ONEOK Announces Full-year 2012 and Fourth-quarter Financial Results

     ONEOK Announces Full-year 2012 and Fourth-quarter Financial Results

Reduces 2013 Earnings Guidance and Revises Three-year Financial Forecasts

PR Newswire

TULSA, Okla., Feb. 25, 2013

TULSA, Okla., Feb. 25, 2013 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today
announced 2012 net income attributable to ONEOK was $360.6 million, or $1.71
per diluted share, compared with $360.6 million, or $1.68 per diluted share on
a split-adjusted basis, in 2011.

Fourth-quarter 2012 net income attributable to ONEOK was $111.5 million, or 53
cents per diluted share, compared with $115.0 million, or 55 cents per diluted
share on a split-adjusted basis, for the same period in 2011.

"Our ONEOK Partners and natural gas distribution segments performed well in
2012," said John W. Gibson, ONEOK chairman and chief executive officer.

"During the year, our ONEOK Partners segment benefited from the completion of
several growth projects that increased natural gas and natural gas liquids
volumes, while experiencing less favorable natural gas liquids price
differentials and lower natural gas and natural gas liquids prices than in
2011," added Gibson.

"Our natural gas distribution segment reported higher fourth-quarter and
full-year results, benefiting from new rates in Oklahoma, Kansas and Texas and
lower operating expenses, while our energy services segment continues to face
a challenging market environment," Gibson said.

2013 REVISED EARNINGS GUIDANCE AND THREE-YEAR GROWTH FORECASTS

ONEOK reduced its 2013 net income guidance range to $350 million to $400
million, compared with the previous guidance range of $405 million to $455
million announced on Sept. 24, 2012. The updated guidance reflects lower
expected earnings in the ONEOK Partners (NYSE: OKS) segment.

Half of the reduction in 2013 operating income and equity earnings guidance is
due to lower expected natural gas liquids (NGL) volumes as a result of
widespread and prolonged ethane rejection. Narrower expected NGL location
price differentials and lower expected NGL prices, particularly ethane and
propane, also are expected to affect the partnership's 2013 earnings.

"We do not expect prolonged ethane rejection to continue into 2014, although
there may be intermittent periods when ethane will be left in the natural gas
stream," said Gibson.

ONEOK now expects net income guidance to increase by an average of 15 to 20
percent annually over a three-year period, comparing 2012 results with 2015.
Previously, ONEOK estimated a three-year average annual growth rate of 20 to
25 percent, comparing 2012 guidance provided on Sept. 24, 2012, with 2015.

The revision to the three-year growth forecast is due primarily to lower than
expected NGL exchange margins in the Rocky Mountain region and lower expected
NGL and natural gas prices in the ONEOK Partners segment in 2014 and 2015.

The projected dividend increase for July 2013 has been revised to 2 cents per
share, subject to ONEOK board approval, compared with its previous guidance
announced on Sept. 24, 2012, of a 3-cent-per-share dividend increase. In
January 2013, ONEOK increased its dividend by 3 cents per share to 36 cents
per share, a 9 percent increase.

"If industry conditions improve, we will re-evaluate our 2013 earnings
guidance and dividend increase," said Gibson. "Although our 2013 earnings
guidance has decreased, we remain confident in our ability to increase
dividends over the next three years," said Gibson.

ONEOK also revised its expectation to increase dividends by approximately 55
to 65 percent between 2012 and 2015, subject to ONEOK board approval, compared
with its previous guidance of a 65 to 70 percent dividend increase. The
company affirmed its long-term dividend target payout of 60 to 70 percent of
recurring earnings.

The reduced 2013 earnings guidance and three-year growth forecast are not
expected to affect current or projected timelines, or project costs in ONEOK
Partners' announced $4.7 billion to $5.3 billion capital-growth program.

FOURTH-QUARTER AND FULL-YEAR 2012 FINANCIAL PERFORMANCE

ONEOK's fourth-quarter 2012 operating income was $299.6 million, compared with
$365.0 million in the same period in 2011.

Fourth-quarter 2012 results were lower in the ONEOK Partners segment due to
lower NGL optimization margins resulting from narrower NGL location price
differentials, offset partially by higher NGL volumes gathered and
fractionated in its natural gas liquids business. The natural gas gathering
and processing business benefited from higher natural gas volumes gathered and
processed, offset partially by higher compression costs and less favorable
contract terms associated with volume growth in the Williston Basin and lower
realized natural gas and NGL prices, particularly ethane and propane.

Fourth-quarter 2012 results for the energy services segment were lower due
primarily to decreases in storage and marketing margins, net of hedging
activities, and reduced premium-services margins.

2012 operating income was $1.10 billion, compared with $1.16 billion in 2011.

2012 results reflect higher natural gas volumes gathered and processed in the
partnership's natural gas gathering and processing business and higher NGL
volumes gathered and fractionated, offset by lower optimization margins in the
partnership's natural gas liquids business; and higher compression costs and
less favorable contract terms associated with volume growth in the Williston
Basin and lower net realized natural gas and NGL prices in the natural gas
gathering and processing business.

In 2012, the natural gas distribution segment benefited from new rates in all
three states and lower operating costs.

2012 results from the energy services segment were significantly lower due to
lower storage and marketing margins, net of hedging activities; lower
transportation margins, net of hedging activities; lower premium-services
margins; and a non-recurring goodwill impairment charge in the first quarter
2012.

Full-year 2012 results also included the February 2012 sale of the company's
retail natural gas marketing business, which was accounted for in the natural
gas distribution segment, to Constellation Energy Group, Inc. for $32.9
million, including working capital, and resulted in an after-tax gain of $13.5
million. Financial information for this business is reflected as discontinued
operations.

Operating costs for the fourth quarter 2012 were $224.5 million, compared with
$255.8 million in the same period last year. Operating costs for the
full-year 2012 period were $909.0 million, compared with $908.3 million in
2011. The decrease for the fourth-quarter 2012 period was due primarily to
lower share-based compensation and other employee-related costs.

Consolidated interest expense was $83.6 million in the fourth quarter 2012,
compared with $68.3 million for the same period in 2011. Full-year 2012
interest expense was $302.3 million, compared with $297.0 million in 2011.
These increases were driven primarily by ONEOK's January 2012 issuance of $700
million senior notes and ONEOK Partners' September 2012 issuance of $1.3
billion senior notes, offset partially by higher capitalized interest and the
repayment of ONEOK Partners' $350 million senior notes in April 2012.

> View earnings tables

2012 SUMMARY AND ADDITIONAL UPDATES:

  o2012 operating income of $1.10 billion, compared with $1.16 billion in
    2011;
  oONEOK Partners segment operating income of $962.9 million, compared with
    $939.5 million in 2011;
  oNatural gas distribution segment operating income of $215.7 million,
    compared with $197.6 million in 2011;
  oEnergy services segment operating loss of $77.9 million, compared with an
    operating income of $23.8 million in 2011;
  oIn December 2012, the Kansas Corporation Commission approved an increase
    in Kansas Gas Service's rates by a net amount of $10.0 million annually,
    which became effective in January 2013;
  oONEOK Partners announcing in November 2012 that it will not proceed with
    the Bakken Crude Express Pipeline due to insufficient long-term
    transportation commitments during its open season, which concluded Nov.
    20, 2012;
  oDistributions declared on the company's general partner interest in ONEOK
    Partners of $226.5 million and distributions declared on the company's
    limited partner interest in ONEOK Partners of $249.6 million in 2012;
  oCompleting in September 2012 a $150 million accelerated share repurchase
    agreement that was announced in June 2012; the company has $300 million
    remaining under its previously approved three-year, $750 million share
    repurchase program that expires at the end of 2013;
  oONEOK, on a stand-alone basis, ending the fourth quarter with $817.2
    million of commercial paper outstanding, $1.9 million in letters of
    credit, $46.5 million of cash and cash equivalents, and $380.9 million
    available under its $1.2 billion credit facility;
  oONEOK stand-alone cash flow from continuing operations, before changes in
    working capital, of $708.6 million for 2012, which exceeded capital
    expenditures and dividends of $567.6 million by $141.0 million;
  oONEOK in January 2013 increasing its dividend by 9 percent from the
    previous quarter to 36 cents per share, or $1.44 per share on an
    annualized basis, payable on Feb. 14, 2013, to shareholders of record at
    the close of business Jan. 31, 2013; and
  oONEOK and ONEOK Partners announcing in December 2012, a reorganization to
    further enhance its commercial and operating capabilities. Pierce H.
    Norton II now leads commercial activities; Robert F. Martinovich now leads
    operating activities; Derek S. Reiners was named chief financial officer
    and treasurer; and Sheppard F. Miers III was named chief accounting
    officer.

BUSINESS-UNIT RESULTS:

ONEOK Partners

The ONEOK Partners segment reported fourth-quarter 2012 operating income of
$230.5 million, compared with $317.5 million in the same period last year.
Fourth-quarter 2012 results, compared with the same period in 2011, reflect:

  oA $38.4 million increase in the natural gas gathering and processing
    business due to volume growth in the Williston Basin from the completion
    of the Garden Creek and Stateline I natural gas processing plants and
    increased well connections, which resulted in higher natural gas volumes
    gathered, compressed, processed, transported and sold, and higher fees;
  oA $32.8 million increase in the natural gas liquids business from higher
    NGL volumes gathered and fractionated, and higher fees from contract
    renegotiations for its NGL exchange-services activities;
  oA $3.5 million increase in the natural gas liquids business due to higher
    NGL storage margins as a result of favorable contract renegotiations;
  oA $141.4 million decrease in the natural gas liquids business due
    primarily to narrower NGL location price differentials;
  oA $7.3 million decrease in the natural gas liquids business from lower
    isomerization margins resulting from lower isomerization volumes;
  oA $3.1 million decrease in the natural gas liquids business due to the
    impact of operational measurement losses;
  oA $10.6 million decrease in the natural gas gathering and processing
    business due primarily to higher compression costs and less favorable
    contract terms associated with volume growth in the Williston Basin;
  oA $5.1 million decrease in the natural gas gathering and processing
    business from lower realized natural gas and NGL prices, particularly
    ethane and propane; and
  oA $1.8 million decrease in the natural gas gathering and processing
    business from lower natural gas volumes gathered in the Powder River Basin
    as a result of continued production declines.

Additionally, a $5.7 million pre-tax gain on the sale of a natural gas
pipeline lateral in ONEOK Partners' natural gas pipeline business was recorded
in the fourth quarter 2012.

For the full-year 2012 period, the ONEOK Partners segment posted operating
income of $962.9 million, compared with $939.5 million in 2011. Full-year
2012 results, compared with 2011, reflect:

  oA $131.5 million increase in the natural gas gathering and processing
    business due to volume growth in the Williston Basin from the completion
    of the Garden Creek and Stateline I natural gas processing plants and
    increased well connections, which resulted in higher natural gas volumes
    gathered, compressed, processed, transported and sold, and higher fees;
  oA $101.5 million increase in the natural gas liquids business from higher
    NGL volumes gathered and fractionated related to the completion of certain
    growth projects and higher fees from contract renegotiations for its NGL
    exchange-services activities;
  oA $13.1 million increase in the natural gas liquids business due to higher
    NGL storage margins as a result of favorable contract renegotiations;
  oA $91.2 million decrease in the natural gas liquids business from lower
    optimization and marketing margins due to a $94.6 million decrease from
    narrower NGL location price differentials and less transportation capacity
    available for optimization activities; an increasing portion of the
    partnership's transportation capacity between the Conway, Kan., and Mont
    Belvieu, Texas, NGL market centers now is utilized by its
    exchange-services activities to produce fee-based earnings. This decrease
    was offset partially by a $3.5 million increase from its marketing
    activities, which benefited from higher NGL truck and rail volumes;
  oA $38.1 million decrease in the natural gas gathering and processing
    business due primarily to higher compression costs and less favorable
    contract terms associated with volume growth in the Williston Basin;
  oA $31.4 million decrease in the natural gas gathering and processing
    business from lower net realized natural gas and NGL prices, particularly
    ethane and propane; and
  oA $5.9 million decrease in the natural gas gathering and processing
    business from lower natural gas volumes gathered in the Powder River Basin
    as a result of continued production declines.

Fourth-quarter 2012 operating costs were $122.1 million, compared with $130.7
million in the same period in 2011. Full-year 2012 operating costs were
$482.5 million, compared with $459.4 million in 2011. The increase for the
full-year 2012 period was due primarily to ONEOK Partners' expanding
operations from several growth projects placed in service.

Key Statistics: More detailed information is listed in the tables.

  oNatural gas gathered was 1,201 billion British thermal units per day
    (BBtu/d) in the fourth quarter 2012, up 14 percent compared with the same
    period last year due to increased well connections in the Williston Basin
    and in western Oklahoma, and the completion of additional natural gas
    gathering lines and compression to support the partnership's Garden Creek
    and Stateline I natural gas processing plants in the Williston Basin;
    offset partially by continued production declines in the Powder River
    Basin in Wyoming; and up 5 percent compared with the third quarter 2012;
  oNatural gas processed was 964 BBtu/d in the fourth quarter 2012, up 27
    percent compared with the same period last year due to increased well
    connections in the Williston Basin and western Oklahoma, and the
    completion of the partnership's Garden Creek and Stateline I natural gas
    processing plants in the Williston Basin; and up 6 percent compared with
    the third quarter 2012;
  oThe realized composite NGL net sales price was $1.05 per gallon in the
    fourth quarter 2012, down 1 percent compared with the same period last
    year; and down 5 percent compared with the third quarter 2012;
  oThe realized condensate net sales price was $90.21 per barrel in the
    fourth quarter 2012, up 6 percent compared with the same period last year;
    and up 4 percent compared with the third quarter 2012;
  oThe realized residue natural gas net sales price was $4.27 per million
    British thermal units (MMBtu) in the fourth quarter 2012, down 16 percent
    compared with the same period last year; and up 16 percent compared with
    the third quarter 2012;
  oThe realized gross processing spread was $7.51 per MMBtu in the fourth
    quarter 2012, down 4 percent compared with the same period last year; and
    down 8 percent compared with the third quarter 2012;
  oNatural gas transportation capacity contracted was 5,429 thousand
    dekatherms per day in the fourth quarter 2012, relatively unchanged
    compared with the same period last year; and up 3 percent compared with
    the third quarter 2012;
  oNatural gas transportation capacity subscribed was 90 percent in the
    fourth quarter 2012, unchanged compared with the same period last year;
    and up 3 percent from the third quarter 2012;
  oThe average natural gas price in the Mid-Continent region was $3.29 per
    MMBtu in the fourth quarter 2012, up 3 percent compared with the same
    period last year; and up 20 percent compared with the third quarter 2012;
  oNGLs fractionated were 600,000 barrels per day (bpd) in the fourth quarter
    2012, up 3 percent compared with the same period last year, due primarily
    to increased throughput from existing connections and new supply
    connections in the Mid-Continent and Rocky Mountain regions; and up 3
    percent compared with the third quarter 2012;
  oNGLs transported on gathering lines were 531,000 bpd in the fourth quarter
    2012, up 12 percent compared with the same period last year, due primarily
    to increased production through existing supply connections, and new
    supply connections in the Mid-Continent and Rocky Mountain regions; and
    relatively unchanged compared with the third quarter 2012;
  oNGLs transported on distribution lines were 507,000 bpd in the fourth
    quarter 2012, down 1 percent compared with the same period last year; and
    up 1 percent compared with the third quarter 2012; and
  oThe average Conway-to-Mont Belvieu price differential of ethane in
    ethane/propane mix, based on Oil Price Information Service (OPIS) pricing,
    was 7 cents per gallon in the fourth quarter 2012, compared with 49 cents
    per gallon in the same period last year; and 16 cents per gallon in the
    third quarter 2012.

Total equity volumes in the partnership's natural gas gathering and processing
business are increasing, and the composition of the equity NGL barrel
continues to change as new natural gas processing plants in the Williston
Basin are placed into service. The Garden Creek and Stateline I natural gas
processing plants have the capability to recover ethane when economic
conditions warrant but will not do so until the Bakken NGL Pipeline is
completed, which is expected to occur in the first quarter 2013. As a result,
its 2012 equity NGL volumes and realized composite NGL net sales price were
weighted more toward the relatively higher priced propane, iso-butane, normal
butane and natural gasoline, compared with the prior year. This had the
effect of producing a higher realized price for the NGL composite barrel even
though most individual NGL product prices were substantially lower in 2012
compared with 2011.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $79.5
million in the fourth quarter 2012, compared with $54.5 million in the fourth
quarter 2011.

Fourth-quarter 2012 results reflect higher rates in Oklahoma, Kansas and
Texas, offset partially by lower transportation margins in Kansas due to
warmer-than-normal weather and lower share-based expenses.

For the full year 2012, operating income was $215.7 million, compared with
$197.6 million in 2011.

Full-year 2012 results reflect higher rates in all three states, offset by
higher depreciation expense from increased capital expenditures; and a
decrease in transportation margins in Kansas and Oklahoma due to
warmer-than-normal weather that reduced commercial customer demand that is not
subject to weather normalization.

Fourth-quarter 2012 operating costs were $98.4 million, compared with $117.5
million in the fourth quarter 2011. Fourth-quarter results reflect a $14.6
million decrease in share-based compensation costs; and a $6.4 million
decrease in other employee-related costs; offset partially by a $2.4 million
increase in pension costs.

Full-year 2012 operating costs were $410.6 million, compared with $422.0
million in 2011. This decrease was due to a $16.7 million reduction in
share-based compensation costs in 2012, compared with 2011, as a result of
fewer shares of the company's common stock being awarded to employees in 2012
as part of ONEOK's stock award program and the appreciation in ONEOK's share
price during 2011; and an $8.9 million decrease in employee-related expenses,
offset partially by $14.2 million increase in pension, outside services and
legal costs.

Key Statistics: More detailed information is listed in the tables.

  oResidential natural gas sales volumes were 37.7 billion cubic feet (Bcf)
    in the fourth quarter 2012, down 5 percent compared with the same period
    last year;
  oNatural gas sales volumes were 48.8 Bcf in the fourth quarter 2012, down 6
    percent compared with the same period last year;
  oNatural gas volumes delivered were 99.1 Bcf in the fourth quarter 2012,
    down 3 percent compared with the same period last year; and
  oNatural gas transportation volumes were 50.2 Bcf in the fourth quarter
    2012, relatively unchanged compared with the same period last year.

Energy Services

The energy services segment reported a fourth-quarter 2012 operating loss of
$10.3 million, compared with an operating loss of $5.5 million in the fourth
quarter 2011.

In the fourth quarter 2012, the energy services segment experienced lower
premium-services margins, and storage and marketing margins. The decrease in
storage and marketing margins was due to lower realized seasonal price
differentials and reduced marketing optimization activities.

For the full-year 2012 period, the energy services segment posted a $77.9
million operating loss, compared with $23.8 million in operating income for
2011.

In 2012, the energy services segment realized $44.6 million in
premium-services margins, compared with $53.1 million in 2011; $40.0 million
in storage and marketing margins from realized seasonal price differentials
and marketing optimization activities, compared with $96.0 million in 2011;
and incurred $89.9 million of storage demand costs in 2012, compared with
$87.7 million in 2011.

This segment also recognized a loss on the change in fair value of
non-qualifying economic storage hedges of $1.0 million in 2012, compared with
a recognized gain of $8.5 million in 2011. It also recorded a $10.3 million
non-recurring goodwill impairment charge in the first quarter 2012.

The decrease in premium-services margins was the result of lower natural gas
prices and natural gas price volatility. The significant decrease in storage
and marketing margins was due to the segment's hedging strategies and the
inability to hedge seasonal natural gas price differentials at levels
available in previous years. Additionally, there were fewer opportunities to
optimize its leased storage assets.

This segment realized a loss in transportation margins of $42.4 million in
2012, compared with a loss of $18.8 million in 2011, due primarily to a $29.5
million decrease from the inability to hedge transportation margins as in
previous years as a result of narrow location differentials primarily from the
significant increase in natural gas supply.

Fourth-quarter 2012 operating costs were $4.1 million, compared with $6.0
million in the fourth quarter 2011. 2012 operating costs were $18.0 million,
compared with $24.5 million in 2011. The decrease for the three-month and
full-year 2012 period was due primarily to lower employee-related costs.

                                        Three Months Ended  Years Ended
                                        December 31,        December 31,
(Unaudited)                             2012       2011     2012      2011
                                        (Millions of dollars)
Marketing, storage and transportation   $ 31.0     $ 40.7   $ 105.6   $ 208.0
revenues, gross
Storage and transportation costs        38.0       40.4     157.3     161.2
 Marketing, storage and               (7.0)      0.3      (51.7)    46.8
transportation, net
Financial trading, net                  0.8        0.3      2.4       1.9
 Net margin                           $ (6.2)    $  0.6  $ (49.3)  $  48.7

Key Statistics: More detailed information is listed in the tables.

  oNatural gas in storage at Dec. 31, 2012, was 55.5 Bcf, compared with 70.5
    Bcf a year earlier;
  oNatural gas storage capacity under lease at Dec. 31, 2012, was 71.5 Bcf,
    compared with 75.6 Bcf a year earlier; and
  oNatural gas transportation capacity at Dec. 31, 2012, was 1.0 billion
    cubic feet per day (Bcf/d), of which 1.0 Bcf/d was contracted under
    long-term natural gas transportation contracts, compared with 1.2 Bcf/d of
    total capacity and 1.1 Bcf/d of long-term capacity a year earlier.

2013 REVISED EARNINGS GUIDANCE AND THREE-YEAR GROWTH FORECASTS

ONEOK's 2013 net income guidance is expected to be in the range of $350
million to $400 million, compared with its previous guidance range of $405
million to $455 million announced on Sept. 24, 2012.

Half of the reduction in 2013 operating income and equity earnings guidance
reflects lower anticipated earnings in the ONEOK Partners segment due to lower
expected NGL volumes as a result of widespread and prolonged ethane rejection.
Narrower expected NGL location price differentials and lower expected NGL
prices, particularly ethane and propane, also are expected to affect the
partnership's 2013 earnings.

ONEOK now expects net income guidance to increase by an average of 15 to 20
percent annually over a three-year period, comparing 2012 results with 2015.
Previously, ONEOK estimated a three-year average annual growth rate of 20 to
25 percent, comparing 2012 guidance provided on Sept. 24, 2012, with 2015.

The revision to the three-year growth forecast is due primarily to lower than
expected NGL exchange margins in the Rocky Mountain region and lower expected
NGL and natural gas prices in the ONEOK Partners segment in 2014 and 2015.

The projected dividend increase for July 2013 has been revised to 2 cents per
share, subject to ONEOK board approval, compared with its previous guidance
announced on Sept. 24, 2012, of a 3-cent-per-share dividend increase. In
January 2013, ONEOK increased its dividend by 3 cents per share to 36 cents
per share, a 9 percent increase.

ONEOK also revised its expectation to increase dividends by approximately 55
to 65 percent between 2012 and 2015, subject to ONEOK board approval, compared
with its previous guidance of a 65 to 70 percent dividend increase. The
company affirmed its long-term dividend target payout of 60 to 70 percent of
recurring earnings.

ONEOK's revised 2013 guidance includes a projected
0.5-cent-per-unit-per-quarter increase in unitholder distributions declared
from ONEOK Partners, subject to ONEOK Partners board approval, compared with
its previous guidance of a 2-cent-per-unit-per-quarter increase.

ONEOK Partners now has estimated an average annual distribution increase of 8
to 12 percent between 2012 and 2015, subject to ONEOK Partners board approval,
compared with its previous guidance of 10 to 15 percent.

The midpoint of ONEOK's 2013 operating income guidance decreased to $1.14
billion, compared with its previous guidance midpoint of $1.2 billion. The
midpoint for ONEOK's revised 2013 net income guidance is $375 million,
compared with its previous guidance of $430 million.

The midpoint of the ONEOK Partners segment's 2013 operating income guidance
decreased to $936 million, compared with its previous guidance of $1.027
billion. The reduced 2013 guidance is due primarily to lower expected natural
gas liquids volumes as a result of widespread and prolonged ethane rejection.
Narrower expected NGL location price differentials and lower expected NGL
prices, particularly ethane and propane, also are expected to affect the
partnership's 2013 earnings.

The average unhedged prices assumed for 2013 at ONEOK Partners are $88.00 per
barrel for New York Mercantile Exchange (NYMEX) crude oil, $3.75 per MMBtu for
NYMEX natural gas and 66 cents per gallon for composite natural gas liquids.
Previous guidance released on Sept. 24, 2012, assumed $95.30 per barrel for
NYMEX crude oil, $4.05 per MMBtu for NYMEX natural gas and 76 cents per gallon
for composite natural gas liquids.

In the natural gas gathering and processing business, hedges are in place for
2013 on approximately 79 percent of the expected equity natural gas production
at an average price of $3.79 per MMBtu; 45 percent of its expected equity NGL
production at an average price of $1.19 per gallon; and 83 percent of its
expected equity condensate production at an average price of $2.43 per gallon.

Currently, ONEOK Partners estimates that in its natural gas gathering and
processing business, a 1-cent-per-gallon change in the composite price of NGLs
would change annual net margin by approximately $2.1 million. A
$1.00-per-barrel change in the price of crude oil would change annual net
margin by approximately $1.1 million. Also, a 10-cent-per-MMBtu change in the
price of natural gas would change annual net margin by approximately $2.8
million. All of these sensitivities exclude the effects of hedging and assume
normal operating conditions.

ONEOK Partners now estimates in 2013 that in the natural gas liquids business,
the average Conway-to-Mont Belvieu OPIS location price differential of ethane
in ethane/propane mix is expected to be 5 cents per gallon for 2013, compared
with its previous full-year 2013 guidance of 19 cents per gallon. The impact
of this location price differential in the natural gas liquids business has
decreased as an increasing portion of its transportation capacity between the
Conway, Kan., and Mont Belvieu, Texas, NGL market centers now is utilized by
its exchange-services activities to produce fee-based earnings.

The midpoint of the natural gas distribution segment's 2013 operating income
guidance remains $227 million.

The midpoint of the energy services segment's 2013 operating income guidance
remains a loss of $20 million.

Capital expenditures for 2013 are expected to be approximately $3.0 billion,
comprised of approximately $2.64 billion at ONEOK Partners and $316 million on
a stand-alone basis. These estimates have been updated to reflect the January
2013 announcement of new growth projects in the ONEOK Partners segment.

On a stand-alone basis, the midpoint of ONEOK's 2013 guidance for cash flow
before changes in working capital has been updated to $835 million, compared
with its previous guidance of $785 million. Cash flow before changes in
working capital is expected to exceed capital expenditures and dividends by
$195 million to $235 million, compared with its previous guidance of $140
million to $180 million. These estimates have been adjusted to reflect the
revised 2013 earnings guidance.

Additional information is available in the guidance tables on the ONEOK
website.

EARNINGS CONFERENCE CALL AND WEBCAST:

ONEOK and ONEOK Partners management will conduct a joint conference call on
Tuesday, Feb. 26, 2013, at 11 a.m. Eastern Standard Time (10 a.m. Central
Standard Time). The call will also be carried live on ONEOK's and ONEOK
Partners' websites.

To participate in the telephone conference call, dial 888-427-9421, pass code
2364894, or log on to www.oneok.com or www.oneokpartners.com.

If you are unable to participate in the conference call or the webcast, the
replay will be available on ONEOK's website, www.oneok.com, and ONEOK
Partners' website, www.oneokpartners.com, for 30 days. A recording will be
available by phone for seven days. The playback call may be accessed at
888-203-1112, pass code 2364894.

LINK TO EARNINGS TABLES:

http://www.oneok.com/~/media/ONEOK/EarningsTables/Q4_Year-End2012_0KE-Earnings_2fdW365.ashx

NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURE:

ONEOK has disclosed in this news release stand-alone cash flow, before changes
in working capital, which is a non-GAAP financial measure. Stand-alone cash
flow, before changes in working capital, is used as a measure of the company's
financial performance. Stand-alone cash flow, before changes in working
capital, is defined as net income less the portion attributable to
non-controlling interests, adjusted for equity in earnings and distributions
received from ONEOK Partners, and ONEOK's stand-alone depreciation,
amortization and impairments, deferred income taxes and certain other items.

The non-GAAP financial measure described above is useful to investors as a
measurement of financial performance of the company's fundamental business
activities. ONEOK stand-alone cash flow, before changes in working capital,
should not be considered in isolation or as a substitute for net income or any
other measure of financial performance presented in accordance with GAAP.

This non-GAAP financial measure excludes some, but not all, items that affect
net income. Additionally, this calculation may not be comparable with
similarly titled measures of other companies. A reconciliation of stand-alone
cash flow, before changes in working capital, to net income is included in the
financial tables.

ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a diversified energy company.
We are the general partner and own 43.4 percent of ONEOK Partners, L.P.
(NYSE: OKS), one of the largest publicly traded master limited partnerships,
which is a leader in the gathering, processing, storage and transportation of
natural gas in the U.S. and owns one of the nation's premier natural gas
liquids (NGL) systems, connecting NGL supply in the Mid-Continent and Rocky
Mountain regions with key market centers. ONEOK is among the largest natural
gas distributors in the United States, serving more than two million customers
in Oklahoma, Kansas and Texas. Our energy services operation focuses
primarily on marketing natural gas and related services throughout the U.S.
ONEOK is a FORTUNE 500 company and is included in Standard & Poor's (S&P) 500
Stock Index.

For information about ONEOK, Inc., visit the website: www.oneok.com.

For the latest news about ONEOK, follow us on Twitter @ONEOKNews.

Some of the statements contained and incorporated in this news release are
forward-looking statements within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act. The forward-looking statements
relate to our anticipated financial performance (including projected operating
income, net income, capital expenditures, cash flow and projected levels of
dividends), liquidity, management's plans and objectives for our growth
projects and other future operations (including plans to construct additional
natural gas and natural gas liquids pipelines and processing facilities), our
business prospects, the outcome of regulatory and legal proceedings, market
conditions and other matters. We make these forward-looking statements in
reliance on the safe harbor protections provided under the Private Securities
Litigation Reform Act of 1995. The following discussion is intended to
identify important factors that could cause future outcomes to differ
materially from those set forth in the forward-looking statements.

Forward-looking statements include the items identified in the preceding
paragraph, the information concerning possible or assumed future results of
our operations and other statements contained or incorporated in this news
release identified by words such as "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," "should," "goal," "forecast,"
"guidance," "could," "may," "continue," "might," "potential," "scheduled," and
other words and terms of similar meaning.

One should not place undue reliance on forward-looking statements, which are
applicable only as of the date of this news release. Known and unknown risks,
uncertainties and other factors may cause our actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by forward-looking statements. Those
factors may affect our operations, markets, products, services and prices. In
addition to any assumptions and other factors referred to specifically in
connection with the forward-looking statements, factors that could cause our
actual results to differ materially from those contemplated in any
forward-looking statement include, among others, the following:

  othe effects of weather and other natural phenomena, including climate
    change, on our operations, including energy sales and demand for our
    services and energy prices;
  ocompetition from other United States and foreign energy suppliers and
    transporters, as well as alternative forms of energy, including, but not
    limited to, solar power, wind power, geothermal energy and biofuels such
    as ethanol and biodiesel;
  othe status of deregulation of retail natural gas distribution;
  othe capital intensive nature of our businesses;
  othe profitability of assets or businesses acquired or constructed by us;
  oour ability to make cost-saving changes in operations;
  orisks of marketing, trading and hedging activities, including the risks of
    changes in energy prices or the financial condition of our counterparties;
  othe uncertainty of estimates, including accruals and costs of
    environmental remediation;
  othe timing and extent of changes in energy commodity prices;
  othe effects of changes in governmental policies and regulatory actions,
    including changes with respect to income and other taxes, pipeline safety,
    environmental compliance, climate change initiatives and authorized rates
    of recovery of natural gas and natural gas transportation costs;
  othe impact on drilling and production by factors beyond our control,
    including the demand for natural gas and crude oil; producers' desire and
    ability to obtain necessary permits; reserve performance; and capacity
    constraints on the pipelines that transport crude oil, natural gas and
    NGLs between producing areas and our facilities;
  ochanges in demand for the use of natural gas because of market conditions
    caused by concerns about global warming;
  othe impact of unforeseen changes in interest rates, equity markets,
    inflation rates, economic recession and other external factors over which
    we have no control, including the effect on pension and postretirement
    expense and funding resulting from changes in stock and bond market
    returns;
  oour indebtedness could make us vulnerable to general adverse economic and
    industry conditions, limit our ability to borrow additional funds and/or
    place us at competitive disadvantages compared with our competitors that
    have less debt, or have other adverse consequences;
  oactions by rating agencies concerning the credit ratings of ONEOK and
    ONEOK Partners;
  othe results of administrative proceedings and litigation, regulatory
    actions, rule changes and receipt of expected clearances involving the
    Oklahoma Corporation Commission (OCC), Kansas Corporation Commission
    (KCC), Texas regulatory authorities or any other local, state or federal
    regulatory body, including the Federal Energy Regulatory Commission
    (FERC), the National Transportation Safety Board (NTSB), the Pipeline and
    Hazardous Materials Safety Administration (PHMSA), the Environmental
    Protection Agency (EPA) and the Commodity Futures Trading Commission
    (CFTC);
  oour ability to access capital at competitive rates or on terms acceptable
    to us;
  orisks associated with adequate supply to our gathering, processing,
    fractionation and pipeline facilities, including production declines that
    outpace new drilling or extended periods of ethane rejection;
  othe risk that material weaknesses or significant deficiencies in our
    internal controls over financial reporting could emerge or that minor
    problems could become significant;
  othe impact and outcome of pending and future litigation;
  othe ability to market pipeline capacity on favorable terms, including the
    effects of:

       ofuture demand for and prices of natural gas, NGLs and crude oil;
       ocompetitive conditions in the overall energy market;
       oavailability of supplies of Canadian and United States natural gas
         and crude oil; and
       oavailability of additional storage capacity;

  operformance of contractual obligations by our customers, service
    providers, contractors and shippers;
  othe timely receipt of approval by applicable governmental entities for
    construction and operation of our pipeline and other projects and required
    regulatory clearances;
  oour ability to acquire all necessary permits, consents or other approvals
    in a timely manner, to promptly obtain all necessary materials and
    supplies required for construction, and to construct gathering,
    processing, storage, fractionation and transportation facilities without
    labor or contractor problems;
  othe mechanical integrity of facilities operated;
  odemand for our services in the proximity of our facilities;
  oour ability to control operating costs;
  oadverse labor relations;
  oacts of nature, sabotage, terrorism or other similar acts that cause
    damage to our facilities or our suppliers' or shippers' facilities;
  oeconomic climate and growth in the geographic areas in which we do
    business;
  othe risk of a prolonged slowdown in growth or decline in the United States
    or international economies, including liquidity risks in United States or
    foreign credit markets;
  othe impact of recently issued and future accounting updates and other
    changes in accounting policies;
  othe possibility of future terrorist attacks or the possibility or
    occurrence of an outbreak of, or changes in, hostilities or changes in the
    political conditions in the Middle East and elsewhere;
  othe risk of increased costs for insurance premiums, security or other
    items as a consequence of terrorist attacks;
  orisks associated with pending or possible acquisitions and dispositions,
    including our ability to finance or integrate any such acquisitions and
    any regulatory delay or conditions imposed by regulatory bodies in
    connection with any such acquisitions and dispositions;
  othe possible loss of natural gas distribution franchises or other adverse
    effects caused by the actions of municipalities;
  othe impact of uncontracted capacity in our assets being greater or less
    than expected;
  othe ability to recover operating costs and amounts equivalent to income
    taxes, costs of property, plant and equipment and regulatory assets in our
    state and FERC-regulated rates;
  othe composition and quality of the natural gas and NGLs we gather and
    process in our plants and transport on our pipelines;
  othe efficiency of our plants in processing natural gas and extracting and
    fractionating NGLs;
  othe impact of potential impairment charges;
  othe risk inherent in the use of information systems in our respective
    businesses, implementation of new software and hardware, and the impact on
    the timeliness of information for financial reporting;
  oour ability to control construction costs and completion schedules of our
    pipelines and other projects; and
  othe risk factors listed in the reports we have filed and may file with the
    Securities and Exchange Commission (SEC), which are incorporated by
    reference.

These factors are not necessarily all of the important factors that could
cause actual results to differ materially from those expressed in any of our
forward-looking statements. Other factors could also have material adverse
effects on our future results. These and other risks are described in greater
detail in Item 1A, Risk Factors, in the Annual Report. All forward-looking
statements attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these factors. Other than as required under
securities laws, we undertake no obligation to update publicly any
forward-looking statement whether as a result of new information, subsequent
events or change in circumstances, expectations or otherwise.

Analyst Contact: Andrew Ziola
                 918-588-7163
Media Contact:   Megan Washbourne
                 918-588-7572



SOURCE ONEOK, Inc.

Website: http://www.oneok.com