Vrath and Reddy

Vrath and Reddy asked about ONEOK's earnings growth outlook for 2026, inquiring if the previously indicated mid to high single-digit growth rate remains appropriate given current tailwinds and headwinds.

Answer

Sheridan Swords, Executive Vice President and Chief Commercial Officer, identified key tailwinds for 2026 earnings growth, including the full-year impact of synergies from the Easton and Conway NGL to Mid-Continent refined products projects, the Denver expansion, and over 500 million cubic feet per day of new processing capacity coming online through early 2027. He also noted anticipated market share growth in the Permian and other regions.

Vrath Reddy, on behalf of Jeremy Tonet, inquired about the tailwinds and headwinds impacting ONEOK's earnings growth into 2026, specifically asking if a mid to high single-digit growth rate remains appropriate. Reddy also asked about ONEOK's capital allocation strategy, balancing share buybacks against debt paydown and other priorities.

Answer

Sheridan Swords, Executive Vice President and Chief Commercial Officer, identified key tailwinds for 2026, including the full-year impact of synergies from projects like Easton and Conway NGLs to Mid-Continent refined products, the Denver expansion, and over 500 million cubic feet per day of new processing capacity. Walt Hulse, Chief Financial Officer, Treasurer, and Executive Vice President, Investor Relations and Corporate Development, explained that as ONEOK approaches its 3.5x debt-to-EBITDA target, flexibility for stock buybacks increases, leading to modest buybacks and bond repurchases in the third quarter.