DEF: ONEOK, Inc. Invites Shareholders to 2025 Annual Meeting, Outlines Key Business and Governance Matters

ONEOK, Inc. has scheduled its annual shareholder meeting for May 21, 2025, and released a proxy statement detailing key business highlights, corporate governance practices, and proposals for shareholder voting.

Summary

• ONEOK, Inc. is holding its annual shareholder meeting virtually on May 21, 2025.
• The proxy statement outlines items for shareholder voting, including the election of ten director nominees, ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm, and approval of the 2025 Equity Incentive Plan and Employee Stock Award Program.
• ONEOK is a leading midstream service provider with approximately 60,000 miles of pipeline network.
• Since September 2023, ONEOK has acquired Magellan, a Gulf Coast NGL pipeline system from Easton Energy, Medallion, and EnLink, expanding its integrated position in key U.S. basins.
• In 2024, consolidated operating income was approximately $5.0 billion, compared to $4.1 billion in 2023, and net income was approximately $3.1 billion, compared to $2.7 billion in 2023.
• The company paid common stock dividends totaling $3.96 per share in 2024, a 3.7% increase from the prior year.
• In February 2025, a quarterly common stock dividend of $1.03 per share ($4.12 per share on an annualized basis) was paid, a 4% increase compared to the same quarter in the prior year.
• The Board is committed to strong corporate governance practices, including an independent Board Chair, regular executive sessions of independent directors, and annual Board and committee performance evaluations.
• The company has a goal to reduce GHG emissions by 2.2 million metric tons by 2030 from 2019 levels and has achieved approximately 1.7 MMT tons of the targeted 2.2 MMT of carbon dioxide equivalents as of December 31, 2024.
• The company's Agency Recordable Environmental Event Rate (AREER) target for 2024 was 0.74, and the achieved result was 0.33, which was 55% below the target goal.
• As of December 31, 2024, ONEOK had 5,177 employees.
• The ONEOK Foundation contributed approximately $3.7 million, and ONEOK made corporate contributions of approximately $5.0 million to support local charitable organizations in 2024.

Sentiment

Score: 7

Explanation: The document presents a positive outlook for ONEOK, highlighting strong financial performance, strategic acquisitions, and commitment to sustainability and governance. The tone is optimistic and confident, reflecting a positive sentiment.

Positives

• ONEOK has successfully diversified its assets through strategic acquisitions.
• The company demonstrates strong financial performance with increased operating and net income.
• ONEOK is committed to returning value to shareholders through consistent dividend growth.
• The company is making significant progress towards its GHG emissions reduction target.
• ONEOK maintains a strong commitment to safety and environmental excellence, as evidenced by its low AREER.
• The company actively engages in community investments and supports various charitable organizations.

Risks

• The document mentions risk factors related to cybersecurity in the Annual Report on Form 10-K for the year ended December 31, 2024.
• The document mentions that the company faces certain ongoing risks from cybersecurity threats that, if realized and material, may materially affect us, including our operations, business strategy, results of operations or financial condition.

Future Outlook

The company aims to continue its growth strategy, focusing on expanding its integrated position in key U.S. basins and delivering long-term value to stakeholders.

Management Comments

• At ONEOK, our commitment to responsible operations, meaningful engagements with our stakeholders and a willingness to adapt have remained paramount throughout our long history.
• We continue to embrace our philosophy of continuous improvement by working to enhance our operations and disclosures in these areas.
• Our growth strategy is intentional and disciplined.

Industry Context

ONEOK's acquisitions and expansion efforts reflect a broader trend in the midstream sector to consolidate assets and build integrated networks to serve growing energy demand.

Comparison to Industry Standards

• The document compares ONEOK's total shareholder return to a peer group including Antero Midstream Corp., DT Midstream, Inc., Energy Transfer, L.P., Enterprise Products Partners L.P., Kinder Morgan, Inc., Kinetik Holdings, Inc., MPLX LP, Plains All American Pipeline, L.P., Targa Resources Corp., Western Midstream Partners, LP, and The Williams Companies, Inc.
• The document also compares ONEOK's executive compensation to a peer group including Cheniere Energy, Inc., Diamondback Energy, Inc., Energy Transfer LP, Enterprise Products Partners L.P., Hess Corporation, Kinder Morgan, Inc., Marathon Petroleum Corporation, Phillips 66, Plains All American Pipeline, L.P., Targa Resources Corp., TC Energy Corporation, The Williams Companies, Inc., Western Midstream Partners, LP.

Related Party Transactions

• Charles M. Kelley II, son of Charles M. Kelley, our Senior Vice President, Natural Gas Pipelines, is employed by us as an Account Director and his total compensation during 2024 was in excess of $120,000.

Stakeholder Impact

• Shareholders will have the opportunity to vote on key decisions affecting the company's direction and governance.
• Employees will benefit from the company's commitment to human capital management and community investments.
• Customers will benefit from the company's focus on providing safe, reliable, and responsible energy solutions.
• Communities will benefit from the company's commitment to environmental stewardship and community investments.

Next Steps

• Shareholders are encouraged to vote on the proposals outlined in the proxy statement.
• The company will continue to focus on its growth strategy, ESG initiatives, and delivering long-term value to stakeholders.

Key Dates

Keywords

ONEOK, shareholder meeting, proxy statement, acquisitions, Magellan, financial performance, dividends, corporate governance, ESG, GHG emissions, executive compensation, directors, PricewaterhouseCoopers, equity incentive plan, employee stock award program, risk management, cybersecurity, sustainability, human capital management, political advocacy