DEF 14A: ONEOK, Inc. Invites Shareholders to Virtual Annual Meeting, Outlines Key Business and Governance Matters

ONEOK, Inc. has scheduled its annual shareholder meeting for May 22, 2024, as a virtual event, detailing key items for vote including director elections, auditor ratification, and executive compensation.

Summary

• ONEOK, Inc. will hold its annual shareholder meeting virtually on May 22, 2024, at 9:00 a.m. Central Daylight Time.
• Shareholders can register online to attend the virtual meeting.
• The meeting will address the election of 10 director nominees, ratification of PricewaterhouseCoopers LLP as the independent auditor, and an advisory vote on executive compensation.
• The Board of Directors recommends voting in favor of all proposals.
• ONEOK completed its acquisition of Magellan Midstream Partners on September 25, 2023, expanding its product portfolio and long-term value proposition.
• In 2023, consolidated operating income was approximately $4.1 billion, compared to $2.8 billion in 2022, and net income was approximately $2.7 billion, compared to $1.7 billion in 2022.
• The company paid common stock dividends totaling $3.82 per share in 2023, a 2% increase from the prior year, and declared a quarterly dividend of $0.99 per share in February 2024, a 3.7% increase year-over-year.
• ONEOK is targeting an absolute 30% reduction, or 2.2 million metric tons (MMT), of combined Scope 1 and Scope 2 emissions by 2030 for its legacy ONEOK assets, compared with 2019 baseyear levels.
• As of December 31, 2023, ONEOK has achieved reductions totaling approximately 1.1 million metric tons of the targeted 2.2 million metric tons of carbon dioxide equivalents.

Sentiment

Score: 7

Explanation: The document presents a balanced view of ONEOK's performance, highlighting both achievements and areas for improvement. The tone is generally positive, emphasizing growth, strategic acquisitions, and commitment to sustainability, but also acknowledges risks and challenges.

Positives

• Completion of the Magellan Midstream Partners acquisition expands ONEOK's product portfolio and long-term value.
• Increased volumes across the system in 2023 highlight the extensive and integrated assets.
• Consolidated operating income and net income increased in 2023 compared to 2022.
• Dividend payments increased in 2023 and early 2024.
• Progress has been made toward the company's GHG emissions reduction target, achieving approximately 1.1 million metric tons of the targeted 2.2 million metric tons of carbon dioxide equivalents.
• In 2023, qualified for inclusion in the Dow Jones Sustainability North American Index.
• In 2023, received an MSCI ESG Rating of AAA.
• In 2023, qualified for inclusion in the FTSE4Good Index Series.
• In 2023, achieved company best (lowest) Agency Recordable Environmental Event Rate.

Negatives

• The 2023 TRIR performance of 0.36 represented a 16.7% increase (or decline in performance) over the 2023 target of 0.30.

Risks

• Forward-looking statements are subject to risks and uncertainties, including those related to the Magellan acquisition and ESG performance.
• Cybersecurity threats pose ongoing risks that could materially affect the company's operations, business strategy, results of operations, or financial condition.

Future Outlook

ONEOK anticipates several potential pathways toward achieving its emissions reduction target and expects reductions in 2024 to be primarily a result of improved methane management practices and system optimization.

Management Comments

• 'Loris background as a member of Magellans board and her executive experience focused on safety, integration and customer satisfaction, and Waynes operational experience and knowledge of the chemical and industrial gas businesses will make them valuable contributors as ONEOK moves forward,' Julie H. Edwards, Board Chair
• 'We expect each of them to bring their skills and experience to enhance our governance and strategic capabilities to the benefit of our shareholders and other stakeholders,' Julie H. Edwards, Board Chair

Industry Context

The document highlights ONEOK's position as a leading midstream service provider in North America, emphasizing its role in transporting natural gas, NGLs, refined products, and crude oil, contributing to energy security and meeting domestic and international energy demand.

Comparison to Industry Standards

• The document compares ONEOK's total shareholder return to a peer group of energy companies, including Energy Transfer, Enterprise Products Partners, and Kinder Morgan.
• The company benchmarks executive compensation against these peers to ensure competitive pay levels.
• ONEOK references several recognized reporting standards and frameworks, including the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) standards for voluntary ESG reporting and the Task Force on Climate -related Financial Disclosures (TCFD) voluntary framework for climate -related assessment and reporting.

Management Changes

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 2023 was in excess of $120,000.

Stakeholder Impact

• The document outlines ONEOK's commitment to creating exceptional value for its stakeholders, including shareholders, employees, customers, and communities.
• The company emphasizes responsible operations, environmental stewardship, and community investments.
• The document also addresses human capital management, diversity and inclusion, and employee safety.

Next Steps

• Shareholders are encouraged to vote on the proposals outlined in the proxy statement.
• ONEOK will continue to monitor and manage risks related to cybersecurity and climate change.
• The company will continue its integration efforts with respect to legacy Magellans cybersecurity and physical security platforms.

Key Dates

Keywords

ONEOK, shareholders, annual meeting, executive compensation, directors, Magellan, acquisition, dividends, ESG, sustainability, emissions reduction, governance, PricewaterhouseCoopers, audit