Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 24, 2017 | |
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 | |
Limited Partners' Capital Account, Units Outstanding | 380,008,256 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Commodity sales | $ 2,161,009 | $ 1,633,272 | $ 4,377,726 | $ 2,916,783 |
Services | 564,763 | 500,835 | 1,097,657 | 991,783 |
Total revenues | 2,725,772 | 2,134,107 | 5,475,383 | 3,908,566 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,091,022 | 1,527,323 | 4,234,865 | 2,723,061 |
Operations and maintenance | 193,501 | 167,667 | 358,270 | 322,812 |
Depreciation and amortization | 100,849 | 99,247 | 200,268 | 193,725 |
General taxes | 24,304 | 24,172 | 51,457 | 46,042 |
(Gain) loss on sale of assets | (637) | 413 | (630) | (3,793) |
Operating income | 316,733 | 315,285 | 631,153 | 626,719 |
Equity in net earnings from investments (Note J) | 39,363 | 32,372 | 78,927 | 65,286 |
Allowance for equity funds used during construction | 22 | 0 | 35 | 208 |
Other income | 4,033 | 4,804 | 8,374 | 5,109 |
Other expense | (21,843) | (941) | (22,593) | (1,578) |
Interest expense (net of capitalized interest of $1,745, $2,572, $3,186 ,and $5,459, respectively) | (118,473) | (118,976) | (234,935) | (237,223) |
Income before income taxes | 219,835 | 232,544 | 460,961 | 458,521 |
Income taxes | (43,844) | (52,458) | (98,785) | (102,524) |
Income from Continuing Operations | 175,991 | 180,086 | 362,176 | 355,997 |
Income (Loss) from Discontinued Operations, Net of Tax | 0 | (227) | 0 | (1,179) |
Net income | 175,991 | 179,859 | 362,176 | 354,818 |
Less: Net income attributable to noncontrolling interests | 104,298 | 93,915 | 203,122 | 185,428 |
Net income attributable to ONEOK | 71,693 | 85,944 | 159,054 | 169,390 |
Less: Preferred Stock Dividends | 217 | 0 | 217 | 0 |
Net Income | 71,476 | 85,944 | 158,837 | 169,390 |
Amounts available to common shareholders | ||||
Income from Continuing Operations | 71,476 | 86,171 | 158,837 | 170,569 |
Income (Loss) from Discontinued Operations | 0 | (227) | 0 | (1,179) |
Net Income | $ 71,476 | $ 85,944 | $ 158,837 | $ 169,390 |
Basic earnings per common share: | ||||
Income from Continuing Operations (Note H) | $ 0.34 | $ 0.41 | $ 0.75 | $ 0.81 |
Income (Loss) from Discontinued Operations | 0 | 0 | 0 | (0.01) |
Net income | 0.34 | 0.41 | 0.75 | 0.80 |
Diluted earnings per common share: | ||||
Income from Continuing Operations (Note H) | 0.33 | 0.41 | 0.74 | 0.81 |
Income (Loss) from Discontinued Operations | 0 | (0.01) | 0 | (0.01) |
Net income | $ 0.33 | $ 0.40 | $ 0.74 | $ 0.80 |
Average shares (thousands) | ||||
Basic | 211,785 | 211,075 | 211,702 | 210,928 |
Diluted | 214,012 | 212,618 | 213,807 | 211,663 |
Dividends declared per share of common stock | $ 0.615 | $ 0.615 | $ 1.230 | $ 1.230 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Costs, Capitalized During Period | $ 1,745 | $ 2,572 | $ 3,186 | $ 5,459 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 175,991 | $ 179,859 | $ 362,176 | $ 354,818 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives, net of tax of $874, $13,295, $(3,527) and $16,334, respectively | (5,123) | (73,923) | 19,333 | (90,817) |
Realized (gains) losses on derivatives recognized in net income, net of tax of $(2,041), $1,193, $(5,406) and $2,469, respectively | 9,927 | (8,054) | 27,210 | (16,579) |
Change in pension and postretirement benefit plan liability, net of tax of $(1,361), $(1,035), $(2,721) and $(2,070) respectively | 2,040 | 1,552 | 4,081 | 3,105 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax of $246, $848, $188 and $1,732, respectively | (1,370) | (4,714) | (1,045) | (9,631) |
Total other comprehensive income (loss), net of tax | 5,474 | (85,139) | 49,579 | (113,922) |
Comprehensive income | 181,465 | 94,720 | 411,755 | 240,896 |
Less: Comprehensive income attributable to noncontrolling interests | 106,507 | 33,408 | 234,148 | 103,510 |
Comprehensive income attributable to ONEOK | $ 74,958 | $ 61,312 | $ 177,607 | $ 137,386 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARANTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Unrealized Gains (Losses) on Derivatives, Tax | $ 874 | $ 13,295 | $ (3,527) | $ 16,334 |
Realized (Gains) Losses on Derivatives in Net Income, Tax | (2,041) | 1,193 | (5,406) | 2,469 |
Change in Pension and Postretirement Benefit Plan Liability, Tax | (1,361) | (1,035) | (2,721) | (2,070) |
Other Comprehensive Income (Loss) on Investments in Unconsolidated Affiliates, Tax | $ 246 | $ 848 | $ 188 | $ 1,732 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 332,371 | $ 248,875 |
Accounts receivable, net | 749,345 | 872,430 |
Materials and supplies | 75,172 | 60,912 |
Natural gas and natural gas liquids in storage | 200,133 | 140,034 |
Commodity imbalances | 39,325 | 60,896 |
Other current assets | 51,465 | 45,986 |
Asset of discontinued operations | 0 | 551 |
Total current assets | 1,447,811 | 1,429,684 |
Property, plant and equipment | ||
Property, plant and equipment | 15,241,140 | 15,078,497 |
Accumulated depreciation and amortization | 2,694,148 | 2,507,094 |
Net property, plant and equipment | 12,546,992 | 12,571,403 |
Investments and other assets | ||
Investments in unconsolidated affiliates | 944,562 | 958,807 |
Goodwill and intangible assets | 999,409 | 1,005,359 |
Deferred Income Taxes | 563,364 | 0 |
Other assets | 170,785 | 162,998 |
Asset of discontinued operations | 0 | 10,500 |
Total investments and other assets | 2,678,120 | 2,137,664 |
Total assets | 16,672,923 | 16,138,751 |
Current liabilities | ||
Current maturities of long-term debt (Note E) | 494,703 | 410,650 |
Short-term borrowings (Note E) | 1,274,407 | 1,110,277 |
Accounts payable | 696,834 | 874,731 |
Commodity imbalances | 114,941 | 142,646 |
Accrued interest | 111,697 | 112,514 |
Other current liabilities | 167,937 | 166,042 |
Liabilities of discontinued operations | 0 | 19,841 |
Liabilities, Current | 2,860,519 | 2,836,701 |
Long-term debt, excluding current maturities (Note E) | 7,835,606 | 7,919,996 |
Deferred income taxes | 73,983 | 1,623,822 |
Other deferred credits | 337,584 | 321,846 |
Liabilities of discontinued operations | 0 | 7,471 |
Deferred credits and other liabilities | 411,567 | 1,953,139 |
Commitments and contingencies (Note K) | ||
Equity (Note F) | ||
Preferred stock, $0.01 par value:issued 20,000 shares at June 30, 2017, and no shares at December 31, 2016 | 0 | 0 |
Common stock, $0.01 par value:authorized 1,200,000,000 shares; issued 414,732,011 shares and outstanding380,004,718 shares at June 30, 2017; issued 245,811,180 shares andoutstanding 210,681,661 shares at December 31, 2016 | 4,147 | 2,458 |
Additional Paid in Capital | 6,463,130 | 1,234,314 |
Accumulated other comprehensive loss (Note G) | (176,085) | (154,350) |
Retained Earnings | 0 | 0 |
Treasury stock, at cost: 34,727,293 shares at June 30, 2017, and35,129,519 shares at December 31, 2016 | (883,445) | (893,677) |
Total ONEOK Shareholder' Equity | 5,407,747 | 188,745 |
Noncontrolling interests in consolidated subsidiaries | 157,484 | 3,240,170 |
Total equity | 5,565,231 | 3,428,915 |
Total liabilities and equity | $ 16,672,923 | $ 16,138,751 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Equity (Note F) | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 414,732,011 | 245,811,180 |
Common Stock, Shares Authorized | 1,200,000,000 | 600,000,000 |
Common Stock, Shares, Outstanding | 380,004,718 | 210,681,661 |
Treasury Stock, Shares | 34,727,293 | 35,129,519 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0 |
Preferred Stock, Shares Issued | 20,000 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net income | $ 362,176 | $ 354,818 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 200,268 | 193,725 |
Noncash contribution of preferred stock, net of tax | 12,600 | 0 |
Equity in net earnings from investments | (78,927) | (65,286) |
Distributions received from unconsolidated affiliates | 81,744 | 72,204 |
Deferred Income Taxes | 90,685 | 105,567 |
Share-based Compensation | 13,477 | 23,194 |
Pension and Other Postretirement Benefit Expense, Net of Contributions | (1,576) | 6,172 |
Allowance for equity funds used during construction | (35) | (208) |
(Gain) loss on sale of assets | (630) | (3,793) |
Changes in assets and liabilities: | ||
Accounts receivable | 123,085 | (85,435) |
Natural gas and natural gas liquids in storage | (60,099) | (117,862) |
Accounts payable | (134,334) | 103,976 |
Commodity imbalances, net | (6,134) | 31,465 |
Settlement of exit liabilities | (6,546) | (11,590) |
Accrued interest | (817) | (9,269) |
Risk-management assets and liabilities | 66,940 | (60,016) |
Other assets and liabilities, net | (18,986) | (6,056) |
Cash provided by operating activities | 642,891 | 531,606 |
Investing activities | ||
Capital expenditures (less allowance for equity funds used during construction) | (195,232) | (333,254) |
Contributions to unconsolidated affiliates | (4,653) | (19,830) |
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 14,936 | 36,373 |
Proceeds from sale of assets | 1,218 | 18,232 |
Cash used in investing activities | (183,731) | (298,479) |
Financing activities | ||
Dividends paid | (259,758) | (258,508) |
Distributions to noncontrolling interests | (273,460) | (275,259) |
Borrowing (repayment) of short-term borrowings, net | 164,130 | 29,967 |
Issuance of long-term debt, net of discounts | 0 | 1,000,000 |
Debt financing costs | (38) | (2,770) |
Repayment of long-term debt | (3,898) | (654,151) |
Issuance of Common Stock | 10,845 | 11,101 |
Other | (13,485) | 0 |
Cash used in financing activities | (375,664) | (149,620) |
Change in cash and cash equivalents | 83,496 | 83,507 |
Change in cash and cash equivalents included in discontinued operations | 0 | (272) |
Change in cash and cash equivalents from continuing operations | 83,496 | 83,235 |
Cash and cash equivalents at beginning of period | 248,875 | 97,619 |
Cash and cash equivalents at end of period | $ 332,371 | $ 180,854 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interests in Consolidated Subsidiaries [Member] |
Shares, Issued | 245,811,180 | 0 | ||||||
Total equity | $ 3,766,336 | $ 2,458 | $ 0 | $ 1,378,444 | $ (127,242) | $ 0 | $ (917,862) | $ 3,430,538 |
Net income | 354,818 | 0 | 0 | 0 | 0 | 169,390 | 0 | 185,428 |
Other comprehensive income (loss) (Note G) | (113,922) | 0 | 0 | 0 | (32,004) | 0 | 0 | (81,918) |
Common Stock Issued | 15,462 | $ 0 | 0 | (2,034) | 0 | 0 | 17,496 | 0 |
Stock Issued During Period, Shares, Other | 0 | |||||||
Dividends, Cash | (258,508) | $ 0 | 0 | (89,118) | 0 | (169,390) | 0 | 0 |
Distributions to Noncontrolling Interests | (275,259) | 0 | 0 | 0 | 0 | 0 | 0 | (275,259) |
Stockholders' Equity, Other | 3,250 | $ 0 | $ 0 | 7,291 | 0 | 0 | 0 | (4,041) |
Shares, Issued | 245,811,180 | 0 | ||||||
Total equity | 3,492,177 | $ 2,458 | $ 0 | 1,294,583 | (159,246) | 0 | (900,366) | 3,254,748 |
Shares, Issued | 245,811,180 | 0 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 73,368 | $ 0 | $ 0 | 0 | 0 | 73,368 | 0 | 0 |
Total equity | 3,428,915 | 2,458 | 0 | 1,234,314 | (154,350) | 0 | (893,677) | 3,240,170 |
Net income | 362,176 | 0 | 0 | 0 | 0 | 159,054 | 0 | 203,122 |
Other comprehensive income (loss) (Note G) | 49,579 | 0 | 0 | 0 | 18,553 | 0 | 0 | 31,026 |
Common Stock Issued | 11,431 | $ 0 | $ 0 | 1,199 | 0 | 0 | 10,232 | 0 |
Stock Issued During Period, Shares, Other | 0 | 20,000 | ||||||
Preferred Stock Issued | 20,000 | $ 0 | $ 0 | 20,000 | 0 | 0 | 0 | 0 |
Dividends, Cash | (259,758) | 0 | 0 | (27,336) | 0 | (232,422) | 0 | 0 |
Dividends, Preferred Stock | (217) | 0 | 0 | (217) | 0 | 0 | 0 | 0 |
Distributions to Noncontrolling Interests | (273,460) | $ 0 | 0 | 0 | 0 | 0 | 0 | (273,460) |
Stock Issued During Period, Shares, Acquisitions | 168,920,831 | |||||||
Acquisition of ONEOK Partners’ noncontrolling interests (Note B) | 2,146,462 | $ 1,689 | 0 | 5,228,580 | (40,288) | 0 | 0 | (3,043,519) |
Stockholders' Equity, Other | 6,735 | $ 0 | $ 0 | 6,590 | 0 | 0 | 0 | 145 |
Shares, Issued | 414,732,011 | 20,000 | ||||||
Total equity | $ 5,565,231 | $ 4,147 | $ 0 | $ 6,463,130 | $ (176,085) | $ 0 | $ (883,445) | $ 157,484 |
CONSOLIDATED STATEMENT OF CHA10
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.615 | $ 1.230 | $ 1.230 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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 2016 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 and our Current Report on Form 8-K filed on July 6, 2017, which updates Item 8 in our Annual Report. 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. Merger Transaction - On June 30, 2017, we completed the acquisition of all of the outstanding common units of ONEOK Partners that we did not already own. See Note B for additional information, including a discussion of the impact of the Merger Transaction on our Consolidated Financial Statements. Discontinued Operations - Beginning in 2017, the results of operations and financial position of our former energy services business are no longer reflected as discontinued operations in our Consolidated Financial Statements and Notes to the Consolidated Financial Statements, as they are not material. Recently Issued Accounting Standards Update - Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of ASUs to the FASB Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or clarifications of ASUs listed below. 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 2015-11, “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 As a result of adopting this guidance, we updated our accounting policy for inventory valuation accordingly. The financial impact of adopting this guidance was not material. 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 The impact of adopting this standard was not material. 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 The impact of adopting this standard was not material. 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 As a result of adopting this guidance, we recorded an adjustment increasing beginning retained earnings and deferred tax assets in the first quarter 2017 of approximately $73 million to recognize previously unrecognized cumulative excess tax benefits related to share-based payments on a modified retrospective basis. Beginning in January 2017, all share-based payment tax effects are recorded in earnings. The other effects of adopting this standard were not material. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted 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 contracts and transaction types across all our business segments, which we have substantially completed. For the majority of our contracts, we do not expect material changes in our accounting policies or revenue recognition. However, we are reviewing the potential impact on certain contract types where there remains diversity of thought across our industry in the application of the standard. Due to this ongoing analysis, we cannot yet determine the quantitative impact on revenues or cost of sales from the adoption of Topic 606, but we do not currently believe the adoption will have a material impact on net income. We are developing our required disclosures under the standard and expect to disaggregate revenues similar to our current presentation in Note L - Segments. We have not identified material unsatisfied performance obligations that would require disclosure. We are currently evaluating methods of adoption and analyzing the impact of the standard on our internal controls. We expect to determine our method of adoption when we complete our evaluation of the quantitative impact of the standard and the implications of each adoption method. 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 do not have any equity investments classified as available-for-sale or accounted for using the cost method, therefore we do not expect adoption of this standard to have a material impact 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 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” The standard requires the service cost component of net benefit cost to be reported in the same line item or items as other compensation costs from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. 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 our current leases and other contracts that may be considered leases under the new standard and the impact on our internal controls, accounting policies and financial statements and disclosures. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted (continued) 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. ASU 2017-04, “Intangibles- Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” The standard simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill under step 2. Instead, an entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard does not change step zero or step 1 assessments. First quarter 2020 We are evaluating the impact of this standard on us. |
ONEOK PARTNERS ACQUISITION (Not
ONEOK PARTNERS ACQUISITION (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Business Acquisition [Line Items] | |
Business Acquisition, Description of Acquired Entity | ACQUISITION OF ONEOK PARTNERS On June 30, 2017, we completed the Merger Transaction at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit that we did not already own. We issued 168.9 million shares of our common stock to third-party common unitholders of ONEOK Partners in exchange for all of the 171.5 million outstanding common units of ONEOK Partners that we previously did not own. No fractional shares were issued in the Merger Transaction, and ONEOK Partners common unitholders instead received cash in lieu of fractional shares. As a result of the completion of the Merger Transaction, common units of ONEOK Partners are no longer publicly traded. As we controlled ONEOK Partners and continue to control ONEOK Partners after the Merger Transaction, the change in our ownership interest was accounted for as an equity transaction, and no gain or loss was recognized in our Consolidated Statements of Income resulting from the Merger Transaction. The Merger Transaction was a taxable exchange to the ONEOK Partners unitholders resulting in a book/tax difference in the basis of the underlying assets acquired. We recorded a deferred tax asset of approximately $2.1 billion, computed as the net of the equity value exchanged of $8.8 billion and noncontrolling interests of $3.0 billion at a tax rate of 37 percent, based on a preliminary tax allocation of the transaction value. Final allocation is subject to completion of our valuation study. Prior to June 30, 2017, we and our subsidiaries owned all of the general partner interest, which included incentive distribution rights, and a portion of the limited partner interest, which, together represented a 41.2 percent ownership interest in ONEOK Partners. The equity interests in ONEOK Partners (which are consolidated in our financial statements) that were owned by the public until June 30, 2017, are reflected in “Noncontrolling interests” in our accompanying Consolidated Balance Sheet as of December 31, 2016. The earnings of ONEOK Partners that are attributed to its units held by the public until June 30, 2017, are reported as “Net income attributable to noncontrolling interest” in our accompanying Consolidated Statements of Income. Our general partner incentive distribution rights effectively terminated at the closing of the Merger Transaction. Effective with the close of the Merger Transaction, we, ONEOK Partners and the Intermediate Partnership issued, to the extent not already in place, guarantees of the indebtedness of ONEOK and ONEOK Partners. Supplemental Cash Flow Information - Our noncash balance sheet activity related to the Merger Transaction is as follows (in millions): June 30, 2017 Common stock $ 1.7 Paid-in capital $ 5,228.6 Accumulated other comprehensive loss $ (40.3 ) Noncontrolling interests in consolidated subsidiaries $ (3,043.5 ) Deferred income taxes $ (2,146.5 ) |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
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 derivative portfolio are executed in liquid markets where price transparency exists, some contracts are executed in markets for which market prices may exist, but the market may be relatively inactive. This results in limited price transparency that requires management’s judgment and assumptions to estimate fair values. For certain transactions, we utilize modeling techniques using NYMEX-settled pricing data and implied forward LIBOR curves. Inputs into our fair value estimates include commodity-exchange prices, over-the-counter quotes, historical correlations of pricing data, data obtained from third-party pricing services and LIBOR and other liquid money-market instrument rates. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. In addition, as prescribed by the income approach, we compute the fair value of our derivative portfolio by discounting the projected future cash flows from our 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 derivative contracts we have executed, the ultimate market prices realized could differ from our estimates, and the differences could be material. The fair value of our forward-starting interest-rate swaps are determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest-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 composed 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: June 30, 2017 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 4,349 $ — $ 11,865 $ 16,214 $ (15,786 ) $ 428 Physical contracts — — 710 710 — 710 Interest-rate contracts — 38,006 — 38,006 — 38,006 Total derivative assets $ 4,349 $ 38,006 $ 12,575 $ 54,930 $ (15,786 ) $ 39,144 Derivative liabilities Commodity contracts Financial contracts $ (5,973 ) $ — $ (10,792 ) $ (16,765 ) $ 16,656 $ (109 ) Physical contracts — — (1,033 ) (1,033 ) — (1,033 ) Interest-rate contracts — (16,872 ) — (16,872 ) — (16,872 ) Total derivative liabilities $ (5,973 ) $ (16,872 ) $ (11,825 ) $ (34,670 ) $ 16,656 $ (18,014 ) (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 June 30, 2017 , we held no cash and posted $11.8 million of cash with various counterparties, including $0.9 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $10.9 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 or other current liabilities in our Consolidated Balance Sheets. December 31, 2016 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 1,147 $ — $ 4,564 $ 5,711 $ (4,760 ) $ 951 Interest rate contracts — 47,457 — 47,457 — 47,457 Total derivative assets $ 1,147 $ 47,457 $ 4,564 $ 53,168 $ (4,760 ) $ 48,408 Derivative liabilities Commodity contracts Financial contracts $ (31,458 ) $ — $ (24,861 ) $ (56,319 ) $ 56,319 $ — Physical contracts — — (3,022 ) (3,022 ) — (3,022 ) Interest-rate contracts — (12,795 ) — (12,795 ) — (12,795 ) Total derivative liabilities $ (31,458 ) $ (12,795 ) $ (27,883 ) $ (72,136 ) $ 56,319 $ (15,817 ) (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, 2016 , we held no cash and posted $67.7 million of cash with various counterparties, including $51.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $16.1 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 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 Six Months Ended June 30, June 30, Derivative Assets (Liabilities) 2017 2016 2017 2016 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ (772 ) $ 34 $ (23,319 ) $ 7,331 Total realized/unrealized gains (losses): Included in earnings (a) (656 ) 318 258 (427 ) Included in other comprehensive income (loss) 2,178 (14,373 ) 23,811 (20,925 ) Net assets (liabilities) at end of period $ 750 $ (14,021 ) $ 750 $ (14,021 ) (a) - Included in commodity sales revenues in our Consolidated Statements of Income. Realized/unrealized gains (losses) include the realization of our derivative contracts through maturity. During the three and six months ended June 30, 2017 and 2016 , gains or losses included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the end of each reporting period were not material. We recognize transfers into and out of the levels in the fair value hierarc hy as of the end of each reporting period. During the three and six months ended June 30, 2017 and 2016 , there were no tra ns fers 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 composed 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 $9.1 billion and $8.8 billion at June 30, 2017 , and December 31, 2016 , respectively. The book value of our consolidated long-term debt, including current maturities, was $8.3 billion at June 30, 2017 , and December 31, 2016 . The estimated fair value of the aggregate of our 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 (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 purchased, processed and sold. We are also subject to the risk of interest-rate fluctuation in the normal course of business. 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 our risk-management activities. We have not used these instruments for trading purposes. 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. In our Natural Gas Gathering and Processing segment, we are exposed to commodity price risk as a result of retaining a portion of the commodity sales proceeds associated with our POP with fee contracts. Under certain POP with fee contracts, our fee revenues may increase or decrease if production volumes, delivery pressures or commodity prices change relative to specified thresholds. We also are exposed to basis risk between the various production and market locations where we buy and sell 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. In our Natural Gas Liquids segment, we are 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. We are also exposed to commodity price risk resulting from the relative values of the various NGL products to each other, NGLs in storage and the relative value of NGLs to natural gas. We utilize physical-forward contracts and commodity derivative financial instruments to reduce the impact of price fluctuations related to NGLs. In our Natural Gas Pipelines segment, we are exposed to commodity price risk because our intrastate and interstate natural gas pipelines retain natural gas from our customers for operations or as part of our fee for services provided. When the amount of natural gas consumed in operations by these pipelines differs from the amount provided by our customers, our pipelines must buy or sell natural gas, or store or use natural gas from inventory, which may expose this segment to commodity price risk depending on the regulatory treatment for this activity. To the extent that commodity price risk in our Natural Gas Pipelines segment is not mitigated by fuel cost-recovery mechanisms, we may use physical-forward sales or purchases to reduce the impact of price fluctuations related to natural gas. At June 30, 2017 , and December 31, 2016 , there were no financial derivative instruments with respect to our 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 June 30, 2017 , and December 31, 2016 , we had interest-rate swaps with notional amounts totaling $1 billion to hedge the variability of our LIBOR-based interest payments and forward-starting interest-rate swaps with notional amounts totaling $1.2 billion to hedge the variability of interest payments on a portion of our forecasted debt issuances that may result from changes in the benchmark interest rate before the debt is issued. All of our interest-rate swaps are designated as cash flow hedges. In July 2017, we settled $400 million of our forward-starting interest-rate swaps upon the completion of our underwritten public offering of $1.2 billion senior unsecured notes and $500 million of our interest-rate swaps used to hedge our LIBOR-based interest payments. Accounting Treatment - 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 C 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: June 30, 2017 December 31, 2016 Location in our Consolidated Balance Sheets Assets (Liabilities) Assets (Liabilities) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts Financial contracts Other current assets/other current liabilities $ 7,577 $ (13,082 ) $ 1,155 $ (49,938 ) Other assets/deferred credits and other liabilities 5,510 (225 ) 210 (2,142 ) Physical contracts Other current assets/other current liabilities 330 (1,033 ) — (3,022 ) Other assets 380 — — — Interest-rate contracts Other current assets/other current liabilities 493 (16,872 ) — (12,795 ) Other assets 37,513 — 47,457 — Total derivatives designated as hedging instruments 51,803 (31,212 ) 48,822 (67,897 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts Other current assets/other current liabilities 2,587 (2,967 ) 4,346 (4,239 ) Other assets/deferred credits and other liabilities 540 (491 ) — — Total derivatives not designated as hedging instruments 3,127 (3,458 ) 4,346 (4,239 ) Total derivatives $ 54,930 $ (34,670 ) $ 53,168 $ (72,136 ) Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held for the periods indicated: June 30, 2017 December 31, 2016 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 — (34.3 ) — (38.4 ) - Natural gas ( Bcf ) Put options 22.5 — 49.5 — - Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps 0.7 (5.0 ) — (3.6 ) Basis - Natural gas ( Bcf ) Futures and swaps — (34.3 ) — (38.4 ) Interest-rate contracts ( Millions of dollars ) Swaps $ 2,150.0 $ — $ 2,150.0 $ — Derivatives not designated as hedging instruments: Fixed price -Natural gas ( Bcf ) Futures and swaps 1.8 — 0.4 — - NGLs ( MMBbl ) Futures, forwards and swaps 0.6 (1.1 ) 0.5 (0.7 ) Basis - Natural gas ( Bcf ) Futures and swaps 1.8 — 0.4 — These notional amounts are used to summarize the volume of financial instruments; however, they do not reflect the extent to which the positions offset one another and, consequently, do not reflect our actual exposure to market or credit risk. Cash Flow Hedges - At June 30, 2017 , our Consolidated Balance Sheet reflected a net loss of $176.1 million in accumulated other comprehensive loss. The portion of accumulated other comprehensive loss attributable to our commodity derivative financial instruments is an unrealized loss of $3.1 million , net of tax, which is expected to be realized within the next 18 months as the forecasted transactions affect earnings. If commodity prices remain at current levels, we will realize approximately $6.6 million in net losses , net of tax, over the next 12 months and approximately $3.5 million in net gains , net of tax, thereafter. The amount deferred in accumulated other comprehensive loss attributable to our settled interest-rate swaps is a loss of $84.3 million , net of tax, which will be recognized over the life of the long-term, fixed-rate debt, including losses of $12.9 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 is expected to 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: Three Months Ended Six Months Ended Derivatives in Cash Flow Hedging Relationships June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Commodity contracts $ 8,998 $ (58,654 ) $ 36,326 $ (46,976 ) Interest-rate contracts (14,995 ) (28,564 ) (13,466 ) (60,175 ) Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) $ (5,997 ) $ (87,218 ) $ 22,860 $ (107,151 ) 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ (6,796 ) $ 14,049 $ (22,115 ) $ 28,548 Interest-rate contracts Interest expense (5,172 ) (4,802 ) (10,501 ) (9,500 ) Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives (effective portion) $ (11,968 ) $ 9,247 $ (32,616 ) $ 19,048 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, we may enter into financial derivative instruments that contain provisions that require us to maintain an investment-grade credit rating from S&P and/or Moody’s. If our credit ratings on our 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 June 30, 2017 . 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 June 30, 2017 , the net credit exposure from our derivative assets is with investment-grade companies in the financial services sector. |
DEBT DEBT (Notes)
DEBT DEBT (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | DEBT The following table sets forth our consolidated debt for the periods indicated: June 30, December 31, ( Thousands of dollars ) ONEOK Senior unsecured obligations: $700,000 at 4.25% due February 2022 $ 547,397 $ 547,397 $500,000 at 7.5% due September 2023 500,000 500,000 $100,000 at 6.5% due September 2028 87,053 87,126 $100,000 at 6.875% due September 2028 100,000 100,000 $400,000 at 6.0% due June 2035 400,000 400,000 ONEOK Partners Commercial paper outstanding, bearing a weighted-average interest rate of 1.80% and 1.27%, respectively (a) 1,274,407 1,110,277 Senior unsecured obligations: $400,000 at 2.0% due October 2017 400,000 400,000 $425,000 at 3.2% due September 2018 425,000 425,000 $1,000,000 term loan, variable rate, due January 2019 (b) 1,000,000 1,000,000 $500,000 at 8.625% due March 2019 500,000 500,000 $300,000 at 3.8% due March 2020 300,000 300,000 $900,000 at 3.375 % due October 2022 900,000 900,000 $425,000 at 5.0 % due September 2023 425,000 425,000 $500,000 at 4.9 % due March 2025 500,000 500,000 $600,000 at 6.65% due October 2036 600,000 600,000 $600,000 at 6.85% due October 2037 600,000 600,000 $650,000 at 6.125% due February 2041 650,000 650,000 $400,000 at 6.2% due September 2043 400,000 400,000 Guardian Pipeline Weighted average 7.85% due December 2022 40,433 44,257 Total debt 9,649,290 9,489,057 Unamortized portion of terminated swaps 19,327 20,186 Unamortized debt issuance costs and discounts (63,901 ) (68,320 ) Current maturities of long-term debt (494,703 ) (410,650 ) Short-term borrowings (c) (1,274,407 ) (1,110,277 ) Long-term debt $ 7,835,606 $ 7,919,996 (a) - In July 2017, the commercial paper outstanding under the ONEOK Partners commercial paper program was repaid as it matured with a combination of proceeds from new issuances from ONEOK’s recently established $2.5 billion commercial paper program, cash on hand and proceeds from our July 2017 $1.2 billion senior notes issuance. The $2.4 billion ONEOK Partners commercial paper program was terminated in July 2017. (b) - I n July 2017, we repaid $500 million of the $1.0 billion Term Loan Agreement due 2019. (c) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. These issuances are supported by and reduce the borrowing capacity under the 2017 Credit Agreement. 2017 Credit Agreement - In April 2017, we entered into the 2017 Credit Agreement with a syndicate of banks, which became effective June 30, 2017, with the close of the Merger Transaction and the terminations of the ONEOK Credit Agreement and ONEOK Partners Credit Agreement. The 2017 Credit Agreement is a $2.5 billion revolving credit facility and 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 our 2017 Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.75 to 1 at June 30, 2017, and for the following two quarters; 5.5 to 1 for the subsequent two quarters; and 5.0 to 1 thereafter. Once the covenant decreases to 5.0 to 1, if we consummate one or more acquisitions in which the aggregate purchase 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 is completed and the two following quarters. The 2017 Credit Agreement includes a $100 million sublimit for the issuance of standby letters of credit and a $200 million sublimit for swingline loans. Under the terms of the 2017 Credit Agreement, we may request an increase in the size of the facility to an aggregate of $3.5 billion by either commitments from new lenders or increased commitments from existing lenders. The 2017 Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in our credit ratings. Based on our current credit ratings, borrowings, if any, will accrue at LIBOR plus 110 basis points , and the annual facility fee is 15 basis points . We have the option to request two one-year extensions, subject to lender approval, which may be used for working capital, capital expenditures, acquisitions and mergers, the issuance of letters of credit and for other general corporate purposes. At June 30, 2017, our ratio of indebtedness to adjusted EBITDA was 5.1 to 1, and we were in compliance with all covenants under the 2017 Credit Agreement. Issuances - In July 2017, we completed an underwritten public offering of $1.2 billion senior unsecured notes consisting of $500 million , 4.0 percent senior notes due 2027, and $700 million , 4.95 percent senior notes due 2047. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were approximately $1.18 billion . The proceeds were used for general corporate purposes, which included repayment of existing indebtedness and capital expenditures. In January 2016, ONEOK Partners entered into the $1.0 billion senior unsecured Term Loan Agreement with a syndicate of banks. The Term Loan Agreement matures in January 2019 and bears interest at LIBOR plus 130 basis points based on our current credit ratings. At June 30, 2017, the interest rate was 2.52 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 our 2017 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 $650 million of senior notes at maturity, to repay amounts outstanding under its commercial paper program and for general partnership purposes. In April 2017, ONEOK Partners entered into the first amendment to the Term Loan Agreement, which, among other things, added ONEOK as a guarantor to the Term Loan Agreement effective June 30, 2017, with the close of the Merger Transaction described in Note B. Repayments - In July 2017, we redeemed our 6.5 percent senior notes due 2028 at a redemption price of approximately $87 million , including the outstanding principal amount, plus accrued and unpaid interest, with cash on hand. At June 30, 2017, these notes are included in current maturities of long-term debt in our Consolidated Balance Sheet. Also in July 2017, we repaid $500 million of the $1.0 billion Term Loan Agreement due 2019. Debt Guarantees - Effective June 30, 2017, with the Merger Transaction, we, ONEOK Partners and the Intermediate Partnership issued, to the extent not already in place, guarantees of the indebtedness of ONEOK and ONEOK Partners. |
EQUITY (Notes)
EQUITY (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
EQUITY | EQUITY Ownership Interest in ONEOK Partners - At December 31, 2016, we and our subsidiaries owned all of the general partner interest, which included incentive distribution rights, and a portion of the limited partner interest, which together represented a 41.2 percent ownership interest in ONEOK Partners consisting of approximately 41.3 million common units and 73.0 million Class B units, which are convertible, at our option, into common units. The portion of ONEOK Partners that we did not own is reflected in our 2016 Consolidated Balance Sheet under the caption “Noncontrolling interests” along with the 20 percent of WTLPG that we do not own. On June 30, 2017, we completed the Merger Transaction at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit that we did not already own. We issued 168.9 million shares of our common stock to third-party common unitholders of ONEOK Partners in exchange for all of the 171.5 million outstanding common units of ONEOK Partners that we previously did not own. At June 30, 2017, the caption “Noncontrolling interests” on our Consolidated Balance Sheet reflects only the 20 percent of WTLPG that we do not own. Cash Distributions - Prior to the consummation of the Merger Transaction, we received distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which included our incentive distribution rights. Additional information about ONEOK Partners’ cash distributions and our incentive distribution rights for the periods prior to June 30, 2017, is included under “Cash Distributions” in Note O of the Notes to Consolidated Financial Statements in our Annual Report. Distributions paid to ONEOK Partners unitholders of record at the close of business on January 30, 2017 , and May 1, 2017 , were $0.79 per unit. As a result of the Merger Transaction, we are entitled to receive all available ONEOK Partners cash. Our incentive distribution rights effectively terminated at the close of the Merger Transaction. The following table sets forth ONEOK Partners’ distributions declared and paid during the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 0.79 $ 1.58 $ 1.58 General partner distributions $ 6,660 $ 6,660 $ 13,320 $ 13,320 Incentive distributions 100,538 100,538 201,076 201,076 Distributions to general partner 107,198 107,198 214,396 214,396 Limited partner distributions to ONEOK 90,323 90,323 180,646 180,646 Limited partner distributions to other unitholders 135,479 135,479 270,959 270,959 Total distributions paid $ 333,000 $ 333,000 $ 666,001 $ 666,001 Dividends - Holders of our common stock share equally in any dividend declared by our board of directors, subject to the rights of the holders of outstanding preferred stock. Dividends paid on our common stock to shareholders of record at the close of business on January 30, 2017, and May 1, 2017, were $0.615 per share. A dividend of $0.745 per share was declared for shareholders of record at the close of business on August 7, 2017 , payable August 14, 2017 . In April 2017, through a wholly owned subsidiary, we contributed 20,000 shares of newly issued Series E Preferred Stock, having an aggregate value of $20 million , to the Foundation for use in charitable and nonprofit causes. The contribution was recorded as a $20 million noncash expense in the second quarter 2017 and is included in other expense in our Consolidated Statements of Income. The Series E Preferred Stock pays quarterly dividends on each share of Series E Preferred Stock, when, as and if declared by our Board of Directors, at a rate of 5.5 percent per year. Dividends totaling approximately $0.4 million were declared for the Series E Preferred Stock and are payable August 14, 2017 . The $20 million issuance of the shares of Series E Preferred Stock and the related accrued dividends of approximately $0.2 million at June 30, 2017, represent noncash financing activities. Equity Issuances - In July 2017, we established an “at-the-market” equity program for the offer and sale from time to time of our common stock up to an aggregate amount of $1 billion . The program allows us to offer and sell our common stock at prices we deem appropriate through a sales agent. Sales of our common stock may be made by means of ordinary brokers’ transactions on the NYSE, in block transactions, or as otherwise agreed to between us and the sales agent. We are under no obligation to offer and sell common stock under the program. Prior to the close of the Merger Transaction, ONEOK Partners had 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 . During the six months ended June 30, 2017 , and the year ended December 31, 2016, no common units were sold through ONEOK Partners’ “at-the-market” equity program. Upon the close of the Merger Transaction on June 30, 2017, the ONEOK Partners “at-the-market” equity program terminated. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ (52,155 ) $ (101,236 ) $ (959 ) $ (154,350 ) Other comprehensive income (loss) before reclassifications 5,728 5 (367 ) 5,366 Amounts reclassified from accumulated other comprehensive loss 9,064 4,076 47 13,187 Impact of Merger Transaction (Note B) (c) (40,288 ) — — (40,288 ) Net current-period other comprehensive income (loss) attributable to ONEOK (25,496 ) 4,081 (320 ) (21,735 ) June 30, 2017 $ (77,651 ) $ (97,155 ) $ (1,279 ) $ (176,085 ) (a) - All amounts are presented net of tax. (b) - Includes amounts related to supplemental executive retirement plan. (c) - Includes the remaining portion of ONEOK Partners’ accumulated other comprehensive loss at June 30, 2017, that we acquired in the Merger Transaction, related to commodity and interest-rate contracts. 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 Components Three Months Ended Six Months Ended Affected Line Item in the Statements of Income June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Unrealized gains (losses) on risk-management assets/liabilities Commodity contracts $ (6,796 ) $ 14,049 $ (22,115 ) $ 28,548 Commodity sales revenues Interest-rate contracts (5,172 ) (4,802 ) (10,501 ) (9,500 ) Interest expense (11,968 ) 9,247 (32,616 ) 19,048 Income before income taxes 2,041 (1,193 ) 5,406 (2,469 ) Income tax expense (9,927 ) 8,054 (27,210 ) 16,579 Net income Noncontrolling interests (6,521 ) 5,953 (18,146 ) 12,233 Less: Net income attributable to noncontrolling interests $ (3,406 ) $ 2,101 $ (9,064 ) $ 4,346 Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ (3,812 ) $ (2,997 ) $ (7,624 ) $ (5,995 ) Amortization of unrecognized prior service cost 415 415 830 830 (3,397 ) (2,582 ) (6,794 ) (5,165 ) Income before income taxes 1,359 1,033 2,718 2,066 Income tax expense $ (2,038 ) $ (1,549 ) $ (4,076 ) $ (3,099 ) Net income attributable to ONEOK Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates $ (85 ) $ — $ (181 ) $ — Equity in net earnings from investments 13 — 28 — Income tax expense (72 ) — (153 ) — Net income Noncontrolling interests (50 ) — (106 ) — Less: Net income attributable to noncontrolling interests $ (22 ) $ — $ (47 ) $ — Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (5,466 ) $ 552 $ (13,187 ) $ 1,247 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
EARNINGS PER SHARE EARNINGS PER SHARE (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 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 June 30, 2017 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 $ 71,476 211,785 $ 0.34 Diluted EPS from continuing operations Effect of dilutive securities — 2,227 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 71,476 214,012 $ 0.33 Three Months Ended June 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 $ 86,171 211,075 $ 0.41 Diluted EPS from continuing operations Effect of dilutive securities — 1,543 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 86,171 212,618 $ 0.41 Six Months Ended June 30, 2017 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 $ 158,837 211,702 $ 0.75 Diluted EPS from continuing operations Effect of dilutive securities — 2,105 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 158,837 213,807 $ 0.74 Six Months Ended June 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 $ 170,569 210,928 $ 0.81 Diluted EPS from continuing operations Effect of dilutive securities — 735 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 170,569 211,663 $ 0.81 |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 1,722 $ 1,622 $ 3,444 $ 3,244 Interest cost 4,655 4,947 9,310 9,894 Expected return on plan assets (5,336 ) (5,077 ) (10,672 ) (10,154 ) Amortization of net loss 3,392 2,736 6,784 5,473 Net periodic benefit cost $ 4,433 $ 4,228 $ 8,866 $ 8,457 Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 165 $ 149 $ 330 $ 298 Interest cost 565 601 1,130 1,202 Expected return on plan assets (564 ) (531 ) (1,128 ) (1,062 ) Amortization of prior service credit (415 ) (415 ) (830 ) (830 ) Amortization of net loss 420 261 840 522 Net periodic benefit cost $ 171 $ 65 $ 342 $ 130 |
UNCONSOLIDATED AFFILIATES (Note
UNCONSOLIDATED AFFILIATES (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
UNCONSOLIDATED AFFILIATES | UNCONSOLIDATED AFFILIATES Equity in Net Earnings from Investments - The following table sets forth our equity in net earnings from investments for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Northern Border Pipeline $ 15,622 $ 15,723 $ 34,439 $ 34,397 Overland Pass Pipeline Company 14,884 13,608 28,450 26,912 Other 8,857 3,041 16,038 3,977 Equity in net earnings from investments $ 39,363 $ 32,372 $ 78,927 $ 65,286 Unconsolidated Affiliates Financial Information - The following table sets forth summarized combined financial information of our unconsolidated affiliates for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Income Statement Operating revenues $ 157,603 $ 142,631 $ 311,883 $ 279,203 Operating expenses $ 69,465 $ 66,674 $ 136,401 $ 125,373 Net income $ 92,072 $ 69,420 $ 173,203 $ 141,457 Distributions paid to us $ 49,760 $ 62,024 $ 96,680 $ 108,577 We incurred expenses in transactions with unconsolidated affiliates of $39.4 million and $34.7 million for the three months ended June 30, 2017 and 2016 , respectively, and $76.1 million and $68.3 million for the six months ended June 30, 2017 and 2016 , respectively, primarily related to Overland Pass Pipeline Company and Northern Border Pipeline. Accounts payable to our equity-method investees at June 30, 2017 , and December 31, 2016 , were $12.9 million and $11.1 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, 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 - 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. As the operator, we have been delegated the authority to determine such distributions in accordance with, and on the frequency set forth in, the Roadrunner limited liability company agreement. Cash distributions are equal to 100 percent of available cash, as defined in the limited liability company agreement. We have an operating agreement with Roadrunner that provides for reimbursement or payment to us for management services and certain operating costs. Reimbursements and payments from Roadrunner included in operating income in our Consolidated Statements of Income for the three and six months ended June 30, 2017 and 2016 , were not material. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
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, we 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 results of operations, financial condition or cash flows. Legal Proceedings - Gas Index Pricing Litigation - In March 2017, the United States District Court for the District of Nevada (the Court) entered an order granting summary judgment in favor of our affiliate ONEOK Energy Services Company, L.P. (OESC), the lone defendant in the previously reported Sinclair case. The Court determined that the plaintiff’s claim is barred by a release obtained in a prior lawsuit against us and OESC. Upon entry of a final judgment, Sinclair Oil Corporation may pursue an appeal of this determination to the Ninth Circuit Court of Appeals. We expect that future charges, if any, from the ultimate resolution of the Sinclair case will not be material to our results of operations, financial position or cash flows. In May 2017, the Court gave final approval to the previously announced settlements of Learjet, Inc., et al. v. ONEOK, Inc., et al. (filed in the District Court of Wyandotte, Kansas, in November 2005, transferred to MDL-1566 in the United States District Court for the District of Nevada); Arandell Corporation, et al. v. Xcel Energy, Inc., et al. (filed in the Circuit Court for Dane County, Wisconsin, in December 2006, transferred to MDL-1566 in the United States District Court for the District of Nevada); Heartland Regional Medical Center, et al. v. ONEOK, Inc., et al. (filed in the Circuit Court of Buchanan County, Missouri, in March 2007, transferred to MDL-1566 in the United States District Court for the District of Nevada); and NewPage Wisconsin System v. CMS Energy Resource Management Company, et al. (filed in the Circuit Court for Wood County, Wisconsin, in March 2009, transferred to MDL-1566 in the United States District Court for the District of Nevada and now consolidated with the Arandell case). Thereafter, the Court entered a final judgment dismissing these actions with prejudice as to us and our affiliates. The final judgment was not appealed and became final and nonappealable in July 2017. The amount paid to settle these cases was not material to our results of operations, financial position or cash flows and was paid with cash on hand. ONEOK Partners Class Action Litigation - In June 2017, ONEOK Partners settled two putative class action lawsuits captioned Juergen Krueger, Individually And On Behalf Of All Others Similarly Situated v. ONEOK Partners, L.P., et al. (filed in the United States District Court for the Northern District of Oklahoma) and Max Federman, On Behalf of Himself and All Others Similarly Situated v. ONEOK Partners, L.P., et al. (filed in the United States District Court for the Northern District of Oklahoma) by agreeing to make certain disclosures about the Merger Transaction in addition to those made in the final proxy statement filed with the SEC. The supplemental disclosure was filed with the SEC on June 12, 2017 and the Krueger and Federman actions were dismissed on June 14, 2017 as moot, with prejudice as to the named plaintiffs and without prejudice as to any other members of a putative class. In July 2017, ONEOK Partners entered into a settlement concerning attorney’s fees and expenses for plaintiffs’ counsel in an amount immaterial to our results of operations, financial position or cash flows and was paid with cash on hand. Other Legal Proceedings - We are a party to various other litigation matters and claims that have arisen in the normal course of our operations. While the results of these 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. |
SEGMENTS (Notes)
SEGMENTS (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
SEGMENTS | SEGMENTS Segment Descriptions - Our operations are divided into three reportable business segments, as follows: • our Natural Gas Gathering and Processing segment gathers, treats and processes natural gas; • our Natural Gas Liquids segment gathers, treats, fractionates and transports NGLs and stores, markets and distributes NGL products; and • our Natural Gas Pipelines segment operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities. Other and eliminations consist of corporate and Merger Transaction-related costs, the operating and leasing activities of our headquarters building and related parking facility and eliminations necessary 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 our three segments, as well as our financial performance as a whole, on a regular basis. Adjusted EBITDA by segment is utilized in this evaluation. We believe this financial measure is useful to investors because it and similar measures are used by many companies in our industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare financial performance among companies in our industry. Adjusted EBITDA for each segment is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, allowance for equity funds used during construction, noncash equity compensation and other noncash items. This calculation may not be comparable with similarly titled measures of other companies. Customers - The primary customers of our Natural Gas Gathering and Processing segment are crude oil and natural gas producers, which include both large integrated and independent exploration and production companies. Our 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. Our 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 ended June 30, 2017 and 2016 , and the six months ended June 30, 2017 , we had no single customer from which we received 10 percent or more of our consolidated revenues. For the six months ended June 30, 2016 , we had one customer, BP p.l.c. or its affiliates, from which we received approximately 10 percent 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 June 30, 2017 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 433,088 $ 2,196,399 $ 95,755 $ 2,725,242 Intersegment revenues 252,727 153,286 2,094 408,107 Total revenues 685,815 2,349,685 97,849 3,133,349 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (488,891 ) (2,003,601 ) (6,773 ) (2,499,265 ) Operating costs (73,093 ) (87,285 ) (30,877 ) (191,255 ) Equity in net earnings from investments 3,780 15,062 20,521 39,363 Other 650 (552 ) (60 ) 38 Segment adjusted EBITDA $ 128,261 $ 273,309 $ 80,660 $ 482,230 Depreciation and amortization $ (46,033 ) $ (41,427 ) $ (12,598 ) $ (100,058 ) Capital expenditures $ 37,020 $ 12,336 $ 26,846 $ 76,202 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $289.4 million , of which $249.4 million related to sales within the segment and cost of sales and fuel of $118.9 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $62.8 million and cost of sales and fuel of $8.3 million . Three Months Ended June 30, 2017 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 2,725,242 $ 530 $ 2,725,772 Intersegment revenues 408,107 (408,107 ) — Total revenues $ 3,133,349 $ (407,577 ) $ 2,725,772 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (2,499,265 ) $ 408,243 $ (2,091,022 ) Operating costs $ (191,255 ) $ (26,550 ) $ (217,805 ) Depreciation and amortization $ (100,058 ) $ (791 ) $ (100,849 ) Equity in net earnings from investments $ 39,363 $ — $ 39,363 Capital expenditures $ 76,202 $ 6,293 $ 82,495 Three Months Ended June 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 293,071 $ 1,754,122 $ 86,401 $ 2,133,594 Intersegment revenues 183,688 117,871 1,668 303,227 Total revenues 476,759 1,871,993 88,069 2,436,821 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (299,991 ) (1,525,234 ) (5,112 ) (1,830,337 ) Operating costs (69,304 ) (83,769 ) (29,189 ) (182,262 ) Equity in net earnings from investments 2,576 13,904 15,892 32,372 Other 258 (283 ) (1,118 ) (1,143 ) Segment adjusted EBITDA $ 110,298 $ 276,611 $ 68,542 $ 455,451 Depreciation and amortization $ (46,413 ) $ (40,696 ) $ (11,398 ) $ (98,507 ) Capital expenditures $ 84,674 $ 20,779 $ 29,278 $ 134,731 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $297.5 million , of which $258.4 million related to sales within the segment and cost of sales and fuel of $112.7 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $56.6 million and cost of sales and fuel of $5.7 million . Three Months Ended June 30, 2016 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 2,133,594 $ 513 $ 2,134,107 Intersegment revenues 303,227 (303,227 ) — Total revenues $ 2,436,821 $ (302,714 ) $ 2,134,107 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (1,830,337 ) $ 303,014 $ (1,527,323 ) Operating costs $ (182,262 ) $ (9,577 ) $ (191,839 ) Depreciation and amortization $ (98,507 ) $ (740 ) $ (99,247 ) Equity in net earnings from investments $ 32,372 $ — $ 32,372 Capital expenditures $ 134,731 $ 2,112 $ 136,843 Six Months Ended June 30, 2017 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 833,237 $ 4,440,399 $ 200,679 $ 5,474,315 Intersegment revenues 513,854 301,270 3,988 819,112 Total revenues 1,347,091 4,741,669 204,667 6,293,427 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (977,275 ) (4,052,294 ) (23,376 ) (5,052,945 ) Operating costs (144,882 ) (166,028 ) (62,630 ) (373,540 ) Equity in net earnings from investments 6,410 28,784 43,733 78,927 Other 884 (593 ) 1,224 1,515 Segment adjusted EBITDA $ 232,228 $ 551,538 $ 163,618 $ 947,384 Depreciation and amortization $ (91,001 ) $ (82,542 ) $ (25,141 ) $ (198,684 ) Total assets $ 5,310,946 $ 8,168,567 $ 1,951,423 $ 15,430,936 Capital expenditures $ 100,171 $ 32,789 $ 51,860 $ 184,820 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $585.7 million , of which $502.3 million related to sales within the segment and cost of sales and fuel of $235.4 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $131.7 million and cost of sales and fuel of $22.4 million . Six Months Ended June 30, 2017 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 5,474,315 $ 1,068 $ 5,475,383 Intersegment revenues 819,112 (819,112 ) — Total revenues $ 6,293,427 $ (818,044 ) $ 5,475,383 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,052,945 ) $ 818,080 $ (4,234,865 ) Operating costs $ (373,540 ) $ (36,187 ) $ (409,727 ) Depreciation and amortization $ (198,684 ) $ (1,584 ) $ (200,268 ) Equity in net earnings from investments $ 78,927 $ — $ 78,927 Total assets $ 15,430,936 $ 1,241,987 $ 16,672,923 Capital expenditures $ 184,820 $ 10,412 $ 195,232 Six Months Ended June 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 610,117 $ 3,125,547 $ 171,875 $ 3,907,539 Intersegment revenues 298,653 233,836 2,167 534,656 Total revenues 908,770 3,359,383 174,042 4,442,195 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (566,291 ) (2,682,184 ) (9,044 ) (3,257,519 ) Operating costs (138,910 ) (156,951 ) (56,702 ) (352,563 ) Equity in net earnings from investments 5,391 27,251 32,644 65,286 Other 1,373 (719 ) 1,941 2,595 Segment adjusted EBITDA $ 210,333 $ 546,780 $ 142,881 $ 899,994 Depreciation and amortization $ (88,264 ) $ (81,402 ) $ (22,577 ) $ (192,243 ) Total assets $ 5,222,225 $ 8,289,089 $ 1,856,128 $ 15,367,442 Capital expenditures $ 226,171 $ 54,986 $ 47,226 $ 328,383 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $579.3 million , of which $489.2 million related to sales within the segment and cost of sales and fuel of $219.5 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $111.4 million and cost of sales and fuel of $11.3 million . Six Months Ended June 30, 2016 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 3,907,539 $ 1,027 $ 3,908,566 Intersegment revenues 534,656 (534,656 ) — Total revenues $ 4,442,195 $ (533,629 ) $ 3,908,566 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (3,257,519 ) $ 534,458 $ (2,723,061 ) Operating costs $ (352,563 ) $ (16,291 ) $ (368,854 ) Depreciation and amortization $ (192,243 ) $ (1,482 ) $ (193,725 ) Equity in net earnings from investments $ 65,286 $ — $ 65,286 Total assets $ 15,367,442 $ 455,458 $ 15,822,900 Capital expenditures $ 328,383 $ 4,871 $ 333,254 Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Reconciliation of income from continuing operations to total segment adjusted EBITDA ( Thousands of dollars ) Income from continuing operations $ 175,991 $ 180,086 $ 362,176 $ 355,997 Add: Interest expense, net of capitalized interest 118,473 118,976 234,935 237,223 Depreciation and amortization 100,849 99,247 200,268 193,725 Income taxes 43,844 52,458 98,785 102,524 Other corporate costs and noncash items (a) 43,073 4,684 51,220 10,525 Total segment adjusted EBITDA $ 482,230 $ 455,451 $ 947,384 $ 899,994 (a) - Includes our April 2017, $20 million contribution of Series E Preferred Stock to the Foundation and costs related to the Merger Transaction of $22.8 million and $29.5 million for the three and six months ended June 30, 2017, respectively. |
SUPPLEMENTAL CONDENSED CONSOLID
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Condensed Consolidating Financial Information | SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION ONEOK and ONEOK Partners are issuers of certain public debt securities. Effective with the Merger Transaction, we, ONEOK Partners and the Intermediate Partnership issued, to the extent not already in place, guarantees of the indebtedness of ONEOK and ONEOK Partners. The Intermediate Partnership holds all of ONEOK Partners’ partnership interests and equity in its subsidiaries, as well as a 50 percent interest in Northern Border Pipeline. In lieu of providing separate financial statements for each subsidiary issuer and guarantor, we have included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC’s Regulation S-X. We have presented each of the parent and subsidiary issuers in separate columns in this single set of condensed consolidating financial statements. For purposes of the following footnote: • we are referred to as “Parent Issuer and Guarantor”; • ONEOK Partners is referred to as “Subsidiary Issuer and Guarantor”; • the Intermediate Partnership is referred to as “Guarantor Subsidiary”; and • the “Non-Guarantor Subsidiaries” are all subsidiaries other than the Guarantor Subsidiary and Subsidiary Issuer and Guarantor. The following unaudited supplemental condensed consolidating financial information is presented on an equity-method basis reflecting the separate accounts of ONEOK, ONEOK Partners and the Intermediate Partnership, the combined accounts of the Non-Guarantor Subsidiaries, the combined consolidating adjustments and eliminations, and our consolidated amounts for the periods indicated. Condensed Consolidating Statements of Income Three Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 2,161.0 $ — $ 2,161.0 Services — — — 565.8 (1.0 ) 564.8 Total revenues — — — 2,726.8 (1.0 ) 2,725.8 Cost of sales and fuel (exclusive of items shown separately below) — — — 2,091.0 — 2,091.0 Operating expenses 20.5 — 6.2 293.0 (1.0 ) 318.7 (Gain) loss on sale of assets — — — (0.6 ) — (0.6 ) Operating income (20.5 ) — (6.2 ) 343.4 — 316.7 Equity in net earnings from investments 275.2 278.5 284.7 23.8 (822.8 ) 39.4 Other income (expense), net (17.4 ) 94.9 94.9 (0.4 ) (189.8 ) (17.8 ) Interest expense, net (24.5 ) (94.9 ) (94.9 ) (94.0 ) 189.8 (118.5 ) Income before income taxes 212.8 278.5 278.5 272.8 (822.8 ) 219.8 Income taxes 37.7 — — 6.1 — 43.8 Net income 175.1 278.5 278.5 266.7 (822.8 ) 176.0 Less: Net income attributable to noncontrolling interests 103.4 — — 0.9 — 104.3 Net income attributable to ONEOK 71.7 278.5 278.5 265.8 (822.8 ) 71.7 Less: Preferred stock dividends 0.2 — — — — 0.2 Net income available to common shareholders $ 71.5 $ 278.5 $ 278.5 $ 265.8 $ (822.8 ) $ 71.5 Three Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 1,633.3 $ — $ 1,633.3 Services — — — 501.3 (0.5 ) 500.8 Total revenues — — — 2,134.6 (0.5 ) 2,134.1 Cost of sales and fuel (exclusive of items shown separately below) — — — 1,527.3 — 1,527.3 Operating expenses 9.8 — — 281.8 (0.5 ) 291.1 (Gain) loss on sale of assets — — — 0.4 — 0.4 Operating income (9.8 ) — — 325.1 — 315.3 Equity in net earnings from investments 260.9 261.5 261.5 16.7 (768.2 ) 32.4 Other income (expense), net 4.3 94.9 94.9 (0.5 ) (189.8 ) 3.8 Interest expense, net (25.7 ) (94.9 ) (94.9 ) (93.3 ) 189.8 (119.0 ) Income before income taxes 229.7 261.5 261.5 248.0 (768.2 ) 232.5 Income taxes (50.3 ) — — (2.1 ) — (52.4 ) Income from continuing operations 179.4 261.5 261.5 245.9 (768.2 ) 180.1 Income (loss) from discontinued operations, net of tax — — — (0.2 ) — (0.2 ) Net income 179.4 261.5 261.5 245.7 (768.2 ) 179.9 Less: Net income attributable to noncontrolling interests 93.5 — — 0.5 — 94.0 Net income attributable to ONEOK $ 85.9 $ 261.5 $ 261.5 $ 245.2 $ (768.2 ) $ 85.9 Six Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 4,377.7 $ — $ 4,377.7 Services — — — 1,098.7 (1.0 ) 1,097.7 Total revenues — — — 5,476.4 (1.0 ) 5,475.4 Cost of sales and fuel (exclusive of items shown separately below) — — — 4,234.9 — 4,234.9 Operating expenses 30.1 — 6.2 574.6 (1.0 ) 609.9 (Gain) loss on sale of assets — — — (0.6 ) — (0.6 ) Operating income (30.1 ) — (6.2 ) 667.5 — 631.2 Equity in net earnings from investments 544.0 547.6 553.8 44.5 (1,611.0 ) 78.9 Other income (expense), net (14.2 ) 186.1 186.1 — (372.2 ) (14.2 ) Interest expense, net (50.3 ) (186.1 ) (186.1 ) (184.6 ) 372.2 (234.9 ) Income before income taxes 449.4 547.6 547.6 527.4 (1,611.0 ) 461.0 Income taxes (89.0 ) — — (9.8 ) — (98.8 ) Net income 360.4 547.6 547.6 517.6 (1,611.0 ) 362.2 Less: Net income attributable to noncontrolling interests 201.3 — — 1.8 — 203.1 Net income attributable to ONEOK 159.1 547.6 547.6 515.8 (1,611.0 ) 159.1 Less: Preferred stock dividends 0.2 — — — — 0.2 Net income available to common shareholders $ 158.9 $ 547.6 $ 547.6 $ 515.8 $ (1,611.0 ) $ 158.9 Six Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 2,916.8 $ — $ 2,916.8 Services — — — 992.8 (1.0 ) 991.8 Total revenues — — — 3,909.6 (1.0 ) 3,908.6 Cost of sales and fuel (exclusive of items shown separately below) — — — 2,723.1 — 2,723.1 Operating expenses 16.4 — — 547.2 (1.0 ) 562.6 (Gain) loss on sale of assets — — — (3.8 ) — (3.8 ) Operating income (16.4 ) — — 643.1 — 626.7 Equity in net earnings from investments 513.3 515.0 515.0 30.9 (1,508.9 ) 65.3 Other income (expense), net 4.4 189.3 189.3 (0.7 ) (378.6 ) 3.7 Interest expense, net (51.4 ) (189.3 ) (189.3 ) (185.8 ) 378.6 (237.2 ) Income before income taxes 449.9 515.0 515.0 487.5 (1,508.9 ) 458.5 Income taxes (98.4 ) — — (4.1 ) — (102.5 ) Income from continuing operations 351.5 515.0 515.0 483.4 (1,508.9 ) 356.0 Income (loss) from discontinued operations, net of tax — — — (1.2 ) — (1.2 ) Net income 351.5 515.0 515.0 482.2 (1,508.9 ) 354.8 Less: Net income attributable to noncontrolling interests 182.1 — — 3.3 — 185.4 Net income attributable to ONEOK $ 169.4 $ 515.0 $ 515.0 $ 478.9 $ (1,508.9 ) $ 169.4 Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 175.1 $ 278.5 $ 278.5 $ 266.7 $ (822.8 ) $ 176.0 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax (0.3 ) (5.7 ) 9.0 9.8 (17.9 ) (5.1 ) Realized (gains) losses on derivatives in net income, net of tax 0.5 11.1 6.8 5.1 (13.6 ) 9.9 Change in pension and postretirement benefit plan liability, net of tax 2.1 — — — — 2.1 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (1.6 ) (1.6 ) (1.4 ) 3.2 (1.4 ) Total other comprehensive income (loss) 2.3 3.8 14.2 13.5 (28.3 ) 5.5 Comprehensive income 177.4 282.3 292.7 280.2 (851.1 ) 181.5 Less: Comprehensive income attributable to noncontrolling interests 105.6 — — 0.9 — 106.5 Comprehensive income attributable to ONEOK $ 71.8 $ 282.3 $ 292.7 $ 279.3 $ (851.1 ) $ 75.0 Three Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 179.4 $ 261.5 $ 261.5 $ 245.7 $ (768.2 ) $ 179.9 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax — (87.2 ) (58.7 ) (132.6 ) 204.6 (73.9 ) Realized (gains) losses on derivatives in net income, net of tax 0.6 (10.1 ) (14.0 ) (21.5 ) 36.9 (8.1 ) Change in pension and postretirement benefit plan liability, net of tax 1.5 — — — — 1.5 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (5.6 ) (5.6 ) (10.3 ) 16.8 (4.7 ) Total other comprehensive income (loss) 2.1 (102.9 ) (78.3 ) (164.4 ) 258.3 (85.2 ) Comprehensive income 181.5 158.6 183.2 81.3 (509.9 ) 94.7 Less: Comprehensive income attributable to noncontrolling interests 32.9 — — 0.5 — 33.4 Comprehensive income attributable to ONEOK $ 148.6 $ 158.6 $ 183.2 $ 80.8 $ (509.9 ) $ 61.3 Six Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 360.4 $ 547.6 $ 547.6 $ 517.6 $ (1,611.0 ) $ 362.2 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax (0.3 ) 23.1 36.3 32.8 (72.6 ) 19.3 Realized (gains) losses on derivatives in net income, net of tax 1.0 30.9 22.1 17.4 (44.2 ) 27.2 Change in pension and postretirement benefit plan liability, net of tax 4.1 — — — — 4.1 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (1.2 ) (1.2 ) (1.0 ) 2.4 (1.0 ) Total other comprehensive income (loss) 4.8 52.8 57.2 49.2 (114.4 ) 49.6 Comprehensive income 365.2 600.4 604.8 566.8 (1,725.4 ) 411.8 Less: Comprehensive income attributable to noncontrolling interests 232.4 — — 1.8 — 234.2 Comprehensive income attributable to ONEOK $ 132.8 $ 600.4 $ 604.8 $ 565.0 $ (1,725.4 ) $ 177.6 Six Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 351.5 $ 515.0 $ 515.0 $ 482.2 $ (1,508.9 ) $ 354.8 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax — (107.1 ) (47.0 ) (137.8 ) 201.1 (90.8 ) Realized (gains) losses on derivatives in net income, net of tax 1.1 (20.8 ) (28.5 ) (44.0 ) 75.6 (16.6 ) Change in pension and postretirement benefit plan liability, net of tax 3.1 — — — — 3.1 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (11.4 ) (11.4 ) (21.0 ) 34.2 (9.6 ) Total other comprehensive income (loss) 4.2 (139.3 ) (86.9 ) (202.8 ) 310.9 (113.9 ) Comprehensive income 355.7 375.7 428.1 279.4 (1,198.0 ) 240.9 Less: Comprehensive income attributable to noncontrolling interests 100.2 — — 3.3 — 103.5 Comprehensive income attributable to ONEOK $ 255.5 $ 375.7 $ 428.1 $ 276.1 $ (1,198.0 ) $ 137.4 Condensed Consolidating Balance Sheets June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total Assets ( Millions of dollars ) Current assets Cash and cash equivalents $ 321.0 $ — $ 11.4 $ — $ — $ 332.4 Accounts receivable, net — — — 749.3 — 749.3 Natural gas and natural gas liquids in storage — — — 200.1 — 200.1 Other current assets 12.9 0.5 — 152.6 — 166.0 Total current assets 333.9 0.5 11.4 1,102.0 — 1,447.8 Property, plant and equipment Property, plant and equipment 139.8 — — 15,101.3 — 15,241.1 Accumulated depreciation and amortization 94.3 — — 2,599.8 — 2,694.1 Net property, plant and equipment 45.5 — — 12,501.5 — 12,547.0 Investments and other assets Investments 5,936.9 3,160.9 7,376.1 622.7 (16,152.0 ) 944.6 Intercompany notes receivable 253.7 10,791.6 6,565.0 — (17,610.3 ) — Other assets 763.6 19.7 — 1,017.9 (67.7 ) 1,733.5 Total investments and other assets 6,954.2 13,972.2 13,941.1 1,640.6 (33,830.0 ) 2,678.1 Total assets $ 7,333.6 $ 13,972.7 $ 13,952.5 $ 15,244.1 $ (33,830.0 ) $ 16,672.9 Liabilities and equity Current liabilities Current maturities of long-term debt $ 87.1 $ 400.0 $ — $ 7.7 $ — $ 494.8 Short-term borrowings — 1,274.4 — — — 1,274.4 Accounts payable 19.9 — — 676.9 — 696.8 Other current liabilities 57.7 86.3 — 250.5 — 394.5 Total current liabilities 164.7 1,760.7 — 935.1 — 2,860.5 Intercompany debt — — 10,791.6 6,818.7 (17,610.3 ) — Long-term debt, excluding current maturities 1,545.0 6,257.9 — 32.7 — 7,835.6 Deferred credits and other liabilities 216.2 — — 263.1 (67.7 ) 411.6 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 5,407.7 5,954.1 3,160.9 7,037.0 (16,152.0 ) 5,407.7 Noncontrolling interests in consolidated subsidiaries — — — 157.5 — 157.5 Total equity 5,407.7 5,954.1 3,160.9 7,194.5 (16,152.0 ) 5,565.2 Total liabilities and equity $ 7,333.6 $ 13,972.7 $ 13,952.5 $ 15,244.1 $ (33,830.0 ) $ 16,672.9 December 31, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total Assets ( Millions of dollars ) Current assets Cash and cash equivalents $ 248.5 $ — $ 0.4 $ — $ — $ 248.9 Accounts receivable, net — — — 872.4 — 872.4 Natural gas and natural gas liquids in storage — — — 140.0 — 140.0 Other current assets 7.2 — — 160.6 — 167.8 Assets of discontinued operations — — — 0.6 — 0.6 Total current assets 255.7 — 0.4 1,173.6 — — 1,429.7 Property, plant and equipment Property, plant and equipment 139.8 — — 14,938.7 — 15,078.5 Accumulated depreciation and amortization 90.4 — — 2,416.7 — 2,507.1 Net property, plant and equipment 49.4 — — 12,522.0 — 12,571.4 Investments and other assets Investments 2,931.9 3,222.1 6,805.4 631.1 (12,631.7 ) 958.8 Intercompany notes receivable 205.2 10,615.0 7,031.3 — (17,851.5 ) — Other assets 103.4 47.5 — 1,028.0 — 1,178.9 Total investments and other assets 3,240.5 13,884.6 13,836.7 1,659.1 (30,483.2 ) 2,137.7 Total assets $ 3,545.6 $ 13,884.6 $ 13,837.1 $ 15,354.7 $ (30,483.2 ) $ 16,138.8 Liabilities and equity Current liabilities Current maturities of long-term debt $ 3.0 $ 400.0 $ — $ 7.7 $ — $ 410.7 Short-term borrowings — 1,110.3 — — — 1,110.3 Accounts payable 13.0 — — 861.7 — 874.7 Other current liabilities 44.7 99.9 — 296.5 — 441.1 Total current liabilities 60.7 1,610.2 — 1,165.9 — 2,836.8 Intercompany debt — — 10,615.0 7,236.5 (17,851.5 ) — Long-term debt, excluding current maturities 1,628.7 6,254.7 — 36.6 — 7,920.0 Deferred credits and other liabilities 1,667.5 — — 285.6 — 1,953.1 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 188.7 6,019.7 3,222.1 6,472.0 (15,713.8 ) 188.7 Noncontrolling interests in consolidated subsidiaries — — — 158.1 3,082.1 3,240.2 Total equity 188.7 6,019.7 3,222.1 6,630.1 (12,631.7 ) 3,428.9 Total liabilities and equity $ 3,545.6 $ 13,884.6 $ 13,837.1 $ 15,354.7 $ (30,483.2 ) $ 16,138.8 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Operating activities Cash provided by operating activities $ 355.0 $ 675.2 $ 28.2 $ 645.5 $ (1,061.0 ) $ 642.9 Investing activities Capital expenditures (0.1 ) — — (195.1 ) — (195.2 ) Other investing activities — — 6.7 4.8 — 11.5 Cash provided by (used in) investing activities (0.1 ) — 6.7 (190.3 ) — (183.7 ) Financing activities Dividends paid (259.8 ) (666.0 ) (666.0 ) — 1,332.0 (259.8 ) Distributions to noncontrolling interests — — — (2.5 ) (271.0 ) (273.5 ) Intercompany borrowings (advances), net (27.1 ) (166.1 ) 642.1 (448.9 ) — — Borrowing (repayment) of short-term borrowings, net — 164.1 — — — 164.1 Repayment of long-term debt (0.1 ) — — (3.8 ) — (3.9 ) Issuance of common stock 10.8 — — — — 10.8 Other (6.2 ) (7.2 ) — — — (13.4 ) Cash used in financing activities (282.4 ) (675.2 ) (23.9 ) — (455.2 ) 1,061.0 (375.7 ) Change in cash and cash equivalents 72.5 — 11.0 — — 83.5 Cash and cash equivalents at beginning of period 248.5 — 0.4 — — 248.9 Cash and cash equivalents at end of period $ 321.0 $ — $ 11.4 $ — $ — $ 332.4 Six Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Operating activities Cash provided by operating activities $ 363.1 $ 668.6 $ 34.4 $ 526.5 $ (1,061.0 ) $ 531.6 Investing activities Capital expenditures — — — (333.3 ) — (333.3 ) Other investing activities — — 24.9 9.9 — 34.8 Cash provided by (used in) investing activities — — 24.9 (323.4 ) — (298.5 ) Financing activities Dividends paid (258.5 ) (666.0 ) (666.0 ) — 1,332.0 (258.5 ) Distributions to noncontrolling interests — — — (4.3 ) (271.0 ) (275.3 ) Intercompany borrowings (advances), net (30.5 ) (379.8 ) 605.3 (195.0 ) — — Borrowing (repayment) of short-term borrowings, net — 30.0 — — — 30.0 Issuance of long-term debt, net of discounts — 1,000.0 — — — 1,000.0 Debt financing costs — (2.8 ) — — — (2.8 ) Repayment of long-term debt (0.3 ) (650.0 ) — (3.8 ) — (654.1 ) Issuance of common stock 11.1 — — — — 11.1 Cash used in financing activities (278.2 ) (668.6 ) (60.7 ) (203.1 ) 1,061.0 (149.6 ) Change in cash and cash equivalents 84.9 — (1.4 ) — — 83.5 Change in cash and cash equivalents included in discontinued operations (0.2 ) — — — — (0.2 ) Change in cash and cash equivalents included in continuing operations 84.7 — (1.4 ) — — 83.3 Cash and cash equivalents at beginning of period 92.5 — 5.1 — — 97.6 Cash and cash equivalents at end of period $ 177.2 $ — $ 3.7 $ — $ — $ 180.9 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
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 2016 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 and our Current Report on Form 8-K filed on July 6, 2017, which updates Item 8 in our Annual Report. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations - Beginning in 2017, the results of operations and financial position of our former energy services business are no longer reflected as discontinued operations in our Consolidated Financial Statements and Notes to the Consolidated Financial Statements, as they are not material. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards Update - Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of ASUs to the FASB Accounting Standards Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or clarifications of ASUs listed below. 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 2015-11, “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 As a result of adopting this guidance, we updated our accounting policy for inventory valuation accordingly. The financial impact of adopting this guidance was not material. 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 The impact of adopting this standard was not material. 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 The impact of adopting this standard was not material. 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 As a result of adopting this guidance, we recorded an adjustment increasing beginning retained earnings and deferred tax assets in the first quarter 2017 of approximately $73 million to recognize previously unrecognized cumulative excess tax benefits related to share-based payments on a modified retrospective basis. Beginning in January 2017, all share-based payment tax effects are recorded in earnings. The other effects of adopting this standard were not material. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted 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 contracts and transaction types across all our business segments, which we have substantially completed. For the majority of our contracts, we do not expect material changes in our accounting policies or revenue recognition. However, we are reviewing the potential impact on certain contract types where there remains diversity of thought across our industry in the application of the standard. Due to this ongoing analysis, we cannot yet determine the quantitative impact on revenues or cost of sales from the adoption of Topic 606, but we do not currently believe the adoption will have a material impact on net income. We are developing our required disclosures under the standard and expect to disaggregate revenues similar to our current presentation in Note L - Segments. We have not identified material unsatisfied performance obligations that would require disclosure. We are currently evaluating methods of adoption and analyzing the impact of the standard on our internal controls. We expect to determine our method of adoption when we complete our evaluation of the quantitative impact of the standard and the implications of each adoption method. 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 do not have any equity investments classified as available-for-sale or accounted for using the cost method, therefore we do not expect adoption of this standard to have a material impact 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 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” The standard requires the service cost component of net benefit cost to be reported in the same line item or items as other compensation costs from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. 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 our current leases and other contracts that may be considered leases under the new standard and the impact on our internal controls, accounting policies and financial statements and disclosures. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted (continued) 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. ASU 2017-04, “Intangibles- Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” The standard simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill under step 2. Instead, an entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard does not change step zero or step 1 assessments. 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) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Accounting Policy [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 derivative portfolio are executed in liquid markets where price transparency exists, some contracts are executed in markets for which market prices may exist, but the market may be relatively inactive. This results in limited price transparency that requires management’s judgment and assumptions to estimate fair values. For certain transactions, we utilize modeling techniques using NYMEX-settled pricing data and implied forward LIBOR curves. Inputs into our fair value estimates include commodity-exchange prices, over-the-counter quotes, historical correlations of pricing data, data obtained from third-party pricing services and LIBOR and other liquid money-market instrument rates. We validate our valuation inputs with third-party information and settlement prices from other sources, where available. In addition, as prescribed by the income approach, we compute the fair value of our derivative portfolio by discounting the projected future cash flows from our 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 derivative contracts we have executed, the ultimate market prices realized could differ from our estimates, and the differences could be material. The fair value of our forward-starting interest-rate swaps are determined using financial models that incorporate the implied forward LIBOR yield curve for the same period as the future interest-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 composed 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. |
EQUITY (Policies)
EQUITY (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Partnership agreement | Cash Distributions - Prior to the consummation of the Merger Transaction, we received distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which included our incentive distribution rights. |
SEGMENTS SEGMENTS (Policies)
SEGMENTS SEGMENTS (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Accounting Policy [Policy 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 our three segments, as well as our financial performance as a whole, on a regular basis. Adjusted EBITDA by segment is utilized in this evaluation. We believe this financial measure is useful to investors because it and similar measures are used by many companies in our industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare financial performance among companies in our industry. Adjusted EBITDA for each segment is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, allowance for equity funds used during construction, noncash equity compensation and other noncash items. This calculation may not be comparable with similarly titled measures of other companies. |
ONEOK PARTNERS ACQUISITION (Tab
ONEOK PARTNERS ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Cash Flow, Supplemental Disclosures [Text Block] | Our noncash balance sheet activity related to the Merger Transaction is as follows (in millions): June 30, 2017 Common stock $ 1.7 Paid-in capital $ 5,228.6 Accumulated other comprehensive loss $ (40.3 ) Noncontrolling interests in consolidated subsidiaries $ (3,043.5 ) Deferred income taxes $ (2,146.5 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements for the periods indicated: June 30, 2017 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 4,349 $ — $ 11,865 $ 16,214 $ (15,786 ) $ 428 Physical contracts — — 710 710 — 710 Interest-rate contracts — 38,006 — 38,006 — 38,006 Total derivative assets $ 4,349 $ 38,006 $ 12,575 $ 54,930 $ (15,786 ) $ 39,144 Derivative liabilities Commodity contracts Financial contracts $ (5,973 ) $ — $ (10,792 ) $ (16,765 ) $ 16,656 $ (109 ) Physical contracts — — (1,033 ) (1,033 ) — (1,033 ) Interest-rate contracts — (16,872 ) — (16,872 ) — (16,872 ) Total derivative liabilities $ (5,973 ) $ (16,872 ) $ (11,825 ) $ (34,670 ) $ 16,656 $ (18,014 ) (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 June 30, 2017 , we held no cash and posted $11.8 million of cash with various counterparties, including $0.9 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $10.9 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 or other current liabilities in our Consolidated Balance Sheets. December 31, 2016 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net (b) ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 1,147 $ — $ 4,564 $ 5,711 $ (4,760 ) $ 951 Interest rate contracts — 47,457 — 47,457 — 47,457 Total derivative assets $ 1,147 $ 47,457 $ 4,564 $ 53,168 $ (4,760 ) $ 48,408 Derivative liabilities Commodity contracts Financial contracts $ (31,458 ) $ — $ (24,861 ) $ (56,319 ) $ 56,319 $ — Physical contracts — — (3,022 ) (3,022 ) — (3,022 ) Interest-rate contracts — (12,795 ) — (12,795 ) — (12,795 ) Total derivative liabilities $ (31,458 ) $ (12,795 ) $ (27,883 ) $ (72,136 ) $ 56,319 $ (15,817 ) (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, 2016 , we held no cash and posted $67.7 million of cash with various counterparties, including $51.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $16.1 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 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 Six Months Ended June 30, June 30, Derivative Assets (Liabilities) 2017 2016 2017 2016 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ (772 ) $ 34 $ (23,319 ) $ 7,331 Total realized/unrealized gains (losses): Included in earnings (a) (656 ) 318 258 (427 ) Included in other comprehensive income (loss) 2,178 (14,373 ) 23,811 (20,925 ) Net assets (liabilities) at end of period $ 750 $ (14,021 ) $ 750 $ (14,021 ) (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) | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 December 31, 2016 Location in our Consolidated Balance Sheets Assets (Liabilities) Assets (Liabilities) ( Thousands of dollars ) Derivatives designated as hedging instruments Commodity contracts Financial contracts Other current assets/other current liabilities $ 7,577 $ (13,082 ) $ 1,155 $ (49,938 ) Other assets/deferred credits and other liabilities 5,510 (225 ) 210 (2,142 ) Physical contracts Other current assets/other current liabilities 330 (1,033 ) — (3,022 ) Other assets 380 — — — Interest-rate contracts Other current assets/other current liabilities 493 (16,872 ) — (12,795 ) Other assets 37,513 — 47,457 — Total derivatives designated as hedging instruments 51,803 (31,212 ) 48,822 (67,897 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts Other current assets/other current liabilities 2,587 (2,967 ) 4,346 (4,239 ) Other assets/deferred credits and other liabilities 540 (491 ) — — Total derivatives not designated as hedging instruments 3,127 (3,458 ) 4,346 (4,239 ) Total derivatives $ 54,930 $ (34,670 ) $ 53,168 $ (72,136 ) |
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated: June 30, 2017 December 31, 2016 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 — (34.3 ) — (38.4 ) - Natural gas ( Bcf ) Put options 22.5 — 49.5 — - Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps 0.7 (5.0 ) — (3.6 ) Basis - Natural gas ( Bcf ) Futures and swaps — (34.3 ) — (38.4 ) Interest-rate contracts ( Millions of dollars ) Swaps $ 2,150.0 $ — $ 2,150.0 $ — Derivatives not designated as hedging instruments: Fixed price -Natural gas ( Bcf ) Futures and swaps 1.8 — 0.4 — - NGLs ( MMBbl ) Futures, forwards and swaps 0.6 (1.1 ) 0.5 (0.7 ) Basis - Natural gas ( Bcf ) Futures and swaps 1.8 — 0.4 — |
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: Three Months Ended Six Months Ended Derivatives in Cash Flow Hedging Relationships June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Commodity contracts $ 8,998 $ (58,654 ) $ 36,326 $ (46,976 ) Interest-rate contracts (14,995 ) (28,564 ) (13,466 ) (60,175 ) Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives (effective portion) $ (5,997 ) $ (87,218 ) $ 22,860 $ (107,151 ) |
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ (6,796 ) $ 14,049 $ (22,115 ) $ 28,548 Interest-rate contracts Interest expense (5,172 ) (4,802 ) (10,501 ) (9,500 ) Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives (effective portion) $ (11,968 ) $ 9,247 $ (32,616 ) $ 19,048 |
DEBT DEBT (Tables)
DEBT DEBT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument [Line Items] | |
Debt [Table Text Block] | The following table sets forth our consolidated debt for the periods indicated: June 30, December 31, ( Thousands of dollars ) ONEOK Senior unsecured obligations: $700,000 at 4.25% due February 2022 $ 547,397 $ 547,397 $500,000 at 7.5% due September 2023 500,000 500,000 $100,000 at 6.5% due September 2028 87,053 87,126 $100,000 at 6.875% due September 2028 100,000 100,000 $400,000 at 6.0% due June 2035 400,000 400,000 ONEOK Partners Commercial paper outstanding, bearing a weighted-average interest rate of 1.80% and 1.27%, respectively (a) 1,274,407 1,110,277 Senior unsecured obligations: $400,000 at 2.0% due October 2017 400,000 400,000 $425,000 at 3.2% due September 2018 425,000 425,000 $1,000,000 term loan, variable rate, due January 2019 (b) 1,000,000 1,000,000 $500,000 at 8.625% due March 2019 500,000 500,000 $300,000 at 3.8% due March 2020 300,000 300,000 $900,000 at 3.375 % due October 2022 900,000 900,000 $425,000 at 5.0 % due September 2023 425,000 425,000 $500,000 at 4.9 % due March 2025 500,000 500,000 $600,000 at 6.65% due October 2036 600,000 600,000 $600,000 at 6.85% due October 2037 600,000 600,000 $650,000 at 6.125% due February 2041 650,000 650,000 $400,000 at 6.2% due September 2043 400,000 400,000 Guardian Pipeline Weighted average 7.85% due December 2022 40,433 44,257 Total debt 9,649,290 9,489,057 Unamortized portion of terminated swaps 19,327 20,186 Unamortized debt issuance costs and discounts (63,901 ) (68,320 ) Current maturities of long-term debt (494,703 ) (410,650 ) Short-term borrowings (c) (1,274,407 ) (1,110,277 ) Long-term debt $ 7,835,606 $ 7,919,996 (a) - In July 2017, the commercial paper outstanding under the ONEOK Partners commercial paper program was repaid as it matured with a combination of proceeds from new issuances from ONEOK’s recently established $2.5 billion commercial paper program, cash on hand and proceeds from our July 2017 $1.2 billion senior notes issuance. The $2.4 billion ONEOK Partners commercial paper program was terminated in July 2017. (b) - I n July 2017, we repaid $500 million of the $1.0 billion Term Loan Agreement due 2019. (c) - Individual issuances of commercial paper under our commercial paper program generally mature in 90 days or less. These issuances are supported by and reduce the borrowing capacity under the 2017 Credit Agreement. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of distributions declared to general or limited partner | The following table sets forth ONEOK Partners’ distributions declared and paid during the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 0.79 $ 1.58 $ 1.58 General partner distributions $ 6,660 $ 6,660 $ 13,320 $ 13,320 Incentive distributions 100,538 100,538 201,076 201,076 Distributions to general partner 107,198 107,198 214,396 214,396 Limited partner distributions to ONEOK 90,323 90,323 180,646 180,646 Limited partner distributions to other unitholders 135,479 135,479 270,959 270,959 Total distributions paid $ 333,000 $ 333,000 $ 666,001 $ 666,001 |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ (52,155 ) $ (101,236 ) $ (959 ) $ (154,350 ) Other comprehensive income (loss) before reclassifications 5,728 5 (367 ) 5,366 Amounts reclassified from accumulated other comprehensive loss 9,064 4,076 47 13,187 Impact of Merger Transaction (Note B) (c) (40,288 ) — — (40,288 ) Net current-period other comprehensive income (loss) attributable to ONEOK (25,496 ) 4,081 (320 ) (21,735 ) June 30, 2017 $ (77,651 ) $ (97,155 ) $ (1,279 ) $ (176,085 ) (a) - All amounts are presented net of tax. (b) - Includes amounts related to supplemental executive retirement plan. (c) - Includes the remaining portion of ONEOK Partners’ accumulated other comprehensive loss at June 30, 2017, that we acquired in the Merger Transaction, related to commodity and interest-rate contracts. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | 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 Components Three Months Ended Six Months Ended Affected Line Item in the Statements of Income June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Unrealized gains (losses) on risk-management assets/liabilities Commodity contracts $ (6,796 ) $ 14,049 $ (22,115 ) $ 28,548 Commodity sales revenues Interest-rate contracts (5,172 ) (4,802 ) (10,501 ) (9,500 ) Interest expense (11,968 ) 9,247 (32,616 ) 19,048 Income before income taxes 2,041 (1,193 ) 5,406 (2,469 ) Income tax expense (9,927 ) 8,054 (27,210 ) 16,579 Net income Noncontrolling interests (6,521 ) 5,953 (18,146 ) 12,233 Less: Net income attributable to noncontrolling interests $ (3,406 ) $ 2,101 $ (9,064 ) $ 4,346 Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ (3,812 ) $ (2,997 ) $ (7,624 ) $ (5,995 ) Amortization of unrecognized prior service cost 415 415 830 830 (3,397 ) (2,582 ) (6,794 ) (5,165 ) Income before income taxes 1,359 1,033 2,718 2,066 Income tax expense $ (2,038 ) $ (1,549 ) $ (4,076 ) $ (3,099 ) Net income attributable to ONEOK Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates $ (85 ) $ — $ (181 ) $ — Equity in net earnings from investments 13 — 28 — Income tax expense (72 ) — (153 ) — Net income Noncontrolling interests (50 ) — (106 ) — Less: Net income attributable to noncontrolling interests $ (22 ) $ — $ (47 ) $ — Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (5,466 ) $ 552 $ (13,187 ) $ 1,247 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 P34
EARNINGS PER SHARE EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 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 $ 71,476 211,785 $ 0.34 Diluted EPS from continuing operations Effect of dilutive securities — 2,227 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 71,476 214,012 $ 0.33 Three Months Ended June 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 $ 86,171 211,075 $ 0.41 Diluted EPS from continuing operations Effect of dilutive securities — 1,543 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 86,171 212,618 $ 0.41 Six Months Ended June 30, 2017 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 $ 158,837 211,702 $ 0.75 Diluted EPS from continuing operations Effect of dilutive securities — 2,105 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 158,837 213,807 $ 0.74 Six Months Ended June 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 $ 170,569 210,928 $ 0.81 Diluted EPS from continuing operations Effect of dilutive securities — 735 Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents $ 170,569 211,663 $ 0.81 |
EMPLOYEE BENEFIT PLANS EMPLOY35
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of net periodic benefit cost for pension and postretirement 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 1,722 $ 1,622 $ 3,444 $ 3,244 Interest cost 4,655 4,947 9,310 9,894 Expected return on plan assets (5,336 ) (5,077 ) (10,672 ) (10,154 ) Amortization of net loss 3,392 2,736 6,784 5,473 Net periodic benefit cost $ 4,433 $ 4,228 $ 8,866 $ 8,457 Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 165 $ 149 $ 330 $ 298 Interest cost 565 601 1,130 1,202 Expected return on plan assets (564 ) (531 ) (1,128 ) (1,062 ) Amortization of prior service credit (415 ) (415 ) (830 ) (830 ) Amortization of net loss 420 261 840 522 Net periodic benefit cost $ 171 $ 65 $ 342 $ 130 |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity In Net Earnings From Investments [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments [Table Text Block] | The following table sets forth our equity in net earnings from investments for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Northern Border Pipeline $ 15,622 $ 15,723 $ 34,439 $ 34,397 Overland Pass Pipeline Company 14,884 13,608 28,450 26,912 Other 8,857 3,041 16,038 3,977 Equity in net earnings from investments $ 39,363 $ 32,372 $ 78,927 $ 65,286 |
Summarized Financial Information Of Unconsolidated Affiliates [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments [Table Text Block] | The following table sets forth summarized combined financial information of our unconsolidated affiliates for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ( Thousands of dollars ) Income Statement Operating revenues $ 157,603 $ 142,631 $ 311,883 $ 279,203 Operating expenses $ 69,465 $ 66,674 $ 136,401 $ 125,373 Net income $ 92,072 $ 69,420 $ 173,203 $ 141,457 Distributions paid to us $ 49,760 $ 62,024 $ 96,680 $ 108,577 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segments | The following tables set forth certain selected financial information for our operating segments for the periods indicated: Three Months Ended June 30, 2017 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 433,088 $ 2,196,399 $ 95,755 $ 2,725,242 Intersegment revenues 252,727 153,286 2,094 408,107 Total revenues 685,815 2,349,685 97,849 3,133,349 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (488,891 ) (2,003,601 ) (6,773 ) (2,499,265 ) Operating costs (73,093 ) (87,285 ) (30,877 ) (191,255 ) Equity in net earnings from investments 3,780 15,062 20,521 39,363 Other 650 (552 ) (60 ) 38 Segment adjusted EBITDA $ 128,261 $ 273,309 $ 80,660 $ 482,230 Depreciation and amortization $ (46,033 ) $ (41,427 ) $ (12,598 ) $ (100,058 ) Capital expenditures $ 37,020 $ 12,336 $ 26,846 $ 76,202 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $289.4 million , of which $249.4 million related to sales within the segment and cost of sales and fuel of $118.9 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $62.8 million and cost of sales and fuel of $8.3 million . Three Months Ended June 30, 2017 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 2,725,242 $ 530 $ 2,725,772 Intersegment revenues 408,107 (408,107 ) — Total revenues $ 3,133,349 $ (407,577 ) $ 2,725,772 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (2,499,265 ) $ 408,243 $ (2,091,022 ) Operating costs $ (191,255 ) $ (26,550 ) $ (217,805 ) Depreciation and amortization $ (100,058 ) $ (791 ) $ (100,849 ) Equity in net earnings from investments $ 39,363 $ — $ 39,363 Capital expenditures $ 76,202 $ 6,293 $ 82,495 Three Months Ended June 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 293,071 $ 1,754,122 $ 86,401 $ 2,133,594 Intersegment revenues 183,688 117,871 1,668 303,227 Total revenues 476,759 1,871,993 88,069 2,436,821 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (299,991 ) (1,525,234 ) (5,112 ) (1,830,337 ) Operating costs (69,304 ) (83,769 ) (29,189 ) (182,262 ) Equity in net earnings from investments 2,576 13,904 15,892 32,372 Other 258 (283 ) (1,118 ) (1,143 ) Segment adjusted EBITDA $ 110,298 $ 276,611 $ 68,542 $ 455,451 Depreciation and amortization $ (46,413 ) $ (40,696 ) $ (11,398 ) $ (98,507 ) Capital expenditures $ 84,674 $ 20,779 $ 29,278 $ 134,731 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $297.5 million , of which $258.4 million related to sales within the segment and cost of sales and fuel of $112.7 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $56.6 million and cost of sales and fuel of $5.7 million . Three Months Ended June 30, 2016 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 2,133,594 $ 513 $ 2,134,107 Intersegment revenues 303,227 (303,227 ) — Total revenues $ 2,436,821 $ (302,714 ) $ 2,134,107 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (1,830,337 ) $ 303,014 $ (1,527,323 ) Operating costs $ (182,262 ) $ (9,577 ) $ (191,839 ) Depreciation and amortization $ (98,507 ) $ (740 ) $ (99,247 ) Equity in net earnings from investments $ 32,372 $ — $ 32,372 Capital expenditures $ 134,731 $ 2,112 $ 136,843 Six Months Ended June 30, 2017 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 833,237 $ 4,440,399 $ 200,679 $ 5,474,315 Intersegment revenues 513,854 301,270 3,988 819,112 Total revenues 1,347,091 4,741,669 204,667 6,293,427 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (977,275 ) (4,052,294 ) (23,376 ) (5,052,945 ) Operating costs (144,882 ) (166,028 ) (62,630 ) (373,540 ) Equity in net earnings from investments 6,410 28,784 43,733 78,927 Other 884 (593 ) 1,224 1,515 Segment adjusted EBITDA $ 232,228 $ 551,538 $ 163,618 $ 947,384 Depreciation and amortization $ (91,001 ) $ (82,542 ) $ (25,141 ) $ (198,684 ) Total assets $ 5,310,946 $ 8,168,567 $ 1,951,423 $ 15,430,936 Capital expenditures $ 100,171 $ 32,789 $ 51,860 $ 184,820 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $585.7 million , of which $502.3 million related to sales within the segment and cost of sales and fuel of $235.4 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $131.7 million and cost of sales and fuel of $22.4 million . Six Months Ended June 30, 2017 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 5,474,315 $ 1,068 $ 5,475,383 Intersegment revenues 819,112 (819,112 ) — Total revenues $ 6,293,427 $ (818,044 ) $ 5,475,383 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,052,945 ) $ 818,080 $ (4,234,865 ) Operating costs $ (373,540 ) $ (36,187 ) $ (409,727 ) Depreciation and amortization $ (198,684 ) $ (1,584 ) $ (200,268 ) Equity in net earnings from investments $ 78,927 $ — $ 78,927 Total assets $ 15,430,936 $ 1,241,987 $ 16,672,923 Capital expenditures $ 184,820 $ 10,412 $ 195,232 Six Months Ended June 30, 2016 Natural Gas Gathering and Processing Natural Gas Liquids (a) Natural Gas Pipelines (b) Total ( Thousands of dollars ) Sales to unaffiliated customers $ 610,117 $ 3,125,547 $ 171,875 $ 3,907,539 Intersegment revenues 298,653 233,836 2,167 534,656 Total revenues 908,770 3,359,383 174,042 4,442,195 Cost of sales and fuel (exclusive of depreciation and items shown separately below) (566,291 ) (2,682,184 ) (9,044 ) (3,257,519 ) Operating costs (138,910 ) (156,951 ) (56,702 ) (352,563 ) Equity in net earnings from investments 5,391 27,251 32,644 65,286 Other 1,373 (719 ) 1,941 2,595 Segment adjusted EBITDA $ 210,333 $ 546,780 $ 142,881 $ 899,994 Depreciation and amortization $ (88,264 ) $ (81,402 ) $ (22,577 ) $ (192,243 ) Total assets $ 5,222,225 $ 8,289,089 $ 1,856,128 $ 15,367,442 Capital expenditures $ 226,171 $ 54,986 $ 47,226 $ 328,383 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $579.3 million , of which $489.2 million related to sales within the segment and cost of sales and fuel of $219.5 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $111.4 million and cost of sales and fuel of $11.3 million . Six Months Ended June 30, 2016 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated Sales to unaffiliated customers $ 3,907,539 $ 1,027 $ 3,908,566 Intersegment revenues 534,656 (534,656 ) — Total revenues $ 4,442,195 $ (533,629 ) $ 3,908,566 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (3,257,519 ) $ 534,458 $ (2,723,061 ) Operating costs $ (352,563 ) $ (16,291 ) $ (368,854 ) Depreciation and amortization $ (192,243 ) $ (1,482 ) $ (193,725 ) Equity in net earnings from investments $ 65,286 $ — $ 65,286 Total assets $ 15,367,442 $ 455,458 $ 15,822,900 Capital expenditures $ 328,383 $ 4,871 $ 333,254 Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Reconciliation of income from continuing operations to total segment adjusted EBITDA ( Thousands of dollars ) Income from continuing operations $ 175,991 $ 180,086 $ 362,176 $ 355,997 Add: Interest expense, net of capitalized interest 118,473 118,976 234,935 237,223 Depreciation and amortization 100,849 99,247 200,268 193,725 Income taxes 43,844 52,458 98,785 102,524 Other corporate costs and noncash items (a) 43,073 4,684 51,220 10,525 Total segment adjusted EBITDA $ 482,230 $ 455,451 $ 947,384 $ 899,994 (a) - Includes our April 2017, $20 million contribution of Series E Preferred Stock to the Foundation and costs related to the Merger Transaction of $22.8 million and $29.5 million for the three and six months ended June 30, 2017, respectively. |
SUPPLEMENTAL CONDENSED CONSOL38
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income Three Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 2,161.0 $ — $ 2,161.0 Services — — — 565.8 (1.0 ) 564.8 Total revenues — — — 2,726.8 (1.0 ) 2,725.8 Cost of sales and fuel (exclusive of items shown separately below) — — — 2,091.0 — 2,091.0 Operating expenses 20.5 — 6.2 293.0 (1.0 ) 318.7 (Gain) loss on sale of assets — — — (0.6 ) — (0.6 ) Operating income (20.5 ) — (6.2 ) 343.4 — 316.7 Equity in net earnings from investments 275.2 278.5 284.7 23.8 (822.8 ) 39.4 Other income (expense), net (17.4 ) 94.9 94.9 (0.4 ) (189.8 ) (17.8 ) Interest expense, net (24.5 ) (94.9 ) (94.9 ) (94.0 ) 189.8 (118.5 ) Income before income taxes 212.8 278.5 278.5 272.8 (822.8 ) 219.8 Income taxes 37.7 — — 6.1 — 43.8 Net income 175.1 278.5 278.5 266.7 (822.8 ) 176.0 Less: Net income attributable to noncontrolling interests 103.4 — — 0.9 — 104.3 Net income attributable to ONEOK 71.7 278.5 278.5 265.8 (822.8 ) 71.7 Less: Preferred stock dividends 0.2 — — — — 0.2 Net income available to common shareholders $ 71.5 $ 278.5 $ 278.5 $ 265.8 $ (822.8 ) $ 71.5 Three Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 1,633.3 $ — $ 1,633.3 Services — — — 501.3 (0.5 ) 500.8 Total revenues — — — 2,134.6 (0.5 ) 2,134.1 Cost of sales and fuel (exclusive of items shown separately below) — — — 1,527.3 — 1,527.3 Operating expenses 9.8 — — 281.8 (0.5 ) 291.1 (Gain) loss on sale of assets — — — 0.4 — 0.4 Operating income (9.8 ) — — 325.1 — 315.3 Equity in net earnings from investments 260.9 261.5 261.5 16.7 (768.2 ) 32.4 Other income (expense), net 4.3 94.9 94.9 (0.5 ) (189.8 ) 3.8 Interest expense, net (25.7 ) (94.9 ) (94.9 ) (93.3 ) 189.8 (119.0 ) Income before income taxes 229.7 261.5 261.5 248.0 (768.2 ) 232.5 Income taxes (50.3 ) — — (2.1 ) — (52.4 ) Income from continuing operations 179.4 261.5 261.5 245.9 (768.2 ) 180.1 Income (loss) from discontinued operations, net of tax — — — (0.2 ) — (0.2 ) Net income 179.4 261.5 261.5 245.7 (768.2 ) 179.9 Less: Net income attributable to noncontrolling interests 93.5 — — 0.5 — 94.0 Net income attributable to ONEOK $ 85.9 $ 261.5 $ 261.5 $ 245.2 $ (768.2 ) $ 85.9 Six Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 4,377.7 $ — $ 4,377.7 Services — — — 1,098.7 (1.0 ) 1,097.7 Total revenues — — — 5,476.4 (1.0 ) 5,475.4 Cost of sales and fuel (exclusive of items shown separately below) — — — 4,234.9 — 4,234.9 Operating expenses 30.1 — 6.2 574.6 (1.0 ) 609.9 (Gain) loss on sale of assets — — — (0.6 ) — (0.6 ) Operating income (30.1 ) — (6.2 ) 667.5 — 631.2 Equity in net earnings from investments 544.0 547.6 553.8 44.5 (1,611.0 ) 78.9 Other income (expense), net (14.2 ) 186.1 186.1 — (372.2 ) (14.2 ) Interest expense, net (50.3 ) (186.1 ) (186.1 ) (184.6 ) 372.2 (234.9 ) Income before income taxes 449.4 547.6 547.6 527.4 (1,611.0 ) 461.0 Income taxes (89.0 ) — — (9.8 ) — (98.8 ) Net income 360.4 547.6 547.6 517.6 (1,611.0 ) 362.2 Less: Net income attributable to noncontrolling interests 201.3 — — 1.8 — 203.1 Net income attributable to ONEOK 159.1 547.6 547.6 515.8 (1,611.0 ) 159.1 Less: Preferred stock dividends 0.2 — — — — 0.2 Net income available to common shareholders $ 158.9 $ 547.6 $ 547.6 $ 515.8 $ (1,611.0 ) $ 158.9 Six Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 2,916.8 $ — $ 2,916.8 Services — — — 992.8 (1.0 ) 991.8 Total revenues — — — 3,909.6 (1.0 ) 3,908.6 Cost of sales and fuel (exclusive of items shown separately below) — — — 2,723.1 — 2,723.1 Operating expenses 16.4 — — 547.2 (1.0 ) 562.6 (Gain) loss on sale of assets — — — (3.8 ) — (3.8 ) Operating income (16.4 ) — — 643.1 — 626.7 Equity in net earnings from investments 513.3 515.0 515.0 30.9 (1,508.9 ) 65.3 Other income (expense), net 4.4 189.3 189.3 (0.7 ) (378.6 ) 3.7 Interest expense, net (51.4 ) (189.3 ) (189.3 ) (185.8 ) 378.6 (237.2 ) Income before income taxes 449.9 515.0 515.0 487.5 (1,508.9 ) 458.5 Income taxes (98.4 ) — — (4.1 ) — (102.5 ) Income from continuing operations 351.5 515.0 515.0 483.4 (1,508.9 ) 356.0 Income (loss) from discontinued operations, net of tax — — — (1.2 ) — (1.2 ) Net income 351.5 515.0 515.0 482.2 (1,508.9 ) 354.8 Less: Net income attributable to noncontrolling interests 182.1 — — 3.3 — 185.4 Net income attributable to ONEOK $ 169.4 $ 515.0 $ 515.0 $ 478.9 $ (1,508.9 ) $ 169.4 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 175.1 $ 278.5 $ 278.5 $ 266.7 $ (822.8 ) $ 176.0 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax (0.3 ) (5.7 ) 9.0 9.8 (17.9 ) (5.1 ) Realized (gains) losses on derivatives in net income, net of tax 0.5 11.1 6.8 5.1 (13.6 ) 9.9 Change in pension and postretirement benefit plan liability, net of tax 2.1 — — — — 2.1 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (1.6 ) (1.6 ) (1.4 ) 3.2 (1.4 ) Total other comprehensive income (loss) 2.3 3.8 14.2 13.5 (28.3 ) 5.5 Comprehensive income 177.4 282.3 292.7 280.2 (851.1 ) 181.5 Less: Comprehensive income attributable to noncontrolling interests 105.6 — — 0.9 — 106.5 Comprehensive income attributable to ONEOK $ 71.8 $ 282.3 $ 292.7 $ 279.3 $ (851.1 ) $ 75.0 Three Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 179.4 $ 261.5 $ 261.5 $ 245.7 $ (768.2 ) $ 179.9 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax — (87.2 ) (58.7 ) (132.6 ) 204.6 (73.9 ) Realized (gains) losses on derivatives in net income, net of tax 0.6 (10.1 ) (14.0 ) (21.5 ) 36.9 (8.1 ) Change in pension and postretirement benefit plan liability, net of tax 1.5 — — — — 1.5 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (5.6 ) (5.6 ) (10.3 ) 16.8 (4.7 ) Total other comprehensive income (loss) 2.1 (102.9 ) (78.3 ) (164.4 ) 258.3 (85.2 ) Comprehensive income 181.5 158.6 183.2 81.3 (509.9 ) 94.7 Less: Comprehensive income attributable to noncontrolling interests 32.9 — — 0.5 — 33.4 Comprehensive income attributable to ONEOK $ 148.6 $ 158.6 $ 183.2 $ 80.8 $ (509.9 ) $ 61.3 Six Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 360.4 $ 547.6 $ 547.6 $ 517.6 $ (1,611.0 ) $ 362.2 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax (0.3 ) 23.1 36.3 32.8 (72.6 ) 19.3 Realized (gains) losses on derivatives in net income, net of tax 1.0 30.9 22.1 17.4 (44.2 ) 27.2 Change in pension and postretirement benefit plan liability, net of tax 4.1 — — — — 4.1 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (1.2 ) (1.2 ) (1.0 ) 2.4 (1.0 ) Total other comprehensive income (loss) 4.8 52.8 57.2 49.2 (114.4 ) 49.6 Comprehensive income 365.2 600.4 604.8 566.8 (1,725.4 ) 411.8 Less: Comprehensive income attributable to noncontrolling interests 232.4 — — 1.8 — 234.2 Comprehensive income attributable to ONEOK $ 132.8 $ 600.4 $ 604.8 $ 565.0 $ (1,725.4 ) $ 177.6 Six Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 351.5 $ 515.0 $ 515.0 $ 482.2 $ (1,508.9 ) $ 354.8 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax — (107.1 ) (47.0 ) (137.8 ) 201.1 (90.8 ) Realized (gains) losses on derivatives in net income, net of tax 1.1 (20.8 ) (28.5 ) (44.0 ) 75.6 (16.6 ) Change in pension and postretirement benefit plan liability, net of tax 3.1 — — — — 3.1 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — (11.4 ) (11.4 ) (21.0 ) 34.2 (9.6 ) Total other comprehensive income (loss) 4.2 (139.3 ) (86.9 ) (202.8 ) 310.9 (113.9 ) Comprehensive income 355.7 375.7 428.1 279.4 (1,198.0 ) 240.9 Less: Comprehensive income attributable to noncontrolling interests 100.2 — — 3.3 — 103.5 Comprehensive income attributable to ONEOK $ 255.5 $ 375.7 $ 428.1 $ 276.1 $ (1,198.0 ) $ 137.4 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total Assets ( Millions of dollars ) Current assets Cash and cash equivalents $ 321.0 $ — $ 11.4 $ — $ — $ 332.4 Accounts receivable, net — — — 749.3 — 749.3 Natural gas and natural gas liquids in storage — — — 200.1 — 200.1 Other current assets 12.9 0.5 — 152.6 — 166.0 Total current assets 333.9 0.5 11.4 1,102.0 — 1,447.8 Property, plant and equipment Property, plant and equipment 139.8 — — 15,101.3 — 15,241.1 Accumulated depreciation and amortization 94.3 — — 2,599.8 — 2,694.1 Net property, plant and equipment 45.5 — — 12,501.5 — 12,547.0 Investments and other assets Investments 5,936.9 3,160.9 7,376.1 622.7 (16,152.0 ) 944.6 Intercompany notes receivable 253.7 10,791.6 6,565.0 — (17,610.3 ) — Other assets 763.6 19.7 — 1,017.9 (67.7 ) 1,733.5 Total investments and other assets 6,954.2 13,972.2 13,941.1 1,640.6 (33,830.0 ) 2,678.1 Total assets $ 7,333.6 $ 13,972.7 $ 13,952.5 $ 15,244.1 $ (33,830.0 ) $ 16,672.9 Liabilities and equity Current liabilities Current maturities of long-term debt $ 87.1 $ 400.0 $ — $ 7.7 $ — $ 494.8 Short-term borrowings — 1,274.4 — — — 1,274.4 Accounts payable 19.9 — — 676.9 — 696.8 Other current liabilities 57.7 86.3 — 250.5 — 394.5 Total current liabilities 164.7 1,760.7 — 935.1 — 2,860.5 Intercompany debt — — 10,791.6 6,818.7 (17,610.3 ) — Long-term debt, excluding current maturities 1,545.0 6,257.9 — 32.7 — 7,835.6 Deferred credits and other liabilities 216.2 — — 263.1 (67.7 ) 411.6 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 5,407.7 5,954.1 3,160.9 7,037.0 (16,152.0 ) 5,407.7 Noncontrolling interests in consolidated subsidiaries — — — 157.5 — 157.5 Total equity 5,407.7 5,954.1 3,160.9 7,194.5 (16,152.0 ) 5,565.2 Total liabilities and equity $ 7,333.6 $ 13,972.7 $ 13,952.5 $ 15,244.1 $ (33,830.0 ) $ 16,672.9 December 31, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total Assets ( Millions of dollars ) Current assets Cash and cash equivalents $ 248.5 $ — $ 0.4 $ — $ — $ 248.9 Accounts receivable, net — — — 872.4 — 872.4 Natural gas and natural gas liquids in storage — — — 140.0 — 140.0 Other current assets 7.2 — — 160.6 — 167.8 Assets of discontinued operations — — — 0.6 — 0.6 Total current assets 255.7 — 0.4 1,173.6 — — 1,429.7 Property, plant and equipment Property, plant and equipment 139.8 — — 14,938.7 — 15,078.5 Accumulated depreciation and amortization 90.4 — — 2,416.7 — 2,507.1 Net property, plant and equipment 49.4 — — 12,522.0 — 12,571.4 Investments and other assets Investments 2,931.9 3,222.1 6,805.4 631.1 (12,631.7 ) 958.8 Intercompany notes receivable 205.2 10,615.0 7,031.3 — (17,851.5 ) — Other assets 103.4 47.5 — 1,028.0 — 1,178.9 Total investments and other assets 3,240.5 13,884.6 13,836.7 1,659.1 (30,483.2 ) 2,137.7 Total assets $ 3,545.6 $ 13,884.6 $ 13,837.1 $ 15,354.7 $ (30,483.2 ) $ 16,138.8 Liabilities and equity Current liabilities Current maturities of long-term debt $ 3.0 $ 400.0 $ — $ 7.7 $ — $ 410.7 Short-term borrowings — 1,110.3 — — — 1,110.3 Accounts payable 13.0 — — 861.7 — 874.7 Other current liabilities 44.7 99.9 — 296.5 — 441.1 Total current liabilities 60.7 1,610.2 — 1,165.9 — 2,836.8 Intercompany debt — — 10,615.0 7,236.5 (17,851.5 ) — Long-term debt, excluding current maturities 1,628.7 6,254.7 — 36.6 — 7,920.0 Deferred credits and other liabilities 1,667.5 — — 285.6 — 1,953.1 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 188.7 6,019.7 3,222.1 6,472.0 (15,713.8 ) 188.7 Noncontrolling interests in consolidated subsidiaries — — — 158.1 3,082.1 3,240.2 Total equity 188.7 6,019.7 3,222.1 6,630.1 (12,631.7 ) 3,428.9 Total liabilities and equity $ 3,545.6 $ 13,884.6 $ 13,837.1 $ 15,354.7 $ (30,483.2 ) $ 16,138.8 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2017 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Operating activities Cash provided by operating activities $ 355.0 $ 675.2 $ 28.2 $ 645.5 $ (1,061.0 ) $ 642.9 Investing activities Capital expenditures (0.1 ) — — (195.1 ) — (195.2 ) Other investing activities — — 6.7 4.8 — 11.5 Cash provided by (used in) investing activities (0.1 ) — 6.7 (190.3 ) — (183.7 ) Financing activities Dividends paid (259.8 ) (666.0 ) (666.0 ) — 1,332.0 (259.8 ) Distributions to noncontrolling interests — — — (2.5 ) (271.0 ) (273.5 ) Intercompany borrowings (advances), net (27.1 ) (166.1 ) 642.1 (448.9 ) — — Borrowing (repayment) of short-term borrowings, net — 164.1 — — — 164.1 Repayment of long-term debt (0.1 ) — — (3.8 ) — (3.9 ) Issuance of common stock 10.8 — — — — 10.8 Other (6.2 ) (7.2 ) — — — (13.4 ) Cash used in financing activities (282.4 ) (675.2 ) (23.9 ) — (455.2 ) 1,061.0 (375.7 ) Change in cash and cash equivalents 72.5 — 11.0 — — 83.5 Cash and cash equivalents at beginning of period 248.5 — 0.4 — — 248.9 Cash and cash equivalents at end of period $ 321.0 $ — $ 11.4 $ — $ — $ 332.4 Six Months Ended June 30, 2016 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Operating activities Cash provided by operating activities $ 363.1 $ 668.6 $ 34.4 $ 526.5 $ (1,061.0 ) $ 531.6 Investing activities Capital expenditures — — — (333.3 ) — (333.3 ) Other investing activities — — 24.9 9.9 — 34.8 Cash provided by (used in) investing activities — — 24.9 (323.4 ) — (298.5 ) Financing activities Dividends paid (258.5 ) (666.0 ) (666.0 ) — 1,332.0 (258.5 ) Distributions to noncontrolling interests — — — (4.3 ) (271.0 ) (275.3 ) Intercompany borrowings (advances), net (30.5 ) (379.8 ) 605.3 (195.0 ) — — Borrowing (repayment) of short-term borrowings, net — 30.0 — — — 30.0 Issuance of long-term debt, net of discounts — 1,000.0 — — — 1,000.0 Debt financing costs — (2.8 ) — — — (2.8 ) Repayment of long-term debt (0.3 ) (650.0 ) — (3.8 ) — (654.1 ) Issuance of common stock 11.1 — — — — 11.1 Cash used in financing activities (278.2 ) (668.6 ) (60.7 ) (203.1 ) 1,061.0 (149.6 ) Change in cash and cash equivalents 84.9 — (1.4 ) — — 83.5 Change in cash and cash equivalents included in discontinued operations (0.2 ) — — — — (0.2 ) Change in cash and cash equivalents included in continuing operations 84.7 — (1.4 ) — — 83.3 Cash and cash equivalents at beginning of period 92.5 — 5.1 — — 97.6 Cash and cash equivalents at end of period $ 177.2 $ — $ 3.7 $ — $ — $ 180.9 |
ONEOK PARTNERS ACQUISITION (Det
ONEOK PARTNERS ACQUISITION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Common Stock | $ 10,845 | $ 11,101 |
Business Acquisition, Date of Acquisition Agreement | Jun. 30, 2017 | |
Business Acquisition, Description of Acquired Entity | we completed the Merger Transaction at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit that we did not already own. We issued 168.9 million shares of our common stock to third-party common unitholders of ONEOK Partners in exchange for all of the 171.5 million outstanding common units of ONEOK Partners that we previously did not own. No fractional shares were issued in the Merger Transaction, and ONEOK Partners common unitholders instead received cash in lieu of fractional shares. As a result of the completion of the Merger Transaction, common units of ONEOK Partners are no longer publicly traded. | |
Deferred Tax Assets, Gross, Current | $ 2,100,000 | |
Deferred Tax Asset, Tax Basis | 8,800,000 | |
Deferred Tax Asset, Book Basis | $ 3,000,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 37.00% | |
General partnership ownership interest | 41.20% | |
Accumulated other comprehensive loss | $ (40,288) | |
Noncontrolling Interest in Consolidated Subsidiaries | 2,146,462 | |
ONEOK [Member] | ||
Business Acquisition [Line Items] | ||
Common Stock | 1,700 | |
Paid-in Capital | 5,228,600 | |
Accumulated other comprehensive loss | (40,300) | |
Noncontrolling Interest in Consolidated Subsidiaries | (3,043,500) | |
Deferred Income Taxes | $ (2,146,500) |
FAIR VALUE MEASUREMENTS - Part
FAIR VALUE MEASUREMENTS - Part 1 (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
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 | $ 0 |
Cash posted - total | 11,800 | 67,700 |
Cash posted - offsetting derivative net liability positions under master-netting arrangements | 900 | 51,600 |
Cash posted - remaining in excess of derivative net liability positions included in consolidated Balance Sheets | 10,900 | 16,100 |
Long-term debt, Fair Value | 9,100,000 | 8,800,000 |
Long-term debt | 8,300,000 | 8,300,000 |
Fair Value, Measurements, Recurring [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 428 | 951 |
Commodity contracts - physical | 710 | |
Interest rate contracts | 38,006 | 47,457 |
Total derivative assets | 39,144 | 48,408 |
Derivative assets netting | (15,786) | (4,760) |
Derivative liabilities | ||
Commodity contracts - financial | (109) | 0 |
Commodity contracts - physical | (1,033) | (3,022) |
Interest-rate contracts | (16,872) | (12,795) |
Total derivative liabilities | (18,014) | (15,817) |
Derivative liabilities netting | 16,656 | 56,319 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 16,214 | 5,711 |
Commodity contracts - physical | 710 | |
Interest rate contracts | 38,006 | 47,457 |
Total derivative assets | 54,930 | 53,168 |
Derivative liabilities | ||
Commodity contracts - financial | (16,765) | (56,319) |
Commodity contracts - physical | (1,033) | (3,022) |
Interest-rate contracts | (16,872) | (12,795) |
Total derivative liabilities | (34,670) | (72,136) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 4,349 | 1,147 |
Commodity contracts - physical | 0 | |
Interest rate contracts | 0 | 0 |
Total derivative assets | 4,349 | 1,147 |
Derivative liabilities | ||
Commodity contracts - financial | (5,973) | (31,458) |
Commodity contracts - physical | 0 | 0 |
Interest-rate contracts | 0 | 0 |
Total derivative liabilities | (5,973) | (31,458) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 0 | 0 |
Commodity contracts - physical | 0 | |
Interest rate contracts | 38,006 | 47,457 |
Total derivative assets | 38,006 | 47,457 |
Derivative liabilities | ||
Commodity contracts - financial | 0 | 0 |
Commodity contracts - physical | 0 | 0 |
Interest-rate contracts | (16,872) | (12,795) |
Total derivative liabilities | (16,872) | (12,795) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets | ||
Commodity contracts - financial | 11,865 | 4,564 |
Commodity contracts - physical | 710 | |
Interest rate contracts | 0 | 0 |
Total derivative assets | 12,575 | 4,564 |
Derivative liabilities | ||
Commodity contracts - financial | (10,792) | (24,861) |
Commodity contracts - physical | (1,033) | (3,022) |
Interest-rate contracts | 0 | 0 |
Total derivative liabilities | $ (11,825) | $ (27,883) |
FAIR VALUE MEASUREMENTS - Par41
FAIR VALUE MEASUREMENTS - Part 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Net assets (liabilities) at beginning of period | $ (772) | $ 34 | $ (23,319) | $ 7,331 |
Total realized/unrealized gains (losses): | ||||
Included in earnings | (656) | 318 | 258 | (427) |
Included in other comprehensive income (loss) | 2,178 | (14,373) | 23,811 | (20,925) |
Net assets (liabilities) at end of period | 750 | (14,021) | 750 | (14,021) |
Transfers between levels | $ 0 | $ 0 | $ 0 | $ 0 |
RISK MANAGEMENT AND HEDGING A42
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 1 (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative, Fair Value [Line Items] | ||
Assets | $ 54,930,000 | $ 53,168,000 |
(Liabilities) | (34,670,000) | (72,136,000) |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | |
Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 51,803,000 | 48,822,000 |
(Liabilities) | (31,212,000) | (67,897,000) |
Not Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 3,127,000 | 4,346,000 |
(Liabilities) | (3,458,000) | (4,239,000) |
Natural Gas Pipelines [Member] | ||
Derivative, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | 0 |
Other Current Assets [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 7,577,000 | 1,155,000 |
Other Current Assets [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 2,587,000 | 4,346,000 |
Other Current Assets [Member] | Commodity Contract [Member] | Physical Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 330,000 | 0 |
Other Current Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 493,000 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (13,082,000) | (49,938,000) |
Other Current Liabilities [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (2,967,000) | (4,239,000) |
Other Current Liabilities [Member] | Commodity Contract [Member] | Physical Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (1,033,000) | (3,022,000) |
Other Current Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (16,872,000) | (12,795,000) |
Other Assets [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 5,510,000 | 210,000 |
Other Assets [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 540,000 | 0 |
Other Assets [Member] | Commodity Contract [Member] | Physical Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 380,000 | 0 |
Other Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
Assets | 37,513,000 | 47,457,000 |
Other Liabilities [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (225,000) | (2,142,000) |
Other Liabilities [Member] | Commodity Contract [Member] | Financial Derivative Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (491,000) | 0 |
Other Liabilities [Member] | Commodity Contract [Member] | Physical Derivative Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | 0 | 0 |
Other Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | $ 0 | $ 0 |
RISK MANAGEMENT AND HEDGING A43
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES, Part 2 (Details) $ in Thousands | Jun. 30, 2017USD ($)MMcfMMBbls | Dec. 31, 2016USD ($)MMcfMMBbls |
Derivative [Line Items] | ||
Long-term Debt, Gross | $ | $ 9,649,290 | $ 9,489,057 |
Senior Notes, Noncurrent | $ | $ 1,200,000 | |
Designated as Hedging Instrument [Member] | Futures, forwards and swaps [Member] | Crude Oil and NGL [Member] | Fixed Price [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | 0.7 | 0 |
Designated as Hedging Instrument [Member] | Futures, forwards and swaps [Member] | Crude Oil and NGL [Member] | Fixed Price [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | (5) | (3.6) |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 2,150,000 | $ 2,150,000 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 0 | $ 0 |
Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Fixed Price [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Fixed Price [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | (34,300) | (38,400) |
Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Basis [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Basis [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | (34,300) | (38,400) |
Designated as Hedging Instrument [Member] | Options [Member] | Natural Gas [Member] | Fixed Price [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 22,500 | 49,500 |
Designated as Hedging Instrument [Member] | Options [Member] | Natural Gas [Member] | Fixed Price [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Futures, forwards and swaps [Member] | Crude Oil and NGL [Member] | Fixed Price [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | 0.6 | 0.5 |
Not Designated as Hedging Instrument [Member] | Futures, forwards and swaps [Member] | Crude Oil and NGL [Member] | Fixed Price [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | (1.1) | (0.7) |
Not Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Fixed Price [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,800 | 400 |
Not Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Fixed Price [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Basis [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,800 | 400 |
Not Designated as Hedging Instrument [Member] | Futures and swaps [Member] | Natural Gas [Member] | Basis [Member] | Sold [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
LIBOR Based Interest Payments [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 1,000,000 | $ 1,000,000 |
Forecasted Debt Issuances [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | 1,200,000 | 1,200,000 |
ONEOK Partners [Member] | ||
Derivative [Line Items] | ||
Long-term Debt, Gross | $ | 500,000 | |
ONEOK Partners [Member] | Note Payable from Public Offering Due 2017 [Member] | ||
Derivative [Line Items] | ||
Long-term Debt, Gross | $ | $ 400,000 | $ 400,000 |
RISK MANAGEMENT AND HEDGING A44
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES Part 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (176,085) | $ (176,085) | $ (154,350) | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 5,728 | ||||
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (5,997) | $ (87,218) | 22,860 | $ (107,151) | |
Total Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Effective Portion) | (11,968) | 9,247 | (32,616) | 19,048 | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized Gain (Loss) On Cash Flow Hedges Net Of Tax Accumulated Other Comprehensive Income Loss | (3,100) | (3,100) | |||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | (6,600) | (6,600) | |||
Commodity Cash Flow Hedge Gain (Loss) To Be Reclassified After Next 12 Months Net | 3,500 | 3,500 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 8,998 | (58,654) | 36,326 | (46,976) | |
Commodity Contract [Member] | Sales [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income (Effective Portion) | (6,796) | 14,049 | (22,115) | 28,548 | |
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. | (84,300) | (84,300) | |||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | (12,900) | (12,900) | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (14,995) | (28,564) | (13,466) | (60,175) | |
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 (Effective Portion) | $ (5,172) | $ (4,802) | $ (10,501) | $ (9,500) |
DEBT DEBT (Details)
DEBT DEBT (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)Rate | Dec. 31, 2016USD ($)Rate | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 9,649,290 | $ 9,489,057 | |
Unamortized Portion of Terminated Swaps | 19,327 | 20,186 | |
Unamortized debt issuance costs and discounts | (63,901) | (68,320) | |
Current maturities | (494,703) | (410,650) | |
Short-term Debt | (1,274,407) | (1,110,277) | |
Long-term debt | $ 7,835,606 | 7,919,996 | |
Indebtedness To Adjusted Ebitda Current | 5.1 | ||
Senior Notes, Noncurrent | $ 1,200,000 | ||
Redemption Price, Senior Notes | 87,000 | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial Paper | $ 1,274,407 | $ 1,110,277 | |
Short-term Debt, Weighted Average Interest Rate | Rate | 1.80% | 1.27% | |
ONEOK Partners Commercial Paper Program [Domain] | |||
Debt Instrument [Line Items] | |||
Maximum Amount Of Commercial Paper | $ 2,400,000 | ||
ONEOK, Inc. Commercial Paper Program [Domain] | |||
Debt Instrument [Line Items] | |||
Maximum Amount Of Commercial Paper | $ 2,500,000 | ||
Partnership Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate Description | borrowings, if any, will accrue at LIBOR plus 110 basis points | ||
Line Of Credit Facility, Annual Facility Fee Description | the annual facility fee is 15 basis points | ||
ONEOK Credit Agreement 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000 | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Debt, Net of Issuance Costs | 1,180,000 | ||
Note Payable from Public Offering Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 500,000 | ||
Interest Rate (in hundredths) | Rate | 4.00% | ||
Note Payable from Public Offering Due 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 700,000 | ||
Interest Rate (in hundredths) | Rate | 5.00% | ||
Parent Company | Note Payable from Public Offering Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 547,397 | $ 547,397 | |
Interest Rate (in hundredths) | Rate | 4.25% | ||
Parent Company | Note Payable Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 500,000 | 500,000 | |
Interest Rate (in hundredths) | Rate | 7.50% | ||
Parent Company | Note Payables 1 due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 87,053 | 87,126 | |
Interest Rate (in hundredths) | Rate | 6.50% | ||
Parent Company | Note Payables 2 due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 100,000 | 100,000 | |
Interest Rate (in hundredths) | Rate | 6.875% | ||
Parent Company | Notes Payables due 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 400,000 | 400,000 | |
Interest Rate (in hundredths) | Rate | 6.00% | ||
ONEOK Partners [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 500,000 | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 650,000 | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 400,000 | 400,000 | |
Interest Rate (in hundredths) | Rate | 2.00% | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 425,000 | 425,000 | |
Interest Rate (in hundredths) | Rate | 3.20% | ||
ONEOK Partners [Member] | Term Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 1,000,000 | 1,000,000 | |
Delayed-Draw Unsecured Senior Term Loan | 1,000,000 | ||
Proceeds from Debt, Net of Issuance Costs | $ 500,000 | 1,000,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | Rate | 2.52% | ||
ONEOK Partners [Member] | Notes Payables due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 500,000 | 500,000 | |
Interest Rate (in hundredths) | Rate | 8.625% | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 300,000 | 300,000 | |
Interest Rate (in hundredths) | Rate | 3.80% | ||
ONEOK Partners [Member] | Note Payable 2 from Public Offering Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 900,000 | 900,000 | |
Interest Rate (in hundredths) | Rate | 3.375% | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 425,000 | 425,000 | |
Interest Rate (in hundredths) | Rate | 5.00% | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 500,000 | 500,000 | |
Interest Rate (in hundredths) | Rate | 4.90% | ||
ONEOK Partners [Member] | Notes Payables due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 600,000 | 600,000 | |
Interest Rate (in hundredths) | Rate | 6.65% | ||
ONEOK Partners [Member] | Notes Payables due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 600,000 | 600,000 | |
Interest Rate (in hundredths) | Rate | 6.85% | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 650,000 | 650,000 | |
Interest Rate (in hundredths) | Rate | 6.125% | ||
ONEOK Partners [Member] | Note Payable from Public Offering Due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 400,000 | 400,000 | |
Interest Rate (in hundredths) | Rate | 6.20% | ||
Guardian Pipeline [Member] | Notes Payables 1 due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 40,433 | $ 44,257 | |
Weighed Average Interest Rate (in hundredths) | Rate | 7.85% | ||
Subsequent Event [Member] | ONEOK Credit Agreement 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility sublimit | $ 100,000 | ||
Line Of Credit Facility Option To Increase Borrowing Capacity | 3,500,000 | ||
Line of Credit Facility Swingline Subfacility | $ 200,000 | ||
Debt Instrument, Covenant Description | Among other things, these covenants include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in our 2017 Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.75 to 1 at June 30,2017 and for the following two quarters; 5.5 to 1 for the subsequent two quarters; and 5.0 to 1 thereafter. Once the covenant decreases to 5.0 to 1, if we consummate one or more acquisitions in which the aggregate purchase 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 is completed and the two following quarters. The 2017 Credit Agreement includes a $100 million sublimit for the issuance of standby letters of credit and a $200 million sublimit for swingline loans. Under the terms of the 2017 Credit Agreement, we may request an increase in the size of the facility to an aggregate of $3.5 billion by either commitments from new lenders or increased commitments from existing lenders. The 2017 Credit Agreement contains provisions for an applicable margin rate and an annual facility fee, both of which adjust with changes in our credit ratings. Based on our current credit ratings, borrowings, if any, will accrue at LIBOR plus 110 basis points, and the annual facility fee is 15 basis points. We have the option to request two one-year extensions, subject to lender approval, which may be used for working capital, capital expenditures, acquisitions and mergers, the issuance of letters of credit and for other general corporate purposes. At June 30, 2017, our ratio of indebtedness to adjusted EBITDA was 5.1 to 1, and we were in compliance with all covenants under the 2017 Credit Agreement. |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Partnership Capital Distributions [Line Items] | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.615 | $ 1.230 | $ 1.230 | ||||
General partnership ownership interest | 41.20% | ||||||
Number of common units owned by related party | 41,300,000 | 41,300,000 | |||||
Number Of Class B Units Owned By Related Party | 73,000,000 | 73,000,000 | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 20.00% | |||||
Common Stock, Shares, Issued | 414,732,011 | 414,732,011 | 245,811,180 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.615 | $ 0.615 | $ 1.230 | $ 1.230 | |||
Dividends, Preferred Stock, Cash | $ 200,000 | ||||||
Noncash Contribution Expense | 12,600,000 | $ 0 | |||||
Preferred Stock, Dividends Per Share, Declared | $ (217,000) | ||||||
General Partner [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
General partnership ownership interest | 2.00% | ||||||
Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Distribution per Limited Partnership and General Partnership Unit, Outstanding, Basic | $ 0.79 | $ 0.79 | $ 1.58 | $ 1.58 | |||
Total distributions | $ 333,000,000 | $ 333,000,000 | $ 666,001,000 | $ 666,001,000 | |||
Distribution Declared [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Distribution per Limited Partnership and General Partnership Unit, Outstanding, Basic | $ 0.79 | ||||||
Distribution Made to Member or Limited Partner, Distribution Date | May 1, 2017 | Jan. 30, 2017 | |||||
Issued Under Equity Distribution Agreement [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Partners Capital Account Units Sold Under Equity Distribution Agreement | 0 | 0 | |||||
ONEOK [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Common Stock, Shares, Issued | 168,920,998 | 168,920,998 | |||||
Aggregate Amount Of Common Shares Available For Issuance And Sale Under Equity Distribution Agreement | $ 1,000,000,000 | ||||||
Oneok Partners [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Aggregate Amount Of Common Units Available For Issuance And Sale Under The Equity Distribution Agreement | $ 650,000,000 | ||||||
Common Unit, Issued | 171,493,399 | 171,493,399 | |||||
Limited Partner [Member] | Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Partners Capital Account Distributions to Other Unitholders | $ 135,479,000 | 135,479,000 | $ 270,959,000 | 270,959,000 | |||
ONEOK [Member] | Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Limited partner distributions to ONEOK | 90,323,000 | 90,323,000 | 180,646,000 | 180,646,000 | |||
General Partner [Member] | Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
General Partner Distributions | 6,660,000 | 6,660,000 | 13,320,000 | 13,320,000 | |||
Incentive distributions | 100,538,000 | 100,538,000 | 201,076,000 | 201,076,000 | |||
Distributions to general partner | $ 107,198,000 | $ 107,198,000 | $ 214,396,000 | $ 214,396,000 | |||
Subsequent Event [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.745 | ||||||
Dividends Payable, Date of Record | Aug. 7, 2017 | ||||||
Dividends Payable, Date to be Paid | Aug. 14, 2017 | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 352,000 | ||||||
Series E Preferred Stock [Member] | Subsequent Event [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 20,000 | ||||||
Stock Issued During Period, Value, New Issues | $ 20,000,000 | ||||||
Noncash Contribution Expense | $ 20,000,000 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.50% |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Unrealized gains (losses) on risk management assets/liabilities - January 1 | $ (52,155) | |||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax- January 1 | (101,236) | |||
Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates - January 1 | (959) | |||
Accumulated other comprehensive loss - January 1 | (154,350) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 5,728 | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 5 | |||
Other Comprehensive Income (Loss), Amount Attributable to Equity Method Investments, before Reclassification Adjustments, Net of Tax | (367) | |||
Other comprehensive income (loss) before reclassifications | 5,366 | |||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | $ 9,927 | $ (8,054) | 27,210 | $ (16,579) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Net of Tax | 47 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment included in Net Income, Net of Tax | 5,466 | (552) | 13,187 | (1,247) |
Impact of Merger Transaction On Unrealized Gains (Losses) on Risk Management Assets/Liabilities | (40,288) | |||
Impact of Merger Transaction on Pension and Postretirement Benefit Plan Obligations | 0 | |||
Impact of Merger Transaction on Unrealized Gains (Losses) on Risk Management Assets/Liabilities of Unconsolidated Affiliates | 0 | |||
Impact of Merger Transaction on AOCI, Total | (40,288) | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (25,496) | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 2,040 | 1,552 | 4,081 | 3,105 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | (320) | |||
Net current-period other comprehensive income (loss) attributable to ONEOK Partners | (21,735) | |||
Unrealized gains (losses) on risk management assets/liabilities - June 30 | (77,651) | (77,651) | ||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax - June 30 | (97,155) | (97,155) | ||
Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates - June 30 | (1,279) | (1,279) | ||
Accumulated other comprehensive loss - June 30 | (176,085) | (176,085) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 2,041 | (1,193) | 5,406 | (2,469) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 3,406 | (2,101) | 9,064 | (4,346) |
Accumulated Other Comprehensive Income from Investments in Unconsolidated Affiliates Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Before Tax | (85) | 0 | (181) | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Net of Tax | 22 | 0 | 47 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Tax | 13 | 0 | 28 | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Defined Benefit Plan, Future Amortization of Gain (Loss) | (3,812) | (2,997) | (7,624) | (5,995) |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 415 | 415 | 830 | 830 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (3,397) | (2,582) | (6,794) | (5,165) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax | 1,359 | 1,033 | 2,718 | 2,066 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 2,038 | 1,549 | 4,076 | 3,099 |
Interest Expense [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Rate Contract [Member] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (5,172) | (4,802) | (10,501) | (9,500) |
Total before tax [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (11,968) | 9,247 | (32,616) | 19,048 |
Tax Expense [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 2,041 | (1,193) | 5,406 | (2,469) |
Net of tax [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 9,927 | (8,054) | 27,210 | (16,579) |
Net of tax [Member] | Accumulated Other Comprehensive Income from Investments in Unconsolidated Affiliates Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Net of Tax | 72 | 0 | 153 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Equity Method Investments, Net of Tax, Portion Attributable to Noncont Interests | (50) | 0 | (106) | 0 |
Net income attributable to noncontrolling interest [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Noncontrolling Interest | (6,521) | 5,953 | (18,146) | 12,233 |
Sales [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Commodity Contract [Member] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (6,796) | $ 14,049 | $ (22,115) | $ 28,548 |
EARNINGS PER SHARE EARNINGS P48
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic EPS from Continuing Operations [Abstract] | ||||
Income from continuing operations attributable to ONEOK available for common stock | $ 71,476 | $ 86,171 | $ 158,837 | $ 170,569 |
Shares | 211,785 | 211,075 | 211,702 | 210,928 |
Basic (in dollars per share) | $ 0.34 | $ 0.41 | $ 0.75 | $ 0.81 |
Diluted EPS from Continuing Operations [Abstract] | ||||
Effect of options and other dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of options and other dilutive securities, number of shares, shares | 2,227 | 1,543 | 2,105 | 735 |
Income from continuing operations attributable to ONEOK available for common stock and common stock equivalents | $ 71,476 | $ 86,171 | $ 158,837 | $ 170,569 |
Shares | 214,012 | 212,618 | 213,807 | 211,663 |
Diluted (in dollars per share) | $ 0.33 | $ 0.41 | $ 0.74 | $ 0.81 |
EMPLOYEE BENEFIT PLANS EMPLOY49
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plan [Member] | ||||
Components of net periodic benefit cost | ||||
Service Cost | $ 1,722 | $ 1,622 | $ 3,444 | $ 3,244 |
Interest Cost | 4,655 | 4,947 | 9,310 | 9,894 |
Expected Return on Plan Assets | (5,336) | (5,077) | (10,672) | (10,154) |
Amortization of net loss | 3,392 | 2,736 | 6,784 | 5,473 |
Net periodic benefit cost | 4,433 | 4,228 | 8,866 | 8,457 |
Other Postretirement Benefit Plan [Member] | ||||
Components of net periodic benefit cost | ||||
Service Cost | 165 | 149 | 330 | 298 |
Interest Cost | 565 | 601 | 1,130 | 1,202 |
Expected Return on Plan Assets | (564) | (531) | (1,128) | (1,062) |
Amortization of prior service credit | (415) | (415) | (830) | (830) |
Amortization of net loss | 420 | 261 | 840 | 522 |
Net periodic benefit cost | $ 171 | $ 65 | $ 342 | $ 130 |
UNCONSOLIDATED AFFILIATES (Deta
UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings from investments | $ 39,363 | $ 32,372 | $ 78,927 | $ 65,286 | |
Accounts Payable, Related Parties, Current | 12,900 | 12,900 | $ 11,100 | ||
Income Statement [Abstract] | |||||
Operating revenues | 157,603 | 142,631 | 311,883 | 279,203 | |
Operating expenses | 69,465 | 66,674 | 136,401 | 125,373 | |
Net income | 92,072 | 69,420 | 173,203 | 141,457 | |
Equity Method Investment, Dividends or Distributions, Total | 49,760 | 62,024 | 96,680 | 108,577 | |
Unconsolidated Affiliates [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Parties | 39,400 | 34,700 | 76,100 | 68,300 | |
Northern Border Pipeline [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings from investments | 15,622 | 15,723 | 34,439 | 34,397 | |
Overland Pass Pipeline Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings from investments | 14,884 | 13,608 | 28,450 | 26,912 | |
Other Unconsolidated Affiliate [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings from investments | $ 8,857 | $ 3,041 | $ 16,038 | $ 3,977 |
SEGMENTS (Details)
SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 175,991 | $ 179,859 | $ 362,176 | $ 354,818 | |
Segment disclosure [Abstract] | |||||
Segment Reporting, Disclosure of Major Customers | For the three months ended June 30, 2017, we had no single customer from which we received 10 percent or more of our consolidated revenues. | For the three months ended June 30, 2016, we had no single customer from which we received 10 percent or more of our consolidated revenues. | For the six months ended June 30, 2017, we had no single customer from which we received 10 percent or more of our consolidated revenues. | For the six months ended June 30, 2016, we had one customer, BP p.l.c. or its affiliates, from which we received approximately 10 percent of our consolidated revenues. | |
Revenues | $ 2,725,772 | $ 2,134,107 | $ 5,475,383 | $ 3,908,566 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (2,091,022) | (1,527,323) | (4,234,865) | (2,723,061) | |
Operating costs | (217,805) | (191,839) | (409,727) | (368,854) | |
Equity in net earnings from investments | 39,363 | 32,372 | 78,927 | 65,286 | |
Depreciation and amortization | (100,849) | (99,247) | (200,268) | (193,725) | |
Total assets | 16,672,923 | 15,822,900 | 16,672,923 | 15,822,900 | $ 16,138,751 |
Capital expenditures | 82,495 | 136,843 | 195,232 | 333,254 | |
Income from Continuing Operations | 175,991 | 180,086 | 362,176 | 355,997 | |
Interest Expense, Net of Capitalized Interest | 118,473 | 118,976 | 234,935 | 237,223 | |
Income Taxes | 43,844 | 52,458 | 98,785 | 102,524 | |
Other Corporate Costs and Noncash Items | 43,073 | 4,684 | 51,220 | 10,525 | |
Noncash Contribution Expense | 12,600 | 0 | |||
Business Combination, Acquisition Related Costs | 22,800 | 29,500 | |||
Natural Gas Gathering and Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 685,815 | 476,759 | 1,347,091 | 908,770 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (488,891) | (299,991) | (977,275) | (566,291) | |
Operating costs | (73,093) | (69,304) | (144,882) | (138,910) | |
Equity in net earnings from investments | 3,780 | 2,576 | 6,410 | 5,391 | |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity and Other | 650 | 258 | 884 | 1,373 | |
Adjusted EBITDA | 128,261 | 110,298 | 232,228 | 210,333 | |
Depreciation and amortization | (46,033) | (46,413) | (91,001) | (88,264) | |
Total assets | 5,310,946 | 5,222,225 | 5,310,946 | 5,222,225 | |
Capital expenditures | 37,020 | 84,674 | 100,171 | 226,171 | |
Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,349,685 | 1,871,993 | 4,741,669 | 3,359,383 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (2,003,601) | (1,525,234) | (4,052,294) | (2,682,184) | |
Operating costs | (87,285) | (83,769) | (166,028) | (156,951) | |
Equity in net earnings from investments | 15,062 | 13,904 | 28,784 | 27,251 | |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity and Other | (552) | (283) | (593) | (719) | |
Adjusted EBITDA | 273,309 | 276,611 | 551,538 | 546,780 | |
Depreciation and amortization | (41,427) | (40,696) | (82,542) | (81,402) | |
Total assets | 8,168,567 | 8,289,089 | 8,168,567 | 8,289,089 | |
Capital expenditures | 12,336 | 20,779 | 32,789 | 54,986 | |
Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 289,400 | 297,500 | 585,700 | 579,300 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (118,900) | (112,700) | (235,400) | (219,500) | |
Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 97,849 | 88,069 | 204,667 | 174,042 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (6,773) | (5,112) | (23,376) | (9,044) | |
Operating costs | (30,877) | (29,189) | (62,630) | (56,702) | |
Equity in net earnings from investments | 20,521 | 15,892 | 43,733 | 32,644 | |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity and Other | (60) | (1,118) | 1,224 | 1,941 | |
Adjusted EBITDA | 80,660 | 68,542 | 163,618 | 142,881 | |
Depreciation and amortization | (12,598) | (11,398) | (25,141) | (22,577) | |
Total assets | 1,951,423 | 1,856,128 | 1,951,423 | 1,856,128 | |
Capital expenditures | 26,846 | 29,278 | 51,860 | 47,226 | |
Natural Gas Pipelines [Member] | Natural Gas Pipelines Regulated [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 62,800 | 56,600 | 131,700 | 111,400 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (8,300) | (5,700) | (22,400) | (11,300) | |
Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 3,133,349 | 2,436,821 | 6,293,427 | 4,442,195 | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | (2,499,265) | (1,830,337) | (5,052,945) | (3,257,519) | |
Operating costs | (191,255) | (182,262) | (373,540) | (352,563) | |
Equity in net earnings from investments | 39,363 | 32,372 | 78,927 | 65,286 | |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity and Other | 38 | (1,143) | 1,515 | 2,595 | |
Adjusted EBITDA | 482,230 | 455,451 | 947,384 | 899,994 | |
Depreciation and amortization | (100,058) | (98,507) | (198,684) | (192,243) | |
Total assets | 15,430,936 | 15,367,442 | 15,430,936 | 15,367,442 | |
Capital expenditures | 76,202 | 134,731 | 184,820 | 328,383 | |
Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | (407,577) | (302,714) | (818,044) | (533,629) | |
Cost of sales and fuel (exclusive of depreciation and items shown separately below) | 408,243 | 303,014 | 818,080 | 534,458 | |
Operating costs | (26,550) | (9,577) | (36,187) | (16,291) | |
Equity in net earnings from investments | 0 | 0 | 0 | 0 | |
Depreciation and amortization | (791) | (740) | (1,584) | (1,482) | |
Total assets | 1,241,987 | 455,458 | 1,241,987 | 455,458 | |
Capital expenditures | 6,293 | 2,112 | 10,412 | 4,871 | |
Unaffiliated entity [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,725,772 | 2,134,107 | 5,475,383 | 3,908,566 | |
Unaffiliated entity [Member] | Natural Gas Gathering and Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 433,088 | 293,071 | 833,237 | 610,117 | |
Unaffiliated entity [Member] | Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,196,399 | 1,754,122 | 4,440,399 | 3,125,547 | |
Unaffiliated entity [Member] | Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 95,755 | 86,401 | 200,679 | 171,875 | |
Unaffiliated entity [Member] | Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,725,242 | 2,133,594 | 5,474,315 | 3,907,539 | |
Unaffiliated entity [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | 530 | 513 | 1,068 | 1,027 | |
Operating Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Natural Gas Gathering and Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 252,727 | 183,688 | 513,854 | 298,653 | |
Operating Segments [Member] | Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 153,286 | 117,871 | 301,270 | 233,836 | |
Operating Segments [Member] | Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 249,400 | 258,400 | 502,300 | 489,200 | |
Operating Segments [Member] | Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,094 | 1,668 | 3,988 | 2,167 | |
Operating Segments [Member] | Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 408,107 | 303,227 | 819,112 | 534,656 | |
Operating Segments [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | (408,107) | $ (303,227) | $ (819,112) | $ (534,656) | |
Series E Preferred Stock [Member] | Subsequent Event [Member] | |||||
Segment disclosure [Abstract] | |||||
Noncash Contribution Expense | $ 20,000 |
SUPPLEMENTAL CONDENSED CONSOL52
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | $ 2,161,009 | $ 1,633,272 | $ 4,377,726 | $ 2,916,783 |
Services | 564,763 | 500,835 | 1,097,657 | 991,783 |
Total revenues | 2,725,772 | 2,134,107 | 5,475,383 | 3,908,566 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,091,022 | 1,527,323 | 4,234,865 | 2,723,061 |
(Gain) loss on sale of assets | (637) | 413 | (630) | (3,793) |
Operating income | 316,733 | 315,285 | 631,153 | 626,719 |
Equity in net earnings from investments | 39,363 | 32,372 | 78,927 | 65,286 |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity | 22 | 0 | 35 | 208 |
Interest expense, net | (118,473) | (118,976) | (234,935) | (237,223) |
Income before income taxes | 219,835 | 232,544 | 460,961 | 458,521 |
Income taxes | (43,844) | (52,458) | (98,785) | (102,524) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 175,991 | 180,086 | 362,176 | 355,997 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 227 | 0 | 1,179 |
Net income | 175,991 | 179,859 | 362,176 | 354,818 |
Less: Net income attributable to noncontrolling interests | 104,298 | 93,915 | 203,122 | 185,428 |
Net Income (Loss) Attributable to Parent | 71,693 | 85,944 | 159,054 | 169,390 |
Less: Preferred Stock Dividends | 217 | 0 | 217 | 0 |
Net Income Available to Common Stockholders | $ 71,476 | 85,944 | $ 158,837 | 169,390 |
Northern Border Pipeline [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
Equity in net earnings from investments | $ 15,622 | 15,723 | $ 34,439 | 34,397 |
Consolidation Entries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 0 | 0 | 0 | 0 |
Services | (1,000) | (500) | (1,000) | (1,000) |
Total revenues | (1,000) | (500) | (1,000) | (1,000) |
Cost of sales and fuel (exclusive of items shown separately below) | 0 | 0 | 0 | 0 |
Operating expenses | (1,000) | (500) | (1,000) | (1,000) |
(Gain) loss on sale of assets | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity in net earnings from investments | (822,800) | (768,200) | (1,611,000) | (1,508,900) |
Other income (expense), net | (189,800) | (189,800) | (372,200) | (378,600) |
Interest expense, net | 189,800 | 189,800 | 372,200 | 378,600 |
Income before income taxes | (822,800) | (768,200) | (1,611,000) | (1,508,900) |
Income taxes | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (768,200) | (1,508,900) | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | ||
Net income | (822,800) | (768,200) | (1,611,000) | (1,508,900) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | (822,800) | (768,200) | (1,611,000) | (1,508,900) |
Less: Preferred Stock Dividends | 0 | 0 | ||
Net Income Available to Common Stockholders | (822,800) | (1,611,000) | ||
Reportable Legal Entities | Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 0 | 0 | 0 | 0 |
Services | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Cost of sales and fuel (exclusive of items shown separately below) | 0 | 0 | 0 | 0 |
Operating expenses | 20,500 | 9,800 | 30,100 | 16,400 |
(Gain) loss on sale of assets | 0 | 0 | 0 | 0 |
Operating income | (20,500) | (9,800) | (30,100) | (16,400) |
Equity in net earnings from investments | 275,200 | 260,900 | 544,000 | 513,300 |
Other income (expense), net | (17,400) | 4,300 | (14,200) | 4,400 |
Interest expense, net | (24,500) | (25,700) | (50,300) | (51,400) |
Income before income taxes | 212,800 | 229,700 | 449,400 | 449,900 |
Income taxes | 37,700 | (50,300) | (89,000) | (98,400) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 179,400 | 351,500 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | ||
Net income | 175,100 | 179,400 | 360,400 | 351,500 |
Less: Net income attributable to noncontrolling interests | 103,400 | 93,500 | 201,300 | 182,100 |
Net Income (Loss) Attributable to Parent | 71,700 | 85,900 | 159,100 | 169,400 |
Less: Preferred Stock Dividends | 200 | 200 | ||
Net Income Available to Common Stockholders | 71,500 | 158,900 | ||
Reportable Legal Entities | Issuer and Guarantor Subsidiary [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 0 | 0 | 0 | 0 |
Services | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Cost of sales and fuel (exclusive of items shown separately below) | 0 | 0 | 0 | 0 |
Operating expenses | 0 | 0 | 0 | 0 |
(Gain) loss on sale of assets | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity in net earnings from investments | 278,500 | 261,500 | 547,600 | 515,000 |
Other income (expense), net | 94,900 | 94,900 | 186,100 | 189,300 |
Interest expense, net | (94,900) | (94,900) | (186,100) | (189,300) |
Income before income taxes | 278,500 | 261,500 | 547,600 | 515,000 |
Income taxes | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 261,500 | 515,000 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | ||
Net income | 278,500 | 261,500 | 547,600 | 515,000 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 278,500 | 261,500 | 547,600 | 515,000 |
Less: Preferred Stock Dividends | 0 | 0 | ||
Net Income Available to Common Stockholders | 278,500 | 547,600 | ||
Reportable Legal Entities | Guarantor Subsidiary | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 0 | 0 | 0 | 0 |
Services | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Cost of sales and fuel (exclusive of items shown separately below) | 0 | 0 | 0 | 0 |
Operating expenses | 6,200 | 0 | 6,200 | 0 |
(Gain) loss on sale of assets | 0 | 0 | 0 | 0 |
Operating income | (6,200) | 0 | (6,200) | 0 |
Equity in net earnings from investments | 284,700 | 261,500 | 553,800 | 515,000 |
Other income (expense), net | 94,900 | 94,900 | 186,100 | 189,300 |
Interest expense, net | (94,900) | (94,900) | (186,100) | (189,300) |
Income before income taxes | 278,500 | 261,500 | 547,600 | 515,000 |
Income taxes | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 261,500 | 515,000 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | ||
Net income | 278,500 | 261,500 | 547,600 | 515,000 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 278,500 | 261,500 | 547,600 | 515,000 |
Less: Preferred Stock Dividends | 0 | 0 | ||
Net Income Available to Common Stockholders | 278,500 | 547,600 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 2,161,000 | 1,633,300 | 4,377,700 | 2,916,800 |
Services | 565,800 | 501,300 | 1,098,700 | 992,800 |
Total revenues | 2,726,800 | 2,134,600 | 5,476,400 | 3,909,600 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,091,000 | 1,527,300 | 4,234,900 | 2,723,100 |
Operating expenses | 293,000 | 281,800 | 574,600 | 547,200 |
(Gain) loss on sale of assets | (600) | 400 | (600) | (3,800) |
Operating income | 343,400 | 325,100 | 667,500 | 643,100 |
Equity in net earnings from investments | 23,800 | 16,700 | 44,500 | 30,900 |
Other income (expense), net | (400) | (500) | 0 | (700) |
Interest expense, net | (94,000) | (93,300) | (184,600) | (185,800) |
Income before income taxes | 272,800 | 248,000 | 527,400 | 487,500 |
Income taxes | 6,100 | (2,100) | (9,800) | (4,100) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 245,900 | 483,400 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (200) | (1,200) | ||
Net income | 266,700 | 245,700 | 517,600 | 482,200 |
Less: Net income attributable to noncontrolling interests | 900 | 500 | 1,800 | 3,300 |
Net Income (Loss) Attributable to Parent | 265,800 | 245,200 | 515,800 | 478,900 |
Less: Preferred Stock Dividends | 0 | 0 | ||
Net Income Available to Common Stockholders | 265,800 | 515,800 | ||
Reportable Legal Entities | Total | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 2,161,000 | 1,633,300 | 4,377,700 | 2,916,800 |
Services | 564,800 | 500,800 | 1,097,700 | 991,800 |
Total revenues | 2,725,800 | 2,134,100 | 5,475,400 | 3,908,600 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,091,000 | 1,527,300 | 4,234,900 | 2,723,100 |
Operating expenses | 318,700 | 291,100 | 609,900 | 562,600 |
(Gain) loss on sale of assets | (600) | 400 | (600) | (3,800) |
Operating income | 316,700 | 315,300 | 631,200 | 626,700 |
Equity in net earnings from investments | 39,400 | 32,400 | 78,900 | 65,300 |
Other income (expense), net | (17,800) | 3,800 | (14,200) | 3,700 |
Interest expense, net | (118,500) | (119,000) | (234,900) | (237,200) |
Income before income taxes | 219,800 | 232,500 | 461,000 | 458,500 |
Income taxes | 43,800 | (52,400) | (98,800) | (102,500) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 180,100 | 356,000 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (200) | (1,200) | ||
Net income | 176,000 | 179,900 | 362,200 | 354,800 |
Less: Net income attributable to noncontrolling interests | 104,300 | 94,000 | 203,100 | 185,400 |
Net Income (Loss) Attributable to Parent | 71,700 | $ 85,900 | 159,100 | $ 169,400 |
Less: Preferred Stock Dividends | 200 | 200 | ||
Net Income Available to Common Stockholders | $ 71,500 | $ 158,900 |
SUPPLEMENTAL CONDENSED CONSOL53
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 175,991 | $ 179,859 | $ 362,176 | $ 354,818 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | (5,123) | (73,923) | 19,333 | (90,817) |
Realized (gains) losses on derivatives recognized in net income | (9,927) | 8,054 | (27,210) | 16,579 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (2,040) | (1,552) | (4,081) | (3,105) |
Other comprehensive income (loss) on investment in unconsolidated affiliates | (1,370) | (4,714) | (1,045) | (9,631) |
Total other comprehensive income (loss) | 5,474 | (85,139) | 49,579 | (113,922) |
Comprehensive income | 181,465 | 94,720 | 411,755 | 240,896 |
Less: Comprehensive income attributable to noncontrolling interests | 106,507 | 33,408 | 234,148 | 103,510 |
Comprehensive income attributable to ONEOK | 74,958 | 61,312 | 177,607 | 137,386 |
Reportable Legal Entities | Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 175,100 | 179,400 | 360,400 | 351,500 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | (300) | 0 | (300) | 0 |
Realized (gains) losses on derivatives recognized in net income | 500 | 600 | 1,000 | 1,100 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 2,100 | 1,500 | 4,100 | 3,100 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 2,300 | 2,100 | 4,800 | 4,200 |
Comprehensive income | 177,400 | 181,500 | 365,200 | 355,700 |
Less: Comprehensive income attributable to noncontrolling interests | 105,600 | 32,900 | 232,400 | 100,200 |
Comprehensive income attributable to ONEOK | 71,800 | 148,600 | 132,800 | 255,500 |
Reportable Legal Entities | Issuer and Guarantor Subsidiary [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 278,500 | 261,500 | 547,600 | 515,000 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | (5,700) | (87,200) | 23,100 | (107,100) |
Realized (gains) losses on derivatives recognized in net income | 11,100 | (10,100) | 30,900 | (20,800) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | (1,600) | (5,600) | (1,200) | (11,400) |
Total other comprehensive income (loss) | 3,800 | (102,900) | 52,800 | (139,300) |
Comprehensive income | 282,300 | 158,600 | 600,400 | 375,700 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to ONEOK | 282,300 | 158,600 | 600,400 | 375,700 |
Reportable Legal Entities | Guarantor Subsidiary | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 278,500 | 261,500 | 547,600 | 515,000 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | 9,000 | (58,700) | 36,300 | (47,000) |
Realized (gains) losses on derivatives recognized in net income | 6,800 | (14,000) | 22,100 | (28,500) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | (1,600) | (5,600) | (1,200) | (11,400) |
Total other comprehensive income (loss) | 14,200 | (78,300) | 57,200 | (86,900) |
Comprehensive income | 292,700 | 183,200 | 604,800 | 428,100 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to ONEOK | 292,700 | 183,200 | 604,800 | 428,100 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 266,700 | 245,700 | 517,600 | 482,200 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | 9,800 | (132,600) | 32,800 | (137,800) |
Realized (gains) losses on derivatives recognized in net income | 5,100 | (21,500) | 17,400 | (44,000) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | (1,400) | (10,300) | (1,000) | (21,000) |
Total other comprehensive income (loss) | 13,500 | (164,400) | 49,200 | (202,800) |
Comprehensive income | 280,200 | 81,300 | 566,800 | 279,400 |
Less: Comprehensive income attributable to noncontrolling interests | 900 | 500 | 1,800 | 3,300 |
Comprehensive income attributable to ONEOK | 279,300 | 80,800 | 565,000 | 276,100 |
Reportable Legal Entities | Total | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 176,000 | 179,900 | 362,200 | 354,800 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | (5,100) | (73,900) | 19,300 | (90,800) |
Realized (gains) losses on derivatives recognized in net income | 9,900 | (8,100) | 27,200 | (16,600) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 2,100 | 1,500 | 4,100 | 3,100 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | (1,400) | (4,700) | (1,000) | (9,600) |
Total other comprehensive income (loss) | 5,500 | (85,200) | 49,600 | (113,900) |
Comprehensive income | 181,500 | 94,700 | 411,800 | 240,900 |
Less: Comprehensive income attributable to noncontrolling interests | 106,500 | 33,400 | 234,200 | 103,500 |
Comprehensive income attributable to ONEOK | 75,000 | 61,300 | 177,600 | 137,400 |
Consolidation Entries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (822,800) | (768,200) | (1,611,000) | (1,508,900) |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on derivatives | (17,900) | 204,600 | (72,600) | 201,100 |
Realized (gains) losses on derivatives recognized in net income | (13,600) | 36,900 | (44,200) | 75,600 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | 3,200 | 16,800 | 2,400 | 34,200 |
Total other comprehensive income (loss) | (28,300) | 258,300 | (114,400) | 310,900 |
Comprehensive income | (851,100) | (509,900) | (1,725,400) | (1,198,000) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to ONEOK | $ (851,100) | $ (509,900) | $ (1,725,400) | $ (1,198,000) |
SUPPLEMENTAL CONDENSED CONSOL54
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 332,371 | $ 248,875 | $ 180,854 | $ 97,619 |
Accounts receivable, net | 749,345 | 872,430 | ||
Natural gas and natural gas liquids in storage | 200,133 | 140,034 | ||
Materials and supplies | 75,172 | 60,912 | ||
Other current assets | 51,465 | 45,986 | ||
Asset of discontinued operations | 0 | 551 | ||
Assets, Current | 1,447,811 | 1,429,684 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 15,241,140 | 15,078,497 | ||
Accumulated depreciation and amortization | 2,694,148 | 2,507,094 | ||
Net property, plant and equipment | 12,546,992 | 12,571,403 | ||
Investments and other assets | ||||
Investments | 944,562 | 958,807 | ||
Goodwill and intangible assets | 999,409 | 1,005,359 | ||
Other assets | 170,785 | 162,998 | ||
Asset of discontinued operations | 0 | 10,500 | ||
Total investments and other assets | 2,678,120 | 2,137,664 | ||
Total assets | 16,672,923 | 16,138,751 | 15,822,900 | |
Current liabilities | ||||
Current maturities of long-term debt | 494,703 | 410,650 | ||
Short-term borrowings | 1,274,407 | 1,110,277 | ||
Accounts payable | 696,834 | 874,731 | ||
Commodity imbalances | 114,941 | 142,646 | ||
Accrued interest | 111,697 | 112,514 | ||
Other current liabilities | 167,937 | 166,042 | ||
Liabilities of discontinued operations | 0 | 19,841 | ||
Total current liabilities | 2,860,519 | 2,836,701 | ||
Long-term debt, excluding current maturities | 7,835,606 | 7,919,996 | ||
Deferred credits and other liabilities | 411,567 | 1,953,139 | ||
Commitments and contingencies | ||||
Equity | ||||
Total ONEOK Shareholder' Equity | 5,407,747 | 188,745 | ||
Noncontrolling interests in consolidated subsidiaries | 157,484 | 3,240,170 | ||
Total equity | 5,565,231 | 3,428,915 | 3,492,177 | 3,766,336 |
Total liabilities and equity | 16,672,923 | 16,138,751 | ||
Reportable Legal Entities | Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 321,000 | 248,500 | 177,200 | 92,500 |
Accounts receivable, net | 0 | 0 | ||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 12,900 | 7,200 | ||
Asset of discontinued operations | 0 | |||
Assets, Current | 333,900 | 255,700 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 139,800 | 139,800 | ||
Accumulated depreciation and amortization | 94,300 | 90,400 | ||
Net property, plant and equipment | 45,500 | 49,400 | ||
Investments and other assets | ||||
Investments | 5,936,900 | 2,931,900 | ||
Intercompany notes receivable | 253,700 | 205,200 | ||
Other assets | 763,600 | 103,400 | ||
Total investments and other assets | 6,954,200 | 3,240,500 | ||
Total assets | 7,333,600 | 3,545,600 | ||
Current liabilities | ||||
Current maturities of long-term debt | 87,100 | 3,000 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable | 19,900 | 13,000 | ||
Other current liabilities | 57,700 | 44,700 | ||
Total current liabilities | 164,700 | 60,700 | ||
Intercompany Debt | 0 | 0 | ||
Long-term debt, excluding current maturities | 1,545,000 | 1,628,700 | ||
Deferred credits and other liabilities | 216,200 | 1,667,500 | ||
Equity | ||||
Total ONEOK Shareholder' Equity | 5,407,700 | 188,700 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | 5,407,700 | 188,700 | ||
Total liabilities and equity | 7,333,600 | 3,545,600 | ||
Reportable Legal Entities | Issuer and Guarantor Subsidiary [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 500 | 0 | ||
Asset of discontinued operations | 0 | |||
Assets, Current | 500 | 0 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 0 | 0 | ||
Accumulated depreciation and amortization | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Investments and other assets | ||||
Investments | 3,160,900 | 3,222,100 | ||
Intercompany notes receivable | 10,791,600 | 10,615,000 | ||
Other assets | 19,700 | 47,500 | ||
Total investments and other assets | 13,972,200 | 13,884,600 | ||
Total assets | 13,972,700 | 13,884,600 | ||
Current liabilities | ||||
Current maturities of long-term debt | 400,000 | 400,000 | ||
Short-term borrowings | 1,274,400 | 1,110,300 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | 86,300 | 99,900 | ||
Total current liabilities | 1,760,700 | 1,610,200 | ||
Intercompany Debt | 0 | 0 | ||
Long-term debt, excluding current maturities | 6,257,900 | 6,254,700 | ||
Deferred credits and other liabilities | 0 | 0 | ||
Equity | ||||
Total ONEOK Shareholder' Equity | 5,954,100 | 6,019,700 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | 5,954,100 | 6,019,700 | ||
Total liabilities and equity | 13,972,700 | 13,884,600 | ||
Reportable Legal Entities | Guarantor Subsidiary | ||||
Current assets | ||||
Cash and cash equivalents | 11,400 | 400 | 3,700 | 5,100 |
Accounts receivable, net | 0 | 0 | ||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Asset of discontinued operations | 0 | |||
Assets, Current | 11,400 | 400 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 0 | 0 | ||
Accumulated depreciation and amortization | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Investments and other assets | ||||
Investments | 7,376,100 | 6,805,400 | ||
Intercompany notes receivable | 6,565,000 | 7,031,300 | ||
Other assets | 0 | 0 | ||
Total investments and other assets | 13,941,100 | 13,836,700 | ||
Total assets | 13,952,500 | 13,837,100 | ||
Current liabilities | ||||
Current maturities of long-term debt | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Intercompany Debt | 10,791,600 | 10,615,000 | ||
Long-term debt, excluding current maturities | 0 | 0 | ||
Deferred credits and other liabilities | 0 | 0 | ||
Equity | ||||
Total ONEOK Shareholder' Equity | 3,160,900 | 3,222,100 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | 3,160,900 | 3,222,100 | ||
Total liabilities and equity | 13,952,500 | 13,837,100 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 749,300 | 872,400 | ||
Natural gas and natural gas liquids in storage | 200,100 | 140,000 | ||
Other current assets | 152,600 | 160,600 | ||
Asset of discontinued operations | 600 | |||
Assets, Current | 1,102,000 | 1,173,600 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 15,101,300 | 14,938,700 | ||
Accumulated depreciation and amortization | 2,599,800 | 2,416,700 | ||
Net property, plant and equipment | 12,501,500 | 12,522,000 | ||
Investments and other assets | ||||
Investments | 622,700 | 631,100 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 1,017,900 | 1,028,000 | ||
Total investments and other assets | 1,640,600 | 1,659,100 | ||
Total assets | 15,244,100 | 15,354,700 | ||
Current liabilities | ||||
Current maturities of long-term debt | 7,700 | 7,700 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable | 676,900 | 861,700 | ||
Other current liabilities | 250,500 | 296,500 | ||
Total current liabilities | 935,100 | 1,165,900 | ||
Intercompany Debt | 6,818,700 | 7,236,500 | ||
Long-term debt, excluding current maturities | 32,700 | 36,600 | ||
Deferred credits and other liabilities | 263,100 | 285,600 | ||
Equity | ||||
Total ONEOK Shareholder' Equity | 7,037,000 | 6,472,000 | ||
Noncontrolling interests in consolidated subsidiaries | 157,500 | 158,100 | ||
Total equity | 7,194,500 | 6,630,100 | ||
Total liabilities and equity | 15,244,100 | 15,354,700 | ||
Reportable Legal Entities | Total | ||||
Current assets | ||||
Cash and cash equivalents | 332,400 | 248,900 | 180,900 | 97,600 |
Accounts receivable, net | 749,300 | 872,400 | ||
Natural gas and natural gas liquids in storage | 200,100 | 140,000 | ||
Other current assets | 166,000 | 167,800 | ||
Asset of discontinued operations | 600 | |||
Assets, Current | 1,447,800 | 1,429,700 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 15,241,100 | 15,078,500 | ||
Accumulated depreciation and amortization | 2,694,100 | 2,507,100 | ||
Net property, plant and equipment | 12,547,000 | 12,571,400 | ||
Investments and other assets | ||||
Investments | 944,600 | 958,800 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 1,733,500 | 1,178,900 | ||
Total investments and other assets | 2,678,100 | 2,137,700 | ||
Total assets | 16,672,900 | 16,138,800 | ||
Current liabilities | ||||
Current maturities of long-term debt | 494,800 | 410,700 | ||
Short-term borrowings | 1,274,400 | 1,110,300 | ||
Accounts payable | 696,800 | 874,700 | ||
Other current liabilities | 394,500 | 441,100 | ||
Total current liabilities | 2,860,500 | 2,836,800 | ||
Intercompany Debt | 0 | 0 | ||
Long-term debt, excluding current maturities | 7,835,600 | 7,920,000 | ||
Deferred credits and other liabilities | 411,600 | 1,953,100 | ||
Equity | ||||
Total ONEOK Shareholder' Equity | 5,407,700 | 188,700 | ||
Noncontrolling interests in consolidated subsidiaries | 157,500 | 3,240,200 | ||
Total equity | 5,565,200 | 3,428,900 | ||
Total liabilities and equity | 16,672,900 | 16,138,800 | ||
Consolidation Entries | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Asset of discontinued operations | 0 | |||
Assets, Current | 0 | 0 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 0 | 0 | ||
Accumulated depreciation and amortization | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Investments and other assets | ||||
Investments | (16,152,000) | (12,631,700) | ||
Intercompany notes receivable | (17,610,300) | (17,851,500) | ||
Other assets | (67,700) | 0 | ||
Total investments and other assets | (33,830,000) | (30,483,200) | ||
Total assets | (33,830,000) | (30,483,200) | ||
Current liabilities | ||||
Current maturities of long-term debt | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Intercompany Debt | (17,610,300) | (17,851,500) | ||
Long-term debt, excluding current maturities | 0 | 0 | ||
Deferred credits and other liabilities | (67,700) | 0 | ||
Equity | ||||
Total ONEOK Shareholder' Equity | (16,152,000) | (15,713,800) | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 3,082,100 | ||
Total equity | (16,152,000) | (12,631,700) | ||
Total liabilities and equity | $ (33,830,000) | $ (30,483,200) |
SUPPLEMENTAL CONDENSED CONSOL55
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||||
Cash provided by operating activities | $ 642,891 | $ 531,606 | ||
Investing activities | ||||
Capital expenditures | $ (82,495) | $ (136,843) | (195,232) | (333,254) |
Cash provided by (used in) investing activities | (183,731) | (298,479) | ||
Financing activities | ||||
Dividends paid | (259,758) | (258,508) | ||
Distributions to noncontrolling interests | (273,460) | (275,259) | ||
Borrowing (repayment) of short-term borrowings, net | 164,130 | 29,967 | ||
Issuance of long-term debt, net of discounts | 0 | 1,000,000 | ||
Debt financing costs | (38) | (2,770) | ||
Repayment of long-term debt | (3,898) | (654,151) | ||
Issuance of Common Stock | 10,845 | 11,101 | ||
Other | (13,485) | 0 | ||
Cash used in financing activities | (375,664) | (149,620) | ||
Change in cash and cash equivalents | 83,496 | 83,507 | ||
Change in cash and cash equivalents included in discontinued operations | 0 | 272 | ||
Change in cash and cash equivalents from continuing operations | 83,496 | 83,235 | ||
Cash and cash equivalents at beginning of period | 248,875 | 97,619 | ||
Cash and cash equivalents at end of period | 332,371 | 180,854 | 332,371 | 180,854 |
Consolidation Entries | ||||
Operating activities | ||||
Cash provided by operating activities | (1,061,000) | (1,061,000) | ||
Investing activities | ||||
Capital expenditures | 0 | 0 | ||
Other investing activities | 0 | 0 | ||
Cash provided by (used in) investing activities | 0 | 0 | ||
Financing activities | ||||
Dividends paid | 1,332,000 | 1,332,000 | ||
Distributions to noncontrolling interests | (271,000) | (271,000) | ||
Intercompany borrowings (advances), net | 0 | 0 | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Issuance of long-term debt, net of discounts | 0 | |||
Debt financing costs | 0 | |||
Repayment of long-term debt | 0 | 0 | ||
Issuance of Common Stock | 0 | 0 | ||
Other | 0 | |||
Cash used in financing activities | 1,061,000 | 1,061,000 | ||
Change in cash and cash equivalents | 0 | 0 | ||
Change in cash and cash equivalents included in discontinued operations | 0 | |||
Change in cash and cash equivalents from continuing operations | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Parent Company | ||||
Operating activities | ||||
Cash provided by operating activities | 355,000 | 363,100 | ||
Investing activities | ||||
Capital expenditures | (100) | 0 | ||
Other investing activities | 0 | 0 | ||
Cash provided by (used in) investing activities | (100) | 0 | ||
Financing activities | ||||
Dividends paid | (259,800) | (258,500) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Intercompany borrowings (advances), net | (27,100) | (30,500) | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Issuance of long-term debt, net of discounts | 0 | |||
Debt financing costs | 0 | |||
Repayment of long-term debt | (100) | (300) | ||
Issuance of Common Stock | 10,800 | 11,100 | ||
Other | (6,200) | |||
Cash used in financing activities | (282,400) | (278,200) | ||
Change in cash and cash equivalents | 72,500 | 84,900 | ||
Change in cash and cash equivalents included in discontinued operations | (200) | |||
Change in cash and cash equivalents from continuing operations | 84,700 | |||
Cash and cash equivalents at beginning of period | 248,500 | 92,500 | ||
Cash and cash equivalents at end of period | 321,000 | 177,200 | 321,000 | 177,200 |
Reportable Legal Entities | Issuer and Guarantor Subsidiary [Member] | ||||
Operating activities | ||||
Cash provided by operating activities | 675,200 | 668,600 | ||
Investing activities | ||||
Capital expenditures | 0 | 0 | ||
Other investing activities | 0 | 0 | ||
Cash provided by (used in) investing activities | 0 | 0 | ||
Financing activities | ||||
Dividends paid | (666,000) | (666,000) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Intercompany borrowings (advances), net | (166,100) | (379,800) | ||
Borrowing (repayment) of short-term borrowings, net | 164,100 | 30,000 | ||
Issuance of long-term debt, net of discounts | 1,000,000 | |||
Debt financing costs | (2,800) | |||
Repayment of long-term debt | 0 | (650,000) | ||
Issuance of Common Stock | 0 | 0 | ||
Other | (7,200) | |||
Cash used in financing activities | (675,200) | (668,600) | ||
Change in cash and cash equivalents | 0 | 0 | ||
Change in cash and cash equivalents included in discontinued operations | 0 | |||
Change in cash and cash equivalents from continuing operations | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Guarantor Subsidiary | ||||
Operating activities | ||||
Cash provided by operating activities | 28,200 | 34,400 | ||
Investing activities | ||||
Capital expenditures | 0 | 0 | ||
Other investing activities | 6,700 | 24,900 | ||
Cash provided by (used in) investing activities | 6,700 | 24,900 | ||
Financing activities | ||||
Dividends paid | (666,000) | (666,000) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Intercompany borrowings (advances), net | 642,100 | 605,300 | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Issuance of long-term debt, net of discounts | 0 | |||
Debt financing costs | 0 | |||
Repayment of long-term debt | 0 | 0 | ||
Issuance of Common Stock | 0 | 0 | ||
Other | 0 | |||
Cash used in financing activities | (23,900) | (60,700) | ||
Change in cash and cash equivalents | 11,000 | (1,400) | ||
Change in cash and cash equivalents included in discontinued operations | 0 | |||
Change in cash and cash equivalents from continuing operations | (1,400) | |||
Cash and cash equivalents at beginning of period | 400 | 5,100 | ||
Cash and cash equivalents at end of period | 11,400 | 3,700 | 11,400 | 3,700 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Operating activities | ||||
Cash provided by operating activities | 645,500 | 526,500 | ||
Investing activities | ||||
Capital expenditures | (195,100) | (333,300) | ||
Other investing activities | 4,800 | 9,900 | ||
Cash provided by (used in) investing activities | (190,300) | (323,400) | ||
Financing activities | ||||
Dividends paid | 0 | 0 | ||
Distributions to noncontrolling interests | (2,500) | (4,300) | ||
Intercompany borrowings (advances), net | (448,900) | (195,000) | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Issuance of long-term debt, net of discounts | 0 | |||
Debt financing costs | 0 | |||
Repayment of long-term debt | (3,800) | (3,800) | ||
Issuance of Common Stock | 0 | 0 | ||
Other | 0 | |||
Cash used in financing activities | (455,200) | (203,100) | ||
Change in cash and cash equivalents | 0 | 0 | ||
Change in cash and cash equivalents included in discontinued operations | 0 | |||
Change in cash and cash equivalents from continuing operations | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Total | ||||
Operating activities | ||||
Cash provided by operating activities | 642,900 | 531,600 | ||
Investing activities | ||||
Capital expenditures | (195,200) | (333,300) | ||
Other investing activities | 11,500 | 34,800 | ||
Cash provided by (used in) investing activities | (183,700) | (298,500) | ||
Financing activities | ||||
Dividends paid | (259,800) | (258,500) | ||
Distributions to noncontrolling interests | (273,500) | (275,300) | ||
Intercompany borrowings (advances), net | 0 | 0 | ||
Borrowing (repayment) of short-term borrowings, net | 164,100 | 30,000 | ||
Issuance of long-term debt, net of discounts | 1,000,000 | |||
Debt financing costs | (2,800) | |||
Repayment of long-term debt | (3,900) | (654,100) | ||
Issuance of Common Stock | 10,800 | 11,100 | ||
Other | (13,400) | |||
Cash used in financing activities | (375,700) | (149,600) | ||
Change in cash and cash equivalents | 83,500 | 83,500 | ||
Change in cash and cash equivalents included in discontinued operations | (200) | |||
Change in cash and cash equivalents from continuing operations | 83,300 | |||
Cash and cash equivalents at beginning of period | 248,900 | 97,600 | ||
Cash and cash equivalents at end of period | $ 332,400 | $ 180,900 | $ 332,400 | $ 180,900 |