Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 23, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | ONEOK INC /NEW/ | |
Entity Central Index Key | 1,039,684 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 411,249,474 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Commodity sales | $ 2,675,262 | $ 2,161,009 | $ 5,495,266 | $ 4,377,726 |
Services | 285,267 | 564,763 | 567,340 | 1,097,657 |
Total revenues | 2,960,529 | 2,725,772 | 6,062,606 | 5,475,383 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,175,818 | 2,091,022 | 4,543,844 | 4,234,865 |
Operations and maintenance | 202,037 | 190,784 | 383,218 | 352,836 |
Depreciation and amortization | 106,288 | 100,849 | 210,525 | 200,268 |
General taxes | 28,116 | 24,304 | 57,139 | 51,457 |
Gain on sale of assets | (96) | (637) | (185) | (630) |
Operating income | 448,366 | 319,450 | 868,065 | 636,587 |
Equity in net earnings from investments (Note I) | 36,570 | 39,363 | 76,757 | 78,927 |
Allowance for equity funds used during construction | 804 | 22 | 1,034 | 35 |
Other income | 1,857 | 4,033 | 2,595 | 8,374 |
Other expense | (4,391) | (24,560) | (7,700) | (28,027) |
Interest expense (net of capitalized interest of $5,134, $1,745, $7,172, and $3,186, respectively) | (113,496) | (118,473) | (229,221) | (234,935) |
Income before income taxes | 369,710 | 219,835 | 711,530 | 460,961 |
Income taxes | (87,531) | (43,844) | (163,302) | (98,785) |
Net income | 282,179 | 175,991 | 548,228 | 362,176 |
Less: Net income attributable to noncontrolling interests | 1,131 | 104,298 | 2,672 | 203,122 |
Net income attributable to ONEOK | 281,048 | 71,693 | 545,556 | 159,054 |
Less: Preferred stock dividends | 275 | 217 | 550 | 217 |
Net income available to common shareholders | $ 280,773 | $ 71,476 | $ 545,006 | $ 158,837 |
Basic earnings per common share | $ 0.68 | $ 0.34 | $ 1.33 | $ 0.75 |
Diluted earnings per common share | $ 0.68 | $ 0.33 | $ 1.32 | $ 0.74 |
Average shares (thousands) | ||||
Basic | 411,946 | 211,785 | 410,811 | 211,702 |
Diluted | 414,641 | 214,012 | 413,407 | 213,807 |
Dividends declared per share of common stock | $ 0.795 | $ 0.615 | $ 1.565 | $ 1.230 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest expense (net of capitalized interest) | $ 5,134 | $ 1,745 | $ 7,172 | $ 3,186 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 282,179 | $ 175,991 | $ 548,228 | $ 362,176 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax of $6,054, $874, $(4,258) and $(3,527), respectively | (20,269) | (5,123) | 14,255 | 19,333 |
Realized (gains) losses on derivatives recognized in net income, net of tax of $(3,631), $(2,041), $(7,209) and $(5,406), respectively | 12,160 | 9,927 | 24,136 | 27,210 |
Change in pension and postretirement benefit plan liability, net of tax of $(967), $(1,361), $(1,748) and $(2,721), respectively | 3,235 | 2,040 | 5,850 | 4,081 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax of $(292), $246, $(1,136) and $188, respectively | 977 | (1,370) | 3,801 | (1,045) |
Total other comprehensive income (loss), net of tax | (3,897) | 5,474 | 48,042 | 49,579 |
Comprehensive income | 278,282 | 181,465 | 596,270 | 411,755 |
Less: Comprehensive income attributable to noncontrolling interests | 1,131 | 106,507 | 2,672 | 234,148 |
Comprehensive income attributable to ONEOK | $ 277,151 | $ 74,958 | $ 593,598 | $ 177,607 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Unrealized Gains (Losses) on Derivatives, Tax | $ 6,054 | $ 874 | $ (4,258) | $ (3,527) |
Realized (Gains) Losses on Derivatives in Net Income, Tax | (3,631) | (2,041) | (7,209) | (5,406) |
Change in Pension and Postretirement Benefit Plan Liability, Tax | (967) | (1,361) | (1,748) | (2,721) |
Other Comprehensive Income (Loss) on Investments in Unconsolidated Affiliates, Tax | $ (292) | $ 246 | $ (1,136) | $ 188 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 15,295 | $ 37,193 |
Accounts receivable, net | 934,664 | 1,202,951 |
Materials and supplies | 113,831 | 90,301 |
Natural gas and natural gas liquids in storage | 285,776 | 342,293 |
Commodity imbalances | 26,835 | 38,712 |
Other current assets | 57,286 | 53,008 |
Total current assets | 1,433,687 | 1,764,458 |
Property, plant and equipment | ||
Property, plant and equipment | 16,363,716 | 15,559,667 |
Accumulated depreciation and amortization | 3,059,799 | 2,861,541 |
Net property, plant and equipment | 13,303,917 | 12,698,126 |
Investments and other assets | ||
Investments in unconsolidated affiliates | 986,979 | 1,003,156 |
Goodwill and intangible assets | 987,510 | 993,460 |
Deferred income taxes | 31,503 | 205,907 |
Other assets | 170,124 | 180,830 |
Total investments and other assets | 2,176,116 | 2,383,353 |
Total assets | 16,913,720 | 16,845,937 |
Current liabilities | ||
Current maturities of long-term debt (Note D) | 932,650 | 432,650 |
Short-term borrowings (Note D) | 156,000 | 614,673 |
Accounts payable | 1,027,467 | 1,140,571 |
Commodity imbalances | 136,411 | 164,161 |
Accrued interest | 135,426 | 135,309 |
Other current liabilities | 184,127 | 179,971 |
Total current liabilities | 2,572,081 | 2,667,335 |
Long-term debt, excluding current maturities (Note D) | 7,091,246 | 8,091,629 |
Deferred income taxes | 54,726 | 52,697 |
Other deferred credits | 357,184 | 348,924 |
Total deferred credits and other liabilities | 411,910 | 401,621 |
Commitments and contingencies (Note J) | ||
Equity (Note E) | ||
Preferred stock, $0.01 par value: issued 20,000 shares at June 30, 2018, and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value: authorized 1,200,000,000 shares, issued 445,016,234 shares and outstanding 411,173,760 shares at June 30, 2018; issued 423,166,234 shares and outstanding 388,703,543 shares at December 31, 2017 | 4,450 | 4,232 |
Paid-in Capital | 7,699,934 | 6,588,878 |
Accumulated other comprehensive loss (Note F) | (178,589) | (188,530) |
Retained Earnings | 0 | 0 |
Treasury stock, at cost: 33,842,474 shares at June 30, 2018, and 34,462,691 shares at December 31, 2017 | (860,935) | (876,713) |
Total ONEOK Shareholders' Equity | 6,664,860 | 5,527,867 |
Noncontrolling interests in consolidated subsidiaries | 173,623 | 157,485 |
Total equity | 6,838,483 | 5,685,352 |
Total liabilities and equity | $ 16,913,720 | $ 16,845,937 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Equity (Note E) | ||
Common stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares, authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares, issued (in shares) | 445,016,234 | 423,166,234 |
Common stock, shares, outstanding (in shares) | 411,173,760 | 388,703,543 |
Treasury stock, shares (in shares) | 33,842,474 | 34,462,691 |
Preferred stock, shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares, issued (in shares) | 20,000 | 20,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net income | $ 548,228 | $ 362,176 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 210,525 | 200,268 |
Noncash contribution of preferred stock, net of tax | 0 | 12,600 |
Equity in net earnings from investments | (76,757) | (78,927) |
Distributions received from unconsolidated affiliates | 84,652 | 81,744 |
Deferred Income Tax Expense (Benefit) | 161,602 | 90,685 |
Share-based compensation expense | 16,071 | 13,477 |
Pension and postretirement benefit expense, net of contributions | (5,096) | (1,576) |
Allowance for equity funds used during construction | (1,034) | (35) |
Gain on sale of assets | (185) | (630) |
Changes in assets and liabilities: | ||
Accounts receivable | 268,287 | 123,085 |
Natural gas and natural gas liquids in storage | 49,347 | (60,099) |
Accounts payable | (282,572) | (134,334) |
Commodity imbalances, net | (15,873) | (6,134) |
Risk-management assets and liabilities | 72,580 | 66,940 |
Other assets and liabilities, net | (26,805) | (26,349) |
Cash provided by operating activities | 1,002,970 | 642,891 |
Investing activities | ||
Capital expenditures (less allowance for equity funds used during construction) | (615,352) | (195,232) |
Contributions to unconsolidated affiliates | (294) | (4,653) |
Distributions received from unconsolidated affiliates in excess of cumulative earnings | 13,588 | 14,936 |
Proceeds from sale of assets | 657 | 1,218 |
Cash used in investing activities | (601,401) | (183,731) |
Financing activities | ||
Dividends paid | (643,493) | (259,758) |
Distributions to noncontrolling interests | (3,000) | (273,460) |
Borrowing (repayment) of short-term borrowings, net | (458,673) | 164,130 |
Repayment of long-term debt | (503,825) | (3,898) |
Issuance of common stock | 1,186,718 | 10,845 |
Other, net | (1,194) | (13,523) |
Cash used in financing activities | (423,467) | (375,664) |
Change in cash and cash equivalents | (21,898) | 83,496 |
Cash and cash equivalents at beginning of period | 37,193 | 248,875 |
Cash and cash equivalents at end of period | $ 15,295 | $ 332,371 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Noncontrolling Interests in Consolidated Subsidiaries |
Cumulative effect adjustment for adoption of ASUs | $ 73,368 | $ 0 | $ 0 | $ 0 | $ 0 | $ 73,368 | $ 0 | $ 0 |
Shares, issued, beginning balance at Dec. 31, 2016 | 245,811,180 | 0 | ||||||
Total equity, beginning balance at Dec. 31, 2016 | 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) | 49,579 | 0 | 0 | 0 | 18,553 | 0 | 0 | 31,026 |
Preferred Stock Issued | 20,000 | 0 | 0 | 20,000 | 0 | 0 | 0 | 0 |
Common Stock Dividends | (259,758) | $ 0 | $ 0 | (27,336) | 0 | (232,422) | 0 | 0 |
Stock Issued During Period, Shares, Other | 0 | 20,000 | ||||||
Stock Issued During Period, Value, Other | 11,431 | $ 0 | $ 0 | 1,199 | 0 | 0 | 10,232 | 0 |
Preferred stock dividends | (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 | 2,146,462 | $ 1,689 | 0 | 5,228,580 | (40,288) | 0 | 0 | (3,043,519) |
Other | 6,735 | $ 0 | $ 0 | 6,590 | 0 | 0 | 0 | 145 |
Shares, issued, ending balance at Jun. 30, 2017 | 414,732,011 | 20,000 | ||||||
Total equity, ending balance at Jun. 30, 2017 | 5,565,231 | $ 4,147 | $ 0 | 6,463,130 | (176,085) | 0 | (883,445) | 157,484 |
Cumulative effect adjustment for adoption of ASUs | 1,719 | $ 0 | $ 0 | 0 | (38,101) | 39,803 | 0 | 17 |
Shares, issued, beginning balance at Dec. 31, 2017 | 423,166,234 | 20,000 | ||||||
Total equity, beginning balance at Dec. 31, 2017 | 5,685,352 | $ 4,232 | $ 0 | 6,588,878 | (188,530) | 0 | (876,713) | 157,485 |
Net income | 548,228 | 0 | 0 | 0 | 0 | 545,556 | 0 | 2,672 |
Other comprehensive income (loss) | 48,042 | 0 | 0 | 0 | 48,042 | 0 | 0 | 0 |
Common Stock Dividends | (643,596) | $ 0 | 0 | (58,787) | 0 | (584,809) | 0 | 0 |
Stock Issued During Period, Shares, Other | 21,850,000 | |||||||
Stock Issued During Period, Value, Other | 1,189,778 | $ 218 | 0 | 1,173,782 | 0 | 0 | 15,778 | 0 |
Preferred stock dividends | (550) | 0 | 0 | 0 | 0 | (550) | 0 | 0 |
Distributions to Noncontrolling Interests | (3,000) | 0 | 0 | 0 | 0 | 0 | 0 | (3,000) |
Contributions from noncontrolling interests | 16,449 | 0 | 0 | 0 | 0 | 0 | 0 | 16,449 |
Other | (3,939) | $ 0 | $ 0 | (3,939) | 0 | 0 | 0 | 0 |
Shares, issued, ending balance at Jun. 30, 2018 | 445,016,234 | 20,000 | ||||||
Total equity, ending balance at Jun. 30, 2018 | $ 6,838,483 | $ 4,450 | $ 0 | $ 7,699,934 | $ (178,589) | $ 0 | $ (860,935) | $ 173,623 |
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, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid (in dollars per share) | $ 0.795 | $ 0.77 | $ 1.565 | $ 1.230 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
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 2017 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. 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 at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit. 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. As a result of the completion of the Merger Transaction, common units of ONEOK Partners are no longer publicly traded. 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 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. 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. 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. We also exclude ASUs not yet adopted that were disclosed in our Annual Report to not materially impact us. 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 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 adopted this standard on January 1, 2018, using the modified retrospective method. We recognized the cumulative effect of adopting the new revenue standard as an increase to beginning retained earnings of $1.7 million. Results for reporting periods beginning after January 1, 2018, are presented under the new standard, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. The adoption of Topic 606 was not material to our net income; however, a significant portion of amounts historically presented as services revenues are now presented as a reduction to cost of sales and fuel. See Note K for discussion of these changes and additional disclosures. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that were adopted ( continued ) 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, the impact of adopting of this standard was not material. 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 The impact of adopting this standard was not material. 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 adopted this standard on January 1, 2018, and utilized the practical expedient to estimate the impact on the prior comparative period information presented. Immaterial reclassifications have been made to prior comparative period information to reflect the current period presentation. Prior to adoption, we expensed all components of the net periodic benefit costs for our pension and postretirement benefit plans in operations and maintenance expense. We now record only the service component of the net periodic benefit costs in operations and maintenance expense, with the remainder being recorded in other expense. There was no change to net income from the adoption of this standard. ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” The standard more closely aligns hedge accounting with companies’ existing risk-management strategies by expanding the strategies eligible for hedge accounting, relaxing the timing requirements of hedge documentation and effectiveness assessments, permitting in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness, and requiring new disclosures and presentation. First quarter 2018 We adopted this standard in the first quarter 2018 and recorded an immaterial cumulative-effect adjustment to the opening balance of retained earnings and other comprehensive income to eliminate the separate measurement of hedge ineffectiveness. See Note C for changes to disclosures due to adopting this standard. ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. First quarter 2018 We adopted this standard in the first quarter 2018 and recorded a $38.1 million adjustment to retained earnings and accumulated other comprehensive income to eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted 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. Our evaluation process includes creating a database of our existing leases, and we have implemented accounting software to facilitate compliance with this standard. We are developing internal controls designed to ensure the completeness and accuracy of the data. Upon adoption of Topic 842, we expect to recognize right of use assets and lease liabilities not previously recorded on our Consolidated Balance Sheets and provide required footnote disclosures. Due to the ongoing nature of our work, we cannot yet determine the quantitative impact. We expect to elect the transition practical expedient, which allows us to not evaluate land easements that existed prior to January 1, 2019, and the optional transition method to record the adoption impact through a cumulative adjustment to equity. ASU 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” The standard aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. First quarter 2019 We are evaluating the impact of this standard on us. |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
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 materially from our estimates. 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 composed 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. 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, 2018 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 623 $ — $ 23,498 $ 24,121 $ (24,121 ) $ — Interest-rate contracts — 29,596 — 29,596 — 29,596 Total derivative assets $ 623 $ 29,596 $ 23,498 $ 53,717 $ (24,121 ) $ 29,596 Derivative liabilities Commodity contracts Financial contracts $ (15,178 ) $ — $ (45,145 ) $ (60,323 ) $ 60,323 $ — Physical contracts — — (1,854 ) (1,854 ) — (1,854 ) Interest-rate contracts — (5,290 ) — (5,290 ) — (5,290 ) Total derivative liabilities $ (15,178 ) $ (5,290 ) $ (46,999 ) $ (67,467 ) $ 60,323 $ (7,144 ) (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, 2018 , we held no cash and posted $52.6 million of cash with various counterparties, including $36.2 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $16.4 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheets. December 31, 2017 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 4,252 $ — $ 20,203 $ 24,455 $ (24,455 ) $ — Interest rate contracts — 49,960 — 49,960 — 49,960 Total derivative assets $ 4,252 $ 49,960 $ 20,203 $ 74,415 $ (24,455 ) $ 49,960 Derivative liabilities Commodity contracts Financial contracts $ (5,708 ) $ — $ (48,260 ) $ (53,968 ) $ 53,936 $ (32 ) Physical contracts — — (4,781 ) (4,781 ) — (4,781 ) Total derivative liabilities $ (5,708 ) $ — $ (53,041 ) $ (58,749 ) $ 53,936 $ (4,813 ) (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, 2017 , we held no cash and posted $49.7 million of cash with various counterparties, including $29.5 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $20.2 million of cash collateral in excess of derivative net liability positions is included in other current assets 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) 2018 2017 2018 2017 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ 3,098 $ (772 ) $ (32,838 ) $ (23,319 ) Total realized/unrealized gains (losses): Included in earnings (a) (15 ) (656 ) (100 ) 258 Included in other comprehensive income (loss) (26,584 ) 2,178 9,437 23,811 Net assets (liabilities) at end of period $ (23,501 ) $ 750 $ (23,501 ) $ 750 (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, 2018 and 2017 , 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, 2018 and 2017 , 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 $8.5 billion and $9.3 billion at June 30, 2018 , and December 31, 2017 , respectively. The book value of our consolidated long-term debt, including current maturities, was $8.0 billion and $8.5 billion at June 30, 2018 , and December 31, 2017 , respectively. The estimated fair value of the aggregate 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, 2018 | |
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 processed, purchased 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 reduce 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 fees and POP percentage 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 primarily exposed to commodity price risk resulting from the relative values of the various NGL products to each other, the value of NGLs in storage and the relative value of NGLs to natural gas. We are also exposed to location price differential risk as a result of the relative value of NGL purchases at one location and sales at another location, primarily related to our optimization and marketing businesses. As part of our hedging strategy, 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 can 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, 2018 , and December 31, 2017 , 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, interest-rate swaps and treasury lock contracts. Interest-rate swaps are agreements to exchange interest payments at some future point based on specified notional amounts. In the first half of 2018, we entered into $1.5 billion of forward-starting interest-rate swaps and treasury lock contracts 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. We also settled $1.0 billion of our forward-starting interest rate swaps and treasury lock contracts related to our underwritten public offering of $1.25 billion senior unsecured notes completed in July 2018, and the remaining $500 million of our interest-rate swaps used to hedge our LIBOR-based interest payments. At June 30, 2018 , and December 31, 2017 , we had forward-starting interest-rate swaps with notional amounts totaling $1.8 billion and $1.3 billion , respectively, to hedge the variability of interest payments on a portion of our forecasted debt issuances. At December 31, 2017 , we had interest-rate swaps with a notional amount totaling $500 million to hedge the variability of our LIBOR-based interest payments. All of our interest-rate swaps are designated as cash flow hedges. 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, updated for the adoption of ASU 2017-12. Fair Values of Derivative Instruments - See Note B for a discussion of the inputs associated with our fair value measurements. The following table sets forth the fair values of our derivative instruments presented on a gross basis for the periods indicated: June 30, 2018 December 31, 2017 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 $ 18,492 $ (49,476 ) $ 16,978 $ (42,819 ) Other assets/other deferred credits 408 (5,666 ) — (3,838 ) Physical contracts Other current liabilities — (1,854 ) — (4,781 ) Interest-rate contracts Other current assets — — 1,330 — Other assets/other deferred credits 29,596 (5,290 ) 48,630 — Total derivatives designated as hedging instruments 48,496 (62,286 ) 66,938 (51,438 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts Other current assets/other current liabilities 5,221 (5,181 ) 7,477 (7,311 ) Total derivatives not designated as hedging instruments 5,221 (5,181 ) 7,477 (7,311 ) Total derivatives $ 53,717 $ (67,467 ) $ 74,415 $ (58,749 ) Notional Quantities for Derivative Instruments - The following table sets forth the notional quantities for derivative instruments held for the periods indicated: June 30, 2018 December 31, 2017 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 — (24.0 ) — (24.5 ) - Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps 4.0 (11.6 ) 3.5 (11.1 ) Basis - Natural gas ( Bcf ) Futures and swaps — (24.0 ) — (24.5 ) Interest-rate contracts ( Millions of dollars ) Swaps $ 1,750.0 $ — $ 1,750.0 $ — Derivatives not designated as hedging instruments: Fixed price - NGLs ( MMBbl ) Futures, forwards and swaps 0.4 (0.4 ) 0.8 (0.8 ) 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, 2018 , our Consolidated Balance Sheet reflected a net loss of $178.6 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 $29.3 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 $25.3 million in net losses , net of tax, over the next 12 months and approximately $4.0 million in net losses , net of tax, thereafter. The amount deferred in accumulated other comprehensive loss attributable to our settled interest-rate swaps is a loss of $47.3 million , net of tax, which will be recognized over the life of the long-term, fixed-rate debt, including losses of $13.6 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 our pension and postretirement benefit plan obligations, which are expected to be amortized over the average remaining service period of employees participating in these plans. 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, 2018 2017 2018 2017 ( Thousands of dollars ) Commodity contracts $ (46,388 ) $ 8,998 $ (25,463 ) $ 36,326 Interest-rate contracts 20,065 (14,995 ) 43,976 (13,466 ) Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives $ (26,323 ) $ (5,997 ) $ 18,513 $ 22,860 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 Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ (10,189 ) $ (6,796 ) $ (21,800 ) $ (22,115 ) Interest-rate contracts Interest expense (5,602 ) (5,172 ) (9,545 ) (10,501 ) Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives $ (15,791 ) $ (11,968 ) $ (31,345 ) $ (32,616 ) 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, 2018 . The counterparties to our derivative contracts typically consist 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, 2018 , the 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, 2018 | |
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 ) Commercial paper outstanding, bearing a weighted-average interest rate of 2.66% and 2.23% as of June 30, 2018, and December 31, 2017, respectively. $ 156,000 $ 614,673 Senior unsecured obligations: $425,000 at 3.2% due September 2018 425,000 425,000 $1,000,000 term loan, rate of 2.87% as of December 31, 2017, due January 2019 — 500,000 $500,000 at 8.625% due March 2019 500,000 500,000 $300,000 at 3.8% due March 2020 300,000 300,000 $700,000 at 4.25% due February 2022 547,397 547,397 $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 7.5% due September 2023 500,000 500,000 $500,000 at 4.9 % due March 2025 500,000 500,000 $500,000 at 4.0% due July 2027 500,000 500,000 $100,000 at 6.875% due September 2028 100,000 100,000 $400,000 at 6.0% due June 2035 400,000 400,000 $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 $700,000 at 4.95% due July 2047 700,000 700,000 Guardian Pipeline Weighted average 7.85% due December 2022 32,782 36,607 Total debt 8,236,179 9,198,677 Unamortized portion of terminated swaps 17,609 18,468 Unamortized debt issuance costs and discounts (73,892 ) (78,193 ) Current maturities of long-term debt (932,650 ) (432,650 ) Short-term borrowings (a) (156,000 ) (614,673 ) Long-term debt $ 7,091,246 $ 8,091,629 (a) - 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 our $2.5 Billion Credit Agreement. $2.5 Billion Credit Agreement - In June 2018, we extended the term of our $2.5 Billion Credit Agreement by one year to June 2023. Our $2.5 Billion 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 $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.5 to 1 at June 30, 2018, 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. Our $2.5 Billion 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 our $2.5 Billion 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. Our $2.5 Billion 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 an additional one-year extension, 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, 2018 , we had no borrowings outstanding, our ratio of indebtedness to adjusted EBITDA was 3.5 to 1, and we were in compliance with all covenants under our $2.5 Billion Credit Agreement. Debt Issuances - In July 2018, we completed an underwritten public offering of $1.25 billion senior unsecured notes consisting of $800 million , 4.55 percent senior notes due 2028 and $450 million , 5.20 percent senior notes due 2048. The net proceeds, after deducting underwriting discounts, commissions and offering expenses, were $1.23 billion . The proceeds will be used for general corporate purposes, which may include repayment of existing indebtedness and funding capital expenditures. Debt Repayments - In January 2018, we repaid the remaining $500 million balance outstanding on the Term Loan Agreement due 2019 with a combination of cash on hand and short-term borrowings. 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, 2018 | |
Equity [Abstract] | |
EQUITY | EQUITY Noncontrolling Interests - As a result of the Merger Transaction in 2017, we and our subsidiaries owned 100 percent of ONEOK Partners at June 30, 2018 , and December 31, 2017 . At June 30, 2018 , and December 31, 2017 , the caption “Noncontrolling interests” on our Consolidated Balance Sheet reflects only the 20 percent of WTLPG that we did not own. On July 31, 2018, we acquired the remaining 20 percent interest in WTLPG for $195 million . Equity Issuances - In January 2018, we completed an underwritten public offering of 21.9 million shares of our common stock at a public offering price of $54.50 per share, generating net proceeds of $1.2 billion . We used the net proceeds from this offering to fund capital expenditures and for general corporate purposes, which included repaying a portion of our outstanding indebtedness. 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. During the six months ended June 30, 2018 , no shares were sold through our “at-the-market” equity program. During the year ended December 31, 2017, we sold 8.4 million shares of common stock through our “at-the-market” equity program that resulted in net proceeds of $448.3 million . The net proceeds from these issuances were used for general corporate purposes, including repayment of outstanding indebtedness and to fund capital expenditures. 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 in February 2018 and May 2018 were $0.77 and $0.795 per share, respectively. A dividend of $0.825 per share was declared for shareholders of record at the close of business on August 6, 2018 , payable August 14, 2018 . 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. We paid dividends for the Series E Preferred Stock of $0.3 million each in February 2018 and May 2018. Dividends totaling $0.3 million were declared for the Series E Preferred Stock and are payable August 14, 2018 . 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. As a result of the Merger Transaction in 2017, we are entitled to receive all available ONEOK Partners cash. Our incentive distribution rights effectively terminated at the closing of the Merger Transaction. The following table sets forth ONEOK Partners’ distributions paid during the period prior to the closing of the Merger Transaction: Three Months Ended Six Months Ended June 30, June 30, 2017 2017 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 1.58 General partner distributions $ 6,660 $ 13,320 Incentive distributions 100,538 201,076 Distributions to general partner 107,198 214,396 Limited partner distributions to ONEOK 90,323 180,646 Limited partner distributions to other unitholders 135,479 270,959 Total distributions paid $ 333,000 $ 666,001 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 $ (81,915 ) $ (105,411 ) $ (1,204 ) $ (188,530 ) Other comprehensive income (loss) before reclassifications 14,255 (583 ) 3,816 17,488 Amounts reclassified from accumulated other comprehensive loss 24,136 6,433 (15 ) 30,554 Net current-period other comprehensive income (loss) attributable to ONEOK 38,391 5,850 3,801 48,042 Impact of adoption of ASU 2018-02 (c) (17,935 ) (20,166 ) — (38,101 ) June 30, 2018 $ (61,459 ) $ (119,727 ) $ 2,597 $ (178,589 ) (a) - All amounts are presented net of tax. (b) - Includes amounts related to supplemental executive retirement plan. (c) - We elected to adopt this guidance in the first quarter 2018, which allows a reclassification from accumulated other comprehensive income/loss to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. After adopting and applying this guidance, our accumulated other comprehensive loss balance does not include stranded taxes resulting from the Tax Cuts and Jobs Act. 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, 2018 2017 2018 2017 ( Thousands of dollars ) Unrealized gains (losses) on risk-management assets/liabilities Commodity contracts $ (10,189 ) $ (6,796 ) $ (21,800 ) $ (22,115 ) Commodity sales revenues Interest-rate contracts (5,602 ) (5,172 ) (9,545 ) (10,501 ) Interest expense (15,791 ) (11,968 ) (31,345 ) (32,616 ) Income before income taxes 3,631 2,041 7,209 5,406 Income taxes (12,160 ) (9,927 ) (24,136 ) (27,210 ) Net income Noncontrolling interests — (6,521 ) — (18,146 ) Less: Net income attributable to noncontrolling interests $ (12,160 ) $ (3,406 ) $ (24,136 ) $ (9,064 ) Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ (4,592 ) $ (3,812 ) $ (9,184 ) $ (7,624 ) Other income (expense) Amortization of unrecognized prior service credit 415 415 830 830 Other income (expense) (4,177 ) (3,397 ) (8,354 ) (6,794 ) Income before income taxes 960 1,359 1,921 2,718 Income taxes $ (3,217 ) $ (2,038 ) $ (6,433 ) $ (4,076 ) Net income attributable to ONEOK Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates $ 66 $ (85 ) $ 19 $ (181 ) Equity in net earnings from investments (15 ) 13 (4 ) 28 Income taxes 51 (72 ) 15 (153 ) Net income Noncontrolling interests — (50 ) — (106 ) Less: Net income attributable to noncontrolling interests $ 51 $ (22 ) $ 15 $ (47 ) Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (15,326 ) $ (5,466 ) $ (30,554 ) $ (13,187 ) 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 H 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, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The following tables set forth the computation of basic and diluted EPS for the periods indicated: Three Months Ended June 30, 2018 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 280,773 411,946 $ 0.68 Diluted EPS Effect of dilutive securities — 2,695 Net income attributable to ONEOK available for common stock and common stock equivalents $ 280,773 414,641 $ 0.68 Three Months Ended June 30, 2017 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 71,476 211,785 $ 0.34 Diluted EPS Effect of dilutive securities — 2,227 Net income attributable to ONEOK available for common stock and common stock equivalents $ 71,476 214,012 $ 0.33 Six Months Ended June 30, 2018 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 545,006 410,811 $ 1.33 Diluted EPS Effect of dilutive securities — 2,596 Net income attributable to ONEOK available for common stock and common stock equivalents $ 545,006 413,407 $ 1.32 Six Months Ended June 30, 2017 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 158,837 211,702 $ 0.75 Diluted EPS Effect of dilutive securities — 2,105 Net income attributable to ONEOK available for common stock and common stock equivalents $ 158,837 213,807 $ 0.74 |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [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 the periods indicated: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 1,832 $ 1,722 $ 3,664 $ 3,444 Interest cost 4,408 4,655 8,816 9,310 Expected return on plan assets (5,969 ) (5,336 ) (11,938 ) (10,672 ) Amortization of net loss 4,258 3,392 8,516 6,784 Net periodic benefit cost $ 4,529 $ 4,433 $ 9,058 $ 8,866 Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 211 $ 165 $ 422 $ 330 Interest cost 527 565 1,054 1,130 Expected return on plan assets (672 ) (564 ) (1,344 ) (1,128 ) Amortization of prior service credit (415 ) (415 ) (830 ) (830 ) Amortization of net loss 334 420 668 840 Net periodic benefit cost (income) $ (15 ) $ 171 $ (30 ) $ 342 |
UNCONSOLIDATED AFFILIATES (Note
UNCONSOLIDATED AFFILIATES (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2018 2017 ( Thousands of dollars ) Northern Border Pipeline $ 15,240 $ 15,622 $ 32,377 $ 34,439 Overland Pass Pipeline Company 16,246 14,884 32,633 28,450 Roadrunner Gas Transmission 5,542 4,889 10,500 9,294 Other (458 ) 3,968 1,247 6,744 Equity in net earnings from investments $ 36,570 $ 39,363 $ 76,757 $ 78,927 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, 2018 2017 2018 2017 ( Thousands of dollars ) Income Statement Operating revenues $ 151,771 $ 157,603 $ 310,679 $ 311,883 Operating expenses $ 68,120 $ 69,465 $ 136,521 $ 136,401 Net income $ 77,913 $ 92,072 $ 162,393 $ 173,203 Distributions paid to us $ 48,424 $ 49,760 $ 98,240 $ 96,680 We incurred expenses in transactions with unconsolidated affiliates of $38.2 million and $39.4 million for the three months ended June 30, 2018 and 2017 , respectively, and $75.7 million and $76.1 million for the six months ended June 30, 2018 and 2017 , respectively, primarily related to Overland Pass Pipeline Company and Northern Border Pipeline. Accounts payable to our equity-method investees at June 30, 2018 , and December 31, 2017 , were $12.3 million and $13.6 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. Northern Border Pipeline entered into a settlement with shippers that was approved by the FERC in February 2018. The settlement provides for tiered tariff rate reductions beginning January 1, 2018, that will reduce tariff rates 12.5 percent by January 2020 compared with previous tariff rates and requires new tariff rates to be established by January 2024. We do not expect the impact of lower tariff rates on Northern Border Pipeline’s equity earnings and cash distributions to be material to us. 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. During the six months ended June 30, 2017, we made contributions of $4.0 million to Roadrunner. We made no contributions to Roadrunner during the six months ended June 30, 2018. 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, 2018 and 2017 , were not material. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
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, local and tribal levels that relate to air and water quality, hazardous and solid waste management and disposal, cultural resource protection and other environmental matters. The cost of planning, designing, constructing and operating pipelines, plants and other facilities must incorporate compliance with these 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 or construction. 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. Regulatory - The Tax Cuts and Jobs Act made extensive changes to the U.S. tax laws and includes provisions that reduce the U.S. corporate tax rate to 21 percent from 35 percent, increase expensing for capital investment, and limit the interest deduction and use of net operating losses to offset future taxable income. The Tax Cuts and Jobs Act may reduce future tariff rates charged on our regulated pipelines. The rates charged to our customers have generally been established through shipper specific negotiation, discounts and negotiated settlements, which do not ascribe any specific cost of service elements. We expect future tariff rate changes, if any, related to the change in the U.S. corporate tax rate to be established prospectively over time on a similar negotiated basis. In July 2018, the FERC issued a final rule on the impact of the Tax Cuts and Jobs Act on FERC-regulated rates for natural gas pipelines, which indicated that a reduction in rates, if any, related to the decrease in the corporate tax rate would be prospective only. We do not expect the impact of this final rule to materially affect us. The July 2018 final rule, which incorporates the Order on Rehearing on the Commission’s Policy for Recovery of Income Tax Costs, made adjustments to the FERC’s March 2018 revised policy statement for master limited partnerships, which no longer allows interstate natural gas and oil pipelines owned by master limited partnerships to recover an income tax allowance in cost of service rates. The final rule clarified that a master limited partnership with a C-corporation parent is eligible for an income tax allowance. We do not expect this FERC action to be material to our results of operations, as we are organized as a C-corporation. Further, regardless of organizational structure, we do not expect this FERC action to materially affect us, as the rates charged to our customers have generally been established through shipper specific negotiation, discounts and negotiated settlements, which do not ascribe any specific cost of service elements. The FERC allows regulated NGL pipelines an annual index adjustment to tariff rates, which is intended to allow recovery of changes in costs without a complicated cost of service filing. The FERC is expected to evaluate how best to incorporate the effects of new tax policies in its next calculation of the rate index in 2020 for indexing effective July 2021. We do not expect to be materially impacted by any such change in the index calculation, as our regulated NGL pipeline revenues are primarily under negotiated agreements. Legal Proceedings - Gas Index Pricing Litigation - As previously reported, in March 2017, the United States District Court for the District of Nevada (the District Court) granted summary judgment to ONEOK Energy Services Company, L.P. (OESC) in Sinclair Oil Corporation v. ONEOK Energy Services Company, L.P. (filed in the United States District Court for the District of Wyoming in September 2005, transferred to MDL-1566 in the Court). In September 2017, the District Court entered a final judgment in favor of OESC in Sinclair , which was appealed by Sinclair Oil Corporation to the Ninth Circuit Court of Appeals. On August 1, 2018, the Ninth Circuit Court of Appeals reversed the District Court’s granting of summary judgment and remanded the case back to the District Court. 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. 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. |
REVENUE REVENUE (Notes)
REVENUE REVENUE (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues [Text Block] | REVENUES Adoption of ASC Topic 606: Revenue from Contracts with Customers - We adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to contracts that were active as of January 1, 2018. Results for reporting periods beginning after January 1, 2018, are presented under Topic 606, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. We recorded a net increase to the beginning balance of retained earnings of approximately $1.7 million as of January 1, 2018, due to the cumulative impact of adopting the standard, primarily related to the timing of revenue on transportation contracts with tiered rates that resulted in contract assets in our Natural Gas Pipelines segment, contributions in aid of construction from customers that resulted in contract liabilities and an adjustment to NGL inventory related to contractual fees in our Natural Gas Liquids Segment, as described below. Based on the new guidance, we determined that certain Natural Gas Gathering and Processing segment POP with fee contracts and Natural Gas Liquids segment exchange services contracts that include the purchase of commodities are supplier contracts. Therefore, contractual fees in these identified contracts are now recorded as a reduction of the commodity purchase price in cost of sales and fuel pursuant to ASC 705 rather than as services revenue. To the extent we hold inventory related to these purchases, the related fees previously recorded in services revenue will not be recognized until the inventory is sold. We continue to be principal on the downstream sales of those commodities, which is unchanged from our assessment under previous guidance. The impact on our Consolidated Income Statement and Balance Sheet is as follows (in thousands): Three Months Ended June 30, 2018 Income Statement As Reported Balance Without Adoption of Topic 606 Effect of Change Increase/(Decrease) Services revenue $ 285,267 $ 644,615 $ (359,348 ) Cost of sales and fuel (exclusive of depreciation and operating costs) $ 2,175,818 $ 2,523,916 $ (348,098 ) Depreciation and amortization $ 106,288 $ 106,142 $ 146 Income taxes $ 87,531 $ 90,151 $ (2,620 ) Net income $ 282,179 $ 290,955 $ (8,776 ) Net income attributable to noncontrolling interests $ 1,131 $ 1,128 $ 3 Net income attributable to ONEOK $ 281,048 $ 289,827 $ (8,779 ) Six Months Ended June 30, 2018 Income Statement As Reported Balance Without Adoption of Topic 606 Effect of Change Increase/(Decrease) Services revenue $ 567,340 $ 1,278,930 $ (711,590 ) Cost of sales and fuel (exclusive of depreciation and operating costs) $ 4,543,844 $ 5,249,690 $ (705,846 ) Depreciation and amortization $ 210,525 $ 210,234 $ 291 Income taxes $ 163,302 $ 164,690 $ (1,388 ) Net income $ 548,228 $ 552,875 $ (4,647 ) Net income attributable to noncontrolling interests $ 2,672 $ 2,667 $ 5 Net income attributable to ONEOK $ 545,556 $ 550,208 $ (4,652 ) June 30, 2018 Balance Sheet As Reported Balance Without Adoption of Topic 606 Effect of Change Increase/(Decrease) Accounts receivable, net $ 934,664 $ 1,056,974 $ (122,310 ) Natural gas and natural gas liquids in storage $ 285,776 $ 299,616 $ (13,840 ) Other current assets $ 57,286 $ 56,230 $ 1,056 Property, plant and equipment $ 16,363,716 $ 16,341,524 $ 22,192 Accumulated depreciation and amortization $ 3,059,799 $ 3,058,136 $ 1,663 Deferred income taxes $ 31,503 $ 30,617 $ 886 Other assets $ 170,124 $ 165,130 $ 4,994 Accounts payable $ 1,027,467 $ 1,149,777 $ (122,310 ) Other current liabilities $ 184,127 $ 182,577 $ 1,550 Other deferred credits $ 357,184 $ 342,162 $ 15,022 Retained earnings/paid-in capital $ 7,699,934 $ 7,702,903 $ (2,969 ) Noncontrolling interests in consolidated subsidiaries $ 173,623 $ 173,601 $ 22 Revenue Recognition - Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Our payment terms vary by customer and contract type, including requiring payment before products or services are delivered to certain customers. However, the term between customer prepayments, completion of our performance obligations, invoicing and receipt of payment due is not significant. Practical Expedients - We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) variable consideration on contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Receivables from Customers, Performance Obligations and Revenue Sources - The balances in accounts receivable on our Consolidated Balance Sheet at June 30, 2018, and December 31, 2017, include customer receivables of $926.1 million and $1.2 billion , respectively. Revenues sources are disaggregated in Note L and are derived from commodity sales and services revenues, as described below: Commodity Sales (all segments) - We contract to deliver residue natural gas, condensate, unfractionated NGLs and/or NGL products to customers at a specified delivery point. Our sales agreements may be daily or longer-term contracts for a specified volume. We consider the sale and delivery of each unit of a commodity an individual performance obligation as the customer is expected to control, accept and benefit from each unit individually. We record revenue when the commodity is delivered to the customer as this represents the point in time when control of the product is transferred to the customer. Revenue is recorded based on the contracted selling price, which is generally index-based and settled monthly. Services Gathering only contracts ( Natural Gas Gathering and Processing segment ) - Under this type of contract, we charge fees for providing midstream services, which include gathering our customer’s natural gas. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. POP contracts with producer take-in-kind rights ( Natural Gas Gathering and Processing segment ) - Under this type of contract, we do not control the stream of unprocessed gas that we receive at the wellhead due to the producer’s take-in-kind rights. We charge fees for providing midstream services, which include gathering and processing our customer’s natural gas. After performing these services, we return a portion of the natural gas to the producer and purchase the remaining commodities. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. Transportation and exchange contracts ( Natural Gas Liquids segment ) - Under this type of contract, we charge fees for providing midstream services, which may include a bundled combination of gathering, transporting and/or fractionation of our customer’s NGLs. Our performance obligation begins with delivery of unfractionated NGLs or NGL products to our system. These services represent a series of distinct services that are treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. For transportation services under a tariff on our NGL transportation pipelines, fees are recorded upon redelivery to our customer at the completion of the transportation services. Storage contracts ( Natural Gas Liquids and Natural Gas Pipelines segments ) - We reserve a stated storage capacity and inject/withdraw/store commodities for our customer. The capacity reservation and injection/withdrawal/storage services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue based on daily effective fee rate. Transportation, injection and withdrawal fees are recognized in revenue as those services are provided and are dependent on the volume transported, injected or withdrawn by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Firm service transportation contracts ( Natural Gas Pipelines segment ) - We reserve a stated transportation capacity and transport commodities for our customer. The capacity reservation and transportation services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue based on a daily effective fee rate. If the capacity reservation fees vary solely as a contract feature, contract assets or liabilities are recorded for the difference between the amount recorded in revenue and the amount billed to the customer. Transportation fees are recognized in revenue as those services are provided and are dependent on the volume transported by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Interruptible transportation contracts ( Natural Gas Pipelines segment ) - We agree to transport natural gas on our pipelines between the customer’s specified nomination and delivery points if capacity is available after satisfying firm transportation service obligations. Our performance obligations and those of our customer begin with delivery of natural gas onto our pipeline and is satisfied over time. The transaction price is based on the transportation fees times the volumes transported. These fees may change over time based on an index or other factors provided in the agreement. We use the output method based on delivery of product to the customer to measure satisfaction of the performance obligation. The total consideration for delivered volumes is recorded in revenue at the time of delivery, when the customer obtains control. Contract Assets and Contract Liabilities - Contract assets and contract liabilities are recorded when the amount of revenue recognized from a contract with a customer differs from the amount billed to the customer and recorded in accounts receivable. Our contract asset balances at the beginning and end of the period primarily relate to our firm service transportation contracts with tiered rates. Our contract liabilities primarily represent deferred revenue on NGL storage contracts for which revenue is recognized over a one-year term and deferred revenue on contributions in aid of construction received from customers for which revenue is recognized over the contract period, which averages approximately 10 years. The following tables set forth the changes in our contract asset and contract liability balances during the six months ended June 30, 2018. Contract Assets ( Millions of dollars ) Balance at January 1, 2018 (a) $ 6.4 Amounts invoiced in excess of revenue recognized (0.4 ) Net additions 0.4 Balance at June 30, 2018 (b) $ 6.4 (a) - Balance includes $0.9 million of current assets. (b) - Contract assets of $1.4 million and $5.0 million are included in other current assets and other assets, respectively, in our Consolidated Balance Sheet. Contract Liabilities ( Millions of dollars ) Balance at January 1, 2018 (a) $ 33.3 Revenue recognized included in beginning balance (18.3 ) Net additions 27.8 Balance at June 30, 2018 (b) $ 42.8 (a) - Balance includes $19.5 million of current liabilities. (b) - Contract liabilities of $27.8 million and $15.0 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. Transaction Price Allocated to Unsatisfied Performance Obligations - The following table presents aggregate value allocated to unsatisfied performance obligations as of June 30, 2018, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 26 years: Expected Period of Recognition in Revenue ( Millions of dollars ) Remainder of 2018 $ 168.5 2019 271.6 2020 226.1 2021 219.2 2022 and beyond 1,066.7 Total estimated transaction price allocated to unsatisfied performance obligations $ 1,952.1 The table above excludes variable consideration allocated entirely to wholly unsatisfied performance obligations, wholly unsatisfied promises to transfer distinct goods or services that are part of a single performance obligation and consideration we determine to be fully constrained. Information on the nature of the variable consideration excluded and the nature of the performance obligations to which the variable consideration relates can be found in the description of the major contract types discussed above. The amounts we determined to be fully constrained relate to future sales obligations under long-term sales contracts where the transaction price is not known and minimum volume agreements, which we consider to be fully constrained until invoiced. |
SEGMENTS (Notes)
SEGMENTS (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
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 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, updated as described in Note A of this Quarterly 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 is 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 compensation expense and other noncash items. This calculation may not be comparable with similarly titled measures of other companies. Customers - Our Natural Gas Gathering and Processing segment derives services revenue primarily from crude oil and natural gas producers, which include both large integrated and independent exploration and production companies. The downstream commodity sales customers of our Natural Gas Gathering and Processing segment are primarily utilities, large industrial companies, marketing companies and our NGL affiliate. 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, producers and marketing companies. For the three and six months ended June 30, 2018 and 2017 , we had no single customer from which we received 10 percent or more of our consolidated revenues. Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated: Three Months Ended Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 447,839 $ 2,469,517 $ — $ 2,917,356 Residue natural gas sales 208,618 — 179 208,797 Gathering, processing and exchange services revenue 42,801 96,470 — 139,271 Transportation and storage revenue — 45,012 93,277 138,289 Other 1,671 2,931 6,336 10,938 Total revenues (c) 700,929 2,613,930 99,792 3,414,651 Cost of sales and fuel (exclusive of depreciation and operating costs) (442,959 ) (2,183,512 ) (2,637 ) (2,629,108 ) Operating costs (93,602 ) (99,610 ) (34,959 ) (228,171 ) Equity in net earnings (loss) from investments (794 ) 16,582 20,782 36,570 Noncash compensation expense and other 3,292 4,671 2,388 10,351 Segment adjusted EBITDA $ 166,866 $ 352,061 $ 85,366 $ 604,293 Depreciation and amortization $ (48,149 ) $ (42,878 ) $ (14,426 ) $ (105,453 ) Capital expenditures $ 108,842 $ 216,934 $ 20,477 $ 346,253 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $294.3 million , of which $255.0 million related to sales within the segment, and cost of sales and fuel of $124.0 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $64.5 million and cost of sales and fuel of $5.8 million . (c) - Intersegment revenues for the Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines segments totaled $448.5 million , $3.7 million and $2.5 million , respectively. Three Months Ended June 30, 2018 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 2,917,356 $ (448,556 ) $ 2,468,800 Residue natural gas sales 208,797 (3,028 ) 205,769 Gathering, processing and exchange services revenue 139,271 — 139,271 Transportation and storage revenue 138,289 (2,495 ) 135,794 Other 10,938 (43 ) 10,895 Total revenues (a) $ 3,414,651 $ (454,122 ) $ 2,960,529 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (2,629,108 ) $ 453,290 $ (2,175,818 ) Operating costs $ (228,171 ) $ (1,982 ) $ (230,153 ) Depreciation and amortization $ (105,453 ) $ (835 ) $ (106,288 ) Equity in net earnings from investments $ 36,570 $ — $ 36,570 Capital expenditures $ 346,253 $ 4,632 $ 350,885 (a) - Noncustomer revenue for the three months ended June 30, 2018, totaled $(5.4) million related primarily to losses reclassified from accumulated other comprehensive income from derivatives on commodity contracts. Three Months Ended 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 operating costs) (488,891 ) (2,003,601 ) (6,773 ) (2,499,265 ) Operating costs (72,659 ) (86,977 ) (30,682 ) (190,318 ) Equity in net earnings from investments 3,780 15,062 20,521 39,363 Other 216 (860 ) (255 ) (899 ) 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 $ (190,318 ) $ (24,770 ) $ (215,088 ) 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 Six Months Ended Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 860,996 $ 5,022,287 $ — $ 5,883,283 Residue natural gas sales 463,615 — 5,098 468,713 Gathering, processing and exchange services revenue 81,230 179,728 — 260,958 Transportation and storage revenue — 98,490 191,615 290,105 Other 3,079 5,894 12,990 21,963 Total revenues (c) 1,408,920 5,306,399 209,703 6,925,022 Cost of sales and fuel (exclusive of depreciation and operating costs) (935,581 ) (4,464,584 ) (8,091 ) (5,408,256 ) Operating costs (181,961 ) (188,202 ) (68,149 ) (438,312 ) Equity in net earnings from investments 874 33,006 42,877 76,757 Noncash compensation expense and other 5,165 7,521 2,651 15,337 Segment adjusted EBITDA $ 297,417 $ 694,140 $ 178,991 $ 1,170,548 Depreciation and amortization $ (95,897 ) $ (85,305 ) $ (27,695 ) $ (208,897 ) Total assets $ 5,585,519 $ 8,898,255 $ 2,073,043 $ 16,556,817 Capital expenditures $ 220,571 $ 341,855 $ 40,375 $ 602,801 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $594.3 million , of which $508.4 million related to sales within the segment, and cost of sales and fuel of $246.8 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $132.5 million and cost of sales and fuel of $14.9 million . (c) - Intersegment revenues for the Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines segments totaled $846.3 million , $12.7 million and $4.6 million , respectively. Six Months Ended June 30, 2018 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 5,883,283 $ (857,466 ) $ 5,025,817 Residue natural gas sales 468,713 (778 ) 467,935 Gathering, processing and exchange services revenue 260,958 (21 ) 260,937 Transportation and storage revenue 290,105 (4,589 ) 285,516 Other 21,963 438 22,401 Total revenues (a) $ 6,925,022 $ (862,416 ) $ 6,062,606 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,408,256 ) $ 864,412 $ (4,543,844 ) Operating costs $ (438,312 ) $ (2,045 ) $ (440,357 ) Depreciation and amortization $ (208,897 ) $ (1,628 ) $ (210,525 ) Equity in net earnings from investments $ 76,757 $ — $ 76,757 Total assets $ 16,556,817 $ 356,903 $ 16,913,720 Capital expenditures $ 602,801 $ 12,551 $ 615,352 (a) - Noncustomer revenue for the six months ended June 30, 2018, totaled $(14.4) million related primarily to losses reclassified from accumulated other comprehensive income from derivatives on commodity contracts. Six Months Ended 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 operating costs) (977,275 ) (4,052,294 ) (23,376 ) (5,052,945 ) Operating costs (143,987 ) (165,417 ) (62,245 ) (371,649 ) Equity in net earnings from investments 6,410 28,784 43,733 78,927 Other (11 ) (1,204 ) 839 (376 ) 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 $ (371,649 ) $ (32,644 ) $ (404,293 ) 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 Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Reconciliation of net income to total segment adjusted EBITDA Net income $ 282,179 $ 175,991 $ 548,228 $ 362,176 Add: Interest expense, net of capitalized interest 113,496 118,473 229,221 234,935 Depreciation and amortization 106,288 100,849 210,525 200,268 Income taxes 87,531 43,844 163,302 98,785 Noncash compensation expense 12,140 3,260 21,366 4,907 Other corporate costs and noncash items (a) 2,659 39,813 (2,094 ) 46,313 Total segment adjusted EBITDA $ 604,293 $ 482,230 $ 1,170,548 $ 947,384 (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, 2018 | |
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 in 2017, 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, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 2,675.3 $ — $ 2,675.3 Services — — — 285.8 (0.5 ) 285.3 Total revenues — — — 2,961.1 (0.5 ) 2,960.6 Cost of sales and fuel (exclusive of items shown separately below) — — — 2,175.8 — 2,175.8 Operating expenses 2.0 — — 335.0 (0.5 ) 336.5 Gain on sale of assets — — — (0.1 ) — (0.1 ) Operating income (2.0 ) — — 450.4 — 448.4 Equity in net earnings from investments 400.8 403.2 403.2 27.5 (1,198.1 ) 36.6 Other income (expense), net 6.6 77.5 77.5 (8.4 ) (155.0 ) (1.8 ) Interest expense, net (40.3 ) (77.5 ) (77.5 ) (73.2 ) 155.0 (113.5 ) Income before income taxes 365.1 403.2 403.2 396.3 (1,198.1 ) 369.7 Income taxes (84.0 ) — — (3.5 ) — (87.5 ) Net income 281.1 403.2 403.2 392.8 (1,198.1 ) 282.2 Less: Net income attributable to noncontrolling interests — — — 1.1 — 1.1 Net income attributable to ONEOK 281.1 403.2 403.2 391.7 (1,198.1 ) 281.1 Less: Preferred stock dividends 0.3 — — — — 0.3 Net income available to common shareholders $ 280.8 $ 403.2 $ 403.2 $ 391.7 $ (1,198.1 ) $ 280.8 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 17.7 — 6.2 293.0 (1.0 ) 315.9 Gain on sale of assets — — — (0.6 ) — (0.6 ) Operating income (17.7 ) — (6.2 ) 343.4 — 319.5 Equity in net earnings from investments 275.2 278.5 284.7 23.8 (822.8 ) 39.4 Other income (expense), net (20.2 ) 94.9 94.9 (0.4 ) (189.8 ) (20.6 ) 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 Six Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 5,495.3 $ — $ 5,495.3 Services — — — 568.3 (1.0 ) 567.3 Total revenues — — — 6,063.6 (1.0 ) 6,062.6 Cost of sales and fuel (exclusive of items shown separately below) — — — 4,543.8 — 4,543.8 Operating expenses 1.3 — — 650.6 (1.0 ) 650.9 Gain on sale of assets — — — (0.2 ) — (0.2 ) Operating income (1.3 ) — — 869.4 — 868.1 Equity in net earnings from investments 769.3 774.1 774.1 56.1 (2,296.8 ) 76.8 Other income (expense), net 13.8 154.6 154.6 (18.0 ) (309.2 ) (4.2 ) Interest expense, net (80.1 ) (154.6 ) (154.6 ) (149.1 ) 309.2 (229.2 ) Income before income taxes 701.7 774.1 774.1 758.4 (2,296.8 ) 711.5 Income taxes (156.1 ) — — (7.2 ) — (163.3 ) Net income 545.6 774.1 774.1 751.2 (2,296.8 ) 548.2 Less: Net income attributable to noncontrolling interests — — — 2.6 — 2.6 Net income attributable to ONEOK 545.6 774.1 774.1 748.6 (2,296.8 ) 545.6 Less: Preferred stock dividends 0.6 — — — — 0.6 Net income available to common shareholders $ 545.0 $ 774.1 $ 774.1 $ 748.6 $ (2,296.8 ) $ 545.0 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 24.7 — 6.2 574.6 (1.0 ) 604.5 Gain on sale of assets — — — (0.6 ) — (0.6 ) Operating income (24.7 ) — (6.2 ) 667.5 — 636.6 Equity in net earnings from investments 544.0 547.6 553.8 44.5 (1,611.0 ) 78.9 Other income (expense), net (19.6 ) 186.1 186.1 — (372.2 ) (19.6 ) 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 Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 281.1 $ 403.2 $ 403.2 $ 392.8 $ (1,198.1 ) $ 282.2 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax 15.5 (46.4 ) (46.4 ) (35.8 ) 92.8 (20.3 ) Realized (gains) losses on derivatives in net income, net of tax 1.0 14.6 10.2 6.9 (20.5 ) 12.2 Change in pension and postretirement benefit plan liability, net of tax 3.2 — — — — 3.2 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), net of tax 19.7 (30.6 ) (35.0 ) (27.9 ) 69.9 (3.9 ) Comprehensive income 300.8 372.6 368.2 364.9 (1,128.2 ) 278.3 Less: Comprehensive income attributable to noncontrolling interests — — — 1.1 — 1.1 Comprehensive income attributable to ONEOK $ 300.8 $ 372.6 $ 368.2 $ 363.8 $ (1,128.2 ) $ 277.2 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), net of tax 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 Six Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 545.6 $ 774.1 $ 774.1 $ 751.2 $ (2,296.8 ) $ 548.2 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax 33.9 (25.5 ) (25.5 ) (19.6 ) 51.0 14.3 Realized (gains) losses on derivatives in net income, net of tax 1.9 28.9 21.8 15.1 (43.6 ) 24.1 Change in pension and postretirement benefit plan liability, net of tax 6.4 (0.6 ) — — — 5.8 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — 4.9 4.9 3.8 (9.8 ) 3.8 Total other comprehensive income (loss), net of tax 42.2 7.7 1.2 (0.7 ) (2.4 ) 48.0 Comprehensive income 587.8 781.8 775.3 750.5 (2,299.2 ) 596.2 Less: Comprehensive income attributable to noncontrolling interests — — — 2.6 — 2.6 Comprehensive income attributable to ONEOK $ 587.8 $ 781.8 $ 775.3 $ 747.9 $ (2,299.2 ) $ 593.6 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), net of tax 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 Condensed Consolidating Balance Sheets June 30, 2018 ( 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 $ 15.3 $ — $ — $ — $ — $ 15.3 Accounts receivable, net — — — 934.7 — 934.7 Natural gas and natural gas liquids in storage — — — 285.8 — 285.8 Other current assets 11.9 — — 186.0 — 197.9 Total current assets 27.2 — — 1,406.5 — 1,433.7 Property, plant and equipment Property, plant and equipment 137.2 — — 16,226.5 — 16,363.7 Accumulated depreciation and amortization 89.2 — — 2,970.6 — 3,059.8 Net property, plant and equipment 48.0 — — 13,255.9 — 13,303.9 Investments and other assets Investments 5,872.9 3,243.0 8,795.0 795.4 (17,719.3 ) 987.0 Intercompany notes receivable 3,679.2 8,140.9 2,588.9 — (14,409.0 ) — Other assets 233.0 — — 1,006.9 (50.8 ) 1,189.1 Total investments and other assets 9,785.1 11,383.9 11,383.9 1,802.3 (32,179.1 ) 2,176.1 Total assets $ 9,860.3 $ 11,383.9 $ 11,383.9 $ 16,464.7 $ (32,179.1 ) $ 16,913.7 Liabilities and equity Current liabilities Current maturities of long-term debt $ — $ 925.0 $ — $ 7.7 $ — $ 932.7 Short-term borrowings 156.0 — — — — 156.0 Accounts payable 6.2 — — 1,021.3 — 1,027.5 Other current liabilities 71.2 85.0 — 299.7 — 455.9 Total current liabilities 233.4 1,010.0 — 1,328.7 — 2,572.1 Intercompany debt — — 8,140.9 6,268.1 (14,409.0 ) — Long-term debt, excluding current maturities 2,727.0 4,339.2 — 25.0 — 7,091.2 Deferred credits and other liabilities 235.0 — — 227.7 (50.8 ) 411.9 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 6,664.9 6,034.7 3,243.0 8,441.6 (17,719.3 ) 6,664.9 Noncontrolling interests in consolidated subsidiaries — — — 173.6 — 173.6 Total equity 6,664.9 6,034.7 3,243.0 8,615.2 (17,719.3 ) 6,838.5 Total liabilities and equity $ 9,860.3 $ 11,383.9 $ 11,383.9 $ 16,464.7 $ (32,179.1 ) $ 16,913.7 December 31, 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 $ 37.2 $ — $ — $ — $ — $ 37.2 Accounts receivable, net — — — 1,203.0 — 1,203.0 Materials and supplies — — — 90.3 — 90.3 Natural gas and natural gas liquids in storage — — — 342.3 — 342.3 Other current assets 9.8 1.3 — 80.6 — 91.7 Total current assets 47.0 1.3 — 1,716.2 — — 1,764.5 Property, plant and equipment Property, plant and equipment 128.3 — — 15,431.3 — 15,559.6 Accumulated depreciation and amortization 86.4 — — 2,775.1 — 2,861.5 Net property, plant and equipment 41.9 — — 12,656.2 — 12,698.1 Investments and other assets Investments 5,752.1 3,133.7 8,058.4 803.0 (16,744.0 ) 1,003.2 Intercompany notes receivable 2,926.9 8,627.8 3,703.1 — (15,257.8 ) — Other assets 416.9 0.2 — 1,007.4 (44.4 ) 1,380.1 Total investments and other assets 9,095.9 11,761.7 11,761.5 1,810.4 (32,046.2 ) 2,383.3 Total assets $ 9,184.8 $ 11,763.0 $ 11,761.5 $ 16,182.8 $ (32,046.2 ) $ 16,845.9 Liabilities and equity Current liabilities Current maturities of long-term debt $ — $ 425.0 $ — $ 7.7 $ — $ 432.7 Short-term borrowings 614.7 — — — — 614.7 Accounts payable 12.0 — — 1,128.6 — 1,140.6 Other current liabilities 65.9 85.0 — 328.4 — 479.3 Total current liabilities 692.6 510.0 — 1,464.7 — 2,667.3 Intercompany debt — — 8,627.8 6,630.0 (15,257.8 ) — Long-term debt, excluding current maturities 2,726.4 5,336.4 — 28.8 — 8,091.6 Deferred credits and other liabilities 237.9 — — 208.1 (44.4 ) 401.6 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 5,527.9 5,916.6 3,133.7 7,693.7 (16,744.0 ) 5,527.9 Noncontrolling interests in consolidated subsidiaries — — — 157.5 — 157.5 Total equity 5,527.9 5,916.6 3,133.7 7,851.2 (16,744.0 ) 5,685.4 Total liabilities and equity $ 9,184.8 $ 11,763.0 $ 11,761.5 $ 16,182.8 $ (32,046.2 ) $ 16,845.9 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 ( 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 $ 669.2 $ 673.9 $ 32.4 $ 959.5 $ (1,332.0 ) $ 1,003.0 Investing activities Capital expenditures (10.1 ) — — (605.3 ) — (615.4 ) Contributions to unconsolidated affiliates — — — (0.3 ) — (0.3 ) Other investing activities — — 6.4 7.9 — 14.3 Cash provided by (used in) investing activities (10.1 ) — 6.4 (597.7 ) — (601.4 ) Financing activities Dividends paid (643.5 ) (666.0 ) (666.0 ) — 1,332.0 (643.5 ) Distributions to noncontrolling interests — — — (3.0 ) — (3.0 ) Intercompany borrowings (advances), net (748.0 ) 492.1 627.2 (371.3 ) — — Borrowing (repayment) of short-term borrowings, net (458.7 ) — — — — (458.7 ) Repayment of long-term debt — (500.0 ) — (3.8 ) — (503.8 ) Issuance of common stock 1,186.7 — — — — 1,186.7 Other, net (17.5 ) — — 16.3 — (1.2 ) Cash used in financing activities (681.0 ) (673.9 ) (38.8 ) — (361.8 ) 1,332.0 (423.5 ) Change in cash and cash equivalents (21.9 ) — — — — (21.9 ) Cash and cash equivalents at beginning of period 37.2 — — — — 37.2 Cash and cash equivalents at end of period $ 15.3 $ — $ — $ — $ — $ 15.3 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 ) 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, net (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 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 2017 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. |
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. We also exclude ASUs not yet adopted that were disclosed in our Annual Report to not materially impact us. 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 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 adopted this standard on January 1, 2018, using the modified retrospective method. We recognized the cumulative effect of adopting the new revenue standard as an increase to beginning retained earnings of $1.7 million. Results for reporting periods beginning after January 1, 2018, are presented under the new standard, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. The adoption of Topic 606 was not material to our net income; however, a significant portion of amounts historically presented as services revenues are now presented as a reduction to cost of sales and fuel. See Note K for discussion of these changes and additional disclosures. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that were adopted ( continued ) 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, the impact of adopting of this standard was not material. 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 The impact of adopting this standard was not material. 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 adopted this standard on January 1, 2018, and utilized the practical expedient to estimate the impact on the prior comparative period information presented. Immaterial reclassifications have been made to prior comparative period information to reflect the current period presentation. Prior to adoption, we expensed all components of the net periodic benefit costs for our pension and postretirement benefit plans in operations and maintenance expense. We now record only the service component of the net periodic benefit costs in operations and maintenance expense, with the remainder being recorded in other expense. There was no change to net income from the adoption of this standard. ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” The standard more closely aligns hedge accounting with companies’ existing risk-management strategies by expanding the strategies eligible for hedge accounting, relaxing the timing requirements of hedge documentation and effectiveness assessments, permitting in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness, and requiring new disclosures and presentation. First quarter 2018 We adopted this standard in the first quarter 2018 and recorded an immaterial cumulative-effect adjustment to the opening balance of retained earnings and other comprehensive income to eliminate the separate measurement of hedge ineffectiveness. See Note C for changes to disclosures due to adopting this standard. ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. First quarter 2018 We adopted this standard in the first quarter 2018 and recorded a $38.1 million adjustment to retained earnings and accumulated other comprehensive income to eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act. Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted 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. Our evaluation process includes creating a database of our existing leases, and we have implemented accounting software to facilitate compliance with this standard. We are developing internal controls designed to ensure the completeness and accuracy of the data. Upon adoption of Topic 842, we expect to recognize right of use assets and lease liabilities not previously recorded on our Consolidated Balance Sheets and provide required footnote disclosures. Due to the ongoing nature of our work, we cannot yet determine the quantitative impact. We expect to elect the transition practical expedient, which allows us to not evaluate land easements that existed prior to January 1, 2019, and the optional transition method to record the adoption impact through a cumulative adjustment to equity. ASU 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” The standard aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. First quarter 2019 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, 2018 | |
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 materially from our estimates. 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 composed 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. 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, 2018 | |
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, updated as described in Note A of this Quarterly 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 is 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 compensation expense and other noncash items. This calculation may not be comparable with similarly titled measures of other companies. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements for the periods indicated: June 30, 2018 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 623 $ — $ 23,498 $ 24,121 $ (24,121 ) $ — Interest-rate contracts — 29,596 — 29,596 — 29,596 Total derivative assets $ 623 $ 29,596 $ 23,498 $ 53,717 $ (24,121 ) $ 29,596 Derivative liabilities Commodity contracts Financial contracts $ (15,178 ) $ — $ (45,145 ) $ (60,323 ) $ 60,323 $ — Physical contracts — — (1,854 ) (1,854 ) — (1,854 ) Interest-rate contracts — (5,290 ) — (5,290 ) — (5,290 ) Total derivative liabilities $ (15,178 ) $ (5,290 ) $ (46,999 ) $ (67,467 ) $ 60,323 $ (7,144 ) (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, 2018 , we held no cash and posted $52.6 million of cash with various counterparties, including $36.2 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $16.4 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheets. December 31, 2017 Level 1 Level 2 Level 3 Total - Gross Netting (a) Total - Net ( Thousands of dollars ) Derivative assets Commodity contracts Financial contracts $ 4,252 $ — $ 20,203 $ 24,455 $ (24,455 ) $ — Interest rate contracts — 49,960 — 49,960 — 49,960 Total derivative assets $ 4,252 $ 49,960 $ 20,203 $ 74,415 $ (24,455 ) $ 49,960 Derivative liabilities Commodity contracts Financial contracts $ (5,708 ) $ — $ (48,260 ) $ (53,968 ) $ 53,936 $ (32 ) Physical contracts — — (4,781 ) (4,781 ) — (4,781 ) Total derivative liabilities $ (5,708 ) $ — $ (53,041 ) $ (58,749 ) $ 53,936 $ (4,813 ) (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, 2017 , we held no cash and posted $49.7 million of cash with various counterparties, including $29.5 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $20.2 million of cash collateral in excess of derivative net liability positions is included in other current assets 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) 2018 2017 2018 2017 ( Thousands of dollars ) Net assets (liabilities) at beginning of period $ 3,098 $ (772 ) $ (32,838 ) $ (23,319 ) Total realized/unrealized gains (losses): Included in earnings (a) (15 ) (656 ) (100 ) 258 Included in other comprehensive income (loss) (26,584 ) 2,178 9,437 23,811 Net assets (liabilities) at end of period $ (23,501 ) $ 750 $ (23,501 ) $ 750 (a) - Included in commodity sales revenues in our Consolidated Statements of Income. |
RISK MANAGEMENT AND HEDGING A29
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives | The following table sets forth the fair values of our derivative instruments presented on a gross basis for the periods indicated: June 30, 2018 December 31, 2017 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 $ 18,492 $ (49,476 ) $ 16,978 $ (42,819 ) Other assets/other deferred credits 408 (5,666 ) — (3,838 ) Physical contracts Other current liabilities — (1,854 ) — (4,781 ) Interest-rate contracts Other current assets — — 1,330 — Other assets/other deferred credits 29,596 (5,290 ) 48,630 — Total derivatives designated as hedging instruments 48,496 (62,286 ) 66,938 (51,438 ) Derivatives not designated as hedging instruments Commodity contracts Financial contracts Other current assets/other current liabilities 5,221 (5,181 ) 7,477 (7,311 ) Total derivatives not designated as hedging instruments 5,221 (5,181 ) 7,477 (7,311 ) Total derivatives $ 53,717 $ (67,467 ) $ 74,415 $ (58,749 ) |
Notional Amounts of Derivative Instruments | The following table sets forth the notional quantities for derivative instruments held for the periods indicated: June 30, 2018 December 31, 2017 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 — (24.0 ) — (24.5 ) - Crude oil and NGLs ( MMBbl ) Futures, forwards and swaps 4.0 (11.6 ) 3.5 (11.1 ) Basis - Natural gas ( Bcf ) Futures and swaps — (24.0 ) — (24.5 ) Interest-rate contracts ( Millions of dollars ) Swaps $ 1,750.0 $ — $ 1,750.0 $ — Derivatives not designated as hedging instruments: Fixed price - NGLs ( MMBbl ) Futures, forwards and swaps 0.4 (0.4 ) 0.8 (0.8 ) |
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, 2018 2017 2018 2017 ( Thousands of dollars ) Commodity contracts $ (46,388 ) $ 8,998 $ (25,463 ) $ 36,326 Interest-rate contracts 20,065 (14,995 ) 43,976 (13,466 ) Total unrealized gain (loss) recognized in other comprehensive income (loss) on derivatives $ (26,323 ) $ (5,997 ) $ 18,513 $ 22,860 |
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 Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Commodity contracts Commodity sales revenues $ (10,189 ) $ (6,796 ) $ (21,800 ) $ (22,115 ) Interest-rate contracts Interest expense (5,602 ) (5,172 ) (9,545 ) (10,501 ) Total gain (loss) reclassified from accumulated other comprehensive loss into net income on derivatives $ (15,791 ) $ (11,968 ) $ (31,345 ) $ (32,616 ) |
DEBT DEBT (Tables)
DEBT DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 ) Commercial paper outstanding, bearing a weighted-average interest rate of 2.66% and 2.23% as of June 30, 2018, and December 31, 2017, respectively. $ 156,000 $ 614,673 Senior unsecured obligations: $425,000 at 3.2% due September 2018 425,000 425,000 $1,000,000 term loan, rate of 2.87% as of December 31, 2017, due January 2019 — 500,000 $500,000 at 8.625% due March 2019 500,000 500,000 $300,000 at 3.8% due March 2020 300,000 300,000 $700,000 at 4.25% due February 2022 547,397 547,397 $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 7.5% due September 2023 500,000 500,000 $500,000 at 4.9 % due March 2025 500,000 500,000 $500,000 at 4.0% due July 2027 500,000 500,000 $100,000 at 6.875% due September 2028 100,000 100,000 $400,000 at 6.0% due June 2035 400,000 400,000 $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 $700,000 at 4.95% due July 2047 700,000 700,000 Guardian Pipeline Weighted average 7.85% due December 2022 32,782 36,607 Total debt 8,236,179 9,198,677 Unamortized portion of terminated swaps 17,609 18,468 Unamortized debt issuance costs and discounts (73,892 ) (78,193 ) Current maturities of long-term debt (932,650 ) (432,650 ) Short-term borrowings (a) (156,000 ) (614,673 ) Long-term debt $ 7,091,246 $ 8,091,629 (a) - 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 our $2.5 Billion Credit Agreement. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of distributions made to general or limited partner | The following table sets forth ONEOK Partners’ distributions paid during the period prior to the closing of the Merger Transaction: Three Months Ended Six Months Ended June 30, June 30, 2017 2017 ( Thousands, except per unit amounts ) Distribution per unit $ 0.79 $ 1.58 General partner distributions $ 6,660 $ 13,320 Incentive distributions 100,538 201,076 Distributions to general partner 107,198 214,396 Limited partner distributions to ONEOK 90,323 180,646 Limited partner distributions to other unitholders 135,479 270,959 Total distributions paid $ 333,000 $ 666,001 |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 $ (81,915 ) $ (105,411 ) $ (1,204 ) $ (188,530 ) Other comprehensive income (loss) before reclassifications 14,255 (583 ) 3,816 17,488 Amounts reclassified from accumulated other comprehensive loss 24,136 6,433 (15 ) 30,554 Net current-period other comprehensive income (loss) attributable to ONEOK 38,391 5,850 3,801 48,042 Impact of adoption of ASU 2018-02 (c) (17,935 ) (20,166 ) — (38,101 ) June 30, 2018 $ (61,459 ) $ (119,727 ) $ 2,597 $ (178,589 ) (a) - All amounts are presented net of tax. (b) - Includes amounts related to supplemental executive retirement plan. (c) - We elected to adopt this guidance in the first quarter 2018, which allows a reclassification from accumulated other comprehensive income/loss to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. After adopting and applying this guidance, our accumulated other comprehensive loss balance does not include stranded taxes resulting from the Tax Cuts and Jobs Act. |
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, 2018 2017 2018 2017 ( Thousands of dollars ) Unrealized gains (losses) on risk-management assets/liabilities Commodity contracts $ (10,189 ) $ (6,796 ) $ (21,800 ) $ (22,115 ) Commodity sales revenues Interest-rate contracts (5,602 ) (5,172 ) (9,545 ) (10,501 ) Interest expense (15,791 ) (11,968 ) (31,345 ) (32,616 ) Income before income taxes 3,631 2,041 7,209 5,406 Income taxes (12,160 ) (9,927 ) (24,136 ) (27,210 ) Net income Noncontrolling interests — (6,521 ) — (18,146 ) Less: Net income attributable to noncontrolling interests $ (12,160 ) $ (3,406 ) $ (24,136 ) $ (9,064 ) Net income attributable to ONEOK Pension and postretirement benefit plan obligations (a) Amortization of net loss $ (4,592 ) $ (3,812 ) $ (9,184 ) $ (7,624 ) Other income (expense) Amortization of unrecognized prior service credit 415 415 830 830 Other income (expense) (4,177 ) (3,397 ) (8,354 ) (6,794 ) Income before income taxes 960 1,359 1,921 2,718 Income taxes $ (3,217 ) $ (2,038 ) $ (6,433 ) $ (4,076 ) Net income attributable to ONEOK Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates $ 66 $ (85 ) $ 19 $ (181 ) Equity in net earnings from investments (15 ) 13 (4 ) 28 Income taxes 51 (72 ) 15 (153 ) Net income Noncontrolling interests — (50 ) — (106 ) Less: Net income attributable to noncontrolling interests $ 51 $ (22 ) $ 15 $ (47 ) Net income attributable to ONEOK Total reclassifications for the period attributable to ONEOK $ (15,326 ) $ (5,466 ) $ (30,554 ) $ (13,187 ) 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 H for additional detail of our net periodic benefit cost. |
EARNINGS PER SHARE EARNINGS P33
EARNINGS PER SHARE EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following tables set forth the computation of basic and diluted EPS for the periods indicated: Three Months Ended June 30, 2018 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 280,773 411,946 $ 0.68 Diluted EPS Effect of dilutive securities — 2,695 Net income attributable to ONEOK available for common stock and common stock equivalents $ 280,773 414,641 $ 0.68 Three Months Ended June 30, 2017 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 71,476 211,785 $ 0.34 Diluted EPS Effect of dilutive securities — 2,227 Net income attributable to ONEOK available for common stock and common stock equivalents $ 71,476 214,012 $ 0.33 Six Months Ended June 30, 2018 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 545,006 410,811 $ 1.33 Diluted EPS Effect of dilutive securities — 2,596 Net income attributable to ONEOK available for common stock and common stock equivalents $ 545,006 413,407 $ 1.32 Six Months Ended June 30, 2017 Income Shares Per Share Amount ( Thousands, except per share amounts ) Basic EPS Net income attributable to ONEOK available for common stock $ 158,837 211,702 $ 0.75 Diluted EPS Effect of dilutive securities — 2,105 Net income attributable to ONEOK available for common stock and common stock equivalents $ 158,837 213,807 $ 0.74 |
EMPLOYEE BENEFIT PLANS EMPLOY34
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [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 the periods indicated: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 1,832 $ 1,722 $ 3,664 $ 3,444 Interest cost 4,408 4,655 8,816 9,310 Expected return on plan assets (5,969 ) (5,336 ) (11,938 ) (10,672 ) Amortization of net loss 4,258 3,392 8,516 6,784 Net periodic benefit cost $ 4,529 $ 4,433 $ 9,058 $ 8,866 Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Components of net periodic benefit cost Service cost $ 211 $ 165 $ 422 $ 330 Interest cost 527 565 1,054 1,130 Expected return on plan assets (672 ) (564 ) (1,344 ) (1,128 ) Amortization of prior service credit (415 ) (415 ) (830 ) (830 ) Amortization of net loss 334 420 668 840 Net periodic benefit cost (income) $ (15 ) $ 171 $ (30 ) $ 342 |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity In Net Earnings From Investments | |
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, 2018 2017 2018 2017 ( Thousands of dollars ) Northern Border Pipeline $ 15,240 $ 15,622 $ 32,377 $ 34,439 Overland Pass Pipeline Company 16,246 14,884 32,633 28,450 Roadrunner Gas Transmission 5,542 4,889 10,500 9,294 Other (458 ) 3,968 1,247 6,744 Equity in net earnings from investments $ 36,570 $ 39,363 $ 76,757 $ 78,927 |
Unconsolidated Affiliates Financial Information | |
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, 2018 2017 2018 2017 ( Thousands of dollars ) Income Statement Operating revenues $ 151,771 $ 157,603 $ 310,679 $ 311,883 Operating expenses $ 68,120 $ 69,465 $ 136,521 $ 136,401 Net income $ 77,913 $ 92,072 $ 162,393 $ 173,203 Distributions paid to us $ 48,424 $ 49,760 $ 98,240 $ 96,680 |
REVENUE REVENUE (Tables)
REVENUE REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Initial Application Period Cumulative Effect Transition [Table Text Block] | The impact on our Consolidated Income Statement and Balance Sheet is as follows (in thousands): Three Months Ended June 30, 2018 Income Statement As Reported Balance Without Adoption of Topic 606 Effect of Change Increase/(Decrease) Services revenue $ 285,267 $ 644,615 $ (359,348 ) Cost of sales and fuel (exclusive of depreciation and operating costs) $ 2,175,818 $ 2,523,916 $ (348,098 ) Depreciation and amortization $ 106,288 $ 106,142 $ 146 Income taxes $ 87,531 $ 90,151 $ (2,620 ) Net income $ 282,179 $ 290,955 $ (8,776 ) Net income attributable to noncontrolling interests $ 1,131 $ 1,128 $ 3 Net income attributable to ONEOK $ 281,048 $ 289,827 $ (8,779 ) Six Months Ended June 30, 2018 Income Statement As Reported Balance Without Adoption of Topic 606 Effect of Change Increase/(Decrease) Services revenue $ 567,340 $ 1,278,930 $ (711,590 ) Cost of sales and fuel (exclusive of depreciation and operating costs) $ 4,543,844 $ 5,249,690 $ (705,846 ) Depreciation and amortization $ 210,525 $ 210,234 $ 291 Income taxes $ 163,302 $ 164,690 $ (1,388 ) Net income $ 548,228 $ 552,875 $ (4,647 ) Net income attributable to noncontrolling interests $ 2,672 $ 2,667 $ 5 Net income attributable to ONEOK $ 545,556 $ 550,208 $ (4,652 ) June 30, 2018 Balance Sheet As Reported Balance Without Adoption of Topic 606 Effect of Change Increase/(Decrease) Accounts receivable, net $ 934,664 $ 1,056,974 $ (122,310 ) Natural gas and natural gas liquids in storage $ 285,776 $ 299,616 $ (13,840 ) Other current assets $ 57,286 $ 56,230 $ 1,056 Property, plant and equipment $ 16,363,716 $ 16,341,524 $ 22,192 Accumulated depreciation and amortization $ 3,059,799 $ 3,058,136 $ 1,663 Deferred income taxes $ 31,503 $ 30,617 $ 886 Other assets $ 170,124 $ 165,130 $ 4,994 Accounts payable $ 1,027,467 $ 1,149,777 $ (122,310 ) Other current liabilities $ 184,127 $ 182,577 $ 1,550 Other deferred credits $ 357,184 $ 342,162 $ 15,022 Retained earnings/paid-in capital $ 7,699,934 $ 7,702,903 $ (2,969 ) Noncontrolling interests in consolidated subsidiaries $ 173,623 $ 173,601 $ 22 |
Contract with Customer, Asset and Liability[Table Text Block] | Contract Assets ( Millions of dollars ) Balance at January 1, 2018 (a) $ 6.4 Amounts invoiced in excess of revenue recognized (0.4 ) Net additions 0.4 Balance at June 30, 2018 (b) $ 6.4 (a) - Balance includes $0.9 million of current assets. (b) - Contract assets of $1.4 million and $5.0 million are included in other current assets and other assets, respectively, in our Consolidated Balance Sheet Contract Liabilities ( Millions of dollars ) Balance at January 1, 2018 (a) $ 33.3 Revenue recognized included in beginning balance (18.3 ) Net additions 27.8 Balance at June 30, 2018 (b) $ 42.8 (a) - Balance includes $19.5 million of current liabilities. (b) - Contract liabilities of $27.8 million and $15.0 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table presents aggregate value allocated to unsatisfied performance obligations as of June 30, 2018, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 26 years: Expected Period of Recognition in Revenue ( Millions of dollars ) Remainder of 2018 $ 168.5 2019 271.6 2020 226.1 2021 219.2 2022 and beyond 1,066.7 Total estimated transaction price allocated to unsatisfied performance obligations $ 1,952.1 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 447,839 $ 2,469,517 $ — $ 2,917,356 Residue natural gas sales 208,618 — 179 208,797 Gathering, processing and exchange services revenue 42,801 96,470 — 139,271 Transportation and storage revenue — 45,012 93,277 138,289 Other 1,671 2,931 6,336 10,938 Total revenues (c) 700,929 2,613,930 99,792 3,414,651 Cost of sales and fuel (exclusive of depreciation and operating costs) (442,959 ) (2,183,512 ) (2,637 ) (2,629,108 ) Operating costs (93,602 ) (99,610 ) (34,959 ) (228,171 ) Equity in net earnings (loss) from investments (794 ) 16,582 20,782 36,570 Noncash compensation expense and other 3,292 4,671 2,388 10,351 Segment adjusted EBITDA $ 166,866 $ 352,061 $ 85,366 $ 604,293 Depreciation and amortization $ (48,149 ) $ (42,878 ) $ (14,426 ) $ (105,453 ) Capital expenditures $ 108,842 $ 216,934 $ 20,477 $ 346,253 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $294.3 million , of which $255.0 million related to sales within the segment, and cost of sales and fuel of $124.0 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $64.5 million and cost of sales and fuel of $5.8 million . (c) - Intersegment revenues for the Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines segments totaled $448.5 million , $3.7 million and $2.5 million , respectively. Three Months Ended June 30, 2018 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 2,917,356 $ (448,556 ) $ 2,468,800 Residue natural gas sales 208,797 (3,028 ) 205,769 Gathering, processing and exchange services revenue 139,271 — 139,271 Transportation and storage revenue 138,289 (2,495 ) 135,794 Other 10,938 (43 ) 10,895 Total revenues (a) $ 3,414,651 $ (454,122 ) $ 2,960,529 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (2,629,108 ) $ 453,290 $ (2,175,818 ) Operating costs $ (228,171 ) $ (1,982 ) $ (230,153 ) Depreciation and amortization $ (105,453 ) $ (835 ) $ (106,288 ) Equity in net earnings from investments $ 36,570 $ — $ 36,570 Capital expenditures $ 346,253 $ 4,632 $ 350,885 (a) - Noncustomer revenue for the three months ended June 30, 2018, totaled $(5.4) million related primarily to losses reclassified from accumulated other comprehensive income from derivatives on commodity contracts. Three Months Ended 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 operating costs) (488,891 ) (2,003,601 ) (6,773 ) (2,499,265 ) Operating costs (72,659 ) (86,977 ) (30,682 ) (190,318 ) Equity in net earnings from investments 3,780 15,062 20,521 39,363 Other 216 (860 ) (255 ) (899 ) 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 $ (190,318 ) $ (24,770 ) $ (215,088 ) 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 Six Months Ended Natural Gas Natural Gas Natural Gas Total ( Thousands of dollars ) NGL and condensate sales $ 860,996 $ 5,022,287 $ — $ 5,883,283 Residue natural gas sales 463,615 — 5,098 468,713 Gathering, processing and exchange services revenue 81,230 179,728 — 260,958 Transportation and storage revenue — 98,490 191,615 290,105 Other 3,079 5,894 12,990 21,963 Total revenues (c) 1,408,920 5,306,399 209,703 6,925,022 Cost of sales and fuel (exclusive of depreciation and operating costs) (935,581 ) (4,464,584 ) (8,091 ) (5,408,256 ) Operating costs (181,961 ) (188,202 ) (68,149 ) (438,312 ) Equity in net earnings from investments 874 33,006 42,877 76,757 Noncash compensation expense and other 5,165 7,521 2,651 15,337 Segment adjusted EBITDA $ 297,417 $ 694,140 $ 178,991 $ 1,170,548 Depreciation and amortization $ (95,897 ) $ (85,305 ) $ (27,695 ) $ (208,897 ) Total assets $ 5,585,519 $ 8,898,255 $ 2,073,043 $ 16,556,817 Capital expenditures $ 220,571 $ 341,855 $ 40,375 $ 602,801 (a) - Our Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $594.3 million , of which $508.4 million related to sales within the segment, and cost of sales and fuel of $246.8 million . (b) - Our Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $132.5 million and cost of sales and fuel of $14.9 million . (c) - Intersegment revenues for the Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines segments totaled $846.3 million , $12.7 million and $4.6 million , respectively. Six Months Ended June 30, 2018 Total Segments Other and Eliminations Total ( Thousands of dollars ) Reconciliations of total segments to consolidated NGL and condensate sales $ 5,883,283 $ (857,466 ) $ 5,025,817 Residue natural gas sales 468,713 (778 ) 467,935 Gathering, processing and exchange services revenue 260,958 (21 ) 260,937 Transportation and storage revenue 290,105 (4,589 ) 285,516 Other 21,963 438 22,401 Total revenues (a) $ 6,925,022 $ (862,416 ) $ 6,062,606 Cost of sales and fuel (exclusive of depreciation and operating costs) $ (5,408,256 ) $ 864,412 $ (4,543,844 ) Operating costs $ (438,312 ) $ (2,045 ) $ (440,357 ) Depreciation and amortization $ (208,897 ) $ (1,628 ) $ (210,525 ) Equity in net earnings from investments $ 76,757 $ — $ 76,757 Total assets $ 16,556,817 $ 356,903 $ 16,913,720 Capital expenditures $ 602,801 $ 12,551 $ 615,352 (a) - Noncustomer revenue for the six months ended June 30, 2018, totaled $(14.4) million related primarily to losses reclassified from accumulated other comprehensive income from derivatives on commodity contracts. Six Months Ended 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 operating costs) (977,275 ) (4,052,294 ) (23,376 ) (5,052,945 ) Operating costs (143,987 ) (165,417 ) (62,245 ) (371,649 ) Equity in net earnings from investments 6,410 28,784 43,733 78,927 Other (11 ) (1,204 ) 839 (376 ) 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 $ (371,649 ) $ (32,644 ) $ (404,293 ) 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 Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ( Thousands of dollars ) Reconciliation of net income to total segment adjusted EBITDA Net income $ 282,179 $ 175,991 $ 548,228 $ 362,176 Add: Interest expense, net of capitalized interest 113,496 118,473 229,221 234,935 Depreciation and amortization 106,288 100,849 210,525 200,268 Income taxes 87,531 43,844 163,302 98,785 Noncash compensation expense 12,140 3,260 21,366 4,907 Other corporate costs and noncash items (a) 2,659 39,813 (2,094 ) 46,313 Total segment adjusted EBITDA $ 604,293 $ 482,230 $ 1,170,548 $ 947,384 (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, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income Three Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 2,675.3 $ — $ 2,675.3 Services — — — 285.8 (0.5 ) 285.3 Total revenues — — — 2,961.1 (0.5 ) 2,960.6 Cost of sales and fuel (exclusive of items shown separately below) — — — 2,175.8 — 2,175.8 Operating expenses 2.0 — — 335.0 (0.5 ) 336.5 Gain on sale of assets — — — (0.1 ) — (0.1 ) Operating income (2.0 ) — — 450.4 — 448.4 Equity in net earnings from investments 400.8 403.2 403.2 27.5 (1,198.1 ) 36.6 Other income (expense), net 6.6 77.5 77.5 (8.4 ) (155.0 ) (1.8 ) Interest expense, net (40.3 ) (77.5 ) (77.5 ) (73.2 ) 155.0 (113.5 ) Income before income taxes 365.1 403.2 403.2 396.3 (1,198.1 ) 369.7 Income taxes (84.0 ) — — (3.5 ) — (87.5 ) Net income 281.1 403.2 403.2 392.8 (1,198.1 ) 282.2 Less: Net income attributable to noncontrolling interests — — — 1.1 — 1.1 Net income attributable to ONEOK 281.1 403.2 403.2 391.7 (1,198.1 ) 281.1 Less: Preferred stock dividends 0.3 — — — — 0.3 Net income available to common shareholders $ 280.8 $ 403.2 $ 403.2 $ 391.7 $ (1,198.1 ) $ 280.8 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 17.7 — 6.2 293.0 (1.0 ) 315.9 Gain on sale of assets — — — (0.6 ) — (0.6 ) Operating income (17.7 ) — (6.2 ) 343.4 — 319.5 Equity in net earnings from investments 275.2 278.5 284.7 23.8 (822.8 ) 39.4 Other income (expense), net (20.2 ) 94.9 94.9 (0.4 ) (189.8 ) (20.6 ) 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 Six Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Revenues Commodity sales $ — $ — $ — $ 5,495.3 $ — $ 5,495.3 Services — — — 568.3 (1.0 ) 567.3 Total revenues — — — 6,063.6 (1.0 ) 6,062.6 Cost of sales and fuel (exclusive of items shown separately below) — — — 4,543.8 — 4,543.8 Operating expenses 1.3 — — 650.6 (1.0 ) 650.9 Gain on sale of assets — — — (0.2 ) — (0.2 ) Operating income (1.3 ) — — 869.4 — 868.1 Equity in net earnings from investments 769.3 774.1 774.1 56.1 (2,296.8 ) 76.8 Other income (expense), net 13.8 154.6 154.6 (18.0 ) (309.2 ) (4.2 ) Interest expense, net (80.1 ) (154.6 ) (154.6 ) (149.1 ) 309.2 (229.2 ) Income before income taxes 701.7 774.1 774.1 758.4 (2,296.8 ) 711.5 Income taxes (156.1 ) — — (7.2 ) — (163.3 ) Net income 545.6 774.1 774.1 751.2 (2,296.8 ) 548.2 Less: Net income attributable to noncontrolling interests — — — 2.6 — 2.6 Net income attributable to ONEOK 545.6 774.1 774.1 748.6 (2,296.8 ) 545.6 Less: Preferred stock dividends 0.6 — — — — 0.6 Net income available to common shareholders $ 545.0 $ 774.1 $ 774.1 $ 748.6 $ (2,296.8 ) $ 545.0 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 24.7 — 6.2 574.6 (1.0 ) 604.5 Gain on sale of assets — — — (0.6 ) — (0.6 ) Operating income (24.7 ) — (6.2 ) 667.5 — 636.6 Equity in net earnings from investments 544.0 547.6 553.8 44.5 (1,611.0 ) 78.9 Other income (expense), net (19.6 ) 186.1 186.1 — (372.2 ) (19.6 ) 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 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income Three Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 281.1 $ 403.2 $ 403.2 $ 392.8 $ (1,198.1 ) $ 282.2 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax 15.5 (46.4 ) (46.4 ) (35.8 ) 92.8 (20.3 ) Realized (gains) losses on derivatives in net income, net of tax 1.0 14.6 10.2 6.9 (20.5 ) 12.2 Change in pension and postretirement benefit plan liability, net of tax 3.2 — — — — 3.2 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), net of tax 19.7 (30.6 ) (35.0 ) (27.9 ) 69.9 (3.9 ) Comprehensive income 300.8 372.6 368.2 364.9 (1,128.2 ) 278.3 Less: Comprehensive income attributable to noncontrolling interests — — — 1.1 — 1.1 Comprehensive income attributable to ONEOK $ 300.8 $ 372.6 $ 368.2 $ 363.8 $ (1,128.2 ) $ 277.2 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), net of tax 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 Six Months Ended June 30, 2018 ( Unaudited ) Parent Issuer & Guarantor Subsidiary Issuer & Guarantor Guarantor Subsidiary Combined Non-Guarantor Subsidiaries Consolidating Entries Total ( Millions of dollars ) Net income $ 545.6 $ 774.1 $ 774.1 $ 751.2 $ (2,296.8 ) $ 548.2 Other comprehensive income (loss), net of tax Unrealized gains (losses) on derivatives, net of tax 33.9 (25.5 ) (25.5 ) (19.6 ) 51.0 14.3 Realized (gains) losses on derivatives in net income, net of tax 1.9 28.9 21.8 15.1 (43.6 ) 24.1 Change in pension and postretirement benefit plan liability, net of tax 6.4 (0.6 ) — — — 5.8 Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax — 4.9 4.9 3.8 (9.8 ) 3.8 Total other comprehensive income (loss), net of tax 42.2 7.7 1.2 (0.7 ) (2.4 ) 48.0 Comprehensive income 587.8 781.8 775.3 750.5 (2,299.2 ) 596.2 Less: Comprehensive income attributable to noncontrolling interests — — — 2.6 — 2.6 Comprehensive income attributable to ONEOK $ 587.8 $ 781.8 $ 775.3 $ 747.9 $ (2,299.2 ) $ 593.6 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), net of tax 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 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets June 30, 2018 ( 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 $ 15.3 $ — $ — $ — $ — $ 15.3 Accounts receivable, net — — — 934.7 — 934.7 Natural gas and natural gas liquids in storage — — — 285.8 — 285.8 Other current assets 11.9 — — 186.0 — 197.9 Total current assets 27.2 — — 1,406.5 — 1,433.7 Property, plant and equipment Property, plant and equipment 137.2 — — 16,226.5 — 16,363.7 Accumulated depreciation and amortization 89.2 — — 2,970.6 — 3,059.8 Net property, plant and equipment 48.0 — — 13,255.9 — 13,303.9 Investments and other assets Investments 5,872.9 3,243.0 8,795.0 795.4 (17,719.3 ) 987.0 Intercompany notes receivable 3,679.2 8,140.9 2,588.9 — (14,409.0 ) — Other assets 233.0 — — 1,006.9 (50.8 ) 1,189.1 Total investments and other assets 9,785.1 11,383.9 11,383.9 1,802.3 (32,179.1 ) 2,176.1 Total assets $ 9,860.3 $ 11,383.9 $ 11,383.9 $ 16,464.7 $ (32,179.1 ) $ 16,913.7 Liabilities and equity Current liabilities Current maturities of long-term debt $ — $ 925.0 $ — $ 7.7 $ — $ 932.7 Short-term borrowings 156.0 — — — — 156.0 Accounts payable 6.2 — — 1,021.3 — 1,027.5 Other current liabilities 71.2 85.0 — 299.7 — 455.9 Total current liabilities 233.4 1,010.0 — 1,328.7 — 2,572.1 Intercompany debt — — 8,140.9 6,268.1 (14,409.0 ) — Long-term debt, excluding current maturities 2,727.0 4,339.2 — 25.0 — 7,091.2 Deferred credits and other liabilities 235.0 — — 227.7 (50.8 ) 411.9 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 6,664.9 6,034.7 3,243.0 8,441.6 (17,719.3 ) 6,664.9 Noncontrolling interests in consolidated subsidiaries — — — 173.6 — 173.6 Total equity 6,664.9 6,034.7 3,243.0 8,615.2 (17,719.3 ) 6,838.5 Total liabilities and equity $ 9,860.3 $ 11,383.9 $ 11,383.9 $ 16,464.7 $ (32,179.1 ) $ 16,913.7 December 31, 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 $ 37.2 $ — $ — $ — $ — $ 37.2 Accounts receivable, net — — — 1,203.0 — 1,203.0 Materials and supplies — — — 90.3 — 90.3 Natural gas and natural gas liquids in storage — — — 342.3 — 342.3 Other current assets 9.8 1.3 — 80.6 — 91.7 Total current assets 47.0 1.3 — 1,716.2 — — 1,764.5 Property, plant and equipment Property, plant and equipment 128.3 — — 15,431.3 — 15,559.6 Accumulated depreciation and amortization 86.4 — — 2,775.1 — 2,861.5 Net property, plant and equipment 41.9 — — 12,656.2 — 12,698.1 Investments and other assets Investments 5,752.1 3,133.7 8,058.4 803.0 (16,744.0 ) 1,003.2 Intercompany notes receivable 2,926.9 8,627.8 3,703.1 — (15,257.8 ) — Other assets 416.9 0.2 — 1,007.4 (44.4 ) 1,380.1 Total investments and other assets 9,095.9 11,761.7 11,761.5 1,810.4 (32,046.2 ) 2,383.3 Total assets $ 9,184.8 $ 11,763.0 $ 11,761.5 $ 16,182.8 $ (32,046.2 ) $ 16,845.9 Liabilities and equity Current liabilities Current maturities of long-term debt $ — $ 425.0 $ — $ 7.7 $ — $ 432.7 Short-term borrowings 614.7 — — — — 614.7 Accounts payable 12.0 — — 1,128.6 — 1,140.6 Other current liabilities 65.9 85.0 — 328.4 — 479.3 Total current liabilities 692.6 510.0 — 1,464.7 — 2,667.3 Intercompany debt — — 8,627.8 6,630.0 (15,257.8 ) — Long-term debt, excluding current maturities 2,726.4 5,336.4 — 28.8 — 8,091.6 Deferred credits and other liabilities 237.9 — — 208.1 (44.4 ) 401.6 Commitments and contingencies Equity Equity excluding noncontrolling interests in consolidated subsidiaries 5,527.9 5,916.6 3,133.7 7,693.7 (16,744.0 ) 5,527.9 Noncontrolling interests in consolidated subsidiaries — — — 157.5 — 157.5 Total equity 5,527.9 5,916.6 3,133.7 7,851.2 (16,744.0 ) 5,685.4 Total liabilities and equity $ 9,184.8 $ 11,763.0 $ 11,761.5 $ 16,182.8 $ (32,046.2 ) $ 16,845.9 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2018 ( 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 $ 669.2 $ 673.9 $ 32.4 $ 959.5 $ (1,332.0 ) $ 1,003.0 Investing activities Capital expenditures (10.1 ) — — (605.3 ) — (615.4 ) Contributions to unconsolidated affiliates — — — (0.3 ) — (0.3 ) Other investing activities — — 6.4 7.9 — 14.3 Cash provided by (used in) investing activities (10.1 ) — 6.4 (597.7 ) — (601.4 ) Financing activities Dividends paid (643.5 ) (666.0 ) (666.0 ) — 1,332.0 (643.5 ) Distributions to noncontrolling interests — — — (3.0 ) — (3.0 ) Intercompany borrowings (advances), net (748.0 ) 492.1 627.2 (371.3 ) — — Borrowing (repayment) of short-term borrowings, net (458.7 ) — — — — (458.7 ) Repayment of long-term debt — (500.0 ) — (3.8 ) — (503.8 ) Issuance of common stock 1,186.7 — — — — 1,186.7 Other, net (17.5 ) — — 16.3 — (1.2 ) Cash used in financing activities (681.0 ) (673.9 ) (38.8 ) — (361.8 ) 1,332.0 (423.5 ) Change in cash and cash equivalents (21.9 ) — — — — (21.9 ) Cash and cash equivalents at beginning of period 37.2 — — — — 37.2 Cash and cash equivalents at end of period $ 15.3 $ — $ — $ — $ — $ 15.3 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 ) 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, net (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 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Entity Information [Line Items] | |||
Common Stock, Shares, Issued | 445,016,234 | 423,166,234 | |
Business Acquisition, Description of Acquired Entity | On June 30, 2017, we completed the acquisition of all of the outstanding common units of ONEOK Partners that we did not already own at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit. 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. As a result of the completion of the Merger Transaction, common units of ONEOK Partners are no longer publicly traded. | ||
General partnership ownership interest | 100.00% | 41.20% | 100.00% |
FAIR VALUE MEASUREMENTS - Part
FAIR VALUE MEASUREMENTS - Part 1 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 52,600 | 49,700 |
Cash posted - offsetting derivative net liability positions under master-netting arrangements | 36,200 | 29,500 |
Cash posted - remaining in excess of derivative net liability positions included in consolidated Balance Sheets | 16,400 | 20,200 |
Long-term debt, Fair Value | 8,500,000 | 9,300,000 |
Long-term debt | 8,000,000 | 8,500,000 |
Fair Value, Measurements, Recurring [Member] | ||
Derivative assets | ||
Financial contracts | 0 | 0 |
Interest-rate contracts | 29,596 | 49,960 |
Total derivative assets | 29,596 | 49,960 |
Derivative assets netting | (24,121) | (24,455) |
Derivative liabilities | ||
Financial contracts | 0 | (32) |
Physical contracts | (1,854) | (4,781) |
Interest-rate contracts | (5,290) | |
Total derivative liabilities | (7,144) | (4,813) |
Derivative liabilities netting | 60,323 | 53,936 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative assets | ||
Financial contracts | 24,121 | 24,455 |
Interest-rate contracts | 29,596 | 49,960 |
Total derivative assets | 53,717 | 74,415 |
Derivative liabilities | ||
Financial contracts | (60,323) | (53,968) |
Physical contracts | (1,854) | (4,781) |
Interest-rate contracts | (5,290) | |
Total derivative liabilities | (67,467) | (58,749) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets | ||
Financial contracts | 623 | 4,252 |
Interest-rate contracts | 0 | 0 |
Total derivative assets | 623 | 4,252 |
Derivative liabilities | ||
Financial contracts | (15,178) | (5,708) |
Physical contracts | 0 | 0 |
Interest-rate contracts | 0 | |
Total derivative liabilities | (15,178) | (5,708) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets | ||
Financial contracts | 0 | 0 |
Interest-rate contracts | 29,596 | 49,960 |
Total derivative assets | 29,596 | 49,960 |
Derivative liabilities | ||
Financial contracts | 0 | 0 |
Physical contracts | 0 | 0 |
Interest-rate contracts | (5,290) | |
Total derivative liabilities | (5,290) | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets | ||
Financial contracts | 23,498 | 20,203 |
Interest-rate contracts | 0 | 0 |
Total derivative assets | 23,498 | 20,203 |
Derivative liabilities | ||
Financial contracts | (45,145) | (48,260) |
Physical contracts | (1,854) | (4,781) |
Interest-rate contracts | 0 | |
Total derivative liabilities | $ (46,999) | $ (53,041) |
FAIR VALUE MEASUREMENTS - Par41
FAIR VALUE MEASUREMENTS - Part 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets And Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||
Net assets (liabilities) at beginning of period | $ 3,098 | $ (772) | $ (32,838) | $ (23,319) |
Total realized/unrealized gains (losses): | ||||
Included in earnings | (15) | (656) | (100) | 258 |
Included in other comprehensive income (loss) | (26,584) | 2,178 | 9,437 | 23,811 |
Net assets (liabilities) at end of period | (23,501) | 750 | (23,501) | 750 |
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, 2018 | Dec. 31, 2017 |
Derivative, Fair Value [Line Items] | ||
Assets | $ 53,717,000 | $ 74,415,000 |
(Liabilities) | (67,467,000) | (58,749,000) |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | |
Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 48,496,000 | 66,938,000 |
(Liabilities) | (62,286,000) | (51,438,000) |
Derivatives not designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 5,221,000 | 7,477,000 |
(Liabilities) | (5,181,000) | (7,311,000) |
Natural Gas Pipelines [Member] | ||
Derivative, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 0 | 0 |
Other Current Assets [Member] | Commodity contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 18,492,000 | 16,978,000 |
Other Current Assets [Member] | Commodity contracts | Financial contracts | Derivatives not designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 5,221,000 | 7,477,000 |
Other Current Assets [Member] | Commodity contracts | Physical contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Other Current Assets [Member] | Interest-rate contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 0 | 1,330,000 |
Other Current Liabilities [Member] | Commodity contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (49,476,000) | (42,819,000) |
Other Current Liabilities [Member] | Commodity contracts | Financial contracts | Derivatives not designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (5,181,000) | (7,311,000) |
Other Current Liabilities [Member] | Commodity contracts | Physical contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (1,854,000) | (4,781,000) |
Other Current Liabilities [Member] | Interest-rate contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | 0 | 0 |
Other Assets [Member] | Commodity contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 408,000 | 0 |
Other Assets [Member] | Interest-rate contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
Assets | 29,596,000 | 48,630,000 |
Other Liabilities [Member] | Commodity contracts | Financial contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | (5,666,000) | (3,838,000) |
Other Liabilities [Member] | Interest-rate contracts | Derivatives designated as hedging instruments | ||
Derivative, Fair Value [Line Items] | ||
(Liabilities) | $ (5,290,000) | $ 0 |
RISK MANAGEMENT AND HEDGING A43
RISK MANAGEMENT AND HEDGING ACTIVITIES USING DERIVATIVES, Part 2 (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)MMcfMMBbls | Dec. 31, 2017USD ($)MMcfMMBbls | |
Derivative [Line Items] | ||
Senior Notes, Noncurrent | $ 1,250,000 | |
Designated as Hedging Instrument [Member] | Futures and swaps | - Natural gas (Bcf) | Fixed price | Purchased/ Payor | ||
Derivative [Line Items] | ||
Notional Amount | MMcf | 0 | 0 |
Designated as Hedging Instrument [Member] | Futures and swaps | - Natural gas (Bcf) | Fixed price | Sold/ Receiver | ||
Derivative [Line Items] | ||
Notional Amount | MMcf | (24,000) | (24,500) |
Designated as Hedging Instrument [Member] | Futures and swaps | - Natural gas (Bcf) | Basis | Purchased/ Payor | ||
Derivative [Line Items] | ||
Notional Amount | MMcf | 0 | 0 |
Designated as Hedging Instrument [Member] | Futures and swaps | - Natural gas (Bcf) | Basis | Sold/ Receiver | ||
Derivative [Line Items] | ||
Notional Amount | MMcf | (24,000) | (24,500) |
Designated as Hedging Instrument [Member] | Futures, forwards and swaps | - Crude oil and NGLs (MMBbl) | Fixed price | Purchased/ Payor | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | 4 | 3.5 |
Designated as Hedging Instrument [Member] | Futures, forwards and swaps | - Crude oil and NGLs (MMBbl) | Fixed price | Sold/ Receiver | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | (11.6) | (11.1) |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Purchased/ Payor | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,750,000 | $ 1,750,000 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Sold/ Receiver | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 0 | $ 0 |
Not Designated as Hedging Instrument [Member] | Futures, forwards and swaps | - Crude oil and NGLs (MMBbl) | Fixed price | Purchased/ Payor | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | 0.4 | 0.8 |
Not Designated as Hedging Instrument [Member] | Futures, forwards and swaps | - Crude oil and NGLs (MMBbl) | Fixed price | Sold/ Receiver | ||
Derivative [Line Items] | ||
Notional Amount | MMBbls | (0.4) | (0.8) |
LIBOR Based Interest Payments [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional Amount Of Cash Flow Hedge Instruments Settled | $ 500,000 | |
Derivative, Notional Amount | $ 500,000 | |
Forecasted Debt Issuances [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount, New Contracts | 1,500,000 | |
Notional Amount Of Cash Flow Hedge Instruments Settled | 1,000,000 | |
Forecasted Debt Issuances [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,800,000 | $ 1,300,000 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (178,589) | $ (178,589) | $ (188,530) | ||
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Net | $ (5,997) | $ 22,860 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive (Loss), Net | (26,323) | 18,513 | |||
Total Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income | (11,968) | (32,616) | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Net | (15,791) | (31,345) | |||
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 | (29,300) | (29,300) | |||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | (25,300) | (25,300) | |||
Commodity Cash Flow Hedge Gain (Loss) To Be Reclassified After Next 12 Months Net | (4,000) | (4,000) | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Net | 8,998 | 36,326 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive (Loss), Net | (46,388) | (25,463) | |||
Commodity Contract [Member] | Commodity sales revenues | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income | (6,796) | (22,115) | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Net | (10,189) | (21,800) | |||
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. | (47,300) | (47,300) | |||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | (13,600) | (13,600) | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Net | (14,995) | (13,466) | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive (Loss), Net | 20,065 | 43,976 | |||
Interest Rate Contract [Member] | Interest expense | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Income | $ (5,172) | $ (10,501) | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Net | $ (5,602) | $ (9,545) |
DEBT DEBT (Details)
DEBT DEBT (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)Rate | Dec. 31, 2017USD ($)Rate | |
Debt Instrument [Line Items] | ||
Total Debt | $ 8,236,179 | $ 9,198,677 |
Unamortized Portion of Terminated Swaps | 17,609 | 18,468 |
Unamortized debt issuance costs and discounts | (73,892) | (78,193) |
Current maturities of long-term debt | (932,650) | (432,650) |
Short-term borrowings | (156,000) | (614,673) |
Long-term debt | 7,091,246 | 8,091,629 |
Senior Notes, Noncurrent | 1,250,000 | |
$2.5 Billion Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500,000 | |
Line of credit facility sublimit | 100,000 | |
Line of Credit Facility Swingline Subfacility | 200,000 | |
Line Of Credit Facility Option To Increase Borrowing Capacity | $ 3,500,000 | |
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 | |
Indebtedness To Adjusted Ebitda Current | 3.5 | |
Debt Instrument, Covenant Description | Among other things, these covenants include maintaining a ratio of indebtedness to adjusted EBITDA (EBITDA, as defined in our $2.5 Billion Credit Agreement, adjusted for all noncash charges and increased for projected EBITDA from certain lender-approved capital expansion projects) of no more than 5.5 to 1 at June 30, 2018 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. Our $2.5 Billion 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 our $2.5 Billion 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. Our $2.5 Billion 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 an additional one year extension, 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, 2018, our ratio of indebtedness to adjusted EBITDA was 3.5 to 1, and we were in compliance with all covenants under our $2.5 Billion Credit Agreement. | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from Debt, Net of Issuance Costs | $ 1,230,000 | |
Guardian Pipeline [Member] | Notes Payables 1 due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 32,782 | 36,607 |
Weighed Average Interest Rate (in hundredths) | Rate | 7.85% | |
Partnership Interest [Member] | Term Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of Senior Notes | $ 500,000 | |
Subsidiary Issuer [Member] | Note Payable from Public Offering Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 425,000 | 425,000 |
Interest Rate (in hundredths) | Rate | 3.20% | |
Subsidiary Issuer [Member] | Term Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 0 | $ 500,000 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | Rate | 2.87% | |
Subsidiary Issuer [Member] | Notes Payables due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 500,000 | $ 500,000 |
Interest Rate (in hundredths) | Rate | 8.625% | |
Subsidiary Issuer [Member] | Note Payable from Public Offering Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 300,000 | 300,000 |
Interest Rate (in hundredths) | Rate | 3.80% | |
Subsidiary Issuer [Member] | Note Payable 2 from Public Offering Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 900,000 | 900,000 |
Interest Rate (in hundredths) | Rate | 3.375% | |
Subsidiary Issuer [Member] | Note Payable from Public Offering Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 425,000 | 425,000 |
Interest Rate (in hundredths) | Rate | 5.00% | |
Subsidiary Issuer [Member] | Note Payable from Public Offering Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 500,000 | 500,000 |
Interest Rate (in hundredths) | Rate | 4.90% | |
Subsidiary Issuer [Member] | Notes Payables due 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 600,000 | 600,000 |
Interest Rate (in hundredths) | Rate | 6.65% | |
Subsidiary Issuer [Member] | Notes Payables due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 600,000 | 600,000 |
Interest Rate (in hundredths) | Rate | 6.85% | |
Subsidiary Issuer [Member] | Note Payable from Public Offering Due 2041 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 650,000 | 650,000 |
Interest Rate (in hundredths) | Rate | 6.125% | |
Subsidiary Issuer [Member] | Note Payable from Public Offering Due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 400,000 | 400,000 |
Interest Rate (in hundredths) | Rate | 6.20% | |
Parent Company | ||
Debt Instrument [Line Items] | ||
Commercial Paper | $ 156,000 | $ 614,673 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate | 2.66% | 2.23% |
Parent Company | Note Payable from Public Offering Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 800,000 | |
Interest Rate (in hundredths) | Rate | 4.55% | |
Parent Company | Note Payable from Public Offering Due 2048 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 450,000 | |
Interest Rate (in hundredths) | Rate | 5.20% | |
Parent Company | Note Payable from Public Offering Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 547,397 | $ 547,397 |
Interest Rate (in hundredths) | Rate | 4.25% | |
Parent Company | Note Payable Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 500,000 | 500,000 |
Interest Rate (in hundredths) | Rate | 7.50% | |
Parent Company | Note Payable Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 500,000 | 500,000 |
Interest Rate (in hundredths) | Rate | 4.00% | |
Parent Company | Note Payables 2 due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 100,000 | 100,000 |
Interest Rate (in hundredths) | Rate | 6.875% | |
Parent Company | Notes Payables due 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 400,000 | 400,000 |
Interest Rate (in hundredths) | Rate | 6.00% | |
Parent Company | Notes Payables due 2047 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 700,000 | $ 700,000 |
Interest Rate (in hundredths) | Rate | 4.95% |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 20.00% | 20.00% | ||||
Stock Issued During Period, Shares, New Issues | 21,900,000 | ||||||
Share Price | $ 54.50 | ||||||
Proceeds from Sale of Common Stock | $ 1,200,000 | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.795 | $ 0.77 | $ 1.565 | $ 1.230 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.795 | $ 0.615 | $ 1.565 | $ 1.230 | |||
Dividends, Preferred Stock, Cash | $ 300 | $ 300 | |||||
Preferred Stock, Dividends, Declared | $ 550 | $ 217 | |||||
Business Acquisition, Description of Acquired Entity | On June 30, 2017, we completed the acquisition of all of the outstanding common units of ONEOK Partners that we did not already own at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit. 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. As a result of the completion of the Merger Transaction, common units of ONEOK Partners are no longer publicly traded. | ||||||
Partnership Capital Distributions [Line Items] | |||||||
General partnership ownership interest | 100.00% | 41.20% | 100.00% | ||||
Issued Under Equity Agreement [Member] | |||||||
Proceeds from Sale of Common Stock | $ 448,300 | ||||||
Common Stock Sold Under Equity Distribution Agreement | 0 | 8,400,000 | |||||
Series E Preferred Stock [Member] | |||||||
Preferred Stock, Dividend Rate, Percentage | 5.50% | ||||||
Subsequent Event [Member] | |||||||
Business Combination, Consideration Transferred | $ 195,000 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.825 | ||||||
Dividends Payable, Date of Record | Aug. 6, 2018 | ||||||
Dividends Payable, Date to be Paid | Aug. 14, 2018 | ||||||
Preferred Stock, Dividends, Declared | $ 300 | ||||||
Business Acquisition, Description of Acquired Entity | On July 31, 2018, we acquired the remaining 20 percent interest in WTLPG for $195 million. | ||||||
Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Distribution per unit | $ 0.79 | $ 1.58 | |||||
Total distributions paid | $ 333,000 | $ 666,001 | |||||
ONEOK [Member] | Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Limited partner distributions to ONEOK | 90,323 | $ 180,646 | |||||
General Partner [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
General partnership ownership interest | 2.00% | ||||||
General Partner [Member] | Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
General partner distributions | 6,660 | $ 13,320 | |||||
Incentive distributions | 100,538 | 201,076 | |||||
Distributions to general partner | 107,198 | 214,396 | |||||
Limited Partner [Member] | Distribution Paid [Member] | |||||||
Partnership Capital Distributions [Line Items] | |||||||
Limited partner distributions to other unitholders | $ 135,479 | $ 270,959 | |||||
ONEOK [Member] | |||||||
Aggregate Amount Of Common Shares Available For Issuance And Sale Under Equity Distribution Agreement | $ 1,000,000 |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Unrealized gains (losses) on risk management assets/liabilities - January 1 | $ (81,915) | |||
Pension and Postretirement Benefit Plan Obligations - January 1 | (105,411) | |||
Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates - January 1 | (1,204) | |||
Accumulated other comprehensive loss - January 1 | (188,530) | |||
Other Comprehensive Income (Loss) Before Reclassifications, Unrealized Gains (Losses) on Risk-Management Assets/Liabilities | 14,255 | |||
Other Comprehensive (Income) Loss Before Reclassification, Pension and Postretirement Benefit Plan Obligations | (583) | |||
Other Comprehensive Income (Loss) Before Reclassification, Unrealized Gains (Losses) on Risk-Management Assets/Liabilities of Unconsolidated Affiliates | 3,816 | |||
Other comprehensive income (loss) before reclassifications | 17,488 | |||
Other Comprehensive Income (Loss) Reclassification Adjustment from AOCI for Unrealized Gains (Losses) on Risk-Management Assets/Liabilities, net of tax | $ 12,160 | $ 9,927 | 24,136 | $ 27,210 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Unconsolidated Affiliates, Net of Tax | (15) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment included in Net Income, Net of Tax | 15,326 | 5,466 | 30,554 | 13,187 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 38,391 | |||
Other Comprehensive (Income) Loss, Pension and Postretirement Benefit Plans, after Reclassification Adjustment, after Tax | 3,235 | 2,040 | 5,850 | 4,081 |
Other comprehensive income (loss) on investment in unconsolidated affiliates | 3,801 | |||
Other Comprehensive Income (Loss), Net of Tax | (3,897) | 5,474 | 48,042 | 49,579 |
Impact of Adoption of ASU 2018-02 On Unrealized Gains (Losses) on Risk Management Assets/Liabilities | (17,935) | |||
Impact of Adoption of ASU 2018-02 ON Pension and Postretirement Benefit Plan Obligations | (20,166) | |||
Impact of Adoption of ASU 2018-02 ON Unrealized Gains (Losses) on Risk Management Assets/Liabilities of Unconsolidated Affiliates | 0 | |||
Impact of Adoption of ASU 2018-02 on AOCI, Total | (38,101) | |||
Unrealized gains (losses) on risk management assets/liabilities - June 30 | (61,459) | (61,459) | ||
Pension and Postretirement Benefit Plan Obligations - June 30 | (119,727) | (119,727) | ||
Unrealized gains (losses) on risk-management assets/liabilities of unconsolidated affiliates - June 30 | 2,597 | 2,597 | ||
Accumulated other comprehensive loss - June 30 | (178,589) | (178,589) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Risk Management Assets/Liabilities | 3,631 | 2,041 | 7,209 | 5,406 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss) Reclassification Adjustment from AOCI for Unrealized Gains (Losses) on Risk-Management Assets/Liabilities, net of tax | 12,160 | 3,406 | 24,136 | 9,064 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Sales [Member] | Commodity Contract [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | (10,189) | (6,796) | (21,800) | (22,115) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Expense [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | (5,602) | (5,172) | (9,545) | (10,501) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Total before tax [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | (15,791) | (11,968) | (31,345) | (32,616) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Tax Expense [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Risk Management Assets/Liabilities | 3,631 | 2,041 | 7,209 | 5,406 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Net of tax [Member] | ||||
Other Comprehensive Income (Loss) Reclassification Adjustment from AOCI for Unrealized Gains (Losses) on Risk-Management Assets/Liabilities, net of tax | 12,160 | 9,927 | 24,136 | 27,210 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Net income attributable to noncontrolling interest [Member] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | (6,521) | 0 | (18,146) |
Accumulated Pension and Postretirement Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Other Comprehensive (Income) Loss, Pension and Postretirement Benefit Plans, Reclassification Adjustment from AOCI, after Tax | (3,217) | (2,038) | (6,433) | (4,076) |
Pension and Postretirement Benefit Plans, Amortization of Gain (Loss) | (4,592) | (3,812) | (9,184) | (7,624) |
Pension and Postretirement Benefit Plans, Amortization of Prior Service Cost (Credit) | 415 | 415 | 830 | 830 |
Other Comprehensive Income (Loss), Pension and Postretirement Benefit Plans, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (4,177) | (3,397) | (8,354) | (6,794) |
Other Comprehensive Income (Loss), Pensions and Postretirement Benefit Plans, Gain (Loss), Reclassification Adjustment from AOCI, Tax | 960 | 1,359 | 1,921 | 2,718 |
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 Unconsolidated Affiliates, Net of Tax | 51 | (22) | 15 | (47) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Unconsolidated Affiliates, Before Tax | 66 | (85) | 19 | (181) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Unconsolidated Affiliates, Tax | (15) | 13 | (4) | 28 |
Accumulated Other Comprehensive Income from Investments in Unconsolidated Affiliates Attributable to Parent [Member] | Net of tax [Member] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Unconsolidated Affiliates, Net of Tax | 51 | (72) | 15 | (153) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Other Comprehensive Income Attributable to Unconsolidated Affiliates, Net of Tax, Portion Attributable to Noncontrolling Interests | $ 0 | $ (50) | 0 | (106) |
AOCI Attributable to Parent [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax | $ 48,042 | $ 18,553 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic EPS | ||||
Net income attributable to ONEOK available for common stock | $ 280,773 | $ 71,476 | $ 545,006 | $ 158,837 |
Shares | 411,946 | 211,785 | 410,811 | 211,702 |
Basic (in dollars per share) | $ 0.68 | $ 0.34 | $ 1.33 | $ 0.75 |
Diluted EPS | ||||
Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities, number of shares, shares | 2,695 | 2,227 | 2,596 | 2,105 |
Net income attributable to ONEOK available for common stock and common stock equivalents | $ 280,773 | $ 71,476 | $ 545,006 | $ 158,837 |
Shares | 414,641 | 214,012 | 413,407 | 213,807 |
Earnings Per Share, Diluted | $ 0.68 | $ 0.33 | $ 1.32 | $ 0.74 |
EMPLOYEE BENEFIT PLANS EMPLOY49
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 1,832 | $ 1,722 | $ 3,664 | $ 3,444 |
Interest cost | 4,408 | 4,655 | 8,816 | 9,310 |
Expected return on plan assets | (5,969) | (5,336) | (11,938) | (10,672) |
Amortization of net loss | 4,258 | 3,392 | 8,516 | 6,784 |
Net periodic benefit cost (income) | 4,529 | 4,433 | 9,058 | 8,866 |
Other Postretirement Benefits Plan [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 211 | 165 | 422 | 330 |
Interest cost | 527 | 565 | 1,054 | 1,130 |
Expected return on plan assets | (672) | (564) | (1,344) | (1,128) |
Amortization of prior service credit | (415) | (415) | (830) | (830) |
Amortization of net loss | 334 | 420 | 668 | 840 |
Net periodic benefit cost (income) | $ (15) | $ 171 | $ (30) | $ 342 |
UNCONSOLIDATED AFFILIATES (Deta
UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings (loss) from investments | $ 36,570 | $ 39,363 | $ 76,757 | $ 78,927 | |
Accounts Payable, Related Parties, Current | 12,300 | 12,300 | $ 13,600 | ||
Income Statement [Abstract] | |||||
Operating revenues | 151,771 | 157,603 | 310,679 | 311,883 | |
Operating expenses | 68,120 | 69,465 | 136,521 | 136,401 | |
Net income | 77,913 | 92,072 | 162,393 | 173,203 | |
Distributions paid to us | 48,424 | 49,760 | 98,240 | 96,680 | |
Unconsolidated Affiliates [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Parties | 38,200 | 39,400 | 75,700 | 76,100 | |
Northern Border Pipeline | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings (loss) from investments | 15,240 | 15,622 | 32,377 | 34,439 | |
Overland Pass Pipeline Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings (loss) from investments | 16,246 | 14,884 | 32,633 | 28,450 | |
Roadrunner Gas Transmission | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings (loss) from investments | 5,542 | 4,889 | 10,500 | 9,294 | |
Income Statement [Abstract] | |||||
Payments to Acquire Equity Method Investments | 0 | 4,000 | |||
Other Unconsolidated Affiliates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in net earnings (loss) from investments | $ (458) | $ 3,968 | $ 1,247 | $ 6,744 |
REVENUE REVENUE (Details)
REVENUE REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings increase | $ 0 | $ 0 | $ 0 | |||
Services revenue | 285,267,000 | $ 564,763,000 | 567,340,000 | $ 1,097,657,000 | ||
Cost of sales and fuel (exclusive of depreciation and operating costs) | 2,175,818,000 | 2,091,022,000 | 4,543,844,000 | 4,234,865,000 | ||
Depreciation and amortization | 106,288,000 | 100,849,000 | 210,525,000 | 200,268,000 | ||
Income taxes | 87,531,000 | 43,844,000 | 163,302,000 | 98,785,000 | ||
Net income | 282,179,000 | 175,991,000 | 548,228,000 | 362,176,000 | ||
Net Income Attributable to Noncontrolling Interests | 1,131,000 | 104,298,000 | 2,672,000 | 203,122,000 | ||
Net Income Attributable to ONEOK | 281,048,000 | $ 71,693,000 | 545,556,000 | $ 159,054,000 | ||
Accounts receivable, net | 934,664,000 | 934,664,000 | 1,202,951,000 | |||
Natural gas and natural gas liquids in storage | 285,776,000 | 285,776,000 | 342,293,000 | |||
Other current assets | 57,286,000 | 57,286,000 | 53,008,000 | |||
Property, plant and equipment | 16,363,716,000 | 16,363,716,000 | 15,559,667,000 | |||
Accumulated depreciation and amortization | 3,059,799,000 | 3,059,799,000 | 2,861,541,000 | |||
Deferred income taxes | 31,503,000 | 31,503,000 | 205,907,000 | |||
Other assets | 170,124,000 | 170,124,000 | 180,830,000 | |||
Accounts payable | 1,027,467,000 | 1,027,467,000 | 1,140,571,000 | |||
Other current liabilities | 184,127,000 | 184,127,000 | 179,971,000 | |||
Other deferred credits | 357,184,000 | 357,184,000 | 348,924,000 | |||
Retained earnings/paid-in capital | 7,699,934,000 | 7,699,934,000 | 6,588,878,000 | |||
Noncontrolling interests in consolidated subsidiaries | 173,623,000 | 173,623,000 | 157,485,000 | |||
Customer receivables | 926,100,000 | 926,100,000 | $ 1,200,000,000 | |||
Contract asset balance | 6,400,000 | 6,400,000 | $ 6,400,000 | |||
Cash received in excess of revenue recognized | (400,000) | (400,000) | ||||
Contract Asset Net Additions | 400,000 | 400,000 | ||||
Contract with Customer, Asset, Net, Current | 1,400,000 | 1,400,000 | 900,000 | |||
Contract with Customer, Asset, Net, Noncurrent | 5,000,000 | 5,000,000 | ||||
Contract with Customer, Liability | 42,800,000 | 42,800,000 | 33,300,000 | |||
Revenue recognized included in beginning balance | (18,300,000) | |||||
Contract Liability, Net Additions | 27,800,000 | 27,800,000 | ||||
Contract with Customer, Liability, Current | 27,800,000 | 27,800,000 | 19,500,000 | |||
Contract with Customer, Liability, Noncurrent | 15,000,000 | 15,000,000 | ||||
Performance obligations expected to be recognized in revenue | 1,952,100,000 | 1,952,100,000 | ||||
2018 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Performance obligations expected to be recognized in revenue | 168,458,491 | 168,458,491 | ||||
2019 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Performance obligations expected to be recognized in revenue | 271,597,497 | 271,597,497 | ||||
2020 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Performance obligations expected to be recognized in revenue | 226,139,404 | 226,139,404 | ||||
2021 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Performance obligations expected to be recognized in revenue | 219,194,609 | 219,194,609 | ||||
Thereafter [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Performance obligations expected to be recognized in revenue | 1,066,738,432 | 1,066,738,432 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Services revenue | 644,615,000 | 1,278,930,000 | ||||
Cost of sales and fuel (exclusive of depreciation and operating costs) | 2,523,916,000 | 5,249,690,000 | ||||
Depreciation and amortization | 106,142,000 | 210,234,000 | ||||
Income taxes | 90,151,000 | 164,690,000 | ||||
Net income | 290,955,000 | 552,875,000 | ||||
Net Income Attributable to Noncontrolling Interests | 1,128,000 | 2,667,000 | ||||
Net Income Attributable to ONEOK | 289,827,000 | 550,208,000 | ||||
Accounts receivable, net | 1,056,974,000 | 1,056,974,000 | ||||
Natural gas and natural gas liquids in storage | 299,616,000 | 299,616,000 | ||||
Other current assets | 56,230,000 | 56,230,000 | ||||
Property, plant and equipment | 16,341,524,000 | 16,341,524,000 | ||||
Accumulated depreciation and amortization | 3,058,136,000 | 3,058,136,000 | ||||
Deferred income taxes | 30,617,000 | 30,617,000 | ||||
Other assets | 165,130,000 | 165,130,000 | ||||
Accounts payable | 1,149,777,000 | 1,149,777,000 | ||||
Other current liabilities | 182,577,000 | 182,577,000 | ||||
Other deferred credits | 342,162,000 | 342,162,000 | ||||
Retained earnings/paid-in capital | 7,702,903,000 | 7,702,903,000 | ||||
Noncontrolling interests in consolidated subsidiaries | 173,601,000 | 173,601,000 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Services revenue | (359,348,000) | (711,590,000) | ||||
Cost of sales and fuel (exclusive of depreciation and operating costs) | (348,098,000) | (705,846,000) | ||||
Depreciation and amortization | 146,000 | 291,000 | ||||
Income taxes | (2,620,000) | (1,388,000) | ||||
Net income | (8,776,000) | (4,647,000) | ||||
Net Income Attributable to Noncontrolling Interests | 3,000 | 5,000 | ||||
Net Income Attributable to ONEOK | (8,779,000) | (4,652,000) | ||||
Accounts receivable, net | (122,310,000) | (122,310,000) | ||||
Natural gas and natural gas liquids in storage | (13,840,000) | (13,840,000) | ||||
Other current assets | 1,056,000 | 1,056,000 | ||||
Property, plant and equipment | 22,192,000 | 22,192,000 | ||||
Accumulated depreciation and amortization | 1,663,000 | 1,663,000 | ||||
Deferred income taxes | 886,000 | 886,000 | ||||
Other assets | 4,994,000 | 4,994,000 | ||||
Accounts payable | (122,310,000) | (122,310,000) | ||||
Other current liabilities | 1,550,000 | 1,550,000 | ||||
Other deferred credits | 15,022,000 | 15,022,000 | ||||
Retained earnings/paid-in capital | (2,969,000) | (2,969,000) | ||||
Noncontrolling interests in consolidated subsidiaries | $ 22,000 | $ 22,000 | ||||
Retained Earnings | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings increase | $ 1,700,000 |
SEGMENTS (Details)
SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment disclosure [Abstract] | |||||
Segment Reporting, Disclosure of Major Customers | For the three months ended June 30, 2018, we had no single customer from which we received 10 percent or more of our consolidated revenues. | 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 six months ended June 30, 2018, 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. | |
Revenues | $ 2,960,529 | $ 2,725,772 | $ 6,062,606 | $ 5,475,383 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,175,818) | (2,091,022) | (4,543,844) | (4,234,865) | |
Operating costs | (230,153) | (215,088) | (440,357) | (404,293) | |
Equity in net earnings (loss) from investments | 36,570 | 39,363 | 76,757 | 78,927 | |
Depreciation and amortization | (106,288) | (100,849) | (210,525) | (200,268) | |
Total assets | 16,913,720 | 16,672,923 | 16,913,720 | 16,672,923 | $ 16,845,937 |
Capital expenditures | 350,885 | 82,495 | 615,352 | 195,232 | |
Net income | 282,179 | 175,991 | 548,228 | 362,176 | |
Interest expense, net of capitalized interest | 113,496 | 118,473 | 229,221 | 234,935 | |
Income taxes | 87,531 | 43,844 | 163,302 | 98,785 | |
Noncash compensation expense | 12,140 | 3,260 | 21,366 | 4,907 | |
Other corporate costs and noncash items | 2,659 | 39,813 | (2,094) | 46,313 | |
Noncash Contribution Expense | 0 | 12,600 | |||
Business Combination, Acquisition Related Costs | 22,800 | 29,500 | |||
Series E Preferred Stock [Member] | |||||
Segment disclosure [Abstract] | |||||
Noncash Contribution Expense | 20,000 | ||||
Natural Gas Gathering And Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 700,929 | 685,815 | 1,408,920 | 1,347,091 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (442,959) | (488,891) | (935,581) | (977,275) | |
Operating costs | (93,602) | (72,659) | (181,961) | (143,987) | |
Equity in net earnings (loss) from investments | (794) | 3,780 | 874 | 6,410 | |
Noncash compensation expense and other | 3,292 | 216 | 5,165 | (11) | |
Segment adjusted EBITDA | 166,866 | 128,261 | 297,417 | 232,228 | |
Depreciation and amortization | (48,149) | (46,033) | (95,897) | (91,001) | |
Total assets | 5,585,519 | 5,310,946 | 5,585,519 | 5,310,946 | |
Capital expenditures | 108,842 | 37,020 | 220,571 | 100,171 | |
Natural Gas Gathering And Processing [Member] | Natural Gas Gathering and Processing Intersegment [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 448,500 | 846,300 | |||
Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,613,930 | 2,349,685 | 5,306,399 | 4,741,669 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,183,512) | (2,003,601) | (4,464,584) | (4,052,294) | |
Operating costs | (99,610) | (86,977) | (188,202) | (165,417) | |
Equity in net earnings (loss) from investments | 16,582 | 15,062 | 33,006 | 28,784 | |
Noncash compensation expense and other | 4,671 | (860) | 7,521 | (1,204) | |
Segment adjusted EBITDA | 352,061 | 273,309 | 694,140 | 551,538 | |
Depreciation and amortization | (42,878) | (41,427) | (85,305) | (82,542) | |
Total assets | 8,898,255 | 8,168,567 | 8,898,255 | 8,168,567 | |
Capital expenditures | 216,934 | 12,336 | 341,855 | 32,789 | |
Natural Gas Liquids [Member] | Natural Gas Liquids Intersegment [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 3,700 | 12,700 | |||
Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 294,300 | 289,400 | 594,300 | 585,700 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (124,000) | (118,900) | (246,800) | (235,400) | |
Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 99,792 | 97,849 | 209,703 | 204,667 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,637) | (6,773) | (8,091) | (23,376) | |
Operating costs | (34,959) | (30,682) | (68,149) | (62,245) | |
Equity in net earnings (loss) from investments | 20,782 | 20,521 | 42,877 | 43,733 | |
Noncash compensation expense and other | 2,388 | (255) | 2,651 | 839 | |
Segment adjusted EBITDA | 85,366 | 80,660 | 178,991 | 163,618 | |
Depreciation and amortization | (14,426) | (12,598) | (27,695) | (25,141) | |
Total assets | 2,073,043 | 1,951,423 | 2,073,043 | 1,951,423 | |
Capital expenditures | 20,477 | 26,846 | 40,375 | 51,860 | |
Natural Gas Pipelines [Member] | Natural Gas Pipelines Intersegment [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,500 | 4,600 | |||
Natural Gas Pipelines [Member] | Natural Gas Pipelines Regulated [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 64,500 | 62,800 | 132,500 | 131,700 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (5,800) | (8,300) | (14,900) | (22,400) | |
Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 3,414,651 | 3,133,349 | 6,925,022 | 6,293,427 | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | (2,629,108) | (2,499,265) | (5,408,256) | (5,052,945) | |
Operating costs | (228,171) | (190,318) | (438,312) | (371,649) | |
Equity in net earnings (loss) from investments | 36,570 | 39,363 | 76,757 | 78,927 | |
Noncash compensation expense and other | 10,351 | (899) | 15,337 | (376) | |
Segment adjusted EBITDA | 604,293 | 482,230 | 1,170,548 | 947,384 | |
Depreciation and amortization | (105,453) | (100,058) | (208,897) | (198,684) | |
Total assets | 16,556,817 | 15,430,936 | 16,556,817 | 15,430,936 | |
Capital expenditures | 346,253 | 76,202 | 602,801 | 184,820 | |
Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | (454,122) | (407,577) | (862,416) | (818,044) | |
Cost of sales and fuel (exclusive of depreciation and operating costs) | 453,290 | 408,243 | 864,412 | 818,080 | |
Operating costs | (1,982) | (24,770) | (2,045) | (32,644) | |
Equity in net earnings (loss) from investments | 0 | 0 | 0 | 0 | |
Depreciation and amortization | (835) | (791) | (1,628) | (1,584) | |
Total assets | 356,903 | 1,241,987 | 356,903 | 1,241,987 | |
Capital expenditures | 4,632 | 6,293 | 12,551 | 10,412 | |
Unaffiliated entity [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,725,772 | 5,475,383 | |||
Unaffiliated entity [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 433,088 | 833,237 | |||
Unaffiliated entity [Member] | Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,196,399 | 4,440,399 | |||
Unaffiliated entity [Member] | Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 95,755 | 200,679 | |||
Unaffiliated entity [Member] | Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,725,242 | 5,474,315 | |||
Unaffiliated entity [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | 530 | 1,068 | |||
Operating Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 0 | 0 | |||
Operating Segments [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 252,727 | 513,854 | |||
Operating Segments [Member] | Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 153,286 | 301,270 | |||
Operating Segments [Member] | Natural Gas Liquids [Member] | Natural Gas Liquids Regulated [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 255,000 | 249,400 | 508,400 | 502,300 | |
Operating Segments [Member] | Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,094 | 3,988 | |||
Operating Segments [Member] | Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 408,107 | 819,112 | |||
Operating Segments [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | $ (408,107) | $ (819,112) | |||
Noncustomer [Domain] | |||||
Segment disclosure [Abstract] | |||||
Revenues | (5,400) | (14,400) | |||
NGL and Condensate Sales [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,468,800 | 5,025,817 | |||
NGL and Condensate Sales [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 447,839 | 860,996 | |||
NGL and Condensate Sales [Member] | Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,469,517 | 5,022,287 | |||
NGL and Condensate Sales [Member] | Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
NGL and Condensate Sales [Member] | Total Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,917,356 | 5,883,283 | |||
NGL and Condensate Sales [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | (448,556) | (857,466) | |||
Residue Natural Gas Sales [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 205,769 | 467,935 | |||
Residue Natural Gas Sales [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 208,618 | 463,615 | |||
Residue Natural Gas Sales [Member] | Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Residue Natural Gas Sales [Member] | Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 179 | 5,098 | |||
Residue Natural Gas Sales [Member] | Total Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 208,797 | 468,713 | |||
Residue Natural Gas Sales [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | (3,028) | (778) | |||
Gathering and Exchange Services Revenue [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 139,271 | 260,937 | |||
Gathering and Exchange Services Revenue [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 42,801 | 81,230 | |||
Gathering and Exchange Services Revenue [Member] | Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 96,470 | 179,728 | |||
Gathering and Exchange Services Revenue [Member] | Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Gathering and Exchange Services Revenue [Member] | Total Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 139,271 | 260,958 | |||
Gathering and Exchange Services Revenue [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | 0 | (21) | |||
Transportation and Storage Revenue [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 135,794 | 285,516 | |||
Transportation and Storage Revenue [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Transportation and Storage Revenue [Member] | Natural Gas Liquids [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 45,012 | 98,490 | |||
Transportation and Storage Revenue [Member] | Natural Gas Pipelines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 93,277 | 191,615 | |||
Transportation and Storage Revenue [Member] | Total Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 138,289 | 290,105 | |||
Transportation and Storage Revenue [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | (2,495) | (4,589) | |||
Other [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 10,895 | 22,401 | |||
Other [Member] | Natural Gas Gathering And Processing [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 1,671 | 3,079 | |||
Other [Member] | Natural Gas Liquids [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 2,931 | 5,894 | |||
Other [Member] | Natural Gas Pipelines [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 6,336 | 12,990 | |||
Other [Member] | Total Segments [Member] | |||||
Segment disclosure [Abstract] | |||||
Revenues | 10,938 | 21,963 | |||
Other [Member] | Other and Eliminations | |||||
Segment disclosure [Abstract] | |||||
Revenues | $ (43) | $ 438 |
SUPPLEMENTAL CONDENSED CONSOL53
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | $ 2,675,262 | $ 2,161,009 | $ 5,495,266 | $ 4,377,726 |
Services | 285,267 | 564,763 | 567,340 | 1,097,657 |
Total revenues | 2,960,529 | 2,725,772 | 6,062,606 | 5,475,383 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,175,818 | 2,091,022 | 4,543,844 | 4,234,865 |
Gain on sale of assets | (96) | (637) | (185) | (630) |
Operating income | 448,366 | 319,450 | 868,065 | 636,587 |
Equity in net earnings (loss) from investments | 36,570 | 39,363 | 76,757 | 78,927 |
Interest expense, net | (113,496) | (118,473) | (229,221) | (234,935) |
Income before income taxes | 369,710 | 219,835 | 711,530 | 460,961 |
Income taxes | (87,531) | (43,844) | (163,302) | (98,785) |
Net income | 282,179 | 175,991 | 548,228 | 362,176 |
Less: Net income attributable to noncontrolling interests | 1,131 | 104,298 | 2,672 | 203,122 |
Net income attributable to ONEOK | 281,048 | 71,693 | 545,556 | 159,054 |
Less: Preferred stock dividends | 275 | 217 | 550 | 217 |
Net income available to common shareholders | $ 280,773 | 71,476 | $ 545,006 | 158,837 |
Northern Border Pipeline | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
Equity in net earnings (loss) from investments | $ 15,240 | 15,622 | $ 32,377 | 34,439 |
Reportable Legal Entities | Parent Issuer & Guarantor | ||||
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 | 2,000 | 17,700 | 1,300 | 24,700 |
Gain on sale of assets | 0 | 0 | 0 | 0 |
Operating income | (2,000) | (17,700) | (1,300) | (24,700) |
Equity in net earnings (loss) from investments | 400,800 | 275,200 | 769,300 | 544,000 |
Other income (expense), net | 6,600 | (20,200) | 13,800 | (19,600) |
Interest expense, net | (40,300) | (24,500) | (80,100) | (50,300) |
Income before income taxes | 365,100 | 212,800 | 701,700 | 449,400 |
Income taxes | (84,000) | (37,700) | (156,100) | (89,000) |
Net income | 281,100 | 175,100 | 545,600 | 360,400 |
Less: Net income attributable to noncontrolling interests | 0 | 103,400 | 0 | 201,300 |
Net income attributable to ONEOK | 281,100 | 71,700 | 545,600 | 159,100 |
Less: Preferred stock dividends | 300 | 200 | 600 | 200 |
Net income available to common shareholders | 280,800 | 71,500 | 545,000 | 158,900 |
Reportable Legal Entities | Subsidiary Issuer & Guarantor | ||||
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 on sale of assets | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity in net earnings (loss) from investments | 403,200 | 278,500 | 774,100 | 547,600 |
Other income (expense), net | 77,500 | 94,900 | 154,600 | 186,100 |
Interest expense, net | (77,500) | (94,900) | (154,600) | (186,100) |
Income before income taxes | 403,200 | 278,500 | 774,100 | 547,600 |
Income taxes | 0 | 0 | 0 | 0 |
Net income | 403,200 | 278,500 | 774,100 | 547,600 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to ONEOK | 403,200 | 278,500 | 774,100 | 547,600 |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 |
Net income available to common shareholders | 403,200 | 278,500 | 774,100 | 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 | 0 | 6,200 | 0 | 6,200 |
Gain on sale of assets | 0 | 0 | 0 | 0 |
Operating income | 0 | (6,200) | 0 | (6,200) |
Equity in net earnings (loss) from investments | 403,200 | 284,700 | 774,100 | 553,800 |
Other income (expense), net | 77,500 | 94,900 | 154,600 | 186,100 |
Interest expense, net | (77,500) | (94,900) | (154,600) | (186,100) |
Income before income taxes | 403,200 | 278,500 | 774,100 | 547,600 |
Income taxes | 0 | 0 | 0 | 0 |
Net income | 403,200 | 278,500 | 774,100 | 547,600 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to ONEOK | 403,200 | 278,500 | 774,100 | 547,600 |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 |
Net income available to common shareholders | 403,200 | 278,500 | 774,100 | 547,600 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 2,675,300 | 2,161,000 | 5,495,300 | 4,377,700 |
Services | 285,800 | 565,800 | 568,300 | 1,098,700 |
Total revenues | 2,961,100 | 2,726,800 | 6,063,600 | 5,476,400 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,175,800 | 2,091,000 | 4,543,800 | 4,234,900 |
Operating expenses | 335,000 | 293,000 | 650,600 | 574,600 |
Gain on sale of assets | (100) | (600) | (200) | (600) |
Operating income | 450,400 | 343,400 | 869,400 | 667,500 |
Equity in net earnings (loss) from investments | 27,500 | 23,800 | 56,100 | 44,500 |
Other income (expense), net | (8,400) | (400) | (18,000) | 0 |
Interest expense, net | (73,200) | (94,000) | (149,100) | (184,600) |
Income before income taxes | 396,300 | 272,800 | 758,400 | 527,400 |
Income taxes | (3,500) | (6,100) | (7,200) | (9,800) |
Net income | 392,800 | 266,700 | 751,200 | 517,600 |
Less: Net income attributable to noncontrolling interests | 1,100 | 900 | 2,600 | 1,800 |
Net income attributable to ONEOK | 391,700 | 265,800 | 748,600 | 515,800 |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 |
Net income available to common shareholders | 391,700 | 265,800 | 748,600 | 515,800 |
Reportable Legal Entities | Total | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 2,675,300 | 2,161,000 | 5,495,300 | 4,377,700 |
Services | 285,300 | 564,800 | 567,300 | 1,097,700 |
Total revenues | 2,960,600 | 2,725,800 | 6,062,600 | 5,475,400 |
Cost of sales and fuel (exclusive of items shown separately below) | 2,175,800 | 2,091,000 | 4,543,800 | 4,234,900 |
Operating expenses | 336,500 | 315,900 | 650,900 | 604,500 |
Gain on sale of assets | (100) | (600) | (200) | (600) |
Operating income | 448,400 | 319,500 | 868,100 | 636,600 |
Equity in net earnings (loss) from investments | 36,600 | 39,400 | 76,800 | 78,900 |
Other income (expense), net | (1,800) | (20,600) | (4,200) | (19,600) |
Interest expense, net | (113,500) | (118,500) | (229,200) | (234,900) |
Income before income taxes | 369,700 | 219,800 | 711,500 | 461,000 |
Income taxes | (87,500) | (43,800) | (163,300) | (98,800) |
Net income | 282,200 | 176,000 | 548,200 | 362,200 |
Less: Net income attributable to noncontrolling interests | 1,100 | 104,300 | 2,600 | 203,100 |
Net income attributable to ONEOK | 281,100 | 71,700 | 545,600 | 159,100 |
Less: Preferred stock dividends | 300 | 200 | 600 | 200 |
Net income available to common shareholders | 280,800 | 71,500 | 545,000 | 158,900 |
Consolidating Entries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Commodity sales | 0 | 0 | 0 | 0 |
Services | (500) | (1,000) | (1,000) | (1,000) |
Total revenues | (500) | (1,000) | (1,000) | (1,000) |
Cost of sales and fuel (exclusive of items shown separately below) | 0 | 0 | 0 | 0 |
Operating expenses | (500) | (1,000) | (1,000) | (1,000) |
Gain on sale of assets | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity in net earnings (loss) from investments | (1,198,100) | (822,800) | (2,296,800) | (1,611,000) |
Other income (expense), net | (155,000) | (189,800) | (309,200) | (372,200) |
Interest expense, net | 155,000 | 189,800 | 309,200 | 372,200 |
Income before income taxes | (1,198,100) | (822,800) | (2,296,800) | (1,611,000) |
Income taxes | 0 | 0 | 0 | 0 |
Net income | (1,198,100) | (822,800) | (2,296,800) | (1,611,000) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to ONEOK | (1,198,100) | (822,800) | (2,296,800) | (1,611,000) |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 |
Net income available to common shareholders | $ (1,198,100) | $ (822,800) | $ (2,296,800) | $ (1,611,000) |
SUPPLEMENTAL CONDENSED CONSOL54
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 282,179 | $ 175,991 | $ 548,228 | $ 362,176 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | (20,269) | (5,123) | 14,255 | 19,333 |
Realized (gains) losses on derivatives in net income, net of tax | (12,160) | (9,927) | (24,136) | (27,210) |
Change in pension and postretirement benefit plan liability, net of tax | (3,235) | (2,040) | (5,850) | (4,081) |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | 977 | (1,370) | 3,801 | (1,045) |
Total other comprehensive income (loss), net of tax | (3,897) | 5,474 | 48,042 | 49,579 |
Comprehensive income | 278,282 | 181,465 | 596,270 | 411,755 |
Less: Comprehensive income attributable to noncontrolling interests | 1,131 | 106,507 | 2,672 | 234,148 |
Comprehensive income attributable to ONEOK | 277,151 | 74,958 | 593,598 | 177,607 |
Reportable Legal Entities | Parent Issuer & Guarantor | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 281,100 | 175,100 | 545,600 | 360,400 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | 15,500 | (300) | 33,900 | (300) |
Realized (gains) losses on derivatives in net income, net of tax | 1,000 | 500 | 1,900 | 1,000 |
Change in pension and postretirement benefit plan liability, net of tax | 3,200 | 2,100 | 6,400 | 4,100 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 19,700 | 2,300 | 42,200 | 4,800 |
Comprehensive income | 300,800 | 177,400 | 587,800 | 365,200 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 105,600 | 0 | 232,400 |
Comprehensive income attributable to ONEOK | 300,800 | 71,800 | 587,800 | 132,800 |
Reportable Legal Entities | Subsidiary Issuer & Guarantor | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 403,200 | 278,500 | 774,100 | 547,600 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | (46,400) | (5,700) | (25,500) | 23,100 |
Realized (gains) losses on derivatives in net income, net of tax | 14,600 | 11,100 | 28,900 | 30,900 |
Change in pension and postretirement benefit plan liability, net of tax | 0 | 0 | (600) | 0 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | 1,200 | (1,600) | 4,900 | (1,200) |
Total other comprehensive income (loss), net of tax | (30,600) | 3,800 | 7,700 | 52,800 |
Comprehensive income | 372,600 | 282,300 | 781,800 | 600,400 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to ONEOK | 372,600 | 282,300 | 781,800 | 600,400 |
Reportable Legal Entities | Guarantor Subsidiary | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 403,200 | 278,500 | 774,100 | 547,600 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | (46,400) | 9,000 | (25,500) | 36,300 |
Realized (gains) losses on derivatives in net income, net of tax | 10,200 | 6,800 | 21,800 | 22,100 |
Change in pension and postretirement benefit plan liability, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | 1,200 | (1,600) | 4,900 | (1,200) |
Total other comprehensive income (loss), net of tax | (35,000) | 14,200 | 1,200 | 57,200 |
Comprehensive income | 368,200 | 292,700 | 775,300 | 604,800 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to ONEOK | 368,200 | 292,700 | 775,300 | 604,800 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 392,800 | 266,700 | 751,200 | 517,600 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | (35,800) | 9,800 | (19,600) | 32,800 |
Realized (gains) losses on derivatives in net income, net of tax | 6,900 | 5,100 | 15,100 | 17,400 |
Change in pension and postretirement benefit plan liability, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | 1,000 | (1,400) | 3,800 | (1,000) |
Total other comprehensive income (loss), net of tax | (27,900) | 13,500 | (700) | 49,200 |
Comprehensive income | 364,900 | 280,200 | 750,500 | 566,800 |
Less: Comprehensive income attributable to noncontrolling interests | 1,100 | 900 | 2,600 | 1,800 |
Comprehensive income attributable to ONEOK | 363,800 | 279,300 | 747,900 | 565,000 |
Reportable Legal Entities | Total | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 282,200 | 176,000 | 548,200 | 362,200 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | (20,300) | (5,100) | 14,300 | 19,300 |
Realized (gains) losses on derivatives in net income, net of tax | 12,200 | 9,900 | 24,100 | 27,200 |
Change in pension and postretirement benefit plan liability, net of tax | 3,200 | 2,100 | 5,800 | 4,100 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | 1,000 | (1,400) | 3,800 | (1,000) |
Total other comprehensive income (loss), net of tax | (3,900) | 5,500 | 48,000 | 49,600 |
Comprehensive income | 278,300 | 181,500 | 596,200 | 411,800 |
Less: Comprehensive income attributable to noncontrolling interests | 1,100 | 106,500 | 2,600 | 234,200 |
Comprehensive income attributable to ONEOK | 277,200 | 75,000 | 593,600 | 177,600 |
Consolidating Entries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (1,198,100) | (822,800) | (2,296,800) | (1,611,000) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on derivatives, net of tax | 92,800 | (17,900) | 51,000 | (72,600) |
Realized (gains) losses on derivatives in net income, net of tax | (20,500) | (13,600) | (43,600) | (44,200) |
Change in pension and postretirement benefit plan liability, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax | (2,400) | 3,200 | (9,800) | 2,400 |
Total other comprehensive income (loss), net of tax | 69,900 | (28,300) | (2,400) | (114,400) |
Comprehensive income | (1,128,200) | (851,100) | (2,299,200) | (1,725,400) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to ONEOK | $ (1,128,200) | $ (851,100) | $ (2,299,200) | $ (1,725,400) |
SUPPLEMENTAL CONDENSED CONSOL55
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 15,295 | $ 37,193 | $ 332,371 | $ 248,875 |
Accounts receivable, net | 934,664 | 1,202,951 | ||
Materials and supplies | 113,831 | 90,301 | ||
Natural gas and natural gas liquids in storage | 285,776 | 342,293 | ||
Other current assets | 57,286 | 53,008 | ||
Total current assets | 1,433,687 | 1,764,458 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 16,363,716 | 15,559,667 | ||
Accumulated depreciation and amortization | 3,059,799 | 2,861,541 | ||
Net property, plant and equipment | 13,303,917 | 12,698,126 | ||
Investments and other assets | ||||
Investments | 986,979 | 1,003,156 | ||
Other assets | 170,124 | 180,830 | ||
Total investments and other assets | 2,176,116 | 2,383,353 | ||
Total assets | 16,913,720 | 16,845,937 | 16,672,923 | |
Current liabilities | ||||
Current maturities of long-term debt | 932,650 | 432,650 | ||
Short-term borrowings | 156,000 | 614,673 | ||
Accounts payable | 1,027,467 | 1,140,571 | ||
Other current liabilities | 184,127 | 179,971 | ||
Total current liabilities | 2,572,081 | 2,667,335 | ||
Long-term debt, excluding current maturities | 7,091,246 | 8,091,629 | ||
Deferred credits and other liabilities | 411,910 | 401,621 | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | 6,664,860 | 5,527,867 | ||
Noncontrolling interests in consolidated subsidiaries | 173,623 | 157,485 | ||
Total equity | 6,838,483 | 5,685,352 | 5,565,231 | 3,428,915 |
Total liabilities and equity | 16,913,720 | 16,845,937 | ||
Reportable Legal Entities | Parent Issuer & Guarantor | ||||
Current assets | ||||
Cash and cash equivalents | 15,300 | 37,200 | 321,000 | 248,500 |
Accounts receivable, net | 0 | 0 | ||
Materials and supplies | 0 | |||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 11,900 | 9,800 | ||
Total current assets | 27,200 | 47,000 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 137,200 | 128,300 | ||
Accumulated depreciation and amortization | 89,200 | 86,400 | ||
Net property, plant and equipment | 48,000 | 41,900 | ||
Investments and other assets | ||||
Investments | 5,872,900 | 5,752,100 | ||
Intercompany notes receivable | 3,679,200 | 2,926,900 | ||
Other assets | 233,000 | 416,900 | ||
Total investments and other assets | 9,785,100 | 9,095,900 | ||
Total assets | 9,860,300 | 9,184,800 | ||
Current liabilities | ||||
Current maturities of long-term debt | 0 | 0 | ||
Short-term borrowings | 156,000 | 614,700 | ||
Accounts payable | 6,200 | 12,000 | ||
Other current liabilities | 71,200 | 65,900 | ||
Total current liabilities | 233,400 | 692,600 | ||
Intercompany debt | 0 | 0 | ||
Long-term debt, excluding current maturities | 2,727,000 | 2,726,400 | ||
Deferred credits and other liabilities | 235,000 | 237,900 | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | 6,664,900 | 5,527,900 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | 6,664,900 | 5,527,900 | ||
Total liabilities and equity | 9,860,300 | 9,184,800 | ||
Reportable Legal Entities | Subsidiary Issuer & Guarantor | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Materials and supplies | 0 | |||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 0 | 1,300 | ||
Total current assets | 0 | 1,300 | ||
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 | 3,243,000 | 3,133,700 | ||
Intercompany notes receivable | 8,140,900 | 8,627,800 | ||
Other assets | 0 | 200 | ||
Total investments and other assets | 11,383,900 | 11,761,700 | ||
Total assets | 11,383,900 | 11,763,000 | ||
Current liabilities | ||||
Current maturities of long-term debt | 925,000 | 425,000 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | 85,000 | 85,000 | ||
Total current liabilities | 1,010,000 | 510,000 | ||
Intercompany debt | 0 | 0 | ||
Long-term debt, excluding current maturities | 4,339,200 | 5,336,400 | ||
Deferred credits and other liabilities | 0 | 0 | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | 6,034,700 | 5,916,600 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | 6,034,700 | 5,916,600 | ||
Total liabilities and equity | 11,383,900 | 11,763,000 | ||
Reportable Legal Entities | Guarantor Subsidiary | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 11,400 | 400 |
Accounts receivable, net | 0 | 0 | ||
Materials and supplies | 0 | |||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 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 | 8,795,000 | 8,058,400 | ||
Intercompany notes receivable | 2,588,900 | 3,703,100 | ||
Other assets | 0 | 0 | ||
Total investments and other assets | 11,383,900 | 11,761,500 | ||
Total assets | 11,383,900 | 11,761,500 | ||
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 | 8,140,900 | 8,627,800 | ||
Long-term debt, excluding current maturities | 0 | 0 | ||
Deferred credits and other liabilities | 0 | 0 | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | 3,243,000 | 3,133,700 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | 3,243,000 | 3,133,700 | ||
Total liabilities and equity | 11,383,900 | 11,761,500 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 934,700 | 1,203,000 | ||
Materials and supplies | 90,300 | |||
Natural gas and natural gas liquids in storage | 285,800 | 342,300 | ||
Other current assets | 186,000 | 80,600 | ||
Total current assets | 1,406,500 | 1,716,200 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 16,226,500 | 15,431,300 | ||
Accumulated depreciation and amortization | 2,970,600 | 2,775,100 | ||
Net property, plant and equipment | 13,255,900 | 12,656,200 | ||
Investments and other assets | ||||
Investments | 795,400 | 803,000 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 1,006,900 | 1,007,400 | ||
Total investments and other assets | 1,802,300 | 1,810,400 | ||
Total assets | 16,464,700 | 16,182,800 | ||
Current liabilities | ||||
Current maturities of long-term debt | 7,700 | 7,700 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable | 1,021,300 | 1,128,600 | ||
Other current liabilities | 299,700 | 328,400 | ||
Total current liabilities | 1,328,700 | 1,464,700 | ||
Intercompany debt | 6,268,100 | 6,630,000 | ||
Long-term debt, excluding current maturities | 25,000 | 28,800 | ||
Deferred credits and other liabilities | 227,700 | 208,100 | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | 8,441,600 | 7,693,700 | ||
Noncontrolling interests in consolidated subsidiaries | 173,600 | 157,500 | ||
Total equity | 8,615,200 | 7,851,200 | ||
Total liabilities and equity | 16,464,700 | 16,182,800 | ||
Reportable Legal Entities | Total | ||||
Current assets | ||||
Cash and cash equivalents | 15,300 | 37,200 | 332,400 | 248,900 |
Accounts receivable, net | 934,700 | 1,203,000 | ||
Materials and supplies | 90,300 | |||
Natural gas and natural gas liquids in storage | 285,800 | 342,300 | ||
Other current assets | 197,900 | 91,700 | ||
Total current assets | 1,433,700 | 1,764,500 | ||
Property, plant and equipment | ||||
Property, plant and equipment | 16,363,700 | 15,559,600 | ||
Accumulated depreciation and amortization | 3,059,800 | 2,861,500 | ||
Net property, plant and equipment | 13,303,900 | 12,698,100 | ||
Investments and other assets | ||||
Investments | 987,000 | 1,003,200 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 1,189,100 | 1,380,100 | ||
Total investments and other assets | 2,176,100 | 2,383,300 | ||
Total assets | 16,913,700 | 16,845,900 | ||
Current liabilities | ||||
Current maturities of long-term debt | 932,700 | 432,700 | ||
Short-term borrowings | 156,000 | 614,700 | ||
Accounts payable | 1,027,500 | 1,140,600 | ||
Other current liabilities | 455,900 | 479,300 | ||
Total current liabilities | 2,572,100 | 2,667,300 | ||
Intercompany debt | 0 | 0 | ||
Long-term debt, excluding current maturities | 7,091,200 | 8,091,600 | ||
Deferred credits and other liabilities | 411,900 | 401,600 | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | 6,664,900 | 5,527,900 | ||
Noncontrolling interests in consolidated subsidiaries | 173,600 | 157,500 | ||
Total equity | 6,838,500 | 5,685,400 | ||
Total liabilities and equity | 16,913,700 | 16,845,900 | ||
Consolidating Entries | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Materials and supplies | 0 | |||
Natural gas and natural gas liquids in storage | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 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 | (17,719,300) | (16,744,000) | ||
Intercompany notes receivable | (14,409,000) | (15,257,800) | ||
Other assets | (50,800) | (44,400) | ||
Total investments and other assets | (32,179,100) | (32,046,200) | ||
Total assets | (32,179,100) | (32,046,200) | ||
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 | (14,409,000) | (15,257,800) | ||
Long-term debt, excluding current maturities | 0 | 0 | ||
Deferred credits and other liabilities | (50,800) | (44,400) | ||
Commitments and contingencies | ||||
Equity | ||||
Equity excluding noncontrolling interests in consolidated subsidiaries | (17,719,300) | (16,744,000) | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total equity | (17,719,300) | (16,744,000) | ||
Total liabilities and equity | $ (32,179,100) | $ (32,046,200) |
SUPPLEMENTAL CONDENSED CONSOL56
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION, Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||||
Cash provided by operating activities | $ 1,002,970 | $ 642,891 | ||
Investing activities | ||||
Capital expenditures | $ (350,885) | $ (82,495) | (615,352) | (195,232) |
Contributions to unconsolidated affiliates | (294) | (4,653) | ||
Cash provided by (used in) investing activities | (601,401) | (183,731) | ||
Financing activities | ||||
Dividends paid | (643,493) | (259,758) | ||
Distributions to noncontrolling interests | (3,000) | (273,460) | ||
Borrowing (repayment) of short-term borrowings, net | (458,673) | 164,130 | ||
Repayment of long-term debt | (503,825) | (3,898) | ||
Issuance of common stock | 1,186,718 | 10,845 | ||
Other, net | (1,194) | (13,523) | ||
Cash used in financing activities | (423,467) | (375,664) | ||
Change in cash and cash equivalents | (21,898) | 83,496 | ||
Cash and cash equivalents at beginning of period | 37,193 | 248,875 | ||
Cash and cash equivalents at end of period | 15,295 | 332,371 | 15,295 | 332,371 |
Reportable Legal Entities | Parent Issuer & Guarantor | ||||
Operating activities | ||||
Cash provided by operating activities | 669,200 | 355,000 | ||
Investing activities | ||||
Capital expenditures | (10,100) | (100) | ||
Contributions to unconsolidated affiliates | 0 | |||
Other investing activities | 0 | 0 | ||
Cash provided by (used in) investing activities | (10,100) | (100) | ||
Financing activities | ||||
Dividends paid | (643,500) | (259,800) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Intercompany borrowings (advances), net | (748,000) | (27,100) | ||
Borrowing (repayment) of short-term borrowings, net | (458,700) | 0 | ||
Repayment of long-term debt | 0 | (100) | ||
Issuance of common stock | 1,186,700 | 10,800 | ||
Other, net | (17,500) | (6,200) | ||
Cash used in financing activities | (681,000) | (282,400) | ||
Change in cash and cash equivalents | (21,900) | 72,500 | ||
Cash and cash equivalents at beginning of period | 37,200 | 248,500 | ||
Cash and cash equivalents at end of period | 15,300 | 321,000 | 15,300 | 321,000 |
Reportable Legal Entities | Subsidiary Issuer & Guarantor | ||||
Operating activities | ||||
Cash provided by operating activities | 673,900 | 675,200 | ||
Investing activities | ||||
Capital expenditures | 0 | 0 | ||
Contributions to unconsolidated affiliates | 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 | 492,100 | (166,100) | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 164,100 | ||
Repayment of long-term debt | (500,000) | 0 | ||
Issuance of common stock | 0 | 0 | ||
Other, net | 0 | (7,200) | ||
Cash used in financing activities | (673,900) | (675,200) | ||
Change in cash and cash equivalents | 0 | 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 | 32,400 | 28,200 | ||
Investing activities | ||||
Capital expenditures | 0 | 0 | ||
Contributions to unconsolidated affiliates | 0 | |||
Other investing activities | 6,400 | 6,700 | ||
Cash provided by (used in) investing activities | 6,400 | 6,700 | ||
Financing activities | ||||
Dividends paid | (666,000) | (666,000) | ||
Distributions to noncontrolling interests | 0 | 0 | ||
Intercompany borrowings (advances), net | 627,200 | 642,100 | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Repayment of long-term debt | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Other, net | 0 | 0 | ||
Cash used in financing activities | (38,800) | (23,900) | ||
Change in cash and cash equivalents | 0 | 11,000 | ||
Cash and cash equivalents at beginning of period | 0 | 400 | ||
Cash and cash equivalents at end of period | 0 | 11,400 | 0 | 11,400 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Operating activities | ||||
Cash provided by operating activities | 959,500 | 645,500 | ||
Investing activities | ||||
Capital expenditures | (605,300) | (195,100) | ||
Contributions to unconsolidated affiliates | (300) | |||
Other investing activities | 7,900 | 4,800 | ||
Cash provided by (used in) investing activities | (597,700) | (190,300) | ||
Financing activities | ||||
Dividends paid | 0 | 0 | ||
Distributions to noncontrolling interests | (3,000) | (2,500) | ||
Intercompany borrowings (advances), net | (371,300) | (448,900) | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Repayment of long-term debt | (3,800) | (3,800) | ||
Issuance of common stock | 0 | 0 | ||
Other, net | 16,300 | 0 | ||
Cash used in financing activities | (361,800) | (455,200) | ||
Change in cash and cash equivalents | 0 | 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 | 1,003,000 | 642,900 | ||
Investing activities | ||||
Capital expenditures | (615,400) | (195,200) | ||
Contributions to unconsolidated affiliates | (300) | |||
Other investing activities | 14,300 | 11,500 | ||
Cash provided by (used in) investing activities | (601,400) | (183,700) | ||
Financing activities | ||||
Dividends paid | (643,500) | (259,800) | ||
Distributions to noncontrolling interests | (3,000) | (273,500) | ||
Intercompany borrowings (advances), net | 0 | 0 | ||
Borrowing (repayment) of short-term borrowings, net | (458,700) | 164,100 | ||
Repayment of long-term debt | (503,800) | (3,900) | ||
Issuance of common stock | 1,186,700 | 10,800 | ||
Other, net | (1,200) | (13,400) | ||
Cash used in financing activities | (423,500) | (375,700) | ||
Change in cash and cash equivalents | (21,900) | 83,500 | ||
Cash and cash equivalents at beginning of period | 37,200 | 248,900 | ||
Cash and cash equivalents at end of period | 15,300 | 332,400 | 15,300 | 332,400 |
Consolidating Entries | ||||
Operating activities | ||||
Cash provided by operating activities | (1,332,000) | (1,061,000) | ||
Investing activities | ||||
Capital expenditures | 0 | 0 | ||
Contributions to unconsolidated affiliates | 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 | 0 | (271,000) | ||
Intercompany borrowings (advances), net | 0 | 0 | ||
Borrowing (repayment) of short-term borrowings, net | 0 | 0 | ||
Repayment of long-term debt | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Other, net | 0 | 0 | ||
Cash used in financing activities | 1,332,000 | 1,061,000 | ||
Change in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 |