Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 24, 2016 | |
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 Common Stock, Shares Outstanding | 210,521,971 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Commodity sales | $ 1,840,523 | $ 1,484,350 | $ 4,757,306 | $ 4,642,320 |
Services | 517,384 | 414,596 | 1,509,167 | 1,189,984 |
Total revenues | 2,357,907 | 1,898,946 | 6,266,473 | 5,832,304 |
Cost of sales and fuel (exclusive of items shown separately below) | 1,751,593 | 1,360,809 | 4,474,654 | 4,307,766 |
Operations and maintenance | 165,664 | 146,979 | 488,476 | 442,179 |
Depreciation and amortization | 98,550 | 88,299 | 292,275 | 261,241 |
General taxes | 18,487 | 17,198 | 64,529 | 66,366 |
(Gain) loss on sale of assets | (5,744) | 726 | (9,537) | 610 |
Operating income | 329,357 | 284,935 | 956,076 | 754,142 |
Equity in net earnings from investments (Note J) | 35,155 | 32,244 | 100,441 | 93,205 |
Allowance for equity funds used during construction | 0 | 177 | 208 | 1,718 |
Other income | 4,242 | 71 | 9,351 | 249 |
Other expense | (710) | (7,508) | (2,288) | (7,754) |
Interest expense (net of capitalized interest of $3,806, $8,851, $9,265 and $26,008, respectively) | (118,240) | (106,923) | (355,463) | (306,057) |
Income before income taxes | 249,804 | 202,996 | 708,325 | 535,503 |
Income taxes | (55,012) | (38,298) | (157,536) | (123,948) |
Income from continuing operations | 194,792 | 164,698 | 550,789 | 411,555 |
Income (loss) from discontinued operations, net of tax (Note M) | (576) | (3,860) | (1,755) | (4,144) |
Net income | 194,216 | 160,838 | 549,034 | 407,411 |
Less: Net income attributable to noncontrolling interests | 102,072 | 78,681 | 287,500 | 187,949 |
Net income attributable to ONEOK | 92,144 | 82,157 | 261,534 | 219,462 |
Amounts attributable to ONEOK: | ||||
Income from continuing operations | 92,720 | 86,017 | 263,289 | 223,606 |
Income (loss) from discontinued operations | (576) | (3,860) | (1,755) | (4,144) |
Net income attributable to ONEOK | $ 92,144 | $ 82,157 | $ 261,534 | $ 219,462 |
Basic earnings per share: | ||||
Income from continuing operations (Note H) | $ 0.44 | $ 0.41 | $ 1.25 | $ 1.06 |
Income (loss) from discontinued operations | 0 | (0.02) | (0.01) | (0.02) |
Net income | 0.44 | 0.39 | 1.24 | 1.04 |
Diluted earnings per share: | ||||
Income from continuing operations (Note H) | 0.44 | 0.41 | 1.24 | 1.06 |
Income (loss) from discontinued operations | (0.01) | (0.02) | (0.01) | (0.02) |
Net income | $ 0.43 | $ 0.39 | $ 1.23 | $ 1.04 |
Average shares (thousands) | ||||
Basic | 211,309 | 210,296 | 211,038 | 210,138 |
Diluted | 212,870 | 210,524 | 212,123 | 210,509 |
Dividends declared per share of common stock | $ 0.615 | $ 0.605 | $ 1.845 | $ 1.815 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Costs, Capitalized During Period | $ 3,806 | $ 8,851 | $ 9,265 | $ 26,008 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 194,216 | $ 160,838 | $ 549,034 | $ 407,411 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax of $(1,301), $(1,109), $15,033 and $(2,156), respectively | 7,237 | 14,840 | (83,580) | 19,217 |
Realized (gains) losses on derivatives in net income, net of tax of $(811), $2,957, $1,658 and $5,621, respectively | 3,083 | (15,259) | (13,496) | (35,530) |
Unrealized holding gains (losses) on available-for-sale securities, net of tax of $0, $0, $0 and $648, respectively | 0 | 0 | 0 | (955) |
Change in pension and postretirement benefit plan liability, net of tax of $(1,035), $(1,599), $(3,105) and $(4,798), respectively | 1,553 | 2,441 | 4,658 | 7,320 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax of $108, $0, $1,840 and $0, respectively | (600) | 0 | (10,231) | 0 |
Total other comprehensive income (loss), net of tax | 11,273 | 2,022 | (102,649) | (9,948) |
Comprehensive income | 205,489 | 162,860 | 446,385 | 397,463 |
Less: Comprehensive income attributable to noncontrolling interest | 108,450 | 81,481 | 211,960 | 177,760 |
Comprehensive income attributable to ONEOK | $ 97,039 | $ 81,379 | $ 234,425 | $ 219,703 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, tax | $ (1,301) | $ (1,109) | $ 15,033 | $ (2,156) |
Realized (gains) losses on derivatives in net income, tax | (811) | 2,957 | 1,658 | 5,621 |
Unrealized holding gains (losses) on available-for-sale securities, tax | 0 | 0 | 0 | 648 |
Change in pension and postretirement benefit plan liability, tax | (1,035) | (1,599) | (3,105) | (4,798) |
Other comprehensive income (loss) on investments in unconsolidated affiliates, tax | $ 108 | $ 0 | $ 1,840 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 237,410 | $ 97,619 |
Accounts receivable, net | 737,224 | 593,979 |
Materials and supplies | 81,701 | 76,696 |
Natural gas and natural gas liquids in storage | 217,769 | 128,084 |
Commodity imbalances | 43,770 | 38,681 |
Other current assets | 50,759 | 39,946 |
Assets of discontinued operations (Note M) | 658 | 205 |
Total current assets | 1,369,291 | 975,210 |
Property, plant and equipment | ||
Property, plant and equipment | 14,943,225 | 14,530,460 |
Accumulated depreciation and amortization | 2,416,476 | 2,156,471 |
Net property, plant and equipment | 12,526,749 | 12,373,989 |
Investments and other assets | ||
Investments in unconsolidated affiliates | 943,390 | 948,221 |
Goodwill and intangible assets | 1,008,334 | 1,017,258 |
Other assets | 121,529 | 112,598 |
Assets of discontinued operations (Note M) | 12,742 | 18,835 |
Total investments and other assets | 2,085,995 | 2,096,912 |
Total assets | 15,982,035 | 15,446,111 |
Current liabilities | ||
Current maturities of long-term debt (Note E) | 460,650 | 110,650 |
Short-term borrowings (Note D) | 693,500 | 546,340 |
Accounts payable | 711,817 | 615,982 |
Commodity imbalances | 134,658 | 74,460 |
Accrued interest | 104,137 | 129,043 |
Other current liabilities | 214,662 | 132,556 |
Liabilities of discontinued operations (Note M) | 22,540 | 29,235 |
Total current liabilities | 2,341,964 | 1,638,266 |
Long-term debt, excluding current maturities (Note E) | 8,320,144 | 8,323,582 |
Deferred credits and other liabilities | ||
Deferred income taxes | 1,573,950 | 1,436,715 |
Other deferred credits | 296,751 | 264,248 |
Liabilities of discontinued operations (Note M) | 9,012 | 16,964 |
Total deferred credits and other liabilities | 1,879,713 | 1,717,927 |
Commitments and contingencies (Note L) | ||
ONEOK shareholders' equity: | ||
Common stock, $0.01 par value: authorized 600,000,000 shares; issued 245,811,180 shares and outstanding 210,517,586 shares at September 30, 2016; issued 245,811,180 shares and outstanding 209,731,028 shares at December 31, 2015 | 2,458 | 2,458 |
Paid-in capital | 1,264,041 | 1,378,444 |
Accumulated other comprehensive loss (Note G) | (154,351) | (127,242) |
Retained earnings | 0 | 0 |
Treasury stock, at cost: 35,293,594 shares at September 30, 2016, and 36,080,152 shares at December 31, 2015 | (897,852) | (917,862) |
Total ONEOK shareholders' equity | 214,296 | 335,798 |
Noncontrolling interests in consolidated subsidiaries | 3,225,918 | 3,430,538 |
Total equity | 3,440,214 | 3,766,336 |
Total liabilities and equity | $ 15,982,035 | $ 15,446,111 |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Equity (Note F) | ||
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) | 210,517,586 | 209,731,028 |
Treasury stock, shares (in shares) | 35,293,594 | 36,080,152 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net income | $ 549,034 | $ 407,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 292,275 | 261,241 |
Equity in net earnings from investments | (100,441) | (93,205) |
Distributions received from unconsolidated affiliates | 106,381 | 92,042 |
Deferred income taxes | 157,819 | 124,615 |
Share-based compensation expense | 31,112 | 13,732 |
Pension and postretirement benefit expense, net of contributions | 8,270 | 10,145 |
Allowance for equity funds used during construction | (208) | (1,718) |
(Gain) loss on sale of assets | (9,537) | 610 |
Changes in assets and liabilities: | ||
Accounts receivable | (145,430) | 157,742 |
Natural gas and natural gas liquids in storage | (89,685) | (8,174) |
Accounts payable | 138,198 | (191,542) |
Commodity imbalances, net | 55,109 | 25,728 |
Settlement of exit activities liabilities | (16,211) | (31,207) |
Accrued interest | (24,906) | 3,577 |
Risk management assets and liabilities | (48,695) | (45,240) |
Other assets and liabilities, net | 18,943 | (30,680) |
Cash provided by operating activities | 922,028 | 695,077 |
Investing Activities | ||
Capital expenditures (less allowance for equity funds used during construction) | (491,528) | (930,316) |
Contributions to unconsolidated affiliates | (55,177) | (27,540) |
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 43,018 | 25,111 |
Proceeds from sale of assets | 19,099 | 3,171 |
Other | 0 | (12,607) |
Cash used in investing activities | (484,588) | (942,181) |
Financing Activities | ||
Dividends paid | (388,103) | (380,498) |
Distributions to noncontrolling interests | (412,539) | (396,847) |
Borrowing (repayment) of short-term borrowings, net | 147,160 | (768,024) |
Issuance of long-term debt, net of discounts | 1,000,000 | 1,291,506 |
Debt financing costs | (2,770) | (17,126) |
Repayment of long-term debt | (656,117) | (5,795) |
Issuance of common stock | 14,948 | 13,839 |
Issuance of common units, net of issuance costs | 0 | 375,660 |
Cash provided by (used in) financing activities | (297,421) | 112,715 |
Change in cash and cash equivalents | 140,019 | (134,389) |
Change in cash and cash equivalents included in discontinued operations | (228) | (52) |
Change in cash and cash equivalents from continuing operations | 139,791 | (134,441) |
Cash and cash equivalents at beginning of period | 97,619 | 172,812 |
Cash and cash equivalents at end of period | $ 237,410 | $ 38,371 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN 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] |
Stockholders' equity, beginning balance at Dec. 31, 2014 | $ 4,005,883 | $ 2,458 | $ 1,541,583 | $ (136,353) | $ 138,128 | $ (953,701) | $ 3,413,768 |
Common stock issued, beginning balance (in shares) at Dec. 31, 2014 | 245,811,180 | ||||||
Net income | 407,411 | $ 0 | 0 | 0 | 219,462 | 0 | 187,949 |
Other comprehensive income (loss) (Note G) | (9,948) | $ 0 | 0 | 241 | 0 | 0 | (10,189) |
Common stock issued (in shares) | 0 | ||||||
Common stock issued | 17,912 | $ 0 | (6,284) | 0 | 0 | 24,196 | 0 |
Common stock dividends - $1.845 and $1.815 per share (Note F) | (380,498) | 0 | (22,807) | 0 | (357,691) | 0 | 0 |
Issuance of common units of ONEOK Partners (Note K) | 394,144 | 0 | (34,446) | 0 | 0 | 0 | 428,590 |
Distributions to noncontrolling interests | (396,847) | 0 | 0 | 0 | 0 | 0 | (396,847) |
Other | (752) | 0 | (415) | 0 | 101 | 0 | (438) |
Stockholders' equity, ending balance at Sep. 30, 2015 | 4,037,305 | $ 2,458 | 1,477,631 | (136,112) | 0 | (929,505) | 3,622,833 |
Common stock issued, ending balance (in shares) at Sep. 30, 2015 | 245,811,180 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2015 | 3,766,336 | $ 2,458 | 1,378,444 | (127,242) | 0 | (917,862) | 3,430,538 |
Common stock issued, beginning balance (in shares) at Dec. 31, 2015 | 245,811,180 | ||||||
Net income | 549,034 | $ 0 | 0 | 0 | 261,534 | 0 | 287,500 |
Other comprehensive income (loss) (Note G) | (102,649) | $ 0 | 0 | (27,109) | 0 | 0 | (75,540) |
Common stock issued (in shares) | 0 | ||||||
Common stock issued | 19,479 | $ 0 | (531) | 0 | 0 | 20,010 | 0 |
Common stock dividends - $1.845 and $1.815 per share (Note F) | (388,103) | 0 | (126,569) | 0 | (261,534) | 0 | 0 |
Distributions to noncontrolling interests | (412,539) | 0 | 0 | 0 | 0 | 0 | (412,539) |
Other | 8,656 | 0 | 12,697 | 0 | 0 | 0 | (4,041) |
Stockholders' equity, ending balance at Sep. 30, 2016 | $ 3,440,214 | $ 2,458 | $ 1,264,041 | $ (154,351) | $ 0 | $ (897,852) | $ 3,225,918 |
Common stock issued, ending balance (in shares) at Sep. 30, 2016 | 245,811,180 |
CONSOLIDATED STATEMENT OF CHA10
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Parenthetical - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.615 | $ 0.615 | $ 0.615 | $ 1.845 | $ 1.815 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. These statements have been prepared in accordance with GAAP and reflect all adjustments that, in our opinion, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The 2015 year-end consolidated balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. Certain reclassifications have been made in the prior-year financial statements to conform to the current-year presentation. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements in our Annual Report. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates to our continuing operations. Our significant accounting policies are consistent with those disclosed in Note A of the Notes to Consolidated Financial Statements in our Annual Report, except as described below. Consolidation - Our consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. Management’s judgment is required when: • determining whether an entity is a variable interest entity (VIE); • determining whether we are the primary beneficiary of a VIE; and • identifying events that require reconsideration of whether an entity is a VIE. As a result of adopting ASU 2015-02 described below, we have concluded that ONEOK Partners is a VIE and that we are the primary beneficiary. Therefore, we continue to consolidate ONEOK Partners. See Note K for additional information. We record noncontrolling interests in consolidated subsidiaries on our Consolidated Balance Sheets to recognize the portion of ONEOK Partners that we do not own. We reflect 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. Goodwill Impairment Test - We assess our goodwill for impairment at least annually on July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. As the commodity price environment has remained relatively unchanged since 2015, we elected to perform a quantitative assessment, or Step 1 analysis, to test our goodwill for impairment. The assessment included our current commodity price assumptions, expected contractual terms, anticipated operating costs and volume estimates. Our goodwill impairment analysis performed as of July 1, 2016, 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. Subsequent to that date, 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. Recently Issued Accounting Standards Update - The following tables provide a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that were adopted ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” The standard 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. First quarter 2016 There was no impact, but it could impact us in the future if we complete any acquisitions with subsequent measurement period adjustments. ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” The standard 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. First quarter 2016 The impact of adopting this standard was not material. ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” The standard 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 account for the arrangement as a service contract. First quarter 2016 The impact of adopting this standard was not material. ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis” The standard 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. First quarter 2016 As a result of adopting this standard, we no longer consolidate ONEOK Partners under the presumption that a general partner should consolidate a limited partnership. We concluded, however, that ONEOK Partners is a VIE and ONEOK is the primary beneficiary, and we therefore consolidate ONEOK Partners under the variable interest model of consolidation. There was no financial statement impact due to the change in consolidation methodology. See Note K for additional information. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” The standard 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. First quarter 2017 We do not expect the adoption of this standard to materially impact us. ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. First quarter 2017 We do not expect the adoption of this standard to materially impact us. ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” The standard clarifies the requirements for assessing whether a contingent call (put) option that can accelerate the payment of principal on a debt instrument is clearly and closely related to its debt host. First quarter 2017 We do not expect the adoption of this standard to materially impact us. ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” The standard provides simplified accounting for share-based payment transactions in relation to income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. First quarter 2017 We are evaluating the impact of this standard on us. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” The standard 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. First quarter 2018 We are evaluating the impact of this standard on us. Our evaluation process includes a review of our and ONEOK Partners’ contracts and transaction types across all of the business segments. In addition, we are currently evaluating the methods of adoption and analyzing the impact of the standard on our internal controls, accounting policies and financial statements and disclosures. ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” The standard 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. First quarter 2018 We are evaluating the impact of this standard on us. ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” The standard clarifies the classification of certain cash receipts and cash payments on the statement of cash flows where diversity in practice has been identified. First quarter 2018 We are evaluating the impact of this standard on us. ASU 2016-02, “Leases (Topic 842)” The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. It also requires qualitative disclosures along with specific quantitative disclosures by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. First quarter 2019 We are evaluating the impact of this standard on us. ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented net of the allowance for credit losses to reflect the net carrying value at the amount expected to be collected on the financial asset; and the initial allowance for credit losses for purchased financial assets, including available-for-sale debt securities, to be added to the purchase price rather than being reported as a credit loss expense. First quarter 2020 We are evaluating the impact of this standard on us. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Determining Fair Value - 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 our 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 derivatives by discounting the projected future cash flows from the derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from LIBOR, Eurodollar futures and the LIBOR interest-rate swaps market. 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 executed derivative contracts, the ultimate market prices realized could differ from our estimates, and the differences could be material. The fair value of 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-rate 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. Recurring Fair Value Measurements - The following tables set forth our recurring fair value measurements for the periods indicated: September 30, 2016 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 9,051 $ — $ 2,858 $ 11,909 $ (7,389 ) $ 4,520 Physical contracts — — 98 98 — 98 Total derivative assets $ 9,051 $ — $ 2,956 $ 12,007 $ (7,389 ) $ 4,618 Derivative liabilities Commodity contracts Financial contracts $ (12,175 ) $ — $ (9,846 ) $ (22,021 ) $ 22,021 $ — Physical contracts — — (3,173 ) (3,173 ) — (3,173 ) Interest-rate contracts — (69,103 ) — (69,103 ) — (69,103 ) Total derivative liabilities $ (12,175 ) $ (69,103 ) $ (13,019 ) $ (94,297 ) $ 22,021 $ (72,276 ) (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 us. At September 30, 2016 , we held no cash and posted $27.4 million of cash with various counterparties, including $14.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $12.8 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheets. (b) - Included in other current assets, other assets, other current liabilities or deferred credits and other liabilities in our Consolidated Balance Sheets. 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 us. At December 31, 2015 , we held $34.4 million of cash from various counterparties that is offsetting derivative net asset positions in the table above under master-netting arrangements and had no cash collateral posted. (b) - Included in other current assets or other current liabilities in our Consolidated Balance Sheets. The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, Derivative Assets (Liabilities) 2016 2015 2016 2015 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ (14,021 ) $ 10,387 $ 7,331 $ 9,285 Total realized/unrealized gains (losses): Included in earnings (a) 920 (15 ) 492 95 Included in other comprehensive income (loss) 3,038 (5,076 ) (17,886 ) (4,084 ) Net assets (liabilities) at end of period $ (10,063 ) $ 5,296 $ (10,063 ) $ 5,296 (a) - Included in commodity sales revenues in our Consolidated Statements of Income. Realized/unrealized gains (losses) include the realization of derivative contracts through maturity. During the three and nine months ended September 30, 2016 and 2015 , 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 hierarchy as of the end of each reporting period. During the three and nine months ended September 30, 2016 and 2015 , 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 $9.3 billion and $7.4 billion at September 30, 2016 , and December 31, 2015 , respectively. The book value of our consolidated long-term debt, including current maturities, was $8.8 billion and $8.4 billion at September 30, 2016 , and December 31, 2015 , respectively. The estimated fair value of the aggregate of ONEOK’s and ONEOK Partners’ senior notes 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. |
RISK MANAGEMENT AND HEDGING ACT
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | 9 Months Ended |
Sep. 30, 2016 | |
Derivatives, Fair Value [Line Items] | |
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES | RISK-MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Risk-Management Activities - We are 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. We use physical-forward purchases and sales and financial derivatives to secure a certain price for a portion of our natural gas, condensate and NGL products; to reduce our exposure to commodity price and interest-rate fluctuations; and to achieve more predictable cash flows. We follow established policies and procedures to assess risk and approve, monitor and report risk-management activities. We have not used these instruments for trading purposes. We 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. We use 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; • 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; and • Options - 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. We may also use other instruments including collars to mitigate commodity price risk. 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 its compensation for services associated with its POP with fee contracts. Under certain POP with fee contracts, ONEOK Partners’ fee revenues may increase or decrease if production volumes, delivery pressures or commodity prices change relative to specified thresholds. The Natural Gas Gathering and Processing segment also is exposed to basis risk between the various production and market locations where it receives and sells commodities. As part of our hedging strategy, we use 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. The Natural Gas Liquids segment also is 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. We utilize 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, these pipelines must buy or sell natural gas, or store or use natural gas from inventory, which can expose them 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, we use physical-forward sales or purchases to reduce the impact of price fluctuations related to natural gas. At September 30, 2016 , and December 31, 2015 , there were no financial derivative instruments with respect to ONEOK Partners’ natural gas pipeline operations. Interest-rate risk - We 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. As of September 30, 2016 , ONEOK Partners had interest-rate swaps with notional amounts totaling $1.0 billion to hedge the variability of ONEOK Partners’ LIBOR-based interest payments. In addition, in June 2016, ONEOK Partners entered into forward-starting interest-rate swaps with notional amounts totaling $750 million to hedge the variability of interest payments on a portion of its forecasted debt issuances that may result from changes in the benchmark interest rate before the debt is issued, resulting in total notional amounts of this type of interest-rate swap of $1.2 billion at September 30, 2016 , compared with $400 million at December 31, 2015 . All of ONEOK Partners’ interest-rate swaps are designated as cash flow hedges. Accounting T r eatment - Our accounting treatment of derivative instruments is consistent with that disclosed in Note A of the Notes to consolidated Financial Statements in our Annual Report. Fair Values of Derivative Instruments - See Note B for a discussion of the inputs associated with our fair value measurements. The following table sets forth the fair values of derivative instruments for the periods indicated: September 30, 2016 December 31, 2015 Assets (a) (Liabilities) (a) Assets (b) (Liabilities) (b) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts Financial contracts $ 9,525 $ (20,376 ) $ 39,255 $ (1,440 ) Physical contracts 98 (3,173 ) 3,591 — Interest-rate contracts — (69,103 ) — (9,936 ) Total derivatives designated as hedging instruments 9,623 (92,652 ) 42,846 (11,376 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts 2,384 (1,645 ) 6,919 (6,586 ) Total derivatives not designated as hedging instruments 2,384 (1,645 ) 6,919 (6,586 ) Total derivatives $ 12,007 $ (94,297 ) $ 49,765 $ (17,962 ) (a) - Included on a net basis in other current assets, other assets, other current liabilities or deferred credits and other liabilities in our Consolidated Balance Sheets. (b) - Included on a net basis in other current assets or other current liabilities in our Consolidated Balance Sheets. Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held for the periods indicated: September 30, 2016 December 31, 2015 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 — (43.3 ) — (27.1 ) - Natural gas ( Bcf ) Put options 68.3 — — — - Crude oil and NGLs ( MMBbl ) Futures, forwards — (4.6 ) — (2.3 ) Basis - Natural gas ( Bcf ) Futures and swaps — (43.3 ) — (27.1 ) Interest-rate contracts ( Millions of dollars ) Swaps $ 2,150.0 $ — $ 400.0 $ — Derivatives not designated as hedging instruments: Fixed price - NGLs ( MMBbl ) Futures, forwards 1.1 (0.9 ) 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 actual exposure to market or credit risk. Cash Flow Hedges - At September 30, 2016 , our Consolidated Balance Sheet reflected a net loss of $154.4 million in accumulated other comprehensive loss. The portion of accumulated other comprehensive loss attributable to commodity derivative financial instruments is an unrealized loss of $7.1 million , net of tax, which will be realized within the next 27 months as the forecasted transactions affect earnings. If commodity prices remain at current levels, we will realize approximately $5.6 million in net losses , net of tax, over the next 12 months and approximately $1.5 million in net losses , net of tax, thereafter. The amount deferred in accumulated other comprehensive loss attributable to settled interest-rate swaps is a loss of $45.5 million , net of tax, which will be recognized over the life of the long-term, fixed-rate debt, including losses of $6.4 million , net of tax, that 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 forward-starting interest-rate swaps with future settlement dates, which will be amortized to interest expense over the life of long-term, fixed-rate debt upon issuance of the debt. 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 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Commodity contracts $ 7,580 $ 36,559 $ (39,396 ) $ 47,650 Interest-rate contracts 958 (20,610 ) (59,217 ) (26,277 ) Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) $ 8,538 $ 15,949 $ (98,613 ) $ 21,373 The following table sets forth the effect of cash flow hedges in our Consolidated Statements of Income for the periods indicated: Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ 908 $ 22,770 $ 29,456 $ 54,020 Interest-rate contracts Interest expense (4,802 ) (4,554 ) (14,302 ) (12,869 ) Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives (effective portion) $ (3,894 ) $ 18,216 $ 15,154 $ 41,151 Ineffectiveness related to our cash flow hedges for the three and nine months ended September 30, 2016 and 2015 , was not material. In the event that it becomes probable that a forecasted transaction will not occur, we would discontinue cash flow hedge treatment, which would affect earnings. For the three and nine months ended September 30, 2016 and 2015 , there were no gains or losses due to the discontinuance of cash flow hedge treatment. Credit Risk - We monitor the creditworthiness of our counterparties and compliance with policies and limits established by our Risk Oversight and Strategy Committee. We maintain credit policies with regard to our 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. We have counterparties whose credit is not rated, and for those customers, we use 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 at September 30, 2016 . The counterparties to our derivative contracts consist primarily of major energy companies, financial institutions and commercial and industrial end users. This concentration of counterparties may affect our 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 our policies, exposures, credit and other reserves, we do not anticipate a material adverse effect on our financial position or results of operations as a result of counterparty nonperformance. At September 30, 2016 , the net credit exposure from our derivative assets is primarily with investment-grade companies in the financial services sector. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2016 | |
Short-term Debt [Abstract] | |
SHORT-TERM BORROWINGS | 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 the ONEOK Credit Agreement, amounts outstanding under the ONEOK Credit Agreement, if any, may become due and payable immediately. At September 30, 2016 , ONEOK’s ratio of indebtedness to Consolidated EBITDA was 2.1 to 1, and ONEOK was in compliance with all covenants under the ONEOK Credit Agreement. The 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 basis points , and the annual facility fee is 30 basis points . At September 30, 2016 , ONEOK had $1.1 million in letters of credit issued and no borrowings under the ONEOK Credit Agreement. 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. ONEOK Partners had $14 million of letters of credit issued, no borrowings outstanding and approximately $1.7 billion capacity available at September 30, 2016 , under the ONEOK Partners Credit Agreement. 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 the 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. 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 September 30, 2016 , ONEOK Partners’ ratio of indebtedness to adjusted EBITDA was 4.1 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 - At September 30, 2016 , ONEOK Partners had $694 million of commercial paper outstanding under its $2.4 billion commercial paper program with a weighted-average interest rate of 1.15 percent . Amounts outstanding under ONEOK Partners’ commercial paper program reduce the borrowing capacity under the ONEOK Partners Credit Agreement. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table sets forth our long-term debt for the periods indicated: September 30, December 31, 2016 2015 ( Thousands of dollars ) ONEOK $700,000 at 4.25% due 2022 $ 547,397 $ 547,397 $500,000 at 7.5% due 2023 500,000 500,000 $100,000 at 6.5% due 2028 87,137 87,516 $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 1,634,534 1,634,913 ONEOK Partners $650,000 at 3.25% due 2016 — 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 $1,000,000 term loan, variable rate, due 2019 1,000,000 — $500,000 at 8.625% due 2019 500,000 500,000 $300,000 at 3.8% due 2020 300,000 300,000 $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 500,000 500,000 $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 7.85% due 2022 46,170 51,907 Total ONEOK Partners long-term debt 7,196,170 6,851,907 Total long-term debt 8,830,704 8,486,820 Unamortized portion of terminated swaps 20,615 21,904 Unamortized debt issuance costs and discounts (70,525 ) (74,492 ) Current maturities (460,650 ) (110,650 ) Long-term debt, excluding current maturities $ 8,320,144 $ 8,323,582 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 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. 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 accrue at LIBOR plus 130 basis points . At September 30, 2016 , the interest rate was 1.83 percent . 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 allows prepayment of all or any portion outstanding without penalty or premium and contains substantially the same covenants as the ONEOK Partners Credit Agreement. During the first quarter 2016, ONEOK Partners drew the full $1.0 billion available under the agreement and used the proceeds to repay its $650 million , 3.25 percent senior notes, to repay amounts outstanding under its commercial paper program and for general partnership purposes. At September 30, 2016 , ONEOK Partners’ $450 million , 6.15 percent senior notes due October 1, 2016, are reflected in current maturities of long-term debt in our Consolidated Balance Sheet. In October 2016, ONEOK Partners repaid its $450 million , 6.15 percent senior notes with a combination of cash on hand and short-term borrowings. 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 other 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. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY Dividends - Dividends paid on our common stock to shareholders of record at the close of business on February 1, 2016, May 2, 2016, and August 8, 2016, were $0.615 per share in each instance. A dividend of $0.615 per share was declared for shareholders of record at the close of business on October 31, 2016 , payable November 14, 2016 . See Note K for a discussion of ONEOK Partners’ issuance of common units and distributions to noncontrolling interests. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the balance in accumulated other comprehensive loss for the period indicated: Unrealized Gains (Losses) on Risk- Management Assets/Liabilities (a) Pension and Postretirement Benefit Plan Obligations (a) (b) Unrealized Gains (Losses) on Risk- Management Assets/Liabilities of Unconsolidated Affiliates (a) Accumulated Other Comprehensive Loss (a) ( Thousands of dollars ) January 1, 2016 $ (42,199 ) $ (84,543 ) $ (500 ) $ (127,242 ) Other comprehensive income (loss) before reclassifications (25,597 ) 9 (3,133 ) (28,721 ) Amounts reclassified from accumulated other comprehensive loss (3,037 ) 4,649 — 1,612 Net current period other comprehensive income (loss) attributable to ONEOK (28,634 ) 4,658 (3,133 ) (27,109 ) September 30, 2016 $ (70,833 ) $ (79,885 ) $ (3,633 ) $ (154,351 ) (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 loss in our Consolidated Statements of Income for the periods indicated: Details about Accumulated Other Comprehensive Loss Components Three Months Ended Nine Months Ended Affected Line Item in the Consolidated Statements of Income September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Unrealized gains (losses) on risk-management assets/liabilities Commodity contracts $ 908 $ 22,770 $ 29,456 $ 54,020 Commodity sales revenues Interest-rate contracts (4,802 ) (4,554 ) (14,302 ) (12,869 ) Interest expense (3,894 ) 18,216 15,154 41,151 Income before income taxes 811 (2,957 ) (1,658 ) (5,621 ) Income tax expense (3,083 ) 15,259 13,496 35,530 Net income Noncontrolling interests (1,774 ) 10,150 10,459 25,745 Less: Net income attributable to noncontrolling interests $ (1,309 ) $ 5,109 $ 3,037 $ 9,785 Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ (2,999 ) $ (4,422 ) $ (8,994 ) $ (13,268 ) Amortization of unrecognized prior service cost 416 392 1,246 1,176 (2,583 ) (4,030 ) (7,748 ) (12,092 ) Income before income taxes 1,033 1,612 3,099 4,837 Income tax expense $ (1,550 ) $ (2,418 ) $ (4,649 ) $ (7,255 ) Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (2,859 ) $ 2,691 $ (1,612 ) $ 2,530 Net income attributable to ONEOK (a) These components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note I for additional detail of our net periodic benefit cost. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following tables set forth the computation of basic and diluted EPS from continuing operations for the periods indicated: Three Months Ended September 30, 2016 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 $ 92,720 211,309 $ 0.44 Diluted EPS from continuing operations Effect of dilutive securities — 1,561 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 92,720 212,870 $ 0.44 Three Months Ended September 30, 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 $ 86,017 210,296 $ 0.41 Diluted EPS from continuing operations Effect of dilutive securities — 228 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 86,017 210,524 $ 0.41 Nine Months Ended September 30, 2016 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 $ 263,289 211,038 $ 1.25 Diluted EPS from continuing operations Effect of dilutive securities — 1,085 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 263,289 212,123 $ 1.24 Nine Months Ended September 30, 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 $ 223,606 210,138 $ 1.06 Diluted EPS from continuing operations Effect of dilutive securities — 371 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 223,606 210,509 $ 1.06 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS 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 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 1,622 $ 1,887 $ 4,866 $ 5,661 Interest cost 4,946 4,546 14,840 13,638 Expected return on assets (5,077 ) (5,213 ) (15,231 ) (15,639 ) Amortization of unrecognized prior service cost — 23 — 69 Amortization of net loss 2,737 3,987 8,210 11,961 Net periodic benefit cost $ 4,228 $ 5,230 $ 12,685 $ 15,690 Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 149 $ 186 $ 447 $ 558 Interest cost 601 587 1,803 1,760 Expected return on assets (531 ) (564 ) (1,593 ) (1,692 ) Amortization of unrecognized prior service cost (416 ) (415 ) (1,246 ) (1,245 ) Amortization of net loss 262 435 784 1,307 Net periodic benefit cost $ 65 $ 229 $ 195 $ 688 |
UNCONSOLIDATED AFFILIATES
UNCONSOLIDATED AFFILIATES | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED AFFILIATES | UNCONSOLIDATED AFFILIATES Equity in Net Earnings from Investments - The following table sets forth ONEOK Partners’ equity in net earnings from investments for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Northern Border Pipeline $ 17,854 $ 16,156 $ 52,251 $ 51,131 Overland Pass Pipeline Company 13,886 10,538 40,798 27,048 Other 3,415 5,550 7,392 15,026 Equity in net earnings from investments $ 35,155 $ 32,244 $ 100,441 $ 93,205 Unconsolidated Affiliates Financial Information - The following table sets forth summarized combined financial information of ONEOK Partners’ unconsolidated affiliates for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Income Statement Operating revenues $ 143,967 $ 135,474 $ 423,170 $ 390,793 Operating expenses $ 66,490 $ 64,786 $ 191,863 $ 178,324 Net income $ 72,672 $ 67,121 $ 214,129 $ 196,123 Distributions paid to ONEOK Partners $ 40,822 $ 36,370 $ 149,399 $ 117,153 ONEOK Partners incurred expenses in transactions with unconsolidated affiliates of $36.4 million and $28.4 million for the three months ended September 30, 2016 and 2015 , respectively, and $105.3 million and $74.2 million for the nine months ended September 30, 2016 and 2015 , respectively, primarily related to Overland Pass Pipeline Company and Northern Border Pipeline. Accounts payable to ONEOK Partners’ equity-method investees at September 30, 2016 , and December 31, 2015 , were $11.5 million and $8.0 million , respectively. 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. 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, the cash distributions from Overland Pass Pipeline Company requires the unanimous approval of the Overland Pass Pipeline Company Management Committee. Cash distributions are equal to 100 percent of available cash as defined in the limited liability company agreement. Roadrunner Gas Transmission - In March 2015, ONEOK Partners entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V. (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 the nine months ended September 30, 2016 , ONEOK Partners made contributions of approximately $55 million to Roadrunner, and expects to contribute approximately $10 million to Roadrunner during the remainder of 2016. The Roadrunner limited liability company agreement provides that distributions to members are made on a pro rata basis according to each member’s ownership interest. The Roadrunner Management Committee determines the amount and timing of such distributions. 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. |
ONEOK PARTNERS
ONEOK PARTNERS | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
ONEOK PARTNERS | ONEOK PARTNERS Ownership Interest in ONEOK Partners - Our ownership interest in ONEOK Partners is shown in the table below at September 30, 2016 : 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. Consolidation - We determined ONEOK Partners is a VIE due to the limited partners’ lack of substantive voting rights under the Partnership Agreement. Substantive voting rights under a master limited partnership are either kick-out rights or participating rights, as defined by FASB Accounting Standards Codification 810-10, that can be exercised with a simple majority of the vote of the limited partners. Prior to the adoption of ASU 2015-02, ONEOK Partners was not considered a VIE but was consolidated by us under the presumption that a general partner consolidates its limited partnership. See Note A for more information on ASU 2015-02. We have determined that we are the primary beneficiary of ONEOK Partners as we have the power, through our general partner interest, to direct the operations of ONEOK Partners that impact its economic performance and the right to receive the benefits of ONEOK Partners through our general partner and limited partner interests. These interests are significant due to our 41.2 percent ownership interest in ONEOK Partners, the largest ownership interest by an individual entity, and our incentive distribution rights. As we are the primary beneficiary of ONEOK Partners, 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 from ONEOK Partners. Distributions are declared quarterly by the board of ONEOK Partners’ general partner based on the terms of the Partnership Agreement. See Note N for more information on ONEOK Partners’ results. The following table shows the carrying amount and classification of ONEOK Partners’ assets and liabilities in our Consolidated Balance Sheets: September 30, December 31, 2016 2015 ( Thousands of dollars ) Assets Total current assets $ 1,128,794 $ 883,164 Net property, plant and equipment 12,415,775 12,256,791 Total investments and other assets 1,774,989 1,787,631 Total assets $ 15,319,558 $ 14,927,586 Liabilities Total current liabilities $ 2,286,251 $ 1,580,300 Long-term debt, excluding current maturities 6,691,663 6,695,312 Total deferred credits and other liabilities 188,254 154,631 Total liabilities $ 9,166,168 $ 8,430,243 ONEOK receives distributions from ONEOK Partners through its general partner and limited partner interests, but otherwise the assets of ONEOK Partners cannot be used to settle obligations of ONEOK. ONEOK does not guarantee the debt, commercial paper or other similar commitments of ONEOK Partners, and the obligations of ONEOK Partners may only be settled using the assets of ONEOK Partners. ONEOK Partners does not guarantee the debt or other similar commitments of ONEOK. 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 proceeds of approximately $749 million . 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. No other units were sold through the “at-the-market” program during the three months ended September 30, 2015. 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 September 30, 2016 , ONEOK Partners had approximately $138 million of registered common units available for issuance through its “at-the-market” equity program. During the three and nine months ended September 30, 2016 , no common units were sold through ONEOK Partners’ “at-the-market” equity program. During the nine months ended September 30, 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 , which were used for general partnership purposes, including repayment of commercial paper borrowings. 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. Cash Distributions - We receive distributions from ONEOK Partners on the common and Class B units we own and the 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. In October 2016, a cash distribution of $0.79 per unit ( $3.16 per unit on an annualized basis) was declared for the third quarter 2016 and will be paid on November 14, 2016 , to unitholders of record at the close of business on October 31, 2016 . The following table sets forth ONEOK Partners’ distributions paid in the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 0.79 $ 2.37 $ 2.37 General partner distributions $ 6,660 $ 6,081 $ 19,980 $ 17,950 Incentive distributions 100,538 91,794 301,614 270,962 Distributions to general partner 107,198 97,875 321,594 288,912 Limited partner distributions to ONEOK 90,323 73,302 270,969 219,907 Limited partner distributions to noncontrolling interest 135,480 132,862 406,439 388,655 Total distributions paid $ 333,001 $ 304,039 $ 999,002 $ 897,474 The following table sets forth ONEOK Partners’ distributions declared for the periods indicated and paid within 45 days of the end of the period: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 0.79 $ 2.37 $ 2.37 General partner distributions $ 6,660 $ 6,660 $ 19,980 $ 18,696 Incentive distributions 100,538 100,538 301,614 282,221 Distributions to general partner 107,198 107,198 321,594 300,917 Limited partner distributions to ONEOK 90,323 90,323 270,969 236,927 Limited partner distributions to noncontrolling interest 135,480 135,480 406,439 396,925 Total distributions declared $ 333,001 $ 333,001 $ 999,002 $ 934,769 Affiliate Transactions - We provide and are reimbursed for 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. For the three months ended September 30, 2016 and 2015 , $95.2 million and $89.3 million , respectively, of ONEOK Partners’ operating expenses were incurred with us. For the nine months ended September 30, 2016 and 2015 , $285.1 million and $265.6 million , respectively, of ONEOK Partners’ operating expenses were incurred with us. ONEOK Partners has an operating agreement with Roadrunner that provides for reimbursement or payment to it for management services and certain operating costs. Charges to Roadrunner included in operating income in our Consolidated Statements of Income for the three and nine months ended September 30, 2016 , were $2.5 million and $6.9 million , respectively. Charges to Roadrunner for the three and nine months ended September 30, 2015, were not material. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 - In October 2016, we reached an agreement in principle to settle the claims alleged against us and our affiliate ONEOK Energy Services Company, L.P. (“OESC”) in Reorganized FLI, Inc. previously reported in our Annual Report. The amount we expect to pay to settle this case is not material to our results of operations, financial position or cash flows and is expected to be paid with cash on hand. In March 2016, we reached an agreement in principle to settle the claims alleged against us and our affiliates, OESC and Kansas Gas Marketing Company, in the following putative class action lawsuits, previously reported in our Annual Report, that claimed damages resulting from alleged market manipulation or false reporting of prices to gas index publications by us and others: Learjet , Arandell , Heartland Regional Medical Center , and NewPage . The amount we expect to pay to settle these cases is not material to our results of operations, financial position or cash flows and is expected to be paid with cash on hand. The above agreements in principle to settle do not apply to the Sinclair case, previously reported in our Annual Report. We expect that future charges, if any, from the ultimate resolution of this matter will not be material to our results of operations, financial position or cash flows. 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. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS In 2014, we completed the wind down of our former energy services business. We executed agreements to release a significant portion of our nonaffiliated natural gas transportation and storage contracts to third parties that resulted in noncash charges. The following table summarizes the change in our liability related to released capacity contracts for the periods indicated: Nine Months Ended September 30, 2016 2015 ( Millions of dollars ) Beginning balance $ 36.3 $ 73.8 Settlements (16.2 ) (31.2 ) Accretion 0.4 0.8 Ending balance $ 20.5 $ 43.4 We expect future cash payments associated with released transportation and storage capacity contracts from the wind down of our former energy services business to total approximately $21 million , which consists of approximately $3 million to be paid in the remainder of 2016, $10 million in 2017, $4 million in 2018 and $4 million over the period 2019 through 2023. Results of Operations of Discontinued Operations - The results of operations for our former 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 three and nine months ended September 30, 2016 and 2015 , includes accretion expense, net of tax benefit, on the released contracts for our former energy services business. Statement of Financial Position of Discontinued Operations - At September 30, 2016 , and December 31, 2015 , 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. |
SEGMENTS
SEGMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS Segment Descriptions - Our reportable business segments are based upon the following segments of ONEOK Partners: • 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 - The accounting policies of the segments are described in Note A of the Notes to Consolidated Financial Statements in our Annual Report. Our chief operating decision-maker reviews the financial performance of each of the three segments of ONEOK Partners, as well as our financial performance, on a regular basis. Beginning in 2016, adjusted EBITDA by segment, a non-GAAP financial measure, is utilized in this evaluation. We believe this non-GAAP financial measure is useful to investors because it is used by many companies in our industry as a measurement of financial performance and is commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other publicly traded partnerships within our industry. Adjusted EBITDA is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes and AFUDC and other noncash items. Adjusted EBITDA should not be considered an alternative to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP. Additionally, this calculation may not be comparable with similarly titled measures of other companies. Prior period segment disclosures have been recast to reflect this change. Customers - The primary customers of the Natural Gas Gathering and Processing segment are crude oil and natural gas producers, which include both large integrated and independent exploration and production companies. The Natural Gas Liquids segment’s customers are primarily NGL and natural gas gathering and processing companies; large integrated 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 are primarily local natural gas distribution companies, electric-generation companies, large industrial companies, municipalities, irrigation customers and marketing companies. For the three months and nine months ended September 30, 2016 and 2015 , we had no single customer from which we 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: Three Months Ended September 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 361,717 $ 1,905,273 $ 90,401 $ 516 $ 2,357,907 Intersegment revenues 150,501 133,984 1,676 (286,161 ) — Total revenues 512,218 2,039,257 92,077 (285,645 ) 2,357,907 Cost of sales and fuel (exclusive of items shown separately below) 336,456 1,694,161 6,870 (285,894 ) 1,751,593 Operating costs 69,443 79,771 28,373 6,564 184,151 Depreciation and amortization 44,994 40,751 12,057 748 98,550 (Gain) loss on sale of assets (846 ) (5 ) (4,894 ) 1 (5,744 ) Operating income $ 62,171 $ 224,579 $ 49,671 $ (7,064 ) $ 329,357 Equity in net earnings from investments $ 2,596 $ 13,960 $ 18,599 $ — $ 35,155 Capital expenditures $ 99,649 $ 30,533 $ 24,495 $ 3,597 $ 158,274 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $299.2 million , of which $253.4 million related to sales within the segment, cost of sales and fuel of $119.6 million and operating income of $118.5 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $61.0 million , cost of sales and fuel of $7.8 million and operating income of $26.0 million . Three Months Ended September 30, 2015 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 294,948 $ 1,522,224 $ 81,246 $ 528 $ 1,898,946 Intersegment revenues 139,388 89,230 1,751 (230,369 ) — Total revenues 434,336 1,611,454 82,997 (229,841 ) 1,898,946 Cost of sales and fuel (exclusive of items shown separately below) 293,681 1,289,682 7,628 (230,182 ) 1,360,809 Operating costs 61,162 74,464 26,674 1,877 164,177 Depreciation and amortization 37,286 39,317 10,914 782 88,299 (Gain) loss on sale of assets (132 ) 498 77 283 726 Operating income $ 42,339 $ 207,493 $ 37,704 $ (2,601 ) $ 284,935 Equity in net earnings from investments $ 4,350 $ 10,912 $ 16,982 $ — $ 32,244 Capital expenditures $ 231,835 $ 52,807 $ 14,718 $ 1,508 $ 300,868 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $252.8 million , of which $204.7 million related to sales within the segment, cost of sales and fuel of $112.7 million and operating income of $80.3 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $65.1 million , cost of sales and fuel of $7.2 million and operating income of $24.7 million . Nine Months Ended September 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 971,834 $ 5,030,820 $ 262,276 $ 1,543 $ 6,266,473 Intersegment revenues 449,154 367,820 3,843 (820,817 ) — Total revenues 1,420,988 5,398,640 266,119 (819,274 ) 6,266,473 Cost of sales and fuel (exclusive of items shown separately below) 902,747 4,376,345 15,914 (820,352 ) 4,474,654 Operating costs 208,353 236,722 85,075 22,855 553,005 Depreciation and amortization 133,258 122,153 34,634 2,230 292,275 (Gain) loss on sale of assets (2,331 ) (12 ) (7,133 ) (61 ) (9,537 ) Operating income $ 178,961 $ 663,432 $ 137,629 $ (23,946 ) $ 956,076 Equity in net earnings from investments $ 7,987 $ 41,211 $ 51,243 $ — $ 100,441 Investments in unconsolidated affiliates $ 68,735 $ 470,635 $ 404,020 $ — $ 943,390 Total assets $ 5,268,161 $ 8,257,203 $ 1,912,951 $ 543,720 $ 15,982,035 Noncontrolling interests in consolidated subsidiaries $ — $ 158,352 $ — $ 3,067,566 $ 3,225,918 Capital expenditures $ 325,820 $ 85,519 $ 71,721 $ 8,468 $ 491,528 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $878.5 million , of which $742.6 million related to sales within the segment, cost of sales and fuel of $339.1 million and operating income of $354.9 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $172.4 million , cost of sales and fuel of $19.1 million and operating income of $72.9 million . Nine Months Ended September 30, 2015 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 862,462 $ 4,726,617 $ 241,605 $ 1,620 $ 5,832,304 Intersegment revenues 487,559 229,804 5,053 (722,416 ) — Total revenues 1,350,021 4,956,421 246,658 (720,796 ) 5,832,304 Cost of sales and fuel (exclusive of items shown separately below) 947,539 4,054,039 28,059 (721,871 ) 4,307,766 Operating costs 193,922 234,120 79,156 1,347 508,545 Depreciation and amortization 109,035 118,044 32,484 1,678 261,241 (Gain) loss on sale of assets (328 ) 579 76 283 610 Operating income $ 99,853 $ 549,639 $ 106,883 $ (2,233 ) $ 754,142 Equity in net earnings from investments $ 13,511 $ 27,585 $ 52,109 $ — $ 93,205 Investments in unconsolidated affiliates $ 253,548 $ 484,403 $ 399,108 $ — $ 1,137,059 Total assets $ 5,206,987 $ 8,041,064 $ 1,845,232 $ 415,015 $ 15,508,298 Noncontrolling interests in consolidated subsidiaries $ 4,066 $ 161,210 $ — $ 3,457,557 $ 3,622,833 Capital expenditures $ 692,570 $ 185,360 $ 39,923 $ 12,463 $ 930,316 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $690.1 million , of which $556.4 million related to sales within the segment, cost of sales and fuel of $297.3 million and operating income of $218.8 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $198.5 million , cost of sales and fuel of $22.6 million and operating income of $77.8 million . Three Months Ended Nine Months Ended September 30, September 30, ( Unaudited ) 2016 2015 2016 2015 ( Thousands of dollars ) Segment Adjusted EBITDA: Natural Gas Gathering and Processing $ 109,837 $ 82,718 $ 320,170 $ 221,298 Natural Gas Liquids 279,256 255,745 826,036 692,991 Natural Gas Pipelines 80,304 65,166 223,185 201,112 Other (4,061 ) 2,228 (9,744 ) (3,473 ) Depreciation and amortization (98,550 ) (88,299 ) (292,275 ) (261,241 ) Interest expense, net of capitalized interest (118,240 ) (106,923 ) (355,463 ) (306,057 ) Income taxes (55,012 ) (38,298 ) (157,536 ) (123,948 ) AFUDC and other 1,258 (7,639 ) (3,584 ) (9,127 ) Income from continuing operations 194,792 164,698 550,789 411,555 Income (loss) from discontinued operations, net of tax (576 ) (3,860 ) (1,755 ) (4,144 ) Net income $ 194,216 $ 160,838 $ 549,034 $ 407,411 |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Our accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. These statements have been prepared in accordance with GAAP and reflect all adjustments that, in our opinion, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The 2015 year-end consolidated balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. Certain reclassifications have been made in the prior-year financial statements to conform to the current-year presentation. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements in our Annual Report. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates to our continuing operations. Our significant accounting policies are consistent with those disclosed in Note A of the Notes to Consolidated Financial Statements in our Annual Report, except as described below. |
Consolidation, Policy [Policy Text Block] | Consolidation - Our consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. Management’s judgment is required when: • determining whether an entity is a variable interest entity (VIE); • determining whether we are the primary beneficiary of a VIE; and • identifying events that require reconsideration of whether an entity is a VIE. As a result of adopting ASU 2015-02 described below, we have concluded that ONEOK Partners is a VIE and that we are the primary beneficiary. Therefore, we continue to consolidate ONEOK Partners. See Note K for additional information. We record noncontrolling interests in consolidated subsidiaries on our Consolidated Balance Sheets to recognize the portion of ONEOK Partners that we do not own. We reflect 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. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | We assess our goodwill for impairment at least annually on July 1, unless events or changes in circumstances indicate an impairment may have occurred before that time. As the commodity price environment has remained relatively unchanged since 2015, we elected to perform a quantitative assessment, or Step 1 analysis, to test our goodwill for impairment. The assessment included our current commodity price assumptions, expected contractual terms, anticipated operating costs and volume estimates. Our goodwill impairment analysis performed as of July 1, 2016, 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. Subsequent to that date, 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | The following tables provide a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that were adopted ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” The standard 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. First quarter 2016 There was no impact, but it could impact us in the future if we complete any acquisitions with subsequent measurement period adjustments. ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” The standard 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. First quarter 2016 The impact of adopting this standard was not material. ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” The standard 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 account for the arrangement as a service contract. First quarter 2016 The impact of adopting this standard was not material. ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis” The standard 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. First quarter 2016 As a result of adopting this standard, we no longer consolidate ONEOK Partners under the presumption that a general partner should consolidate a limited partnership. We concluded, however, that ONEOK Partners is a VIE and ONEOK is the primary beneficiary, and we therefore consolidate ONEOK Partners under the variable interest model of consolidation. There was no financial statement impact due to the change in consolidation methodology. See Note K for additional information. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” The standard 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. First quarter 2017 We do not expect the adoption of this standard to materially impact us. ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. First quarter 2017 We do not expect the adoption of this standard to materially impact us. ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” The standard clarifies the requirements for assessing whether a contingent call (put) option that can accelerate the payment of principal on a debt instrument is clearly and closely related to its debt host. First quarter 2017 We do not expect the adoption of this standard to materially impact us. ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” The standard provides simplified accounting for share-based payment transactions in relation to income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. First quarter 2017 We are evaluating the impact of this standard on us. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” The standard 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. First quarter 2018 We are evaluating the impact of this standard on us. Our evaluation process includes a review of our and ONEOK Partners’ contracts and transaction types across all of the business segments. In addition, we are currently evaluating the methods of adoption and analyzing the impact of the standard on our internal controls, accounting policies and financial statements and disclosures. ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” The standard 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. First quarter 2018 We are evaluating the impact of this standard on us. ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” The standard clarifies the classification of certain cash receipts and cash payments on the statement of cash flows where diversity in practice has been identified. First quarter 2018 We are evaluating the impact of this standard on us. ASU 2016-02, “Leases (Topic 842)” The standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. It also requires qualitative disclosures along with specific quantitative disclosures by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. First quarter 2019 We are evaluating the impact of this standard on us. ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented net of the allowance for credit losses to reflect the net carrying value at the amount expected to be collected on the financial asset; and the initial allowance for credit losses for purchased financial assets, including available-for-sale debt securities, to be added to the purchase price rather than being reported as a credit loss expense. First quarter 2020 We are evaluating the impact of this standard on us. |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Determining Fair Value - 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 our 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 derivatives by discounting the projected future cash flows from the derivative assets and liabilities to present value using interest-rate yields to calculate present-value discount factors derived from LIBOR, Eurodollar futures and the LIBOR interest-rate swaps market. 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 executed derivative contracts, the ultimate market prices realized could differ from our estimates, and the differences could be material. The fair value of 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-rate 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. |
ONEOK PARTNERS (Policies)
ONEOK PARTNERS (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
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. Consolidation - We determined ONEOK Partners is a VIE due to the limited partners’ lack of substantive voting rights under the Partnership Agreement. Substantive voting rights under a master limited partnership are either kick-out rights or participating rights, as defined by FASB Accounting Standards Codification 810-10, that can be exercised with a simple majority of the vote of the limited partners. Prior to the adoption of ASU 2015-02, ONEOK Partners was not considered a VIE but was consolidated by us under the presumption that a general partner consolidates its limited partnership. See Note A for more information on ASU 2015-02. We have determined that we are the primary beneficiary of ONEOK Partners as we have the power, through our general partner interest, to direct the operations of ONEOK Partners that impact its economic performance and the right to receive the benefits of ONEOK Partners through our general partner and limited partner interests. These interests are significant due to our 41.2 percent ownership interest in ONEOK Partners, the largest ownership interest by an individual entity, and our incentive distribution rights. As we are the primary beneficiary of ONEOK Partners, 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 from ONEOK Partners. |
Cash Distributions | Cash Distributions - We receive distributions from ONEOK Partners on the common and Class B units we own and the 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. |
Allocation of Costs Incurred by Related Party, Policy [Policy Text Block] | We provide and are reimbursed for 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. |
SEGMENTS SEGMENTS (Policies)
SEGMENTS SEGMENTS (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Accounting Policies [Abstract] | |
Segments Accounting Policies [Text Block] | Accounting Policies - The accounting policies of the segments are described in Note A of the Notes to Consolidated Financial Statements in our Annual Report. Our chief operating decision-maker reviews the financial performance of each of the three segments of ONEOK Partners, as well as our financial performance, on a regular basis. Beginning in 2016, adjusted EBITDA by segment, a non-GAAP financial measure, is utilized in this evaluation. We believe this non-GAAP financial measure is useful to investors because it is used by many companies in our industry as a measurement of financial performance and is commonly employed by financial analysts and others to evaluate our financial performance and to compare our financial performance with the performance of other publicly traded partnerships within our industry. Adjusted EBITDA is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes and AFUDC and other noncash items. Adjusted EBITDA should not be considered an alternative to net income, earnings per unit or any other measure of financial performance presented in accordance with GAAP. Additionally, this calculation may not be comparable with similarly titled measures of other companies. Prior period segment disclosures have been recast to reflect this change. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 9,051 $ — $ 2,858 $ 11,909 $ (7,389 ) $ 4,520 Physical contracts — — 98 98 — 98 Total derivative assets $ 9,051 $ — $ 2,956 $ 12,007 $ (7,389 ) $ 4,618 Derivative liabilities Commodity contracts Financial contracts $ (12,175 ) $ — $ (9,846 ) $ (22,021 ) $ 22,021 $ — Physical contracts — — (3,173 ) (3,173 ) — (3,173 ) Interest-rate contracts — (69,103 ) — (69,103 ) — (69,103 ) Total derivative liabilities $ (12,175 ) $ (69,103 ) $ (13,019 ) $ (94,297 ) $ 22,021 $ (72,276 ) (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 us. At September 30, 2016 , we held no cash and posted $27.4 million of cash with various counterparties, including $14.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $12.8 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheets. (b) - Included in other current assets, other assets, other current liabilities or deferred credits and other liabilities in our Consolidated Balance Sheets. 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 us. At December 31, 2015 , we held $34.4 million of cash from various counterparties that is offsetting derivative net asset positions in the table above under master-netting arrangements and had no cash collateral posted. (b) - Included in other current assets or other current liabilities in our Consolidated Balance Sheets. |
Reconciliation of Level 3 Fair Value Measurements | The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, Derivative Assets (Liabilities) 2016 2015 2016 2015 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ (14,021 ) $ 10,387 $ 7,331 $ 9,285 Total realized/unrealized gains (losses): Included in earnings (a) 920 (15 ) 492 95 Included in other comprehensive income (loss) 3,038 (5,076 ) (17,886 ) (4,084 ) Net assets (liabilities) at end of period $ (10,063 ) $ 5,296 $ (10,063 ) $ 5,296 (a) - Included in commodity sales revenues in our Consolidated Statements of Income. |
RISK MANAGEMENT AND HEDGING A30
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivatives | The following table sets forth the fair values of derivative instruments for the periods indicated: September 30, 2016 December 31, 2015 Assets (a) (Liabilities) (a) Assets (b) (Liabilities) (b) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts Financial contracts $ 9,525 $ (20,376 ) $ 39,255 $ (1,440 ) Physical contracts 98 (3,173 ) 3,591 — Interest-rate contracts — (69,103 ) — (9,936 ) Total derivatives designated as hedging instruments 9,623 (92,652 ) 42,846 (11,376 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts 2,384 (1,645 ) 6,919 (6,586 ) Total derivatives not designated as hedging instruments 2,384 (1,645 ) 6,919 (6,586 ) Total derivatives $ 12,007 $ (94,297 ) $ 49,765 $ (17,962 ) (a) - Included on a net basis in other current assets, other assets, other current liabilities or deferred credits and other liabilities in our Consolidated Balance Sheets. (b) - Included on a net basis in other current assets or other current liabilities in our Consolidated Balance Sheets. |
Notional amounts of derivative instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated: September 30, 2016 December 31, 2015 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 — (43.3 ) — (27.1 ) - Natural gas ( Bcf ) Put options 68.3 — — — - Crude oil and NGLs ( MMBbl ) Futures, forwards — (4.6 ) — (2.3 ) Basis - Natural gas ( Bcf ) Futures and swaps — (43.3 ) — (27.1 ) Interest-rate contracts ( Millions of dollars ) Swaps $ 2,150.0 $ — $ 400.0 $ — Derivatives not designated as hedging instruments: Fixed price - NGLs ( MMBbl ) Futures, forwards 1.1 (0.9 ) 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 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Commodity contracts $ 7,580 $ 36,559 $ (39,396 ) $ 47,650 Interest-rate contracts 958 (20,610 ) (59,217 ) (26,277 ) Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) $ 8,538 $ 15,949 $ (98,613 ) $ 21,373 |
Schedule of cash flow hedging instruments effect on income | The following table sets forth the effect of cash flow hedges in our Consolidated Statements of Income for the periods indicated: Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ 908 $ 22,770 $ 29,456 $ 54,020 Interest-rate contracts Interest expense (4,802 ) (4,554 ) (14,302 ) (12,869 ) Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives (effective portion) $ (3,894 ) $ 18,216 $ 15,154 $ 41,151 |
LONG-TERM DEBT LONG-TERM DEBT (
LONG-TERM DEBT LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Instrument [Line Items] | |
Schedule of Debt [Table Text Block] | The following table sets forth our long-term debt for the periods indicated: September 30, December 31, 2016 2015 ( Thousands of dollars ) ONEOK $700,000 at 4.25% due 2022 $ 547,397 $ 547,397 $500,000 at 7.5% due 2023 500,000 500,000 $100,000 at 6.5% due 2028 87,137 87,516 $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 1,634,534 1,634,913 ONEOK Partners $650,000 at 3.25% due 2016 — 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 $1,000,000 term loan, variable rate, due 2019 1,000,000 — $500,000 at 8.625% due 2019 500,000 500,000 $300,000 at 3.8% due 2020 300,000 300,000 $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 500,000 500,000 $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 7.85% due 2022 46,170 51,907 Total ONEOK Partners long-term debt 7,196,170 6,851,907 Total long-term debt 8,830,704 8,486,820 Unamortized portion of terminated swaps 20,615 21,904 Unamortized debt issuance costs and discounts (70,525 ) (74,492 ) Current maturities (460,650 ) (110,650 ) Long-term debt, excluding current maturities $ 8,320,144 $ 8,323,582 |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated other comprehensive income (loss) | The following table sets forth the balance in accumulated other comprehensive loss for the period indicated: Unrealized Gains (Losses) on Risk- Management Assets/Liabilities (a) Pension and Postretirement Benefit Plan Obligations (a) (b) Unrealized Gains (Losses) on Risk- Management Assets/Liabilities of Unconsolidated Affiliates (a) Accumulated Other Comprehensive Loss (a) ( Thousands of dollars ) January 1, 2016 $ (42,199 ) $ (84,543 ) $ (500 ) $ (127,242 ) Other comprehensive income (loss) before reclassifications (25,597 ) 9 (3,133 ) (28,721 ) Amounts reclassified from accumulated other comprehensive loss (3,037 ) 4,649 — 1,612 Net current period other comprehensive income (loss) attributable to ONEOK (28,634 ) 4,658 (3,133 ) (27,109 ) September 30, 2016 $ (70,833 ) $ (79,885 ) $ (3,633 ) $ (154,351 ) (a) All amounts are presented net of tax. (b) Includes amounts related to supplemental executive retirement plan. |
Disclosure of Reclassification Amount [Text Block] | The following table sets forth the effect of reclassifications from accumulated other comprehensive loss in our Consolidated Statements of Income for the periods indicated: Details about Accumulated Other Comprehensive Loss Components Three Months Ended Nine Months Ended Affected Line Item in the Consolidated Statements of Income September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Unrealized gains (losses) on risk-management assets/liabilities Commodity contracts $ 908 $ 22,770 $ 29,456 $ 54,020 Commodity sales revenues Interest-rate contracts (4,802 ) (4,554 ) (14,302 ) (12,869 ) Interest expense (3,894 ) 18,216 15,154 41,151 Income before income taxes 811 (2,957 ) (1,658 ) (5,621 ) Income tax expense (3,083 ) 15,259 13,496 35,530 Net income Noncontrolling interests (1,774 ) 10,150 10,459 25,745 Less: Net income attributable to noncontrolling interests $ (1,309 ) $ 5,109 $ 3,037 $ 9,785 Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ (2,999 ) $ (4,422 ) $ (8,994 ) $ (13,268 ) Amortization of unrecognized prior service cost 416 392 1,246 1,176 (2,583 ) (4,030 ) (7,748 ) (12,092 ) Income before income taxes 1,033 1,612 3,099 4,837 Income tax expense $ (1,550 ) $ (2,418 ) $ (4,649 ) $ (7,255 ) Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (2,859 ) $ 2,691 $ (1,612 ) $ 2,530 Net income attributable to ONEOK (a) These components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note I for additional detail of our net periodic benefit cost. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: Three Months Ended September 30, 2016 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 $ 92,720 211,309 $ 0.44 Diluted EPS from continuing operations Effect of dilutive securities — 1,561 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 92,720 212,870 $ 0.44 Three Months Ended September 30, 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 $ 86,017 210,296 $ 0.41 Diluted EPS from continuing operations Effect of dilutive securities — 228 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 86,017 210,524 $ 0.41 Nine Months Ended September 30, 2016 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 $ 263,289 211,038 $ 1.25 Diluted EPS from continuing operations Effect of dilutive securities — 1,085 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 263,289 212,123 $ 1.24 Nine Months Ended September 30, 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 $ 223,606 210,138 $ 1.06 Diluted EPS from continuing operations Effect of dilutive securities — 371 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 223,606 210,509 $ 1.06 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
The 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 Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 1,622 $ 1,887 $ 4,866 $ 5,661 Interest cost 4,946 4,546 14,840 13,638 Expected return on assets (5,077 ) (5,213 ) (15,231 ) (15,639 ) Amortization of unrecognized prior service cost — 23 — 69 Amortization of net loss 2,737 3,987 8,210 11,961 Net periodic benefit cost $ 4,228 $ 5,230 $ 12,685 $ 15,690 Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 149 $ 186 $ 447 $ 558 Interest cost 601 587 1,803 1,760 Expected return on assets (531 ) (564 ) (1,593 ) (1,692 ) Amortization of unrecognized prior service cost (416 ) (415 ) (1,246 ) (1,245 ) Amortization of net loss 262 435 784 1,307 Net periodic benefit cost $ 65 $ 229 $ 195 $ 688 |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity In Net Earnings From Investments [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments | The following table sets forth ONEOK Partners’ equity in net earnings from investments for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Northern Border Pipeline $ 17,854 $ 16,156 $ 52,251 $ 51,131 Overland Pass Pipeline Company 13,886 10,538 40,798 27,048 Other 3,415 5,550 7,392 15,026 Equity in net earnings from investments $ 35,155 $ 32,244 $ 100,441 $ 93,205 |
Summarized Financial Information Of Unconsolidated Affiliates [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments | The following table sets forth summarized combined financial information of ONEOK Partners’ unconsolidated affiliates for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands of dollars ) Income Statement Operating revenues $ 143,967 $ 135,474 $ 423,170 $ 390,793 Operating expenses $ 66,490 $ 64,786 $ 191,863 $ 178,324 Net income $ 72,672 $ 67,121 $ 214,129 $ 196,123 Distributions paid to ONEOK Partners $ 40,822 $ 36,370 $ 149,399 $ 117,153 |
ONEOK PARTNERS (Tables)
ONEOK PARTNERS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 at September 30, 2016 : 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. |
Consolidated Variable Interest Entity Assets and Liabilities | The following table shows the carrying amount and classification of ONEOK Partners’ assets and liabilities in our Consolidated Balance Sheets: September 30, December 31, 2016 2015 ( Thousands of dollars ) Assets Total current assets $ 1,128,794 $ 883,164 Net property, plant and equipment 12,415,775 12,256,791 Total investments and other assets 1,774,989 1,787,631 Total assets $ 15,319,558 $ 14,927,586 Liabilities Total current liabilities $ 2,286,251 $ 1,580,300 Long-term debt, excluding current maturities 6,691,663 6,695,312 Total deferred credits and other liabilities 188,254 154,631 Total liabilities $ 9,166,168 $ 8,430,243 |
ONEOK Partners' Distributions Paid | The following table sets forth ONEOK Partners’ distributions paid in the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 0.79 $ 2.37 $ 2.37 General partner distributions $ 6,660 $ 6,081 $ 19,980 $ 17,950 Incentive distributions 100,538 91,794 301,614 270,962 Distributions to general partner 107,198 97,875 321,594 288,912 Limited partner distributions to ONEOK 90,323 73,302 270,969 219,907 Limited partner distributions to noncontrolling interest 135,480 132,862 406,439 388,655 Total distributions paid $ 333,001 $ 304,039 $ 999,002 $ 897,474 |
ONEOK Partners' Distributions Declared | The following table sets forth ONEOK Partners’ distributions declared for the periods indicated and paid within 45 days of the end of the period: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 0.79 $ 2.37 $ 2.37 General partner distributions $ 6,660 $ 6,660 $ 19,980 $ 18,696 Incentive distributions 100,538 100,538 301,614 282,221 Distributions to general partner 107,198 107,198 321,594 300,917 Limited partner distributions to ONEOK 90,323 90,323 270,969 236,927 Limited partner distributions to noncontrolling interest 135,480 135,480 406,439 396,925 Total distributions declared $ 333,001 $ 333,001 $ 999,002 $ 934,769 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 periods indicated: Nine Months Ended September 30, 2016 2015 ( Millions of dollars ) Beginning balance $ 36.3 $ 73.8 Settlements (16.2 ) (31.2 ) Accretion 0.4 0.8 Ending balance $ 20.5 $ 43.4 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |
Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated: Three Months Ended September 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 361,717 $ 1,905,273 $ 90,401 $ 516 $ 2,357,907 Intersegment revenues 150,501 133,984 1,676 (286,161 ) — Total revenues 512,218 2,039,257 92,077 (285,645 ) 2,357,907 Cost of sales and fuel (exclusive of items shown separately below) 336,456 1,694,161 6,870 (285,894 ) 1,751,593 Operating costs 69,443 79,771 28,373 6,564 184,151 Depreciation and amortization 44,994 40,751 12,057 748 98,550 (Gain) loss on sale of assets (846 ) (5 ) (4,894 ) 1 (5,744 ) Operating income $ 62,171 $ 224,579 $ 49,671 $ (7,064 ) $ 329,357 Equity in net earnings from investments $ 2,596 $ 13,960 $ 18,599 $ — $ 35,155 Capital expenditures $ 99,649 $ 30,533 $ 24,495 $ 3,597 $ 158,274 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $299.2 million , of which $253.4 million related to sales within the segment, cost of sales and fuel of $119.6 million and operating income of $118.5 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $61.0 million , cost of sales and fuel of $7.8 million and operating income of $26.0 million . Three Months Ended September 30, 2015 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 294,948 $ 1,522,224 $ 81,246 $ 528 $ 1,898,946 Intersegment revenues 139,388 89,230 1,751 (230,369 ) — Total revenues 434,336 1,611,454 82,997 (229,841 ) 1,898,946 Cost of sales and fuel (exclusive of items shown separately below) 293,681 1,289,682 7,628 (230,182 ) 1,360,809 Operating costs 61,162 74,464 26,674 1,877 164,177 Depreciation and amortization 37,286 39,317 10,914 782 88,299 (Gain) loss on sale of assets (132 ) 498 77 283 726 Operating income $ 42,339 $ 207,493 $ 37,704 $ (2,601 ) $ 284,935 Equity in net earnings from investments $ 4,350 $ 10,912 $ 16,982 $ — $ 32,244 Capital expenditures $ 231,835 $ 52,807 $ 14,718 $ 1,508 $ 300,868 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $252.8 million , of which $204.7 million related to sales within the segment, cost of sales and fuel of $112.7 million and operating income of $80.3 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $65.1 million , cost of sales and fuel of $7.2 million and operating income of $24.7 million . Nine Months Ended September 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 971,834 $ 5,030,820 $ 262,276 $ 1,543 $ 6,266,473 Intersegment revenues 449,154 367,820 3,843 (820,817 ) — Total revenues 1,420,988 5,398,640 266,119 (819,274 ) 6,266,473 Cost of sales and fuel (exclusive of items shown separately below) 902,747 4,376,345 15,914 (820,352 ) 4,474,654 Operating costs 208,353 236,722 85,075 22,855 553,005 Depreciation and amortization 133,258 122,153 34,634 2,230 292,275 (Gain) loss on sale of assets (2,331 ) (12 ) (7,133 ) (61 ) (9,537 ) Operating income $ 178,961 $ 663,432 $ 137,629 $ (23,946 ) $ 956,076 Equity in net earnings from investments $ 7,987 $ 41,211 $ 51,243 $ — $ 100,441 Investments in unconsolidated affiliates $ 68,735 $ 470,635 $ 404,020 $ — $ 943,390 Total assets $ 5,268,161 $ 8,257,203 $ 1,912,951 $ 543,720 $ 15,982,035 Noncontrolling interests in consolidated subsidiaries $ — $ 158,352 $ — $ 3,067,566 $ 3,225,918 Capital expenditures $ 325,820 $ 85,519 $ 71,721 $ 8,468 $ 491,528 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $878.5 million , of which $742.6 million related to sales within the segment, cost of sales and fuel of $339.1 million and operating income of $354.9 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $172.4 million , cost of sales and fuel of $19.1 million and operating income of $72.9 million . Nine Months Ended September 30, 2015 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Other and Total ( Thousands of dollars ) Sales to unaffiliated customers $ 862,462 $ 4,726,617 $ 241,605 $ 1,620 $ 5,832,304 Intersegment revenues 487,559 229,804 5,053 (722,416 ) — Total revenues 1,350,021 4,956,421 246,658 (720,796 ) 5,832,304 Cost of sales and fuel (exclusive of items shown separately below) 947,539 4,054,039 28,059 (721,871 ) 4,307,766 Operating costs 193,922 234,120 79,156 1,347 508,545 Depreciation and amortization 109,035 118,044 32,484 1,678 261,241 (Gain) loss on sale of assets (328 ) 579 76 283 610 Operating income $ 99,853 $ 549,639 $ 106,883 $ (2,233 ) $ 754,142 Equity in net earnings from investments $ 13,511 $ 27,585 $ 52,109 $ — $ 93,205 Investments in unconsolidated affiliates $ 253,548 $ 484,403 $ 399,108 $ — $ 1,137,059 Total assets $ 5,206,987 $ 8,041,064 $ 1,845,232 $ 415,015 $ 15,508,298 Noncontrolling interests in consolidated subsidiaries $ 4,066 $ 161,210 $ — $ 3,457,557 $ 3,622,833 Capital expenditures $ 692,570 $ 185,360 $ 39,923 $ 12,463 $ 930,316 (a) - The Natural Gas Liquids segment has regulated and nonregulated operations. The Natural Gas Liquids segment’s regulated operations had revenues of $690.1 million , of which $556.4 million related to sales within the segment, cost of sales and fuel of $297.3 million and operating income of $218.8 million . (b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. The Natural Gas Pipelines segment’s regulated operations had revenues of $198.5 million , cost of sales and fuel of $22.6 million and operating income of $77.8 million . Three Months Ended Nine Months Ended September 30, September 30, ( Unaudited ) 2016 2015 2016 2015 ( Thousands of dollars ) Segment Adjusted EBITDA: Natural Gas Gathering and Processing $ 109,837 $ 82,718 $ 320,170 $ 221,298 Natural Gas Liquids 279,256 255,745 826,036 692,991 Natural Gas Pipelines 80,304 65,166 223,185 201,112 Other (4,061 ) 2,228 (9,744 ) (3,473 ) Depreciation and amortization (98,550 ) (88,299 ) (292,275 ) (261,241 ) Interest expense, net of capitalized interest (118,240 ) (106,923 ) (355,463 ) (306,057 ) Income taxes (55,012 ) (38,298 ) (157,536 ) (123,948 ) AFUDC and other 1,258 (7,639 ) (3,584 ) (9,127 ) Income from continuing operations 194,792 164,698 550,789 411,555 Income (loss) from discontinued operations, net of tax (576 ) (3,860 ) (1,755 ) (4,144 ) Net income $ 194,216 $ 160,838 $ 549,034 $ 407,411 |
FAIR VALUE MEASUREMENTS - Part
FAIR VALUE MEASUREMENTS - Part 1 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash held - offsetting derivative net asset positions under master-netting arrangements | $ 0 | $ 34,400 |
Cash posted - total | 27,400 | |
Cash posted - offsetting derivative net liability positions under master-netting arrangements | 14,600 | 0 |
Cash posted - remaining in excess of derivative net liability positions included in consolidated Balance Sheets | 12,800 | |
Derivative liabilities | ||
Long-term Debt, Fair Value | 9,300,000 | 7,400,000 |
Long-term Debt, Book Value | 8,800,000 | 8,400,000 |
Fair Value, Measurements, Recurring [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 4,520 | 3,760 |
Commodity contracts - physical | 98 | 3,591 |
Total derivatives assets | 4,618 | 7,351 |
Derivative assets netting | (7,389) | (42,414) |
Derivative liabilities | ||
Commodity contracts - financial | 0 | 0 |
Commodity contracts - physical | (3,173) | |
Interest-rate contracts | (69,103) | (9,936) |
Total derivative liabilities | (72,276) | (9,936) |
Derivative liabilities netting | 22,021 | 8,026 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 9,051 | 38,921 |
Commodity contracts - physical | 0 | 0 |
Total derivatives assets | 9,051 | 38,921 |
Derivative liabilities | ||
Commodity contracts - financial | (12,175) | (4,513) |
Commodity contracts - physical | 0 | |
Interest-rate contracts | 0 | 0 |
Total derivative liabilities | (12,175) | (4,513) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 0 | 0 |
Commodity contracts - physical | 0 | 0 |
Total derivatives assets | 0 | 0 |
Derivative liabilities | ||
Commodity contracts - financial | 0 | 0 |
Commodity contracts - physical | 0 | |
Interest-rate contracts | (69,103) | (9,936) |
Total derivative liabilities | (69,103) | (9,936) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 2,858 | 7,253 |
Commodity contracts - physical | 98 | 3,591 |
Total derivatives assets | 2,956 | 10,844 |
Derivative liabilities | ||
Commodity contracts - financial | (9,846) | (3,513) |
Commodity contracts - physical | (3,173) | |
Interest-rate contracts | 0 | 0 |
Total derivative liabilities | (13,019) | (3,513) |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 11,909 | 46,174 |
Commodity contracts - physical | 98 | 3,591 |
Total derivatives assets | 12,007 | 49,765 |
Derivative liabilities | ||
Commodity contracts - financial | (22,021) | (8,026) |
Commodity contracts - physical | (3,173) | |
Interest-rate contracts | (69,103) | (9,936) |
Total derivative liabilities | $ (94,297) | $ (17,962) |
FAIR VALUE MEASUREMENTS - Par40
FAIR VALUE MEASUREMENTS - Part 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net assets (liabilities) at beginning of period | $ (14,021) | $ 10,387 | $ 7,331 | $ 9,285 |
Total realized/unrealized gains (losses): | ||||
Included in earnings | 920 | (15) | 492 | 95 |
Included in other comprehensive income (loss) | 3,038 | (5,076) | (17,886) | (4,084) |
Net assets (liabilities) at end of period | (10,063) | 5,296 | (10,063) | 5,296 |
Transfers between levels | $ 0 | $ 0 | $ 0 | $ 0 |
RISK MANAGEMENT AND HEDGING A41
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 1 (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 12,007,000 | $ 49,765,000 |
Liabilities | (94,297,000) | (17,962,000) |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 9,623,000 | 42,846,000 |
Liabilities | (92,652,000) | (11,376,000) |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | (69,103,000) | (9,936,000) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 2,384,000 | 6,919,000 |
Liabilities | (1,645,000) | (6,586,000) |
Physical Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 98,000 | 3,591,000 |
Liabilities | (3,173,000) | 0 |
Financial Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 9,525,000 | 39,255,000 |
Liabilities | (20,376,000) | (1,440,000) |
Financial Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 2,384,000 | 6,919,000 |
Liabilities | (1,645,000) | (6,586,000) |
Natural Gas Pipelines [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ 0 | $ 0 |
RISK MANAGEMENT AND HEDGING A42
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 2 (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)MMcfMMBbls | Dec. 31, 2015USD ($)MMcfMMBbls | |
Forward Contracts [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | LIBOR Based Interest Payments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 1,000 | |
Forward Contracts [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Forecasted Debt Issuances [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | 1,200 | $ 400 |
Derivative, Notional Amount, New Contracts | $ | $ 750 | |
Futures and swaps [Member] | Designated as Hedging Instrument [Member] | Fixed Price [Member] | Purchased [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 0 |
Futures and swaps [Member] | Designated as Hedging Instrument [Member] | Fixed Price [Member] | Sold [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | (43,300) | (27,100) |
Futures and swaps [Member] | Designated as Hedging Instrument [Member] | Basis [Member] | Purchased [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 0 |
Futures and swaps [Member] | Designated as Hedging Instrument [Member] | Basis [Member] | Sold [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | (43,300) | (27,100) |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 2,150 | $ 400 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 0 | $ 0 |
Options [Member] | Designated as Hedging Instrument [Member] | Fixed Price [Member] | Purchased [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 68,300 | 0 |
Options [Member] | Designated as Hedging Instrument [Member] | Fixed Price [Member] | Sold [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 0 |
Futures, forwards and swaps [Member] | Not Designated as Hedging Instrument [Member] | Fixed Price [Member] | Purchased [Member] | Crude Oil and NGL [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBbls | 1.1 | 0.6 |
Futures, forwards and swaps [Member] | Not Designated as Hedging Instrument [Member] | Fixed Price [Member] | Sold [Member] | Crude Oil and NGL [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBbls | (0.9) | (0.6) |
Futures, forwards and swaps [Member] | Designated as Hedging Instrument [Member] | Fixed Price [Member] | Purchased [Member] | Crude Oil and NGL [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBbls | 0 | 0 |
Futures, forwards and swaps [Member] | Designated as Hedging Instrument [Member] | Fixed Price [Member] | Sold [Member] | Crude Oil and NGL [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBbls | (4.6) | (2.3) |
RISK MANAGEMENT AND HEDGING A43
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (154,351) | $ (154,351) | $ (127,242) | ||
Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | (25,597) | ||||
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | 8,538 | $ 15,949 | (98,613) | $ 21,373 | |
Total gain (loss) reclassified from accumulated other comprehensive income (loss) into net income on derivatives (effective portion) | (3,894) | 18,216 | 15,154 | 41,151 | |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 0 | 0 | 0 | 0 | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Commodity cash flow hedge gain (loss) to be reclassified | (7,100) | (7,100) | |||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | (5,600) | (5,600) | |||
Commodity Cash Flow Hedge Gain (Loss) To Be Reclassified After Next 12 Months Net | (1,500) | (1,500) | |||
Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | 7,580 | 36,559 | (39,396) | 47,650 | |
Commodity Contract [Member] | Revenues [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) | 908 | 22,770 | 29,456 | 54,020 | |
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. | (45,500) | (45,500) | |||
Amount of loss to be recognized in the next 12 months | (6,400) | (6,400) | |||
Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) | 958 | (20,610) | (59,217) | (26,277) | |
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) | $ (4,802) | $ (4,554) | $ (14,302) | $ (12,869) |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)Rate | |
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 | 2.1 |
Line of Credit Facility Letter of Credit Sublimit | $ 50,000,000 |
Line of Credit Facility Swingline Sublimit | 50,000,000 |
Line Of Credit Facility Option To Increase Borrowing Capacity | $ 500,000,000 |
Interest rate description | borrowings, if any, will accrue interest at LIBOR plus 145 basis points |
Line Of Credit Facility, Annual Facility Fee Description | the annual facility fee is 30 basis points |
Letters of credit issued | $ 1,100,000 |
Borrowings outstanding under Partnership Credit Agreement | 0 |
Partnership Credit Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,400,000,000 |
Indebtedness To Adjusted EBITDA Maximum | 5 |
Indebtedness To Adjusted EBITDA Current | 4.1 |
Line of Credit Facility Letter of Credit Sublimit | $ 100,000,000 |
Line of Credit Facility Swingline Sublimit | $ 150,000,000 |
Interest rate description | borrowings, if any, will accrue at LIBOR plus 117.5 basis points |
Line Of Credit Facility, Annual Facility Fee Description | the annual facility fee is 20 basis points |
Letters of credit issued | $ 14,000,000 |
Borrowings outstanding under Partnership Credit Agreement | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,700,000,000 |
Indebtedness To Adjusted EBITDA From Acquisitions Maximum | 5.5 |
Acquisition price threshold for increase in permitted debt to EBITDA covenant ratio | $ 25,000,000 |
Commercial Paper [Member] | |
Line of Credit Facility [Line Items] | |
Commercial paper outstanding | 694,000,000 |
Maximum Amount Of Commercial Paper | $ 2,400,000,000 |
Short-term Debt, Weighted Average Interest Rate | Rate | 1.15% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 8,830,704 | $ 8,486,820 |
Unamortized Portion of Terminated Swaps | 20,615 | 21,904 |
Unamortized debt issuance costs and discounts | (70,525) | (74,492) |
Long-term Debt, Current Maturities | (460,650) | (110,650) |
Long-term debt, excluding current maturities | 8,320,144 | 8,323,582 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 650,000 | |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,634,534 | 1,634,913 |
Parent Company [Member] | Note Payable from Public Offering Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
Long-term Debt, Gross | $ 547,397 | $ 547,397 |
Parent Company [Member] | Note Payable Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% |
Long-term Debt, Gross | $ 500,000 | $ 500,000 |
Proceeds from Debt, Net of Issuance Costs | 487,100 | |
Parent Company [Member] | Note Payables 1 due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Long-term Debt, Gross | $ 87,137 | 87,516 |
Parent Company [Member] | Note Payables 2 due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |
Long-term Debt, Gross | $ 100,000 | 100,000 |
Parent Company [Member] | Notes Payables due 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Long-term Debt, Gross | $ 400,000 | 400,000 |
Partnership Interest [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 7,196,170 | 6,851,907 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |
Long-term Debt, Gross | $ 0 | 650,000 |
Partnership Interest [Member] | Notes Payable due 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | |
Long-term Debt, Gross | $ 450,000 | 450,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |
Long-term Debt, Gross | $ 400,000 | 400,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | |
Long-term Debt, Gross | $ 425,000 | 425,000 |
Partnership Interest [Member] | Term Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,000,000 | 0 |
Delayed-Draw Unsecured Senior Term Loan | $ 1,000,000 | |
Debt Instrument, Interest Rate Terms | LIBOR plus 130 basis points | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.83% | |
Proceeds from Debt, Net of Issuance Costs | $ 1,000,000 | |
Partnership Interest [Member] | Notes Payables due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.625% | |
Long-term Debt, Gross | $ 500,000 | $ 500,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | 3.80% |
Long-term Debt, Gross | $ 300,000 | $ 300,000 |
Partnership Interest [Member] | Note Payable 2 from Public Offering Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.375% | |
Long-term Debt, Gross | $ 900,000 | 900,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Long-term Debt, Gross | $ 425,000 | $ 425,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.90% | 4.90% |
Long-term Debt, Gross | $ 500,000 | $ 500,000 |
Partnership Interest [Member] | Notes Payables due 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.65% | |
Long-term Debt, Gross | $ 600,000 | 600,000 |
Partnership Interest [Member] | Notes Payables due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.85% | |
Long-term Debt, Gross | $ 600,000 | 600,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2041 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | |
Long-term Debt, Gross | $ 650,000 | 650,000 |
Partnership Interest [Member] | Note Payable from Public Offering Due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.20% | |
Long-term Debt, Gross | $ 400,000 | 400,000 |
Guardian Pipeline [Member] | Notes Payables 1 due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 7.85% | |
Long-term Debt, Gross | $ 46,170 | 51,907 |
Senior Notes [Member] | Partnership Interest [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 800,000 | |
Proceeds from Debt, Net of Issuance Costs | $ 792,300 |
EQUITY (Details)
EQUITY (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.615 | $ 0.615 | $ 0.615 | $ 1.845 | $ 1.815 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.615 | $ 0.605 | $ 1.845 | $ 1.815 | |||
Subsequent Event [Member] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.615 | ||||||
Dividends Payable, Date of Record | Oct. 31, 2016 | ||||||
Dividends Payable, Date to be Paid | Nov. 14, 2016 |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Unrealized gains (losses) on risk-management assets/liabilities - January 1, 2016 | $ (42,199) | |||
Pension and postretirement benefit plan obligation - January 1, 2016 | (84,543) | |||
Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates - January 1, 2016 | (500) | |||
Accumulated other comprehensive loss - January 1, 2016 | (127,242) | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (25,597) | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 9 | |||
Other Comprehensive Income (Loss), Amount Attributable to Equity Method Investments, before Reclassification Adjustments, Net of Tax | (3,133) | |||
Other comprehensive income (loss) before reclassifications | (28,721) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 3,083 | $ (15,259) | (13,496) | $ (35,530) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Net of Tax | 0 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment included in Net Income, Net of Tax | 2,859 | (2,691) | 1,612 | (2,530) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (28,634) | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 1,553 | 2,441 | 4,658 | 7,320 |
Other Comprehensive Income (Loss), Portion Attributable to Equity Method Investments, Net of Tax | (3,133) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (27,109) | |||
Unrealized gains (losses) on risk-management assets/liabilities - September 30, 2016 | (70,833) | (70,833) | ||
Pension and postretirement benefit plan obligation - September 30, 2016 | (79,885) | (79,885) | ||
Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates - September 30, 2016 | (3,633) | (3,633) | ||
Accumulated other comprehensive loss - September 30, 2016 | (154,351) | (154,351) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (811) | 2,957 | 1,658 | 5,621 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1,309 | (5,109) | (3,037) | (9,785) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 1,550 | 2,418 | 4,649 | 7,255 |
Defined Benefit Plan, Future Amortization of Gain (Loss) | 2,999 | 4,422 | 8,994 | 13,268 |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | (416) | (392) | (1,246) | (1,176) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 2,583 | 4,030 | 7,748 | 12,092 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax | (1,033) | (1,612) | (3,099) | (4,837) |
Total before tax [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3,894 | (18,216) | (15,154) | (41,151) |
Tax Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (811) | 2,957 | 1,658 | 5,621 |
Net of tax [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 3,083 | (15,259) | (13,496) | (35,530) |
Net income attributable to noncontrolling interest [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Noncontrolling Interest | 1,774 | (10,150) | (10,459) | (25,745) |
Commodity Contract [Member] | Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (908) | (22,770) | (29,456) | (54,020) |
Interest Rate Contract [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 4,802 | $ 4,554 | $ 14,302 | $ 12,869 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic EPS from Continuing Operations [Abstract] | ||||
Income from continuing operations attributable to ONEOK available for common stock | $ 92,720 | $ 86,017 | $ 263,289 | $ 223,606 |
Weighted Average number of share, basic (in shares) | 211,309 | 210,296 | 211,038 | 210,138 |
Per share amount, basic (in dollars per shares) | $ 0.44 | $ 0.41 | $ 1.25 | $ 1.06 |
Diluted EPS from continuing operations [Abstract] | ||||
Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities, number of shares (in shares) | 1,561 | 228 | 1,085 | 371 |
Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents | $ 92,720 | $ 86,017 | $ 263,289 | $ 223,606 |
Weighted Average number of share, diluted (in shares) | 212,870 | 210,524 | 212,123 | 210,509 |
Per Share amount, diluted (in dollars per share) | $ 0.44 | $ 0.41 | $ 1.24 | $ 1.06 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 1,622 | $ 1,887 | $ 4,866 | $ 5,661 |
Interest cost | 4,946 | 4,546 | 14,840 | 13,638 |
Expected return on assets | (5,077) | (5,213) | (15,231) | (15,639) |
Amortization of unrecognized prior service cost | 0 | 23 | 0 | 69 |
Amortization of net loss | 2,737 | 3,987 | 8,210 | 11,961 |
Net periodic benefit cost | 4,228 | 5,230 | 12,685 | 15,690 |
Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 149 | 186 | 447 | 558 |
Interest cost | 601 | 587 | 1,803 | 1,760 |
Expected return on assets | (531) | (564) | (1,593) | (1,692) |
Amortization of unrecognized prior service cost | (416) | (415) | (1,246) | (1,245) |
Amortization of net loss | 262 | 435 | 784 | 1,307 |
Net periodic benefit cost | $ 65 | $ 229 | $ 195 | $ 688 |
UNCONSOLIDATED AFFILIATES (Deta
UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net earnings from investments | $ 35,155 | $ 32,244 | $ 100,441 | $ 93,205 | ||
Accounts Payable, Related Parties, Current | 11,500 | 11,500 | $ 8,000 | |||
Income Statement | ||||||
Operating revenues | 143,967 | 135,474 | 423,170 | 390,793 | ||
Operating expenses | 66,490 | 64,786 | 191,863 | 178,324 | ||
Net income | 72,672 | 67,121 | 214,129 | 196,123 | ||
Proceeds from Equity Method Investment, Dividends or Distributions, Total | 40,822 | 36,370 | 149,399 | 117,153 | ||
Roadrunner Gas Transmission [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to Acquire Equity Method Investments | 55,000 | |||||
Northern Border Pipeline [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net earnings from investments | 17,854 | 16,156 | 52,251 | 51,131 | ||
Overland Pass Pipeline Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net earnings from investments | 13,886 | 10,538 | 40,798 | 27,048 | ||
Other Unconsolidated Affiliate [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net earnings from investments | 3,415 | 5,550 | 7,392 | 15,026 | ||
Unconsolidated Affiliates [Member] | ||||||
Income Statement | ||||||
Costs and operating expenses with equity method investees | $ 36,400 | $ 28,400 | $ 105,300 | $ 74,200 | ||
Scenario, Forecast [Member] | Roadrunner Gas Transmission [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to Acquire Equity Method Investments | $ 10,000 |
ONEOK PARTNERS (Details)
ONEOK PARTNERS (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Ownership Interest | 41.20% | ||||
Common units | 41.3 | 41.3 | |||
Class B units | 73 | 73 | |||
Assets, Current | $ 1,369,291 | $ 1,369,291 | $ 975,210 | ||
Property, Plant and Equipment, Net | 12,526,749 | 12,526,749 | 12,373,989 | ||
Investments and Other Noncurrent Assets | 2,085,995 | 2,085,995 | 2,096,912 | ||
Assets | 15,982,035 | $ 15,508,298 | 15,982,035 | $ 15,508,298 | 15,446,111 |
Liabilities, Current | 2,341,964 | 2,341,964 | 1,638,266 | ||
Long-term debt, excluding current maturities | 8,320,144 | 8,320,144 | 8,323,582 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 1,879,713 | 1,879,713 | 1,717,927 | ||
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 | $ 138,000 | |||
Key Provisions of Operating or Partnership Agreement, Description | 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. | ||||
Roadrunner Gas Transmission [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | 2,500 | $ 6,900 | |||
ONEOK [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 95,200 | $ 89,300 | $ 285,100 | $ 265,600 | |
General Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership Interest | 2.00% | ||||
Limited Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership Interest | 39.20% | ||||
Assets, Current | 1,128,794 | $ 1,128,794 | 883,164 | ||
Property, Plant and Equipment, Net | 12,415,775 | 12,415,775 | 12,256,791 | ||
Investments and Other Noncurrent Assets | 1,774,989 | 1,774,989 | 1,787,631 | ||
Assets | 15,319,558 | 15,319,558 | 14,927,586 | ||
Liabilities, Current | 2,286,251 | 2,286,251 | 1,580,300 | ||
Long-term debt, excluding current maturities | 6,691,663 | 6,691,663 | 6,695,312 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 188,254 | 188,254 | 154,631 | ||
Liabilities | $ 9,166,168 | $ 9,166,168 | $ 8,430,243 | ||
Distribution Paid [Member] | |||||
Related Party Transaction [Line Items] | |||||
Distribution per unit | $ 0.79 | $ 0.79 | $ 2.37 | $ 2.37 | |
General Partners' Capital Account, Period Distribution Amount | $ 107,198 | $ 97,875 | $ 321,594 | $ 288,912 | |
Total distributions | 333,001 | 304,039 | 999,002 | 897,474 | |
Distribution Paid [Member] | ONEOK [Member] | |||||
Related Party Transaction [Line Items] | |||||
Limited partner distributions to ONEOK | 90,323 | 73,302 | 270,969 | 219,907 | |
Distribution Paid [Member] | General Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
General partner distributions | 6,660 | 6,081 | 19,980 | 17,950 | |
Incentive distributions | 100,538 | 91,794 | 301,614 | 270,962 | |
Distribution Paid [Member] | Limited Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Partners Capital Account Distributions to Other Unitholders | $ 135,480 | $ 132,862 | $ 406,439 | $ 388,655 | |
Distribution Declared [Member] | |||||
Related Party Transaction [Line Items] | |||||
Distribution per unit | $ 0.79 | $ 0.79 | $ 2.37 | $ 2.37 | |
Distribution Made To Member Or Limited Parter Annualized Quarterly Distribution | $ 3.16 | ||||
Distribution Made to Limited Partner, Distribution Date | Nov. 14, 2016 | ||||
Distribution Made to Limited Partner, Date of Record | Oct. 31, 2016 | ||||
General Partners' Capital Account, Period Distribution Amount | $ 107,198 | $ 107,198 | $ 321,594 | $ 300,917 | |
Total distributions | 333,001 | 333,001 | 999,002 | 934,769 | |
Distribution Declared [Member] | ONEOK [Member] | |||||
Related Party Transaction [Line Items] | |||||
Limited partner distributions to ONEOK | 90,323 | 90,323 | 270,969 | 236,927 | |
Distribution Declared [Member] | General Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
General partner distributions | 6,660 | 6,660 | 19,980 | 18,696 | |
Incentive distributions | 100,538 | 100,538 | 301,614 | 282,221 | |
Distribution Declared [Member] | Limited Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Partners Capital Account Distributions to Other Unitholders | $ 135,480 | $ 135,480 | $ 406,439 | $ 396,925 | |
Private Placement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Partners' Capital Account, Units, Sold in Private Placement | 21.5 | ||||
Per Unit Offering Price Under Private Placement | $ 30.17 | ||||
Partners' Capital Account, Contributions | $ 15,300 | ||||
Partners Capital Account Units Sold Under Equity Distribution Agreement | 3.3 | ||||
Proceeds from Sale of Interest in Partnership Unit | $ 749,000 | ||||
Issued Under Equity Distribution Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Partners Capital Account Units Sold Under Equity Distribution Agreement | 0 | 0 | 10.5 | ||
Proceeds from Sale of Interest in Partnership Unit | $ 381,600 | ||||
General Partner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership Interest | 2.00% |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accumulated charges attributable to exit activities, at beginning of period | $ 36.3 | $ 73.8 |
Settlements | (16.2) | (31.2) |
Accretion | 0.4 | 0.8 |
Accumulated charges attributable to exit activities, at end of period | 20.5 | $ 43.4 |
Effect on future cash flows, amount | 21 | |
2016 [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Effect on future cash flows, amount | 3 | |
2017 [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Effect on future cash flows, amount | 10 | |
2018 [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Effect on future cash flows, amount | 4 | |
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 |
SEGMENTS Part 1 (Details)
SEGMENTS Part 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Segment Reporting, Disclosure of Major Customers | For the three months ended September 30, 2016, ONEOK Partners had no single customer from which we received 10 percent or more of our consolidated revenues. | For the three months ended September 30, 2015, ONEOK Partners had had no single customer from which we received 10 percent or more of our consolidated revenues. | For the nine months ended September 30, 2016, ONEOK Partners had had no single customer from which we received 10 percent or more of our consolidated revenues. | For the nine months ended September 30, 2015, ONEOK Partners had had no single customer from which we received 10 percent or more of our consolidated revenues. | |
Total revenues | $ 2,357,907 | $ 1,898,946 | $ 6,266,473 | $ 5,832,304 | |
Cost of sales and fuel (exclusive of items shown separately below) | 1,751,593 | 1,360,809 | 4,474,654 | 4,307,766 | |
Operating costs | 184,151 | 164,177 | 553,005 | 508,545 | |
Depreciation and amortization | 98,550 | 88,299 | 292,275 | 261,241 | |
(Gain) loss on sale of assets | (5,744) | 726 | (9,537) | 610 | |
Operating Income | 329,357 | 284,935 | 956,076 | 754,142 | |
Equity in net earnings from investments | 35,155 | 32,244 | 100,441 | 93,205 | |
Investments in unconsolidated affiliates | 943,390 | 1,137,059 | 943,390 | 1,137,059 | $ 948,221 |
Total Assets | 15,982,035 | 15,508,298 | 15,982,035 | 15,508,298 | 15,446,111 |
Noncontrolling interests in consolidated subsidiaries | 3,225,918 | 3,622,833 | 3,225,918 | 3,622,833 | $ 3,430,538 |
Capital expenditures | 158,274 | 300,868 | 491,528 | 930,316 | |
Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 512,218 | 434,336 | 1,420,988 | 1,350,021 | |
Cost of sales and fuel (exclusive of items shown separately below) | 336,456 | 293,681 | 902,747 | 947,539 | |
Operating costs | 69,443 | 61,162 | 208,353 | 193,922 | |
Depreciation and amortization | 44,994 | 37,286 | 133,258 | 109,035 | |
(Gain) loss on sale of assets | (846) | (132) | (2,331) | (328) | |
Operating Income | 62,171 | 42,339 | 178,961 | 99,853 | |
Equity in net earnings from investments | 2,596 | 4,350 | 7,987 | 13,511 | |
Investments in unconsolidated affiliates | 68,735 | 253,548 | 68,735 | 253,548 | |
Total Assets | 5,268,161 | 5,206,987 | 5,268,161 | 5,206,987 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 4,066 | 0 | 4,066 | |
Capital expenditures | 99,649 | 231,835 | 325,820 | 692,570 | |
Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,039,257 | 1,611,454 | 5,398,640 | 4,956,421 | |
Cost of sales and fuel (exclusive of items shown separately below) | 1,694,161 | 1,289,682 | 4,376,345 | 4,054,039 | |
Operating costs | 79,771 | 74,464 | 236,722 | 234,120 | |
Depreciation and amortization | 40,751 | 39,317 | 122,153 | 118,044 | |
(Gain) loss on sale of assets | (5) | 498 | (12) | 579 | |
Operating Income | 224,579 | 207,493 | 663,432 | 549,639 | |
Equity in net earnings from investments | 13,960 | 10,912 | 41,211 | 27,585 | |
Investments in unconsolidated affiliates | 470,635 | 484,403 | 470,635 | 484,403 | |
Total Assets | 8,257,203 | 8,041,064 | 8,257,203 | 8,041,064 | |
Noncontrolling interests in consolidated subsidiaries | 158,352 | 161,210 | 158,352 | 161,210 | |
Capital expenditures | 30,533 | 52,807 | 85,519 | 185,360 | |
Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 299,200 | 252,800 | 878,500 | 690,100 | |
Cost of sales and fuel (exclusive of items shown separately below) | 119,600 | 112,700 | 339,100 | 297,300 | |
Operating Income | 118,500 | 80,300 | 354,900 | 218,800 | |
Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 92,077 | 82,997 | 266,119 | 246,658 | |
Cost of sales and fuel (exclusive of items shown separately below) | 6,870 | 7,628 | 15,914 | 28,059 | |
Operating costs | 28,373 | 26,674 | 85,075 | 79,156 | |
Depreciation and amortization | 12,057 | 10,914 | 34,634 | 32,484 | |
(Gain) loss on sale of assets | (4,894) | 77 | (7,133) | 76 | |
Operating Income | 49,671 | 37,704 | 137,629 | 106,883 | |
Equity in net earnings from investments | 18,599 | 16,982 | 51,243 | 52,109 | |
Investments in unconsolidated affiliates | 404,020 | 399,108 | 404,020 | 399,108 | |
Total Assets | 1,912,951 | 1,845,232 | 1,912,951 | 1,845,232 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | 0 | 0 | |
Capital expenditures | 24,495 | 14,718 | 71,721 | 39,923 | |
Natural Gas Pipelines [Member] | Natural Gas Pipelines Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 61,000 | 65,100 | 172,400 | 198,500 | |
Cost of sales and fuel (exclusive of items shown separately below) | 7,800 | 7,200 | 19,100 | 22,600 | |
Operating Income | 26,000 | 24,700 | 72,900 | 77,800 | |
Corporate Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | (285,645) | (229,841) | (819,274) | (720,796) | |
Cost of sales and fuel (exclusive of items shown separately below) | (285,894) | (230,182) | (820,352) | (721,871) | |
Operating costs | 6,564 | 1,877 | 22,855 | 1,347 | |
Depreciation and amortization | 748 | 782 | 2,230 | 1,678 | |
(Gain) loss on sale of assets | 1 | 283 | (61) | 283 | |
Operating Income | (7,064) | (2,601) | (23,946) | (2,233) | |
Equity in net earnings from investments | 0 | 0 | 0 | 0 | |
Investments in unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Total Assets | 543,720 | 415,015 | 543,720 | 415,015 | |
Noncontrolling interests in consolidated subsidiaries | 3,067,566 | 3,457,557 | 3,067,566 | 3,457,557 | |
Capital expenditures | 3,597 | 1,508 | 8,468 | 12,463 | |
Sales to unaffiliated customers | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,357,907 | 1,898,946 | 6,266,473 | 5,832,304 | |
Sales to unaffiliated customers | Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 361,717 | 294,948 | 971,834 | 862,462 | |
Sales to unaffiliated customers | Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,905,273 | 1,522,224 | 5,030,820 | 4,726,617 | |
Sales to unaffiliated customers | Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 90,401 | 81,246 | 262,276 | 241,605 | |
Sales to unaffiliated customers | Corporate Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 516 | 528 | 1,543 | 1,620 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 150,501 | 139,388 | 449,154 | 487,559 | |
Operating Segments [Member] | Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 133,984 | 89,230 | 367,820 | 229,804 | |
Operating Segments [Member] | Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 253,400 | 204,700 | 742,600 | 556,400 | |
Operating Segments [Member] | Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,676 | 1,751 | 3,843 | 5,053 | |
Operating Segments [Member] | Corporate Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ (286,161) | $ (230,369) | $ (820,817) | $ (722,416) |
SEGMENTS SEGMENTS Part 2 (Detai
SEGMENTS SEGMENTS Part 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | ||||
Depreciation and amortization | $ (98,550) | $ (88,299) | $ (292,275) | $ (261,241) |
Interest expense (net of capitalized interest) | (118,240) | (106,923) | (355,463) | (306,057) |
Income taxes | (55,012) | (38,298) | (157,536) | (123,948) |
AFUDC and other | 1,258 | (7,639) | (3,584) | (9,127) |
Income from continuing operations | 194,792 | 164,698 | 550,789 | 411,555 |
Income (loss) from discontinued operations, net of tax | (576) | (3,860) | (1,755) | (4,144) |
Net income | 194,216 | 160,838 | 549,034 | 407,411 |
Natural Gas Gathering And Processing [Member] | ||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | ||||
Adjusted EBITDA | 109,837 | 82,718 | 320,170 | 221,298 |
Depreciation and amortization | (44,994) | (37,286) | (133,258) | (109,035) |
Natural Gas Liquids [Member] | ||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | ||||
Adjusted EBITDA | 279,256 | 255,745 | 826,036 | 692,991 |
Depreciation and amortization | (40,751) | (39,317) | (122,153) | (118,044) |
Natural Gas Pipelines [Member] | ||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | ||||
Adjusted EBITDA | 80,304 | 65,166 | 223,185 | 201,112 |
Depreciation and amortization | (12,057) | (10,914) | (34,634) | (32,484) |
Other Segments [Member] | ||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | ||||
Adjusted EBITDA | $ (4,061) | $ 2,228 | $ (9,744) | $ (3,473) |