Exhibit 99.1

News

August 2, 2004		Analyst Contact:		Weldon Watson
				918-588-7158

ONEOK second quarter earnings exceed expectations;

2004 guidance increases

Tulsa, Okla.— ONEOK, Inc. (NYSE:OKE) today announced that net income for the second quarter of 2004 exceeded analyst expectations. Net income was $17.8 million, or 17 cents per diluted share of common stock, and First Call average of analyst estimates was 16 cents per share. For the same period in 2003, net income was $22.5 million, or 23 cents per diluted share of common stock.

For the six months, net income was $122.9 million, or $1.20 per diluted share of common stock, compared to $45 million, or 51 cents per diluted share of common stock, for 2003.

David Kyle, ONEOK’s chairman, president and chief executive officer, said, “I am pleased with our earnings and our continued strong cash flows. Our gathering and processing business continues to deliver strong results. Higher commodity prices, improved keep whole spread conditions, and our ongoing strategy of restructuring contracts had a positive impact. The production segment, as expected, is contributing positively due to last year’s acquisition of natural gas and oil properties in east Texas.

“Typically during the second and third quarters, we experience lower operating results from our marketing group as we focus on injecting gas into storage in preparation for winter customer demands. We have renewed our focus on our physical marketing business and recently added three new LDC customers and two new large industrial customers. In addition, we expect to begin reporting revenues from our non-trading activities on a gross basis beginning in the third quarter.

“As a result of the improved outlook in our gathering and processing segment we have increased our earnings guidance for 2004 by 6 cents, or to a new range of $2.18 to $2.24 per share. Earnings per share are also estimated to be 18 cents and 82 cents for the third and fourth quarters, respectively.

ONEOK second quarter earnings

exceed expectations

2004 guidance increases

August 2, 2004

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“Finally, I am pleased to remind shareholders that in June the Board of Directors increased the quarterly dividend on common stock for the third time in 2004 by two cents per share. The quarterly dividend of 23 cents per share will be paid August 16 to holders of record as of July 30.”

2nd Quarter results included:

• Operating income of $53.6 million, compared to $62 million one year ago; and

• The impact of $8.9 million in operating income from rate relief for the distribution companies in Kansas and Oklahoma.

Fiscal year to date results included:

• Operating income of $248.7 million, compared to $294.4 million one year ago; and

• Cash flow from operations, before changes in working capital, of $274.2 million, which exceeded capital expenditures of $114.4 million and dividends of $39.5 million by $120.3 million.

The following table shows the components of net income for the fiscal year to date. All numbers are net of tax.

		Six Months Ended June 30,
		2004						2003
(Net Income in Millions of Dollars)		Net Income			EPS			Net Income				EPS
Income from continuing operations		$	122.9		$	1.20		$	148.2			$	1.43
Income from operations of a discontinued component			—			—			2.3				0.02
Gain on sale of discontinued component			—			—			38.4				0.34
Cumulative effect of rescission of EITF 98-10			—			—			(141.8	)			(1.26	)
Cumulative effect adoption of FAS 143			—			—			(2.1	)			(0.02	)
Net Income		$	122.9		$	1.20		$	45.0			$	0.51

2004 Business unit results

Production

Operating income increased to $12 million for the second quarter of 2004, compared to $3.2 million in 2003 for our production operation primarily as a result of the acquisition of the Texas gas and oil properties in December 2003. The acquired properties produced 2.2 Bcf of natural gas and 32,000 barrels of oil during the second quarter of 2004. Operating income also benefited from a hedged natural gas price of $5.04 per thousand cubic feet in 2004 compared to $4.75 per thousand cubic feet in 2003.

The acquisition of the Texas gas and oil properties increased lease-operating expense by approximately $1.8 million. We also participated in drilling 22 development wells during the second quarter of 2004 compared to 14 wells in the same quarter last year, and completed 16 wells during the second quarter of 2004 compared to 8 wells in the same quarter in 2003.

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2004 guidance increases

August 2, 2004

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For the remainder of 2004, we have hedged approximately 95 percent of our anticipated natural gas production at an average net price at the wellhead of $5.50 per thousand cubic feet and 100 percent of our anticipated oil production at a fixed NYMEX price of $30.35 per barrel. Currently, we have hedges on 20 million cubic feet per day of our 2005 natural gas production at a net wellhead price of $5.68 per thousand cubic feet. We have also hedged an additional 10 million cubic feet per day for the first quarter of 2005 at a net wellhead price of $6.12 per thousand cubic feet.

Operating income for the fiscal year to date was $23.8 million compared to $8.9 million for the same period in 2003.

The production segment owns, develops and produces natural gas and oil reserves in Oklahoma and Texas. This segment focuses on acquisition and development of reserves, rather than exploratory drilling.

Gathering and Processing

Operating income from our gathering and processing operation increased 73 percent to $27.3 million for the second quarter of 2004, compared to $15.8 million for 2003 because of:

• Higher prices for natural gas, natural gas liquids and condensate;

• Improved keep-whole spreads due to the higher value of natural gas liquids relative to natural gas; and

• Improved margins resulting from the segment’s ongoing strategy of restructuring unprofitable gas purchase, gathering and processing contracts.

Operating income for the fiscal year to date was $47.8 million compared to $23.6 million for the same period in 2003.

For the remainder of 2004, we have hedged approximately 50 percent of our company-owned condensate sales at an average NYMEX price of $38.38 per barrel. We have also pre-sold for the remainder of 2004 approximately 50 percent of certain company-owned natural gas liquids at a weighted average price of 62 cents per gallon.

The following table sets forth our contract mix on a volumetric basis for the periods indicated:

		Three Months Ended June 30,						Six Months Ended June 30,
Contract Type		2004			2003			2004			2003
Fee		46	%		46	%		46	%		47	%
Percent of Proceeds		31	%		28	%		31	%		27	%
Keep Whole		23	%		26	%		23	%		26	%

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2004 guidance increases

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The gathering and processing segment is engaged in the gathering and processing of natural gas and the fractionation, storage and marketing of natural gas liquids. The segment currently has a processing capacity of approximately 1.9 billion cubic feet per day, of which approximately 1 million cubic feet per day is currently idle. Our gathering and processing segment owns approximately 13,800 miles of gathering pipelines that supply our gas processing plants.

Transportation and Storage

Operating income from our transportation and storage operation was $11.1 million for the second quarter of 2004, compared to $11.3 million for the same period in 2003. Although operating income and net revenues were flat compared to 2003, there were offsetting differences between the periods, including:

• Increased storage revenue due to additional spot storage transactions; and

• Lower volumes transported due to decreased irrigation and power plant demand.

Operating income for the fiscal year to date was $24.6 million compared to $26.5 million for the same period in 2003.

The transportation and storage segment owns and operates intrastate pipelines and natural gas transmission pipelines, natural gas storage and gas gathering facilities in Oklahoma, Kansas and Texas. The storage facilities have a combined working capacity of 59.6 billion cubic feet, of which 8 billion cubic feet is temporarily idle.

Distribution

Operating income from our distribution operation was a loss of $2.7 million for the second quarter of 2004, compared to income of $0.4 million for the same period in 2003, primarily due to the combination of the following:

• In Oklahoma, decreased margin of $5 million due to reduced sales volumes partially offset by rate relief of $2.4 million;

• In Kansas, decreased margin of $5.8 million due to the December 2003 elimination of the WeatherProof Bill program, which reversed part of the impact seen in first quarter, offset by $6.5 million in rate relief; and

• Increased employee and contractor costs of $4.1 million.

Operating income for the fiscal year to date was $83 million compared to $75.4 million for the same period in 2003.

The distribution segment includes Oklahoma Natural Gas Company, Kansas Gas Service Company and Texas Gas Service Company. The companies are the largest natural gas

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August 2, 2004

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distributors in Kansas and Oklahoma and the third largest in Texas. Overall, the companies serve almost 2 million customers.

Marketing and Trading

Operating income from our marketing and trading operation was $4.9 million for the second quarter of 2004, compared to $30.5 million for the same period in 2003. For the fiscal year to date, operating income was $68.3 million compared to $157.4 million in 2003. The revenue from marketing and trading was derived from the following three sources:

		Three Months Ended June 30,						Six Months Ended June 30,
		2004			2003			2004			2003
		(Millions of Dollars)
Marketing		$	1.3		$	13.7		$	64.3		$	93.8
Trading			7.3			21.2			14.2			71.8
Retail Marketing			5.6			4.5			11.1			11.3
			14.2			39.4			89.6			176.9
Less: Expenses			9.3			8.9			21.3			19.5
Operating income		$	4.9		$	30.5		$	68.3		$	157.4

The decrease in operating income for the second quarter of 2004 compared to the same period in 2003 is primarily due to:

• The impact on marketing and storage activities of decreases in inter-regional basis spreads;

• Reduced natural gas volatility and the impact it has on our options portfolio included in trading activities;

• The impact on both marketing and storage and trading activities of a change in the value of our derivative contracts subject to fair value accounting; and

• An increase in our retail operations resulting from continued customer expansion and contract extensions.

As we look to the balance of 2004, we still have 25 billion cubic feet of natural gas to inject into our total leased capacity of 84 billion cubic feet. Current NYMEX natural gas spreads to the winter are over 80 cents per MMbtu. This fall, we expect to start reaping benefits from our Canadian market expansion with improved capability of serving northeastern United States markets. We continue to expand our peaking services with both new and existing customers.

The marketing and trading segment purchases, stores, transports, markets and trades natural gas to both the wholesale and retail sectors in most states. Leased storage and transport capacity provide direct access to all regions of the country and flexibility in capturing volatility in the energy markets. The segment also markets and trades crude oil and power on a smaller scale.

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2004 guidance increases

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Earnings Conference Call

The ONEOK second quarter conference call will be held at 11 a.m. Eastern time (10 a.m. Central time) on August 3, 2004. Those who wish may join the call on the ONEOK Web site at www.oneok.com or call 1-866-246-6870, pass code 4066547. A recording of the call will be available on our Web site for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 1-866-219-1444, pass code 4066547.

ONEOK, Inc., is a diversified energy company involved primarily in oil and gas production, natural gas processing, gathering, storage and transmission in the mid-continent areas of the United States. The company’s energy marketing and trading operations provide service to customers in most states. The company is the largest natural gas distributor in Kansas and Oklahoma, and the third largest in Texas, operating as Kansas Gas Service, Oklahoma Natural Gas and Texas Gas Service, serving almost 2 million customers.

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

###

Some of the statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements relate to: anticipated financial performance, management’s plans and objectives for future operations, expectations relating to pending or possible acquisitions and dispositions, expectations as to the dividend level on our common stock, business prospects, outcome of regulatory proceedings, market conditions, and other matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements in certain circumstances. 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 information concerning possible or assumed future results of our operations and other statements contained in this press release identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “believe,” “projection” or “goal.”

You should not place undue reliance on forward-looking statements. 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 the 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:

· risks associated with any reduction in our credit ratings;

· the effects of weather and other natural phenomena on sales and prices;

· competition from other energy suppliers as well as alternative forms of energy;

· the capital intensive nature of our business;

· further deregulation, or “unbundling,” of the natural gas business;

· competitive changes in the natural gas gathering, transportation and storage business resulting from deregulation, or “unbundling,” of the natural gas business;

· the profitability of assets or businesses acquired by us;

· risks of marketing, trading and hedging activities as a result of changes in energy prices or the financial condition of our trading partners;

· economic climate and growth in the geographic areas in which we do business;

· the uncertainty of estimates, including estimates for oil and gas reserves;

· the timing and extent of changes in commodity prices for natural gas, natural gas liquids, electricity and crude oil;

· the effects of changes in governmental policies and regulatory actions, including with respect to income taxes, environmental compliance, authorized rates or recovery of gas costs;

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· the impact of recently issued and future accounting pronouncements and other changes in accounting policies;

· the 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 or elsewhere;

· the 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 expense and funding resulting from changes in stock market returns;

· risks 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;

· the results of administrative proceedings and litigation involving the Oklahoma Corporation Commission, Kansas Corporation Commission, Texas regulatory authorities or any other local, state or federal regulatory body, including the Federal Energy Regulatory Commission;

· our ability to access capital at competitive rates or on terms acceptable to us;

· the risk of a significant slowdown in growth or decline in the U.S. economy, the risk of delay in growth or recovery in the U.S. economy or the risk of increased cost for insurance premiums, security and other items as a consequence of terrorist attacks or the threat of terrorist attacks;

· risks associated with the adequate supply of natural gas to our gathering and processing facilities, including from production declines, which outpace new drilling;

· risks associated with a misstatement of the volumes and revenues due to implementation of the new customer service system;

· the impact of the outcome of pending and future litigation; and

· the other factors listed in the reports we have filed and may file with the Securities and Exchange Commission, which are incorporated by reference.

Other factors and assumptions not identified above were also involved in the making of the forward-looking statements. The failure of those assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. We have no obligation and make no undertaking to update publicly or revise any forward-looking information.

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ONEOK, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)		2004			2003			2004			2003
		(Thousands of dollars, except per share amounts)
Revenues
Operating revenues, excluding energy trading revenues		$	618,231		$	457,898		$	1,573,542		$	1,408,937
Energy trading revenues, net			13,908			37,090			89,172			172,761
Cost of gas			402,087			262,552			1,039,903			946,310
Net Revenues			230,052			232,436			622,811			635,388
Operating Expenses
Operations and maintenance			113,646			114,120			244,022			226,563
Depreciation, depletion, and amortization			46,226			39,709			92,966			80,136
General taxes			16,574			16,598			37,109			34,243
Total Operating Expenses			176,446			170,427			374,097			340,942
Operating Income			53,606			62,009			248,714			294,446
Other income			1,655			2,051			9,469			2,905
Other expense			883			1,005			8,473			1,118
Interest expense			24,949			24,969			48,637			53,546
Income before Income Taxes			29,429			38,086			201,073			242,687
Income taxes			11,640			15,538			78,131			94,532
Income from Continuing Operations			17,789			22,548			122,942			148,155
Discontinued operations, net of taxes:
Income from operations of discontinued component			—			—			—			2,342
Gain on sale of discontinued component			—			—			—			38,369
Cumulative effect of changes in accounting principle, net of tax			—			—			—			(143,885	)
Net Income			17,789			22,548			122,942			44,981
Preferred stock dividends			—			5,045			—			20,211
Income Available for Common Stock		$	17,789		$	17,503		$	122,942		$	24,770
Earnings Per Share of Common Stock
Basic:
Earnings per share from continuing operations		$	0.17		$	0.24		$	1.22		$	1.66
Earnings per share from operations of discontinued component			—			—			—			0.02
Earnings per share from gain on sale of discontinued component			—			—			—			0.34
Earnings per share from cumulative effect of changes in accounting principle			—			—			—			(1.28	)
Net earnings per share, basic		$	0.17		$	0.24		$	1.22		$	0.74
Diluted:
Earnings per share from continuing operations		$	0.17		$	0.23		$	1.20		$	1.43
Earnings per share from operations of discontinued component			—			—			—			0.02
Earnings per share from gain on sale of discontinued component			—			—			—			0.34
Earnings per share from cumulative effect of changes in accounting principle			—			—			—			(1.28	)
Net earnings per share, diluted		$	0.17		$	0.23		$	1.20		$	0.51
Average Shares of Common Stock (Thousands)
Basic			102,545			74,412			100,830			79,048
Diluted			103,971			97,025			102,673			97,772
Dividends per share of Common Stock		$	0.44		$	0.17		$	0.63		$	0.34

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2004 guidance increases

August 2, 2004

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ONEOK, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)		June 30, 2004			December 31, 2003
		(Thousands of dollars)
Assets
Current Assets
Cash and cash equivalents		$	18,960		$	12,172
Trade accounts and notes receivable, net			815,657			970,141
Materials and supplies			21,576			18,962
Gas in storage			444,569			500,439
Assets from price risk management activities			227,033			289,417
Deposits			20,485			42,424
Other current assets			39,437			46,184
Total Current Assets			1,587,717			1,879,739
Property, Plant and Equipment
Production			424,993			404,254
Gathering and Processing			1,047,083			1,036,080
Transportation and Storage			697,280			699,676
Distribution			2,860,055			2,813,800
Marketing and Trading			127,128			126,315
Other			128,741			99,549
Total Property, Plant and Equipment			5,285,280			5,179,674
Accumulated depreciation, depletion, and amortization			1,561,931			1,487,848
Net Property, Plant and Equipment			3,723,349			3,691,826
Deferred Charges and Other Assets
Regulatory assets, net			203,887			213,915
Goodwill			225,363			225,615
Assets from price risk management activities			117,906			113,052
Prepaid pensions			123,965			120,618
Investments and other			86,668			69,283
Total Deferred Charges and Other Assets			757,789			742,483
Total Assets		$	6,068,855		$	6,314,048

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2004 guidance increases

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ONEOK, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)		June 30, 2004				December 31, 2003
		(Thousands of dollars)
Liabilities and Shareholders’ Equity
Current Liabilities
Current maturities of long-term debt		$	341,334			$	6,334
Notes payable			40,000				600,000
Accounts payable			882,773				813,895
Dividends payable			23,685				—
Accrued taxes			43,140				102,637
Accrued interest			33,643				32,999
Customers’ deposits			35,700				34,692
Unrecovered purchased gas costs			65,171				51,378
Liabilities from price risk management activities			283,511				302,878
Deferred income taxes			8,250				6,194
Other			118,458				130,174
Total Current Liabilities			1,875,665				2,081,181
Long-term Debt, excluding current maturities			1,525,988				1,878,264
Deferred Credits and Other Liabilities
Deferred income taxes			598,016				559,356
Liabilities from price risk management activities			188,435				112,714
Lease obligation			93,555				100,292
Other deferred credits			330,810				340,849
Total Deferred Credits and Other Liabilities			1,210,816				1,113,211
Total Liabilities			4,612,469				5,072,656
Commitments and Contingencies
Shareholders’ Equity
Common stock, $0.01 par value: authorized 300,000,000 shares; issued 106,012,637 shares and outstanding 102,976,466 shares at June 30, 2004; issued 98,194,674 shares and outstanding 95,194,666 shares at December 31, 2003			1,060				982
Paid in capital			987,816				815,870
Unearned compensation			(2,489	)			(3,422	)
Accumulated other comprehensive loss			(34,603	)			(17,626	)
Retained earnings			555,783				495,971
Treasury stock at cost: 3,036,171 shares at June 30, 2004 and 3,000,008 shares at December 31, 2003			(51,181	)			(50,383	)
Total Shareholders’ Equity			1,456,386				1,241,392
Total Liabilities and Shareholders’ Equity		$	6,068,855			$	6,314,048

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ONEOK, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Six Months Ended June 30,
(Unaudited)		2004				2003
		(Thousands of dollars)
Operating Activities
Income from continuing operations		$	122,942			$	148,155
Depreciation, depletion, and amortization			92,966				80,136
Gain on sale of assets			(8,606	)			(289	)
Income from equity investments			(541	)			(762	)
Deferred income taxes			52,772				67,999
Stock based compensation expense			4,640				2,095
Allowance for doubtful accounts			10,005				8,573
Changes in assets and liabilities (net of acquisition effects):
Accounts and notes receivable			144,479				152,724
Inventories			53,256				(259,848	)
Unrecovered purchased gas costs			13,793				(5,336	)
Deposits			21,939				—
Regulatory assets			(300	)			2,895
Accounts payable and accrued liabilities			26,962				47,978
Price risk management assets and liabilities			(11,468	)			8,272
Other assets and liabilities			(45,316	)			42,727
Cash Provided by Continuing Operations			477,523				295,319
Cash Provided by Discontinued Operations			—				8,285
Cash Provided by Operating Activities			477,523				303,604
Investing Activities
Changes in other investments, net			888				708
Acquisitions			—				(432,954	)
Capital expenditures			(114,402	)			(84,441	)
Proceeds from sale of property			15,073				—
Other investing activities			(7,033	)			—
Cash Used in Continuing Operations			(105,474	)			(516,687	)
Cash Provided by Discontinued Operations			—				280,669
Cash Used in Investing Activities			(105,474	)			(236,018	)
Financing Activities
Payments of notes payable, net			(560,000	)			(265,500	)
Change in bank overdraft			(15,929	)			11,830
Issuance of debt			—				402,500
Termination of interest rate swaps			82,915				—
Payment of debt issuance costs			—				(2,564	)
Payment of debt			(465	)			(15,667	)
Purchase of Series A Convertible Preferred Stock			—				(300,000	)
Issuance of common stock			168,545				218,521
Issuance (receipt) of treasury stock, net			(798	)			2,445
Dividends paid			(39,529	)			(34,680	)
Cash Provided by (Used in) Financing Activities			(365,261	)			16,885
Change in Cash and Cash Equivalents			6,788				84,471
Cash and Cash Equivalents at Beginning of Period			12,172				73,522
Cash and Cash Equivalents at End of Period		$	18,960			$	157,993

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ONEOK, Inc.

INFORMATION AT A GLANCE

		Three Months Ended June 30,								Six Months Ended June 30,
		2004				2003				2004			2003
		(Millions of dollars)
Production
Net Revenues		$	24.1			$	9.7			$	50.5		$	22.4
Depreciation, depletion, and amortization		$	6.2			$	2.6			$	12.7		$	6.0
Operating Income		$	12.0			$	3.2			$	23.8		$	8.9
Proved reserves
Gas (MMcf)			(b	)			(b	)			214,702			60,323
Oil (MBbls)			(b	)			(b	)			3,586			2,188
Production
Gas (MMcf)			4,060				1,741				8,303			3,573
Oil (MBbls)			83				58				169			135
Average realized price (a)
Gas ($/Mcf)		$	5.04			$	4.75			$	5.21		$	4.99
Oil ($/Bbls)		$	27.93			$	25.14			$	28.84		$	28.10
Capital expenditures		$	11.9			$	3.8			$	20.4		$	6.7
Gathering and Processing
Net Revenues		$	63.6			$	52.3			$	123.0		$	98.7
Depreciation, depletion, and amortization		$	8.2			$	7.3			$	16.2		$	14.5
Operating Income		$	27.3			$	15.8			$	47.8		$	23.6
Total gas gathered (MMMBtu/d)			1,113				1,157				1,110			1,189
Total gas processed (MMMBtu/d)			1,147				1,224				1,155			1,223
Natural gas liquids sales (MBbls/d)			101				99				106			114
Natural gas liquids produced (MBbls/d)			59				58				60			56
Gas sales (MMMBtu/d)			332				322				322			338
Capital expenditures		$	5.9			$	5.5			$	10.0		$	8.0
Conway OPIS composite NGL Price ($/gal) (based on our NGL product mix)		$	0.66			$	0.54			$	0.64		$	0.59
Average NYMEX crude oil price ($/Bbl)		$	38.54			$	29.27			$	36.47		$	31.63
Average natural gas price ($/MMBtu) (mid-continent region)		$	5.51			$	5.00			$	5.36		$	5.55
Transportation and Storage
Net Revenues		$	26.5			$	27.0			$	57.0		$	57.2
Depreciation, depletion, and amortization		$	4.3			$	4.2			$	8.6		$	8.3
Operating Income		$	11.1			$	11.3			$	24.6		$	26.5
Volumes transported (MMcf)			92,812				95,138				221,747			240,118
Capital expenditures		$	2.0			$	3.8			$	4.0		$	4.8
Average natural gas price ($/MMBtu) (mid-continent region)		$	5.51			$	5.00			$	5.36		$	5.55

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ONEOK second quarter earnings

exceed expectations

2004 guidance increases

August 2, 2004

Page 13 of 14

Distribution
Net Revenues		$	104.0			$	103.0		$	307.0		$	278.3
Depreciation, depletion, and amortization		$	25.9			$	23.7		$	52.2		$	47.6
Operating Income		$	(2.7	)		$	0.4		$	83.0		$	75.4
Average number of customers			2,004,683				1,987,892			2,013,877			1,999,834
Capital expenditures		$	36.7			$	34.2		$	62.6		$	59.1
Natural gas volumes (MMcf)
Gas Sales			30,190				32,059			118,523			123,014
Transportation			54,182				48,411			121,574			112,647
Marketing
Net Revenues		$	14.3			$	39.4		$	89.6		$	176.9
Depreciation, depletion, and amortization		$	1.4			$	1.5		$	2.8		$	2.9
Operating Income		$	4.9			$	30.5		$	68.3		$	157.4
Natural gas marketed (MMcf)			248,670				218,210			535,156			534,147
Electricity marketed (MMwh)			966				453			1,751			743
Physically settled volumes (MMcf)			510,509				472,301			1,050,613			1,049,736
Capital expenditures		$	0.7			$	0.3		$	0.8		$	0.4
Discontinued Component
Net Revenues		$	—			$	—		$	—		$	7.7
Depreciation, depletion, and amortization		$	—			$	—		$	—		$	1.9
Operating Income		$	—			$	—		$	—		$	3.8
Production
Gas (MMcf)			—				—			—			1,472
Oil (MBbls)			—				—			—			53
Average realized price
Gas ($/Mcf)		$	—			$	—		$	—		$	4.10
Oil ($/Bbls)		$	—			$	—		$	—		$	32.28

(a) Average realized price reflects the impact of hedging activities.

(b) Reserves are disclosed at a point in time, therefore reserves are only shown as of June 30, 2004 and 2003.

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ONEOK second quarter earnings

exceed expectations

2004 guidance increases

August 2, 2004

Page 14 of 14

ONEOK, Inc. and Subsidiaries

EARNINGS GUIDANCE

(In Millions, except per share data)		Previous 2004 Guidance			Updated 2004 Guidance					Change
Operating Income
Production		$	49		$	49				$	—
Gathering and Processing			84			99					15
Transportation and Storage			51			50					(1	)
Distribution			120			118					(2	)
Marketing and Trading			155			155					—
Other			1			1					—
Operating income			460			472					12
Other income/expense			2			2					—
Interest			99			99					—
Income taxes			139			145					6
Net Income		$	224		$	230				$	6
Earnings Per Share of Common Stock—Diluted		$	2.15		$	2.21				$	0.06
Quarterly earnings per share are expected to be:
First quarter (actual)		$	1.04
Second quarter (actual)		$	0.17
Third quarter		$	0.18
Fourth quarter		$	0.82
Average Shares of Common Stock— Diluted (thousands of shares)		Previous Guidance			2004 Updated Guidance
					Q1			Q2		Q3				Q4		12 Months
Average shares of common stock outstanding			102.2			99.3		102.8			103.2			103.6			102.2
Dilutive Components (1)
Mandatory convertible equity units (2)			1.6			1.7		0.8			1.6			2.0			1.5
Options and other dilutive units			0.4			0.3		0.4			0.5			0.4			0.4
Total Average Shares of Common Stock—Diluted			104.2			101.3		104.0			105.3			106.0			104.1
Capital Expenditures (No change)
Production																$	43
Gathering and Processing																	46
Transportation and Storage																	20
Distribution																	147
Marketing and Trading																	1
Other																	18
Total Capital Expenditures																$	275
Cash Flow from Operations before Changes in Working Capital		$	513													$	522
Less Dividends			83														87
Less Capital Expenditures			275														275
Surplus		$	155													$	160

(1) Earnings per share for each quarter will not necessarily add to the Earnings per share for the twelve months and fiscal year to date due to changes in the number of shares between periods and rounding differences. Dilutive components included in the average shares of common stock for the twelve months and fiscal year to date are computed by taking the average for that component for each quarter in the respective period ( i.e. The Mandatory convertible equity units for the twelve-month period are computed by adding the units for each quarter and dividing by the number of quarters or 1.7 + 0.8 + 1.6 + 2.0 = 6.1, 6.1 / 4 = 1.5).

(2) For purposes of this guidance, the dilutive effect of the mandatory convertible equity units has been calculated using $22.50 and $23.00 as the average closing price for the last 20 trading days of the third and fourth quarter, respectively.

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