SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Notes)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Condensed Consolidating Financial Information

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

ONEOK and ONEOK Partners are issuers of certain public debt securities. Effective with the Merger Transaction in 2017, we, ONEOK Partners and the Intermediate Partnership issued, to the extent not already in place, guarantees of the indebtedness of ONEOK and ONEOK Partners. The Intermediate Partnership holds all of ONEOK Partners’ partnership interests and equity in its subsidiaries, as well as a 50 percent interest in Northern Border Pipeline. In lieu of providing separate financial statements for each subsidiary issuer and guarantor, we have included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC’s Regulation S-X. We have presented each of the parent and subsidiary issuers in separate columns in this single set of condensed consolidating financial statements.

For purposes of the following footnote:


•	we are referred to as “Parent Issuer and Guarantor”;


•	ONEOK Partners is referred to as “Subsidiary Issuer and Guarantor”;


•	the Intermediate Partnership is referred to as “Guarantor Subsidiary”; and


•	the “Non-Guarantor Subsidiaries” are all subsidiaries other than the Guarantor Subsidiary and Subsidiary Issuer and Guarantor.

The following unaudited supplemental condensed consolidating financial information is presented on an equity-method basis reflecting the separate accounts of ONEOK, ONEOK Partners and the Intermediate Partnership, the combined accounts of the Non-Guarantor Subsidiaries, the combined consolidating adjustments and eliminations, and our consolidated amounts for the periods indicated.

Condensed Consolidating Statements of Income



	Three Months Ended September 30, 2018
(Unaudited)	Parent Issuer & Guarantor			Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Revenues
Commodity sales	$	—		$	—		$	—		$	3,083.6		$	—		$	3,083.6
Services	—			—			—			310.8			(0.5		)	310.3
Total revenues	—			—			—			3,394.4			(0.5		)	3,393.9
Cost of sales and fuel (exclusive of items shown separately below)	—			—			—			2,560.8			—			2,560.8
Operating expenses	2.0			—			—			336.3			(0.5		)	337.8
Gain on sale of assets	—			—			—			(0.2		)	—			(0.2		)
Operating income	(2.0		)	—			—			497.5			—			495.5
Equity in net earnings from investments	457.3			457.1			457.1			30.1			(1,362.3		)	39.3
Other income (expense), net	9.3			80.3			80.3			(5.3		)	(160.6		)	4.0
Interest expense, net	(49.1		)	(80.3		)	(80.3		)	(72.8		)	160.6			(121.9		)
Income before income taxes	415.5			457.1			457.1			449.5			(1,362.3		)	416.9
Income taxes	(102.3		)	—			—			(0.7		)	—			(103.0		)
Net income	313.2			457.1			457.1			448.8			(1,362.3		)	313.9
Less: Net income attributable to noncontrolling interests	—			—			—			0.7			—			0.7
Net income attributable to ONEOK	313.2			457.1			457.1			448.1			(1,362.3		)	313.2
Less: Preferred stock dividends	0.2			—			—			—			—			0.2
Net income available to common shareholders	$	313.0		$	457.1		$	457.1		$	448.1		$	(1,362.3	)	$	313.0



	Three Months Ended September 30, 2017
(Unaudited)	Parent Issuer & Guarantor			Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Revenues
Commodity sales	$	—		$	—		$	—		$	2,322.5		$	—		$	2,322.5
Services	—			—			—			584.3			(0.5		)	583.8
Total revenues	—			—			—			2,906.8			(0.5		)	2,906.3
Cost of sales and fuel (exclusive of items shown separately below)	—			—			—			2,229.4			—			2,229.4
Operating expenses	1.2			—			2.6			303.3			(0.5		)	306.6
Impairment of long-lived assets	—			—			—			16.0			—			16.0
Gain on sale of assets	—			—			—			(0.3		)	—			(0.3		)
Operating income	(1.2		)	—			(2.6		)	358.4			—			354.6
Equity in net earnings from investments	298.0			298.3			300.9			27.6			(884.7		)	40.1
Impairment of equity investments	—			—			—			(4.3		)	—			(4.3		)
Other income (expense), net	4.1			86.1			86.1			(4.3		)	(172.2		)	(0.2		)
Interest expense, net	(43.2		)	(86.1		)	(86.1		)	(83.3		)	172.2			(126.5		)
Income before income taxes	257.7			298.3			298.3			294.1			(884.7		)	263.7
Income taxes	(91.9		)	—			—			(5.3		)	—			(97.2		)
Net income	165.8			298.3			298.3			288.8			(884.7		)	166.5
Less: Net income attributable to noncontrolling interests	0.1			—			—			0.7			—			0.8
Net income attributable to ONEOK	165.7			298.3			298.3			288.1			(884.7		)	165.7
Less: Preferred stock dividends	0.2			—			—			—			—			0.2
Net income available to common shareholders	$	165.5		$	298.3		$	298.3		$	288.1		$	(884.7	)	$	165.5



	Nine Months Ended September 30, 2018
(Unaudited)	Parent Issuer & Guarantor			Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Revenues
Commodity sales	$	—		$	—		$	—		$	8,578.9		$	—		$	8,578.9
Services	—			—			—			879.1			(1.5		)	877.6
Total revenues	—			—			—			9,458.0			(1.5		)	9,456.5
Cost of sales and fuel (exclusive of items shown separately below)	—			—			—			7,104.6			—			7,104.6
Operating expenses	3.3			—			—			986.8			(1.5		)	988.6
Gain on sale of assets	—			—			—			(0.3		)	—			(0.3		)
Operating income	(3.3		)	—			—			1,366.9			—			1,363.6
Equity in net earnings from investments	1,226.6			1,231.2			1,231.2			86.2			(3,659.1		)	116.1
Other income (expense), net	23.1			234.9			234.9			(23.3		)	(469.8		)	(0.2		)
Interest expense, net	(129.2		)	(234.9		)	(234.9		)	(221.9		)	469.8			(351.1		)
Income before income taxes	1,117.2			1,231.2			1,231.2			1,207.9			(3,659.1		)	1,128.4
Income taxes	(258.4		)	—			—			(7.9		)	—			(266.3		)
Net income	858.8			1,231.2			1,231.2			1,200.0			(3,659.1		)	862.1
Less: Net income attributable to noncontrolling interests	—			—			—			3.3			—			3.3
Net income attributable to ONEOK	858.8			1,231.2			1,231.2			1,196.7			(3,659.1		)	858.8
Less: Preferred stock dividends	0.8			—			—			—			—			0.8
Net income available to common shareholders	$	858.0		$	1,231.2		$	1,231.2		$	1,196.7		$	(3,659.1	)	$	858.0



	Nine Months Ended September 30, 2017
(Unaudited)	Parent Issuer & Guarantor			Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Revenues
Commodity sales	$	—		$	—		$	—		$	6,700.3		$	—		$	6,700.3
Services	—			—			—			1,683.0			(1.5		)	1,681.5
Total revenues	—			—			—			8,383.3			(1.5		)	8,381.8
Cost of sales and fuel (exclusive of items shown separately below)	—			—			—			6,464.3			—			6,464.3
Operating expenses	25.9			—			8.8			878.0			(1.5		)	911.2
Impairment of long-lived assets	—			—			—			16.0			—			16.0
Gain on sale of assets	—			—			—			(0.9		)	—			(0.9		)
Operating income	(25.9		)	—			(8.8		)	1,025.9			—			991.2
Equity in net earnings from investments	842.0			845.9			854.7			72.1			(2,495.7		)	119.0
Impairment of equity investments	—			—			—			(4.3		)	—			(4.3		)
Other income (expense), net	(15.5		)	272.2			272.2			(4.3		)	(544.4		)	(19.8		)
Interest expense, net	(93.5		)	(272.2		)	(272.2		)	(268.0		)	544.4			(361.5		)
Income before income taxes	707.1			845.9			845.9			821.4			(2,495.7		)	724.6
Income taxes	(180.9		)	—			—			(15.0		)	—			(195.9		)
Net income	526.2			845.9			845.9			806.4			(2,495.7		)	528.7
Less: Net income attributable to noncontrolling interests	201.4			—			—			2.5			—			203.9
Net income attributable to ONEOK	324.8			845.9			845.9			803.9			(2,495.7		)	324.8
Less: Preferred stock dividends	0.5			—			—			—			—			0.5
Net income available to common shareholders	$	324.3		$	845.9		$	845.9		$	803.9		$	(2,495.7	)	$	324.3

Condensed Consolidating Statements of Comprehensive Income



	Three Months Ended September 30, 2018
(Unaudited)	Parent Issuer & Guarantor		Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Net income	$	313.2	$	457.1		$	457.1		$	448.8		$	(1,362.3	)	$	313.9
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on derivatives, net of tax	20.2		(30.7		)	(30.7		)	(23.7		)	61.4			(3.5		)
Realized (gains) losses on derivatives in net income, net of tax	—		25.0			20.6			14.9			(41.2		)	19.3
Change in pension and postretirement benefit plan liability, net of tax	3.2		—			—			—			—			3.2
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax	—		2.0			2.0			1.5			(4.0		)	1.5
Total other comprehensive income (loss), net of tax	23.4		(3.7		)	(8.1		)	(7.3		)	16.2			20.5
Comprehensive income	336.6		453.4			449.0			441.5			(1,346.1		)	334.4
Less: Comprehensive income attributable to noncontrolling interests	—		—			—			0.7			—			0.7
Comprehensive income attributable to ONEOK	$	336.6	$	453.4		$	449.0		$	440.8		$	(1,346.1	)	$	333.7



	Three Months Ended September 30, 2017
(Unaudited)	Parent Issuer & Guarantor		Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Net income	$	165.8	$	298.3		$	298.3		$	288.8		$	(884.7	)	$	166.5
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on derivatives, net of tax	18.4		(61.9		)	(42.4		)	(19.5		)	84.8			(20.6		)
Realized (gains) losses on derivatives in net income, net of tax	0.6		19.8			15.9			8.6			(31.8		)	13.1
Change in pension and postretirement benefit plan liability, net of tax	2.0		—			—			—			—			2.0
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax	—		(0.3		)	(0.3		)	(0.2		)	0.6			(0.2		)
Total other comprehensive income (loss), net of tax	21.0		(42.4		)	(26.8		)	(11.1		)	53.6			(5.7		)
Comprehensive income	186.8		255.9			271.5			277.7			(831.1		)	160.8
Less: Comprehensive income attributable to noncontrolling interests	—		—			—			0.7			—			0.7
Comprehensive income attributable to ONEOK	$	186.8	$	255.9		$	271.5		$	277.0		$	(831.1	)	$	160.1



	Nine Months Ended September 30, 2018
(Unaudited)	Parent Issuer & Guarantor		Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Net income	$	858.8	$	1,231.2		$	1,231.2		$	1,200.0		$	(3,659.1	)	$	862.1
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on derivatives, net of tax	54.0		(56.2		)	(56.2		)	(43.3		)	112.4			10.7
Realized (gains) losses on derivatives in net income, net of tax	1.9		53.9			42.4			30.0			(84.8		)	43.4
Change in pension and postretirement benefit plan liability, net of tax	9.7		(0.6		)	—			—			—			9.1
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax	—		6.9			6.9			5.3			(13.8		)	5.3
Total other comprehensive income (loss), net of tax	65.6		4.0			(6.9		)	(8.0		)	13.8			68.5
Comprehensive income	924.4		1,235.2			1,224.3			1,192.0			(3,645.3		)	930.6
Less: Comprehensive income attributable to noncontrolling interests	—		—			—			3.3			—			3.3
Comprehensive income attributable to ONEOK	$	924.4	$	1,235.2		$	1,224.3		$	1,188.7		$	(3,645.3	)	$	927.3



	Nine Months Ended September 30, 2017
(Unaudited)	Parent Issuer & Guarantor		Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Net income	$	526.2	$	845.9		$	845.9		$	806.4		$	(2,495.7	)	$	528.7
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on derivatives, net of tax	18.1		(38.8		)	(6.1		)	13.3			12.2			(1.3		)
Realized (gains) losses on derivatives in net income, net of tax	1.6		50.7			38.0			26.0			(76.0		)	40.3
Change in pension and postretirement benefit plan liability, net of tax	6.1		—			—			—			—			6.1
Other comprehensive income (loss) on investments in unconsolidated affiliates, net of tax	—		(1.5		)	(1.5		)	(1.2		)	3.0			(1.2		)
Total other comprehensive income (loss), net of tax	25.8		10.4			30.4			38.1			(60.8		)	43.9
Comprehensive income	552.0		856.3			876.3			844.5			(2,556.5		)	572.6
Less: Comprehensive income attributable to noncontrolling interests	232.4		—			—			2.5			—			234.9
Comprehensive income attributable to ONEOK	$	319.6	$	856.3		$	876.3		$	842.0		$	(2,556.5	)	$	337.7

Condensed Consolidating Balance Sheets



	September 30, 2018
(Unaudited)	Parent Issuer & Guarantor		Subsidiary Issuer & Guarantor		Guarantor Subsidiary		Combined Non-Guarantor Subsidiaries		Consolidating Entries			Total
Assets	(Millions of dollars)
Current assets
Cash and cash equivalents	$	84.5	$	—	$	—	$	—	$	—		$	84.5
Accounts receivable, net	—		—		—		1,085.1		—			1,085.1
Materials and supplies	—		—		—		128.6		—			128.6
Natural gas and natural gas liquids in storage	—		—		—		426.3		—			426.3
Other current assets	10.4		—		—		73.0		—			83.4
Total current assets	94.9		—		—		1,713.0		—			1,807.9
Property, plant and equipment
Property, plant and equipment	141.0		—		—		16,979.2		—			17,120.2
Accumulated depreciation and amortization	90.5		—		—		3,069.2		—			3,159.7
Net property, plant and equipment	50.5		—		—		13,910.0		—			13,960.5
Investments and other assets
Investments	5,977.5		3,359.0		9,223.2		796.8		(18,374.9		)	981.6
Intercompany notes receivable	4,769.1		7,682.5		1,818.3		—		(14,269.9		)	—
Other assets	174.3		—		—		988.2		(1.2		)	1,161.3
Total investments and other assets	10,920.9		11,041.5		11,041.5		1,785.0		(32,646.0		)	2,142.9
Total assets	$	11,066.3	$	11,041.5	$	11,041.5	$	17,408.0	$	(32,646.0	)	$	17,911.3
Liabilities and equity
Current liabilities
Current maturities of long-term debt	$	—	$	500.0	$	—	$	7.7	$	—		$	507.7
Short-term borrowings	120.0		—		—		—		—			120.0
Accounts payable	5.1		—		—		1,334.4		—			1,339.5
Other current liabilities	71.8		67.6		—		343.6		—			483.0
Total current liabilities	196.9		567.6		—		1,685.7		—			2,450.2

Intercompany debt	—		—		7,682.5		6,587.4		(14,269.9		)	—

Long-term debt, excluding current maturities	3,962.2		4,340.4		—		23.1		—			8,325.7

Deferred credits and other liabilities
Deferred income taxes	25.8		—		—		107.6		(1.2		)	132.2
Other deferred credits	228.6		—		—		121.8		—			350.4
Total deferred credits and other liabilities	254.4		—		—		229.4		(1.2		)	482.6

Commitments and contingencies

Equity	6,652.8		6,133.5		3,359.0		8,882.4		(18,374.9		)	6,652.8
Total liabilities and equity	$	11,066.3	$	11,041.5	$	11,041.5	$	17,408.0	$	(32,646.0	)	$	17,911.3



	December 31, 2017
(Unaudited)	Parent Issuer & Guarantor		Subsidiary Issuer & Guarantor		Guarantor Subsidiary		Combined Non-Guarantor Subsidiaries		Consolidating Entries			Total
Assets	(Millions of dollars)
Current assets
Cash and cash equivalents	$	37.2	$	—	$	—	$	—	$	—		$	37.2
Accounts receivable, net	—		—		—		1,203.0		—			1,203.0
Materials and supplies	—		—		—		90.3		—			90.3
Natural gas and natural gas liquids in storage	—		—		—		342.3		—			342.3
Other current assets	9.8		1.3		—		80.6		—			91.7
Total current assets	47.0		1.3		—		1,716.2		—			1,764.5
Property, plant and equipment
Property, plant and equipment	128.3		—		—		15,431.3		—			15,559.6
Accumulated depreciation and amortization	86.4		—		—		2,775.1		—			2,861.5
Net property, plant and equipment	41.9		—		—		12,656.2		—			12,698.1
Investments and other assets
Investments	5,752.1		3,133.7		8,058.4		803.0		(16,744.0		)	1,003.2
Intercompany notes receivable	2,926.9		8,627.8		3,703.1		—		(15,257.8		)	—
Other assets	416.9		0.2		—		1,007.4		(44.4		)	1,380.1
Total investments and other assets	9,095.9		11,761.7		11,761.5		1,810.4		(32,046.2		)	2,383.3
Total assets	$	9,184.8	$	11,763.0	$	11,761.5	$	16,182.8	$	(32,046.2	)	$	16,845.9
Liabilities and equity
Current liabilities
Current maturities of long-term debt	$	—	$	425.0	$	—	$	7.7	$	—		$	432.7
Short-term borrowings	614.7		—		—		—		—			614.7
Accounts payable	12.0		—		—		1,128.6		—			1,140.6
Other current liabilities	65.9		85.0		—		328.4		—			479.3
Total current liabilities	692.6		510.0		—		1,464.7		—			2,667.3

Intercompany debt	—		—		8,627.8		6,630.0		(15,257.8		)	—

Long-term debt, excluding current maturities	2,726.4		5,336.4		—		28.8		—			8,091.6

Deferred credits and other liabilities
Deferred income taxes	—		—		—		97.1		(44.4		)	52.7
Other deferred credits	237.9		—		—		111.0		—			348.9
Total deferred credits and other liabilities	237.9		—		—		208.1		(44.4		)	401.6

Commitments and contingencies

Equity
Equity excluding noncontrolling interests in consolidated subsidiaries	5,527.9		5,916.6		3,133.7		7,693.7		(16,744.0		)	5,527.9
Noncontrolling interests in consolidated subsidiaries	—		—		—		157.5		—			157.5
Total equity	5,527.9		5,916.6		3,133.7		7,851.2		(16,744.0		)	5,685.4
Total liabilities and equity	$	9,184.8	$	11,763.0	$	11,761.5	$	16,182.8	$	(32,046.2	)	$	16,845.9

Condensed Consolidating Statements of Cash Flows



	Nine Months Ended September 30, 2018
(Unaudited)	Parent Issuer & Guarantor			Subsidiary Issuer & Guarantor			Guarantor Subsidiary				Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Operating activities
Cash provided by operating activities	$	964.4		$	993.8		$	48.9			$	1,507.4		$	(1,998.0	)	$	1,516.5
Investing activities
Capital expenditures	(15.0		)	—			—				(1,294.7		)	—			(1,309.7		)
Cash paid for acquisition	(195.0		)	—			—				—			—			(195.0		)
Contributions to unconsolidated affiliates	—			—			(0.5		)		(0.3		)	—			(0.8		)
Other investing activities	—			—			10.8				9.9			—			20.7
Cash provided by (used in) investing activities	(210.0		)	—			10.3				(1,285.1		)	—			(1,484.8		)
Financing activities
Dividends paid	(983.1		)	(999.0		)	(999.0		)		—			1,998.0			(983.1		)
Distributions to noncontrolling interests	—			—			—				(3.5		)	—			(3.5		)
Intercompany borrowings (advances), net	(1,640.5		)	930.2			939.8				(229.5		)	—			—
Borrowing (repayment) of short-term borrowings, net	(494.7		)	—			—				—			—			(494.7		)
Issuance of long-term debt, net of discounts	1,245.8			—			—				—			—			1,245.8
Repayment of long-term debt	—			(925.0		)	—				(5.7		)	—			(930.7		)
Issuance of common stock	1,195.1			—			—				—			—			1,195.1
Other, net	(29.7		)	—			—				16.4			—			(13.3		)
Cash provided by (used in) financing activities	(707.1		)	(993.8		)	(59.2		)	—	(222.3		)	1,998.0			15.6
Change in cash and cash equivalents	47.3			—			—				—			—			47.3
Cash and cash equivalents at beginning of period	37.2			—			—				—			—			37.2
Cash and cash equivalents at end of period	$	84.5		$	—		$	—			$	—		$	—		$	84.5



	Nine Months Ended September 30, 2017
(Unaudited)	Parent Issuer & Guarantor			Subsidiary Issuer & Guarantor			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidating Entries			Total
	(Millions of dollars)
Operating activities
Cash provided by operating activities	$	620.8		$	994.3		$	42.1		$	1,005.8		$	(1,727.0	)	$	936.0
Investing activities
Capital expenditures	(0.5		)	—			—			(329.9		)	—			(330.4		)
Contributions to unconsolidated affiliates	—			—			(83.0		)	(4.7		)	—			(87.7		)
Other investing activities	—			—			11.2			12.3			—			23.5
Cash used in investing activities	(0.5		)	—			(71.8		)	(322.3		)	—			(394.6		)
Financing activities
Dividends paid	(543.4		)	(999.0		)	(999.0		)	—			1,998.0			(543.4		)
Distributions to noncontrolling interests	—			—			—			(4.1		)	(271.0		)	(275.1		)
Intercompany borrowings (advances), net	(2,376.9		)	2,022.2			1,028.3			(673.6		)	—			—
Borrowing (repayment) of short-term borrowings, net	932.3			(1,110.3		)	—			—			—			(178.0		)
Issuance of long-term debt, net of discounts	1,190.1			—			—			—			—			1,190.1
Repayment of long-term debt	(87.1		)	(900.0		)	—			(5.8		)	—			(992.9		)
Issuance of common stock	45.8			—			—			—			—			45.8
Other, net	(17.9		)	(7.2		)	—			—			—			(25.1		)
Cash provided by (used in) financing activities	(857.1		)	(994.3		)	29.3			(683.5		)	1,727.0			(778.6		)
Change in cash and cash equivalents	(236.8		)	—			(0.4		)	—			—			(237.2		)
Cash and cash equivalents at beginning of period	248.5			—			0.4			—			—			248.9
Cash and cash equivalents at end of period	$	11.7		$	—		$	—		$	—		$	—		$	11.7