (37,349) | (43,168) |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 955 | 857 |
Pension and Postretirement Benefit Plan Obligations | (84,543) | (99,959) | (79,676) |
Accumulated Other Comprehensive Income (Loss) | (127,242) | (136,353) | (121,987) |
Other comprehensive income (loss) attributable to ONEOK [Abstract] | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (5,350) | 5,819 | |
Unrealized Holding Gains (Losses) on Investment Securities | (955) | 98 | (177) |
Pension and Postretirement Benefit Plan Obligations | 15,416 | (23,672) | 83,126 |
Accumulated Other Comprehensive Income (Loss) | 9,111 | (17,755) | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges Transferred to Separated Entity, Effect Net of Tax | 0 | ||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Amount Transferred to Separated Entity, Net of Tax | 0 | ||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Amount Transferred to Separated Entity, Net of Tax | 3,389 | ||
Accumulated Other Comprehensive Income (Loss), Amount Transferred to Separated Entity, Net of Tax, Total | 3,389 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (15,294) | 22,044 | 3,020 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Total before tax [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (63,524) | 43,018 | 12,871 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Tax benefit [Member] | |||
Income tax expense | 8,815 | (8,977) | (3,081) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Continuing Operations [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (54,709) | 34,041 | 9,790 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Discontinued Operations [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 0 | 7,682 | (1,864) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Net of tax [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (54,709) | 41,723 | 7,926 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Net income attributable to noncontrolling interest [Member] | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Noncontrolling Interest | (39,415) | 19,679 | 4,906 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Commodity Contract [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (81,089) | 21,052 | (1,689) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 17,565 | 21,966 | 14,560 |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Defined Benefit Plan, Amortization of Net Gains (Losses) | 17,724 | 15,914 | 21,407 |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | (1,568) | (1,469) | (1,560) |
Amortization of unrecognized net asset at adoption | 0 | 0 | 49 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | 16,156 | 14,445 | 19,896 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Tax | (6,462) | (5,778) | (7,958) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 9,694 | 10,315 | 45,982 |
Accumulated Defined Benefit Plans Adjustment [Member] | Continuing Operations [Member] | |||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 9,694 | 8,667 | 11,938 |
Accumulated Defined Benefit Plans Adjustment [Member] | Discontinued Operations [Member] | |||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | $ 0 | $ 1,648 | $ 34,044 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic EPS from continuing operations [Abstract] | |||||||||||
Income from continuing operations attributable to ONEOK available for common stock | $ 251,058 | $ 319,714 | $ 278,662 | ||||||||
Shares | 210,208 | 209,391 | 206,044 | ||||||||
Basic (in dollars per share) | $ 0.13 | $ 0.39 | $ 0.36 | $ 0.29 | $ 0.45 | $ 0.31 | $ 0.29 | $ 0.45 | $ 1.19 | $ 1.53 | $ 1.35 |
Diluted EPS from continuing operations [Abstract] | |||||||||||
Effect of options and other dilutive securities | $ 0 | $ 0 | $ 0 | ||||||||
Effect of options and other dilutive securities, shares | 333 | 1,036 | 3,651 | ||||||||
Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents | $ 251,058 | $ 319,714 | $ 278,662 | ||||||||
Shares | 210,541 | 210,427 | 209,695 | ||||||||
Diluted (in dollars per share) | $ 0.12 | $ 0.39 | $ 0.36 | $ 0.29 | $ 0.45 | $ 0.31 | $ 0.29 | $ 0.45 | $ 1.19 | $ 1.52 | $ 1.33 |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends Paid Prior to Vesting on the Restricted Stock Units Granted Prior to 2013 | $ 0 | ||
Dividends paid prior to vesting on performance stock units granted prior to 2013 | 0 | ||
Continuing Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense, Net of Tax | $ 6,800,000 | $ 8,400,000 | $ 9,400,000 |
Non-employees and Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance under the Plan. (in shares) | 1,400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,000,000 | ||
The maximum number of shares for which options or other awards may be granted to any employee during any year (in shares) | 40,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding awards vesting period (in years) | 3 years | ||
Weighted Average Price [Abstract] | |||
Nonvested beginning balance (in dollars per share) | $ 41.54 | ||
Weighted-average grant date fair value (per share) | 42.98 | $ 58.23 | $ 47.46 |
Released to participants (in dollars per share) | 32.32 | ||
Forfeited (in dollars per share) | 48.97 | ||
Nonvested ending balance (in dollars per share) | $ 45.88 | $ 41.54 | |
Fair value of units granted | $ 10,186,000 | $ 8,463,000 | $ 7,940,000 |
Fair value of units vested | 6,458,000 | $ 10,649,000 | 7,334,000 |
Unrecognized compensation cost related to our nonvested restricted stock unit awards | $ 9,800,000 | ||
Period over which compensation cost related to nonvested restricted stock will be recognized (in years) | 1 year 11 months 3 days | ||
Restricted stock units and performance stock units activity [Roll forward] | |||
Nonvested beginning balance (in shares) | 447,932 | ||
Granted (in shares) | 236,974 | ||
Released to participants (in shares) | (199,830) | ||
Forfeited (in shares) | (21,507) | ||
Nonvested ending balance (in shares) | 463,569 | 447,932 | |
Stock Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance under the Plan. (in shares) | 10,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,900,000 | ||
Forfeiture rate maximum (in hundredths) | 3.00% | ||
Share based compensation expense | $ 6,800,000 | $ 11,100,000 | 22,800,000 |
Share based compensation tax benefit | $ 4,200,000 | $ 6,800,000 | $ 13,900,000 |
Long Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance under the Plan. (in shares) | 15,600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 800,000 | ||
Performance Unit Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding awards vesting period (in years) | 3 years | ||
Weighted Average Price [Abstract] | |||
Nonvested beginning balance (in dollars per share) | $ 44.55 | ||
Weighted-average grant date fair value (per share) | 50.30 | $ 64.75 | $ 52.34 |
Released to participants (in dollars per share) | 36.54 | ||
Forfeited (in dollars per share) | 44.94 | ||
Nonvested ending balance (in dollars per share) | $ 51.01 | $ 44.55 | |
Fair value of units granted | $ 13,370,000 | $ 12,071,000 | $ 19,742,000 |
Fair value of units vested | 13,736,000 | $ 25,795,000 | $ 19,269,000 |
Unrecognized compensation cost related to our nonvested restricted stock unit awards | $ 13,500,000 | ||
Period over which compensation cost related to nonvested restricted stock will be recognized (in years) | 1 year 9 months 4 days | ||
Restricted stock units and performance stock units activity [Roll forward] | |||
Nonvested beginning balance (in shares) | 872,730 | ||
Granted (in shares) | 265,818 | ||
Released to participants (in shares) | (375,895) | ||
Forfeited (in shares) | (71,393) | ||
Nonvested ending balance (in shares) | 691,260 | 872,730 | |
Volatility (in hundredths) | 26.70% | 25.48% | 22.27% |
Dividend Yield (in hundredths) | 5.02% | 2.63% | 3.04% |
Risk-free Interest Rate (in hundredths) | 1.00% | 0.69% | 0.42% |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance under the Plan. (in shares) | 11,600,000 | ||
Restricted stock units and performance stock units activity [Roll forward] | |||
Maximum allowable percentage of annual base pay withheld to purchase our common stock (in hundredths) | 10.00% | ||
Purchase price percentage of the lower of its grant date or exercise date market price (in hundredths) | 85.00% | ||
Percentage of employees participating in the Employee Stock Purchase Plan (in hundredths) | 53.00% | 67.00% | 52.00% |
Shares sold under the Employee Stock Purchase Plan (in shares) | 222,872 | 110,592 | 254,960 |
Share Price of Shares Sold Under the Employee Stock Purchase Plan (In Dollars per Share) | $ 25.51 | $ 43.85 | $ 35.97 |
Employee Stock Award Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance under the Plan. (in shares) | 900,000 | ||
Shares Sold Under Employee Stock Award Program | 0 | 49,864 | 63,975 |
Share based compensation expense | $ 2,100,000 | $ 3,600,000 | |
Description of the Plan | Under our Employee Stock Award Program, we issued, for no monetary consideration, to all eligible employees one share of our common stock when the per-share closing price of our common stock on the NYSE was for the first time at or above $13 per share, and one additional share of common stock when the per-share closing price of our common stock on the NYSE was at or above each one dollar increment above $13. |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in Plan Assets [Roll Forward] | ||||
Investments Included in Other Assets, Supplemental Executive Retirement Plan | $ 81,100 | $ 82,400 | ||
Deferred tax liabilities | $ 1,678,897 | 1,557,796 | ||
Defined Benefit Plan, Amount and Timing of Assets Expected to be Returned to Employer During Following 12 Month Period | 0 | |||
Amounts recognized in other comprehensive income (loss) [Abstract] | ||||
Deferred income taxes | $ (10,278) | 15,781 | $ (52,436) | |
Total recognized in other comprehensive income (loss) | 15,416 | (23,672) | 83,126 | |
Amounts in accumulated other comprehensive income (loss) that had not yet been recognized as components of net periodic benefit expense [Abstract] | ||||
Decrease in regulatory asset for regulated entities as a result of transfer of unrecognized losses to ONE Gas | 5,800 | 6,100 | ||
Accumulated other comprehensive income (loss), net of tax | $ (84,543) | $ (99,959) | $ (79,676) | |
Weighted-average assumptions used to determine net periodic benfit costs [Abstract] | ||||
Expected long-term return on plan assets (in hundredths) | 8.00% | 7.75% | 8.25% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.15% | 3.20% | 3.50% | |
Description of basis used to determine overall expected long-term rate of return on plan assets | We determine our overall expected long-term rate of return on plan assets, based on our review of historical returns and economic growth models. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our pension and postretirement obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. | |||
One percentage point change in assumed healthcare cost trend rates [Abstract] | ||||
Effect of a one percentage point increase on total of service and interest cost | $ 80 | |||
Effect of a one percentage point increase on postretirement benefit obligation | 900 | |||
Effect of a one percentage point decrease on total of service and interest cost | (72) | |||
Effect of a one percentage point decrease on postretirement benefit obligation | $ (821) | |||
Target allocation for assets of the pension plan [Abstract] | ||||
U.S. large-cap equities | 37.00% | |||
Long duration bonds | 30.00% | |||
Developed foreign large-cap equities | 10.00% | |||
Alternative investments | 8.00% | |||
Mid-cap equities | 6.00% | |||
Emerging markets equities | 5.00% | |||
Small-cap equities | 4.00% | |||
Total | 100.00% | |||
Other Employee Benefit Plans - Thrift Plan [Abstract] | ||||
Contributions made to the Thrift Plan | $ 12,000 | $ 9,300 | $ 8,400 | |
Percent of employee contributions matched of eligible compensation (in hundredths) | 100.00% | |||
Maximum percentage of each participant's eligible compensation, subject to certain limits, matching (in hundredths) | 6.00% | |||
Profit-Sharing Plan [Abstract] | ||||
Contributions made to the Profit-Sharing Plan | $ 4,900 | 4,600 | 3,400 | |
Profit sharing contribution percentage | 1.00% | |||
Distribution Regulated Segment [Member] | ||||
Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of period | $ 1,100,000 | |||
Benefit obligation, end of period | 1,100,000 | |||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 1,000,000 | |||
Fair value of assets, end of period | 1,000,000 | |||
Deferred tax liabilities | 86,000 | |||
Pension Benefits [Member] | ||||
Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of period | $ 390,688 | 414,181 | 361,578 | |
Service cost | 7,565 | 7,238 | 6,127 | |
Interest cost | 18,218 | 18,324 | 15,626 | |
Plan participants' contributions | 0 | 0 | ||
Actuarial (gain) loss | (34,826) | 42,891 | ||
Benefits paid | (12,574) | (12,101) | ||
Other adjustments | (1,876) | (3,749) | ||
Benefit obligation, end of period | 390,688 | 414,181 | 361,578 | |
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 258,635 | 277,568 | 274,936 | |
Actual return on plan assets | (4,266) | 17,619 | ||
Employer contributions | 0 | 0 | ||
Plan participants' contributions | 0 | 0 | ||
Benefits paid | (12,574) | (12,101) | ||
Other adjustments | (2,093) | (2,886) | ||
Fair value of assets, end of period | 258,635 | 277,568 | 274,936 | |
Balance at December 31 | (132,053) | (136,613) | ||
Current liabilities | (4,616) | (4,634) | ||
Non-current liabilities | (127,437) | (131,979) | ||
Balance at December 31 | (132,053) | (136,613) | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0 | |||
Accumulated benefit obligation for pension plans | 370,800 | 393,300 | ||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 7,565 | 7,238 | 6,127 | |
Interest cost | 18,218 | 18,324 | 15,626 | |
Expected return on assets | (20,900) | (19,526) | (19,874) | |
Amortization of prior service cost | 94 | 193 | 239 | |
Amortization of net loss | 15,981 | 15,078 | 19,016 | |
Net periodic benefit cost | 20,958 | 21,307 | 21,134 | |
Amounts recognized in other comprehensive income (loss) [Abstract] | ||||
Net gain (loss) arising during the period | 5,145 | (49,293) | 51,874 | |
Prior service credit (cost) | 94 | 193 | 239 | |
Amortization of loss | 15,981 | 15,078 | 19,016 | |
Deferred income taxes | (8,488) | 13,609 | (28,452) | |
Total recognized in other comprehensive income (loss) | 12,732 | (20,413) | 42,677 | |
Amounts in accumulated other comprehensive income (loss) that had not yet been recognized as components of net periodic benefit expense [Abstract] | ||||
Prior service credit (cost) | 0 | (94) | ||
Accumulated gain (loss) | (135,858) | (156,985) | ||
Accumulated other comprehensive loss | (135,858) | (157,079) | ||
Deferred income taxes | 54,343 | 62,832 | ||
Accumulated other comprehensive income (loss), net of tax | (81,515) | (94,247) | ||
Amounts to be recognized in 2016 [Abstract] | ||||
Prior service credit (cost) | $ 94 | $ 193 | $ 239 | |
Weighted average assumptions used to determine benefit obligations [Abstract] | ||||
Discount rate (in hundredths) | 5.25% | 4.50% | ||
Compensation rate increase (in hundredths) | 3.10% | 3.15% | ||
Weighted-average assumptions used to determine net periodic benfit costs [Abstract] | ||||
Discount rate (in hundredths) | 4.50% | 5.25% | 4.25% | |
Benefits to be paid in: [Abstract] | ||||
2,016 | $ 14,753 | |||
2,017 | 15,765 | |||
2,018 | 16,883 | |||
2,019 | 17,941 | |||
2,020 | 18,859 | |||
2021 through 2025 | 108,878 | |||
Pension Benefits [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 144,040 | 165,031 | ||
Fair value of assets, end of period | 144,040 | $ 165,031 | ||
Pension Benefits [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 94,329 | 92,307 | ||
Fair value of assets, end of period | 94,329 | 92,307 | ||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 20,266 | 20,230 | ||
Fair value of assets, end of period | 20,266 | 20,230 | ||
Pension Benefits [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 258,635 | 277,568 | ||
Fair value of assets, end of period | 258,635 | 277,568 | ||
Pension Benefits [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 143,515 | 160,421 | ||
Fair value of assets, end of period | 143,515 | 160,421 | ||
Pension Benefits [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 13,517 | 15,315 | ||
Fair value of assets, end of period | 13,517 | 15,315 | ||
Pension Benefits [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Equity Securities [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 157,032 | 175,736 | ||
Fair value of assets, end of period | 157,032 | 175,736 | ||
Pension Benefits [Member] | Government Obligations [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Government Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 20,241 | 21,044 | ||
Fair value of assets, end of period | 20,241 | 21,044 | ||
Pension Benefits [Member] | Government Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Government Obligations [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 20,241 | 21,044 | ||
Fair value of assets, end of period | 20,241 | 21,044 | ||
Pension Benefits [Member] | Corporate Obligations [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Corporate Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 55,495 | 55,948 | ||
Fair value of assets, end of period | 55,495 | 55,948 | ||
Pension Benefits [Member] | Corporate Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Corporate Obligations [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 55,495 | 55,948 | ||
Fair value of assets, end of period | 55,495 | 55,948 | ||
Pension Benefits [Member] | Common/Collective Trusts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of assets, end of period | 0 | |||
Pension Benefits [Member] | Common/Collective Trusts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 5,076 | |||
Fair value of assets, end of period | 5,076 | |||
Pension Benefits [Member] | Common/Collective Trusts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of assets, end of period | 0 | |||
Pension Benefits [Member] | Common/Collective Trusts [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 5,076 | |||
Fair value of assets, end of period | 5,076 | |||
Pension Benefits [Member] | Cash and Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 525 | 4,610 | ||
Fair value of assets, end of period | 525 | 4,610 | ||
Pension Benefits [Member] | Cash and Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Cash and Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Cash and Money Market Funds [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 525 | 4,610 | ||
Fair value of assets, end of period | 525 | 4,610 | ||
Pension Benefits [Member] | Other Investments [Member] | ||||
Level 3 fair value measurements [Roll Forward] | ||||
Balance at beginning of period | 20,266 | 20,230 | 19,375 | |
Actual return on plan assets held at the reporting date | 36 | 855 | ||
Balance at end of period | 20,266 | 20,230 | $ 19,375 | |
Pension Benefits [Member] | Other Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Other Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Pension Benefits [Member] | Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 20,266 | 20,230 | ||
Fair value of assets, end of period | 20,266 | 20,230 | ||
Pension Benefits [Member] | Other Investments [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 20,266 | 20,230 | ||
Fair value of assets, end of period | 20,266 | 20,230 | ||
Other Postretirement Benefit Plan [Member] | ||||
Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of period | 49,496 | 56,663 | 50,232 | |
Service cost | 743 | 710 | 458 | |
Interest cost | 2,347 | 2,433 | 1,164 | |
Plan participants' contributions | 1,005 | 1,537 | ||
Actuarial (gain) loss | (6,473) | 6,822 | ||
Benefits paid | (4,433) | (4,815) | ||
Other adjustments | (356) | (256) | ||
Benefit obligation, end of period | 49,496 | 56,663 | 50,232 | |
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 28,641 | 29,429 | 28,626 | |
Actual return on plan assets | 174 | 1,765 | ||
Employer contributions | 2,000 | 2,000 | ||
Plan participants' contributions | 1,005 | 1,233 | ||
Benefits paid | (3,728) | (3,968) | ||
Other adjustments | (239) | (227) | ||
Fair value of assets, end of period | 28,641 | 29,429 | 28,626 | |
Balance at December 31 | (20,855) | (27,234) | ||
Current liabilities | 0 | 0 | ||
Non-current liabilities | (20,855) | (27,234) | ||
Balance at December 31 | $ (20,855) | (27,234) | ||
Minimum Number Of Years Of Service For Certain Employees To Be Eligible To Participate In Welfare Plans That Provide Postretirement Medical And Life Insurance Benefits | 5 years | |||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 743 | 710 | 458 | |
Interest cost | 2,347 | 2,433 | 1,164 | |
Expected return on assets | (2,253) | (2,163) | (1,218) | |
Amortization of unrecognized net asset at adoption | 0 | 0 | 49 | |
Amortization of prior service cost | (1,662) | (1,662) | (1,799) | |
Amortization of net loss | 1,743 | 836 | 2,391 | |
Net periodic benefit cost | 918 | 154 | 1,045 | |
Amounts recognized in other comprehensive income (loss) [Abstract] | ||||
Net gain (loss) arising during the period | 4,393 | (7,220) | 9,096 | |
Amortization of transition obligation | 0 | 0 | 49 | |
Prior service credit (cost) | (1,662) | (1,662) | (1,799) | |
Amortization of loss | 1,743 | 836 | 2,391 | |
Deferred income taxes | (1,790) | 3,218 | (3,895) | |
Total recognized in other comprehensive income (loss) | 2,684 | (4,828) | 5,842 | |
Amounts in accumulated other comprehensive income (loss) that had not yet been recognized as components of net periodic benefit expense [Abstract] | ||||
Prior service credit (cost) | 5,212 | 6,873 | ||
Accumulated gain (loss) | (10,259) | (16,396) | ||
Accumulated other comprehensive loss | (5,047) | (9,523) | ||
Deferred income taxes | 2,019 | 3,811 | ||
Accumulated other comprehensive income (loss), net of tax | (3,028) | (5,712) | ||
Amounts to be recognized in 2016 [Abstract] | ||||
Prior service credit (cost) | $ (1,662) | $ (1,662) | $ (1,799) | |
Weighted average assumptions used to determine benefit obligations [Abstract] | ||||
Discount rate (in hundredths) | 5.00% | 4.25% | ||
Weighted-average assumptions used to determine net periodic benfit costs [Abstract] | ||||
Discount rate (in hundredths) | 4.25% | 5.00% | 4.00% | |
Benefits to be paid in: [Abstract] | ||||
2,016 | $ 2,826 | |||
2,017 | 3,056 | |||
2,018 | 3,246 | |||
2,019 | 3,402 | |||
2,020 | 3,558 | |||
2021 through 2025 | $ 18,094 | |||
Assumed health care cost trend rates [Abstract] | ||||
Health care cost-trend rate assumed for next year - minimum (in hundredths) | 4.00% | 4.00% | ||
Health care cost-trend rate assumed for next year - maximum (in hundredths) | 7.50% | 7.75% | ||
Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) - minimum (in hundredths) | 4.00% | 4.00% | ||
Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) - maximum (in hundredths) | 5.00% | 5.00% | ||
Year that the rate reaches the ultimate trend rate | 2,022 | 2,022 | ||
Other Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 3,030 | $ 3,243 | ||
Fair value of assets, end of period | 3,030 | $ 3,243 | ||
Other Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 25,611 | 26,186 | ||
Fair value of assets, end of period | 25,611 | 26,186 | ||
Other Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 28,641 | 29,429 | ||
Fair value of assets, end of period | 28,641 | 29,429 | ||
Other Postretirement Benefit Plan [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 1,632 | 1,599 | ||
Fair value of assets, end of period | 1,632 | 1,599 | ||
Other Postretirement Benefit Plan [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Equity Securities [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 1,632 | 1,599 | ||
Fair value of assets, end of period | 1,632 | 1,599 | ||
Other Postretirement Benefit Plan [Member] | Cash and Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 1,398 | 1,644 | ||
Fair value of assets, end of period | 1,398 | 1,644 | ||
Other Postretirement Benefit Plan [Member] | Cash and Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Cash and Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Cash and Money Market Funds [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 1,398 | 1,644 | ||
Fair value of assets, end of period | 1,398 | 1,644 | ||
Other Postretirement Benefit Plan [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 25,611 | 26,186 | ||
Fair value of assets, end of period | 25,611 | 26,186 | ||
Other Postretirement Benefit Plan [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Fair value of assets, end of period | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Insurance Contracts [Member] | Total | ||||
Change in Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 25,611 | 26,186 | ||
Fair value of assets, end of period | 25,611 | 26,186 | ||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | ||||
Change in Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 2,000 | |||
Pension and postretirement unrecognized losses [Member] | Distribution Regulated Segment [Member] | ||||
Amounts in accumulated other comprehensive income (loss) that had not yet been recognized as components of net periodic benefit expense [Abstract] | ||||
Decrease in regulatory asset for regulated entities as a result of transfer of unrecognized losses to ONE Gas | $ 331,100 | |||
Scenario, Forecast [Member] | Pension Benefits [Member] | ||||
Amounts recognized in other comprehensive income (loss) [Abstract] | ||||
Prior service credit (cost) | 0 | |||
Amounts to be recognized in 2016 [Abstract] | ||||
Prior service credit (cost) | 0 | |||
Net loss | 10,966 | |||
Scenario, Forecast [Member] | Other Postretirement Benefit Plan [Member] | ||||
Amounts recognized in other comprehensive income (loss) [Abstract] | ||||
Prior service credit (cost) | (1,662) | |||
Amounts to be recognized in 2016 [Abstract] | ||||
Prior service credit (cost) | (1,662) | |||
Net loss | $ 1,045 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 13,191 | $ 10,180 | $ (9,531) |
State | 2,967 | 3,311 | 1,812 |
Total current income taxes from continuing operations | 16,158 | 13,491 | (7,719) |
Deferred income taxes | |||
Federal | 116,681 | 152,352 | 156,818 |
State | 3,761 | (14,685) | 16,981 |
Total deferred income taxes from continuing operations | 120,442 | 137,667 | 173,799 |
Total Provision for Income Taxes, Continuing Operations | 136,600 | 151,158 | 166,080 |
Discontinued operations | 2,031 | 7,567 | (2,698) |
Total provision for income taxes | 138,631 | 158,725 | 163,382 |
Reconciliation for income tax provision [Abstract] | |||
Income from continuing operations before income taxes | 521,876 | 819,873 | 755,170 |
Less: Net income attributable to noncontrolling interests | 134,218 | 349,001 | 310,428 |
Income from continuing operations attributable to ONEOK before income taxes | $ 387,658 | $ 470,872 | $ 444,742 |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Provision for federal income taxes | $ 135,680 | $ 164,805 | $ 155,660 |
State income taxes, net of federal tax benefit | 5,800 | 14,278 | 12,102 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 928 | (25,653) | 0 |
Other, net | (5,808) | (2,272) | $ (1,682) |
Deferred tax assets | |||
Employee benefits and other accrued liabilities | 97,719 | 81,905 | |
Federal net operating loss | 76,805 | 80,851 | |
State net operating loss and benefits | 39,363 | 38,429 | |
Derivative instruments | 26,132 | 22,511 | |
Other | 12,386 | 13,133 | |
Total deferred tax assets | 252,405 | 236,829 | |
Carryforward expected to expire prior to utilization | (10,223) | (8,807) | |
Deferred Tax Assets, Net | 242,182 | 228,022 | |
Deferred tax liabilities | |||
Excess of tax over book depreciation | 93,421 | 89,379 | |
Investment in partnerships | 1,585,427 | 1,466,456 | |
Regulatory assets | 49 | 1,961 | |
Total deferred tax liabilities | 1,678,897 | 1,557,796 | |
Deferred Tax Liabilities, Net, before Discontinued Operations | 1,436,715 | 1,329,774 | |
Deferred Tax Liabilities, Parent's Basis in Discontinued Operation | (18,265) | (35,559) | |
Deferred Tax Liabilities, Net | 1,418,450 | 1,294,215 | |
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 75,100 | 72,500 | |
Reduction in Deferred Tax Liability Due To Change In Income Tax Rate | 34,600 | ||
Change in Deferred Tax Assets, Valuation Allowance | 8,200 | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 26,400 |
UNCONSOLIDATED AFFILIATES (Deta
UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | $ 948,221 | $ 1,132,653 | $ 1,229,838 |
Equity in net earnings from investments | 125,300 | 117,415 | 110,517 |
Equity method goodwill | 40,100 | 170,900 | |
Payments to Acquire Other Investments | 27,540 | 1,063 | 35,308 |
Accounts Payable, Related Parties | 8,000 | 20,500 | |
Impairment of equity investments | (180,583) | (76,412) | 0 |
Balance Sheet [Abstract] | |||
Current assets | 149,439 | 153,293 | |
Property, plant and equipment, net | 2,556,559 | 2,440,714 | |
Other noncurrent assets | 23,722 | 35,668 | |
Current liabilities | 211,037 | 95,026 | |
Long-term debt | 425,521 | 428,385 | |
Other noncurrent liabilities | 69,356 | 73,767 | |
Accumulated other comprehensive loss | (5,669) | (2,063) | |
Owners' equity | 2,029,475 | 2,034,560 | |
Income Statement [Abstract] | |||
Operating revenues | 524,496 | 548,491 | 528,665 |
Operating expenses | 304,930 | 309,990 | 256,292 |
Net income | 200,064 | 214,410 | 248,998 |
Proceeds from Equity Method Investment, Dividends or Distributions | 155,918 | 139,019 | 137,498 |
Overland Pass Pipeline Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | 459,354 | 466,977 | |
Equity in net earnings from investments | $ 37,783 | $ 25,906 | 20,461 |
Net ownership percentage | 50.00% | 50.00% | |
Northern Border Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | $ 363,231 | $ 387,253 | |
Equity in net earnings from investments | $ 66,941 | $ 69,819 | 65,046 |
Net ownership percentage | 50.00% | 50.00% | |
Payments to Acquire Other Investments | 30,800 | ||
Fort Union Gas Gathering LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 37.00% | ||
Lost Creek Gathering Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 35.00% | ||
Bighorn Gas Gathering LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net ownership percentage | 49.00% | ||
Other Unconsolidated Affiliate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated affiliates | $ 125,636 | $ 278,423 | |
Equity in net earnings from investments | 20,576 | 21,690 | 25,010 |
Roadrunner Gas Transmission [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Equity Method Investments | 30,000 | ||
Unconsolidated Affiliates [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating expenses | 104,700 | $ 62,000 | $ 53,800 |
Powder River Basin Other Than Bighorn Gas Gathering [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Underlying Equity in Net Assets | $ 35,000 |
ONEOK PARTNERS (Details)
ONEOK PARTNERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||||
Ownership interest | 41.20% | 37.80% | ||||
Common units | 41,300 | |||||
Class B units | 73,000 | |||||
Aggregate Amount Of Common Units Available For Issuance And Sale Under Equity Distribution Agreement | $ 650,000 | |||||
Remaining Capacity of At The Market Equity Program | 138,000 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 393,997 | $ 1,020,530 | $ 533,824 | |||
Partnership agreement | Cash Distributions - We receive distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which includes our incentive distribution rights. Under ONEOK Partners’ partnership agreement, as amended, distributions are made to the partners with respect to each calendar quarter in an amount equal to 100 percent of available cash as defined in the ONEOK Partners partnership agreement (Partnership Agreement), as amended. Available cash generally will be distributed 98 percent to limited partners and 2 percent to the general partner. The general partner’s percentage interest in quarterly distributions is increased after certain specified target levels are met during the quarter. Under the incentive distribution provisions, as set forth in ONEOK Partners’ partnership agreement, as amended, the general partner receives: 15 percent of amounts distributed in excess of $0.3025 per unit; 25 percent of amounts distributed in excess of $0.3575 per unit; and 50 percent of amounts distributed in excess of $0.4675 per unit. | |||||
ONEOK [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues | $ 0 | 53,526 | 340,743 | |||
Expenses [Abstract] | ||||||
Cost of sales and fuel | 0 | 10,835 | 37,963 | |||
Operating expenses | 368,346 | 330,541 | 265,448 | |||
Total expenses | $ 368,346 | $ 341,376 | $ 303,411 | |||
Dividend Paid [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Distribution (in dollars per unit) | $ 3.160 | $ 3.010 | $ 2.870 | |||
Total distributions | $ 1,230,475 | $ 1,052,245 | $ 909,713 | |||
Dividend Declared [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Distribution (in dollars per unit) | $ 3.160 | $ 3.070 | $ 2.890 | |||
Total distributions | $ 1,267,770 | $ 1,105,457 | $ 931,236 | |||
Private Placement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Partners' Capital Account, Units, Sold in Private Placement | 21,500 | |||||
Per Unit Offering Price Under Private Placement | $ 30.17 | |||||
Proceeds from Sale of Interest in Partnership Unit | $ 749,000 | |||||
Partners' Capital Account, Contributions | $ 15,300 | |||||
Partners Capital Account Units Sold Under Equity Distribution Agreement | 3,300 | |||||
Issued under public offering [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from Sale of Interest in Partnership Unit | $ 714,500 | $ 553,400 | ||||
Partners' Capital Account, Contributions | $ 15,000 | $ 11,600 | ||||
Partners' Capital Account, Units, Sold in Public Offering | 13,900 | 11,500 | ||||
Public offering price of common units | $ 52.94 | $ 49.61 | ||||
Issued Under Equity Distribution Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from Sale of Interest in Partnership Unit | $ 381,600 | $ 402,100 | $ 36,100 | |||
Partners Capital Account Units Sold Under Equity Distribution Agreement | 10,500 | 7,900 | 681 | |||
Additional Paid-in Capital [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ (34,446) | $ 156,143 | $ 87,295 | |||
Limited Partner [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest | 39.20% | |||||
Limited Partner [Member] | Dividend Paid [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Limited partner distributions to ONEOK | $ 310,230 | 279,292 | 266,302 | |||
Partners Capital Account Distributions to Other Unitholders | 524,135 | 446,910 | 373,554 | |||
Limited Partner [Member] | Dividend Declared [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Limited partner distributions to ONEOK | 327,250 | 284,860 | 268,157 | |||
Partners Capital Account Distributions to Other Unitholders | $ 532,405 | 472,466 | 384,988 | |||
General Partner [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest | 2.00% | |||||
General Partner [Member] | Dividend Paid [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
General partner distributions | $ 24,610 | 21,044 | 18,193 | |||
Incentive distributions | 371,500 | 304,999 | 251,664 | |||
Distributions to general partner | 396,110 | 326,043 | 269,857 | |||
General Partner [Member] | Dividend Declared [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
General partner distributions | 25,356 | 22,109 | 18,625 | |||
Incentive distributions | 382,759 | 326,022 | 259,466 | |||
Distributions to general partner | $ 408,115 | $ 348,131 | $ 278,091 |
COMMITMENTS AND CONTINGENCIES75
COMMITMENTS AND CONTINGENCIES (Details) - ONEOK Partners [Member] $ in Millions | Dec. 31, 2015USD ($) |
Firm Transportation and Storage Contracts, Future Minimum Payments Due [Abstract] | |
2,016 | $ 45.8 |
2,017 | 42.1 |
2,018 | 40.6 |
2,019 | 36.2 |
2,020 | 35.8 |
Thereafter | 47.9 |
Total | $ 248.4 |
SEGMENTS (Details)
SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Segment Reporting, Disclosure of Major Customers | ONEOK Partners had no single external customer from which it received 10 percent or more of our consolidated gross revenues. | ONEOK Partners had no single external customer from which it received 10 percent or more of our consolidated gross revenues. | ONEOK Partners had no single external customer from which it received 10 percent or more of our consolidated gross revenues. | ||||||||
Revenues | $ 1,930,902 | $ 1,898,946 | $ 2,128,052 | $ 1,805,306 | $ 2,844,768 | $ 3,120,145 | $ 3,066,882 | $ 3,163,296 | $ 7,763,206 | $ 12,195,091 | $ 11,871,879 |
Cost of sales and fuel (exclusive of items shown separately below) | 5,641,052 | 10,088,548 | 10,222,213 | ||||||||
Operating costs | 693,331 | 674,887 | 541,586 | ||||||||
Depreciation and amortization | 354,620 | 294,684 | 239,343 | ||||||||
Impairment of long-lived assets | 83,673 | 0 | 0 | ||||||||
Gain (loss) on sale of assets | 5,629 | 6,599 | 11,881 | ||||||||
Operating income | 996,159 | 1,143,571 | 880,618 | ||||||||
Equity in net earnings from investments | 125,300 | 117,415 | 110,517 | ||||||||
Impairment of equity investments | (180,583) | (76,412) | 0 | ||||||||
Investments in unconsolidated affiliates | 948,221 | 1,132,653 | 948,221 | 1,132,653 | 1,229,838 | ||||||
Assets | 15,446,111 | 15,261,773 | 15,446,111 | 15,261,773 | 17,692,165 | ||||||
Noncontrolling interests in consolidated subsidiaries | 3,430,538 | 3,413,768 | 3,430,538 | 3,413,768 | 2,507,329 | ||||||
Capital expenditures | 1,188,312 | 1,779,150 | 2,256,585 | ||||||||
Unaffiliated entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,763,206 | 12,141,565 | 11,531,136 | ||||||||
Affiliated Entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 53,526 | 340,743 | |||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Natural Gas Gathering And Processing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,837,116 | 2,967,608 | 2,051,482 | ||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 1,265,617 | 2,305,723 | 1,550,855 | ||||||||
Operating costs | 272,418 | 257,658 | 193,293 | ||||||||
Depreciation and amortization | 150,008 | 123,847 | 103,962 | ||||||||
Impairment of long-lived assets | 73,681 | ||||||||||
Gain (loss) on sale of assets | 2,775 | 219 | 436 | ||||||||
Operating income | 78,167 | 280,599 | 203,808 | ||||||||
Equity in net earnings from investments | 17,863 | 20,271 | 23,493 | ||||||||
Impairment of equity investments | (180,583) | (76,412) | |||||||||
Investments in unconsolidated affiliates | 73,920 | 254,818 | 73,920 | 254,818 | 333,179 | ||||||
Assets | 5,123,450 | 4,911,283 | 5,123,450 | 4,911,283 | 3,949,813 | ||||||
Noncontrolling interests in consolidated subsidiaries | 4,041 | 4,251 | 4,041 | 4,251 | 4,521 | ||||||
Capital expenditures | 887,938 | 898,896 | 774,379 | ||||||||
Natural Gas Gathering And Processing [Member] | Unaffiliated entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,187,390 | 1,478,729 | 665,169 | ||||||||
Natural Gas Gathering And Processing [Member] | Affiliated Entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,214 | 238,600 | |||||||||
Natural Gas Gathering And Processing [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 649,726 | 1,447,665 | 1,147,713 | ||||||||
Natural Gas Liquids [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,579,699 | 10,545,381 | 10,778,027 | ||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 5,328,256 | 9,435,296 | 9,908,089 | ||||||||
Operating costs | 314,505 | 296,402 | 236,638 | ||||||||
Depreciation and amortization | 158,709 | 124,071 | 89,240 | ||||||||
Impairment of long-lived assets | 9,992 | ||||||||||
Gain (loss) on sale of assets | (939) | (572) | 843 | ||||||||
Operating income | 767,298 | 689,040 | 544,903 | ||||||||
Equity in net earnings from investments | 38,696 | 27,326 | 21,978 | ||||||||
Impairment of equity investments | 0 | 0 | |||||||||
Investments in unconsolidated affiliates | 482,672 | 490,582 | 482,672 | 490,582 | 491,856 | ||||||
Assets | 8,017,799 | 8,143,575 | 8,017,799 | 8,143,575 | 6,938,633 | ||||||
Noncontrolling interests in consolidated subsidiaries | 160,084 | 163,671 | 160,084 | 163,671 | 0 | ||||||
Capital expenditures | 226,135 | 798,048 | 1,128,345 | ||||||||
Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 954,800 | 695,900 | 534,800 | ||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 412,600 | 309,400 | 207,400 | ||||||||
Operating income | 306,900 | 196,100 | 190,500 | ||||||||
Natural Gas Liquids [Member] | Unaffiliated entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,248,002 | 10,329,609 | 10,644,117 | ||||||||
Natural Gas Liquids [Member] | Affiliated Entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Natural Gas Liquids [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 331,697 | 215,772 | 133,910 | ||||||||
Natural Gas Liquids [Member] | Operating Segments [Member] | Natural Gas Liquids Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 770,100 | 598,100 | 449,900 | ||||||||
Natural Gas Pipelines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 332,447 | 350,456 | 325,514 | ||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 34,481 | 21,935 | 39,795 | ||||||||
Operating costs | 105,720 | 111,037 | 101,182 | ||||||||
Depreciation and amortization | 43,479 | 43,318 | 43,541 | ||||||||
Impairment of long-lived assets | 0 | ||||||||||
Gain (loss) on sale of assets | 4,272 | 6,786 | 10,602 | ||||||||
Operating income | 153,039 | 180,952 | 151,598 | ||||||||
Equity in net earnings from investments | 68,741 | 69,818 | 65,046 | ||||||||
Impairment of equity investments | 0 | 0 | |||||||||
Investments in unconsolidated affiliates | 391,629 | 387,253 | 391,629 | 387,253 | 404,803 | ||||||
Assets | 1,844,401 | 1,823,713 | 1,844,401 | 1,823,713 | 1,817,445 | ||||||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 58,215 | 42,991 | 34,699 | ||||||||
Natural Gas Pipelines [Member] | Natural Gas Pipelines Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 266,900 | 290,000 | 246,900 | ||||||||
Cost of sales and fuel (exclusive of items shown separately below) | 31,100 | 47,700 | 29,300 | ||||||||
Operating income | 103,700 | 106,500 | 90,500 | ||||||||
Natural Gas Pipelines [Member] | Unaffiliated entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 325,676 | 329,801 | 219,244 | ||||||||
Natural Gas Pipelines [Member] | Affiliated Entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,312 | 102,143 | |||||||||
Natural Gas Pipelines [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,771 | 8,343 | 4,127 | ||||||||
Corporate Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (986,056) | (1,668,354) | (1,283,144) | ||||||||
Cost of sales and fuel (exclusive of items shown separately below) | (987,302) | (1,674,406) | (1,276,526) | ||||||||
Operating costs | 688 | 9,790 | 10,473 | ||||||||
Depreciation and amortization | 2,424 | 3,448 | 2,600 | ||||||||
Gain (loss) on sale of assets | (479) | 166 | 0 | ||||||||
Operating income | (2,345) | (7,020) | (19,691) | ||||||||
Equity in net earnings from investments | 0 | 0 | 0 | ||||||||
Impairment of equity investments | 0 | 0 | |||||||||
Investments in unconsolidated affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Assets | 460,461 | 383,202 | 460,461 | 383,202 | 4,986,274 | ||||||
Noncontrolling interests in consolidated subsidiaries | 3,266,413 | 3,245,846 | 3,266,413 | 3,245,846 | 2,502,808 | ||||||
Capital expenditures | 16,024 | 39,215 | 319,162 | ||||||||
Corporate Elimination [Member] | Unaffiliated entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,138 | 3,426 | 2,606 | ||||||||
Corporate Elimination [Member] | Affiliated Entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Corporate Elimination [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (988,194) | (1,671,780) | (1,285,750) | ||||||||
Corporate Elimination [Member] | Discontinued Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 19,000 | $ 36,700 | $ 19,000 | 36,700 | 4,400,000 | ||||||
Capital expenditures | $ 23,900 | $ 292,100 |
QUARTERLY FINANCIAL DATA (UNA77
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment Charges | $ 264,256 | $ 76,412 | $ 0 | ||||||||
Revenues | $ 1,930,902 | $ 1,898,946 | $ 2,128,052 | $ 1,805,306 | $ 2,844,768 | $ 3,120,145 | $ 3,066,882 | $ 3,163,296 | 7,763,206 | 12,195,091 | 11,871,879 |
Income from continuing operations | (26,279) | 164,698 | 151,020 | 95,837 | 200,766 | 114,452 | 148,760 | 204,737 | 385,276 | 668,715 | 589,090 |
Income (loss) from discontinued operations, net of tax | (1,937) | (3,860) | (140) | (144) | 799 | (171) | (8,009) | 1,774 | (6,081) | (5,607) | (12,129) |
Net income | (28,216) | 160,838 | 150,880 | 95,693 | 201,565 | 114,281 | 140,751 | 206,511 | 379,195 | 663,108 | 576,961 |
Net income attributable to ONEOK | $ 25,515 | $ 82,157 | $ 76,505 | $ 60,800 | $ 94,544 | $ 64,458 | $ 61,590 | $ 93,515 | $ 244,977 | $ 314,107 | $ 266,533 |
Earnings per share total | |||||||||||
Basic (in dollars per share) | $ 0.13 | $ 0.39 | $ 0.36 | $ 0.29 | $ 0.45 | $ 0.31 | $ 0.29 | $ 0.45 | $ 1.19 | $ 1.53 | $ 1.35 |
Diluted (in dollars per share) | $ 0.12 | $ 0.39 | $ 0.36 | $ 0.29 | $ 0.45 | $ 0.31 | $ 0.29 | $ 0.45 | $ 1.19 | $ 1.52 | $ 1.33 |