American Gas AssociationAmerican Gas AssociationAmerican Gas AssociationAmerican Gas AssociationFinancial ForumFinancial Forum

Orlando, FloridaOrlando, Florida

April 30 2007April 30 2007April 30, 2007April 30, 2007

John W. GibsonChief Executive OfficerONEOK, Inc.

President and Chief Executive OfficerONEOK Partners, L.P.

Forward Looking StatementStatements contained in this presentation that include company expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. It is important to note that the actual results of company earnings could differ materially from those projected in any forward-looking statements. For additional information, refer to ONEOK’s and ONEOK Partners’ Securities and Exchange Commission filings.

A Transforming TransactionApril 2006• Purchased 17.5 percent of general partner interest

from TransCanada– Became sole general partner

• ONEOK sold $3 billion in assets to Northern Border Partners

– Received $1.35 billion in cash and 36.5 million units ($1.65 billion)

– ONEOK owns 45.7 percent of the partnership• Partnership sold 20 percent of Northern Border

Pipeline to TransCanada– Transferred operating responsibility on April 1, 2007

444

• Changed name to ONEOK Partners

A Structural ChangeJanuary 2006

ONEOKDistribution Gathering &

ProcessingPipelines & Storage

Northern Border Partners70% of Northern Border

PipelineGathering & Processing

Energy Services

Processing

Natural Gas Liquids

Northern Border Partners• 82 5% of GP

Pipeline

Interstate Pipelines

• 82.5% of GP • 500,000 units

April 2006

Distribution Energy Services Gathering & Processing

Pipelines & Storage

ONEOK ONEOK PartnersNatural Gas Liquids

555

ONEOK Partners• 100% of GP• 37 million units

50% of Northern Border Pipeline

Interstate Pipelines

ONEOK and ONEOK Partners -- Key Strategies

• Consistent growth and sustainable earnings• Develop and execute internally generated growth projects at ONEOK Partners• Improve profitability of ONEOK Distribution Companies• Continue focus on physical activities at ONEOK Energy Services • Execute strategic acquisitions that provide long term value• Execute strategic acquisitions that provide long-term value• Manage our balance sheet and maintain strong credit ratings at or above current level• Operate in a safe and environmentally responsible manner• Attract, develop and retain employees to support strategy execution

666

ONEOK Partners Today

777

ONEOK Partners Internal Growth Focus

• Spend approximately $824 million in capital in 2007

$

• More than $1.5 billion through 2009– Major Projects

– $759 million for Growth – $65 million for Maintenance

• Provides significant cash flow growth *

• Overland Pass Pipeline ($433 million)• Related NGL projects ($216 million)• Arbuckle Pipeline ($260 million)

Pi L t l ($120 illi ) – 2008 EBITDA contribution: >$150 million– 2009 EBITDA contribution: >$260 million– 2010 EBITDA contribution: >$300 million

• Piceance Lateral ($120 million)• Guardian II ($250 million)• Midwestern extension ($41 million)

Other projects ($267 million)– Other projects ($267 million)

888* EBITDA contributions assume projects are completed on schedule* Does not include WMB exercising its 50/50 option in OPPL or Piceance Lateral

Creating Value Through Acquisitions and Internal Projects

Purchase of Koch’s NGL assets for $1.35 billion created a path for internal growth• Overland Pass: $433 million• Related NGL Projects: $216 million• Acquired/upgraded NGL storage: $40 million• Acquired/upgraded NGL storage: $40 million• Arbuckle Pipeline: $260 million• Piceance Lateral: $120 million

Doubles the size of the business

9999

ONEOK Partners -- Strong Balance Sheet

• $750 million revolver with $740 million available; expandable to $1 billion• Goal: 50/50 capital structure

Capitalization: March 31, 2007

EquityTotal Debt Equity52%48%

101010

ONEOK Partners Distribution and Unit Price GrowthFi di t ib ti i ith OKE GP• Five distribution increases with OKE as GP

– 24 percent growth– Indicated annual rate of $3.96

• Internal growth projects provide significant opportunities for future distribution growth

• Unit price increase of 67 percent since 2006G

63.3467.50 69.99

$60$70

0 88

0.95 0.97 0.98 0.99$0.90

$1.00

Distribution Growth Unit Price Growth *

42.0047.92 49.35

56.35

$40$50$60

0.800.88

$0.50

$0.60

$0.70

$0.80

$10$20$30

$0.20

$0.30

$0.40

$0.50

24% Growth24% Growth 67% Growth67% Growth

111111

$0$10

Q42005

Q12006

Q2 Q3 Q4 Q12007

Q2$0.00

$0.10

Q1 2006 Q2 Q3 Q4 Q1 2007 Q2* Closing price on last day of quarter; Q2 2007 price is closing on 4/25/07

ONEOK Partners First-quarter Results• EBITDA: $157.2 million versus $160.1 million• DCF: $116.8 million versus $52.9 million• EPU: $1.00 versus $0.67 (2007 EPU guidance: $3.06 - $3.46 per unit)

157 2 160 1$150$175

$ $ ( g $ $ p )• Strong performance in NGL business

EBITDA 157.2 160.1

$75

$100

$125

$150

47.463.1

37.722.4

36.2 36.9 34.343.0

$25

$50$75

12

$0G&P NGL P&S

InterstateTOTAL

Q1 2007 Q1 200612

ONEOK Today

131313

ONEOK Distribution – Integrated Strategy to Improve Profitability

642,000 642,000 customerscustomers• Rates, regulatory and legislative

– Synchronized filings

821,000 821,000 customerscustomers

573,000 573,000

• Growth – Efficient investment

• Operations and maintenance cost control 573,000 573,000 customerscustomers

Operations and maintenance cost control– Continuous process improvement– Technology

• Customer service and programs• Customer service and programs– Reduce seasonality

141414

ONEOK Distribution Segment Rate Base Growth• Efficient investment in all three states

4.8 % CAGR

• Efficient investment in all three states• Extensions, service lines and technology deployment• Enhanced capital recovery mechanisms in Texas and Kansas

$258,161 $261,524

$265,703 $269,575 $286,238 $301,855

$1,400,000

$1,600,000

$530,735

$242,344

$545,746

$249,428

$639,622 $660,421

$ ,

$687,856 $702,054 $699,863 $709,904

$800,000

$1,000,000

$1,200,000

$446,604 $482,111 $504,403 $467,116$623,842 $635,393 $655,315 $675,306

$200,000

$400,000

$600,000

151515

$02000 2001 2002 2003 2004 2005 2006 2007G

Oklahoma Natural Gas Kansas Gas Service Texas Gas Service

ONEOK Distribution – Continuing to Close the Gap

12

• Significant progress since 2005• 2006 Kansas and Texas rate cases

helped close the operating income gap

10.28

10• Work continues on:– Pension and OPEB costs– Capital recovery mechanisms ity

(%)

8.0

0

4

6

Capital recovery mechanisms– Cost-of-service rate mechanisms – Cost control – continuous process

improvement etur

n on

Equ

4.95.3

0

2

p* R

e

1616

Total Distribution Companies

2005 2006 2007 G 2007 Allowed 16* ROE calculations are consistent with utility ratemaking in each jurisdiction and not consistent with GAAP returns

ONEOK Energy Services Strategies• Acquire transportation and storage

capacity– Connects major supply and demand

centerscenters• Deliver bundled, reliable products and

services– For premium value, primarily to LDCs For premium value, primarily to LDCs

• Optimize storage and transportation capacity

– Market knowledge and effective risk tmanagement

• Grow earnings in our retail business– Increase market share, maintain margins

E t t di bit t iti

171717

• Execute trading arbitrage opportunities– Using knowledge and positions

ONEOK -- Strong Cash Flow and Balance Sheet

• $163 million in free cash flow

ONEOK St d l C h Fl

SurplusCapital

Expenditures

ONEOK Stand-alone Cash Flow

Surplus$163 million

Dividends$153 illi

Expenditures$174 million

$153 million

1818182007 Guidance

ONEOK -- Dividend and Share Price Growth• Ten dividend increases since January 2003

– 119 percent increase during that period– 21 percent increase since 2006

• Dividend target: 50-55 percent of recurring earnings

• 77 percent share price increase since 2006

43 1245.00 47.15$45

$50

0 32 0.320.34 0.34

$0.30

$0.35

Dividend Growth Share Price Growth*

26 63

32.2534.04

37.79

43.12

$25

$30

$35

$400.28

0.300.32

$0.20

$0.25

$0.30

26.63

$10

$15

$20

$25

$0.10

$0.15

21% Growth21% Growth 77% Growth77% Growth

191919

$0

$5

Q42005

Q12006

Q2 Q3 Q4 Q12007

Q2$0.00

$0.05

Q1 2006 Q2 Q3 Q4 Q1 2007 Q2• Closing price on last day of quarter; Q2 2007 closing price is on 4/25/07

ONEOK First-quarter Results• EPS:$1.36 versus $1.17 (2007 Q1 guidance: $1.31 - $1.41)• All three segments performed well• Distribution segment benefited from Kansas rate case

152.9$160

g• Energy Services had an exceptionally strong quarter

Operating Income *

104.4 100.2103.2

120.1

93.3

129.5

$80

$120

p g

76.8

$40

$

2020

$0

ONEOK Partners

Distribution

Energy ServicesTOTAL *

Q1 2007 Q1 2006* Total is net income

How Growth at ONEOK Partners Benefits ONEOK

CREATING VALUECREATING VALUE

ONEOK PartnersONEOK Partners ONEOKONEOK

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cts ss me

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al Pr

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al Pr

ojec

BITD

ABI

TDA

ribut

ions

ribut

ions

IDR

IDR

ty In

com

ty In

com

t Inc

ome

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ome

viden

dsvid

ends

Capi

taCa

pita EBEB

Dist

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Equi

Equi NeNe Di

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2121

Share Price AppreciationShare Price AppreciationUnit Price AppreciationUnit Price Appreciation

ONEOK Is UndervaluedE i l h $ 91• Equity value per share: $57.91

• Growth at OKS benefits OKE– $0.05/quarter OKS distribution increase = $4.60/share value to OKE– $5/unit price increase at OKS = $1.65/share value to OKE$ p $

EBITDA Enterprise(Millions of Dollars and Shares) EBIT * Depreciation EBITDA Multiple ValueDistribution 161$ 110$ 271$ 9.0 2,439$ Energy Services Physical 205$ 2$ 207$ 6 0 1 242$ Physical 205$ 2$ 207$ 6.0 1,242$ Trading -$ -$ -$ -$ Total 205$ 2$ 207$ 1,242$ ONEOK Partners ** Limited Partner Units -$ -$ 2,590$ General Partner Interest 53$ -$ 53$ 23 1 219$ General Partner Interest 53$ -$ 53$ 23 1,219$

53$ -$ 53$ 3,809$

Total 419$ 112$ 531$ 7,490$ Long-term Debt, net of cash & gas in storage 1,004$ Equity value 6,486$

222222

Equity value 6,486$ Outstanding shares 112

Equity value per share 57.91$ * 2007 Guidance Implied P/E 22.7** Based on unit price of $69.99 and annual distributions of $3.96 Current P/E-based on closing stock price at 04/25/07 17.8

232323

A diAppendix

242424

ONEOK and ONEOK Partners Financial Summary

ONEOK (stand alone)• Capital Structure: 48% debt/52% equity

ONEOK Partners• Capital Structure: 48% debt/52% equity

• Long-term Debt: $2 billion• Credit Ratings:

– S&P: BBB

• Long-term Debt: $2 billion• Credit Ratings:

– S&P: BBB– Moody’s: Baa2

• 2007 Guidance: – $2.35 - $2.75 EPS

– Moody’s: Baa2• 2007 Guidance:

– $3.06 - $3.46 EPU• Dividend: $1.36/share annual indicated rate• Assets: $6.8 billion

– $3.91 - $4.32 DCF• Coverage Ratio: 1.05 – 1.10• Distribution: $3.96/unit annual indicated rate

252525

• Assets: $5 billion

ONEOK Partners Growth Benefits ONEOK

EBITDA Growth• Assumptions

Distribution Growth• Incentive Distribution Rights

– $1 million incremental EBITDA– Partnership is in the “high splits”– All incremental cash flow is distributed

A l d i i f $12 000

g– Assumes “high splits”– Every one cent quarterly increase results in a

$3.3 million increase in ONEOK’s annual cash flow and income before taxes– Annual depreciation of $125,000

• Impact on ONEOK income is $664,000 (pretax)

A i t l $500 000 f I ti Di t ib ti

flow and income before taxes

• Limited Partner Units– ONEOK owns 37 million limited partner units– Every one cent quarterly increase results in an – Approximately $500,000 from Incentive Distribution

Rights– Approximately $164,000 equity earnings related to

limited partner units owned by ONEOK

Every one cent quarterly increase results in an additional $1.5 million in ONEOK’s annual cash flow

26

OKS Cash Flow Diversity

• Predominantly fee based– 63 percent of margin comes from fee-based business

C• Commodity and spread risk is measured and managed• Cash flow stability managed within each segment

Spread0%

Commodity20%

Spread9%

Fee BasedCommodity

Pre-Asset Dropdown Post-Asset Dropdown

20% Fee Based80%

Fee Based63%

Commodity28%

272727

Total gross margin: $511 million Total gross margin: $809 million2005 2007 Guidance

ONEOK Partners Highlights

• Integrated operations contribute to value creation– Commercial and operating synergies through a

f t i tcommon footprint– In compliance with FERC and other regulatory rules– Shared corporate services

• Stable cash flow generated from diverse asset mix– Supported by commercial and risk-management

strategies• $1.5 billion in growth projects 2007 – 2009

– Grows distributions to unitholders– Efficient use of capital

282828

• Aligned interest– As ONEOK Partners grows, ONEOK grows

ONEOK Partners Growth Projects -- Capital and EBITDA TimingCAPITAL EXPENDITURES *** 2007 2008 2009 TOTAL MAJOR PROJECTS* Overland Pass 256$ 131$ 387$ * Related NGL projects 185 15 200

Arbuckle Pipeline 70 180 10 260 Piceance Lateral 15 105 120

* Guardian II extension 85 153 238 * Midwestern extension 27 27

Sub-total 1,232$

OTHER PROJECTSGathering & Processing ** 91$ 58$ 64$ 213$ Natural Gas Liquids 25 10 4 39 Pipelines & Storage 4 3 1 8 Interstate Pipelines 1 3 3 7

Sub-total 267$

292929

$TOTAL GROWTH CAPITAL 759$ 658$ 82$ 1,499$

Investment * Capital was spent for project in 2006

EBITDA Contribution - assumes on-time completion ** Does not include Fort Union gas gathering project*** Does not include AFUDC/IDC

OKS Internal Growth -- Overland Pass Pipeline• $433 million• A 99/1 percent joint venture with 50/50 option• 750 mile 14 16 inch line• 750-mile, 14-16 inch line• 110,000 bpd of raw NGL capacity

– Expandable to 150,000 bpd with minimal capital• Efficient alternative due to low fuel costs• Supply growth expected primarily from new drilling• Long-term supply agreement with Williams Long term supply agreement with Williams

(~ 60,000 bpd)• Construction: Fall 2007• Completion: Early 2008

303030

Completion: Early 2008

OKS Internal Growth -- Overland Pass-related NGL Projects• Associated with Overland Pass Pipeline project, an

additional $216 million in infrastructure upgrades and expansions are underway:

– Upgrade and expand the Bushton facilities from 80,000 bpd to 120,000 bpd

– Upgrade the Bushton storage facility to accommodate ethane/propane mix and raw NGLsaccommodate ethane/propane mix and raw NGLs

– Install 135 miles of 14-inch pipe from Bushton to Medford with a capacity of 120,000 bpd of ethane/propane mix

– Expand the Sterling pipeline capacity south to Mont Belvieu by 60,000 bpd

– Add additional pump capacity to increase deliveries on the Bushton-to-Conway pipeline

313131

on the Bushton to Conway pipeline

ONEOK Partners Internal Growth -- Arbuckle Pipeline

• $260 million• Marks another major expansion into one of the

most active drilling areas in the U Smost active drilling areas in the U.S.• 160,000 bpd of raw NGL capacity• 440-mile, 12-16-inch line

f• Finalizing dedicated supply commitments from a number of NGL producers

– NGL basins in OklahomaBarnett Shale in Texas– Barnett Shale in Texas

• Capability to deliver to Gulf Coast fractionators• Completion in early 2009

323232

ONEOK Partners Internal Growth -- Piceance Lateral• $120 million• A 99/1 percent joint venture with

50/50 optionp• 100,000 bpd of raw NGL capacity• 150-mile, 14-inch line

D di t d li f t • Dedicated supplies from two Williams plants

• Other supplies being negotiatedC• Completion in early 2009

333333

OKS Internal Growth -- Guardian Pipeline

• $250 million• 106-mile extension from Ixonia to Green Bay, y

Wisconsin• Incremental capacity of 537,000 Dth/day to

eastern Wisconsin• Project anchored by two 15-year agreements

with:– We Energies– Wisconsin Public Service

• FERC certified in fall 2007• Construction to begin early 2008

343434

Construction to begin early 2008• November 2008 completion

ONEOK Partners Internal Growth -- Grasslands Expansion

• $30 million expansion• Increase processing capacity to 100 MMcfd• Increase fractionation capacity to 10 Mbpd• Keep pace with growth• Completed in phases• Completed in phases

– Summer of 2007– First quarter 2008

$• Part of $90 million in gathering and processing growth projects

353535

OKS Gathering & Processing Key Points

• Asset diversity with balance among basins, producers and contracts

• Growth opportunities in Mid-Continent and Rocky Mountains

– Well connects (725 in 2006)– Internal projects– Strategic acquisitions

• Basin diversity effective in offsetting t l d ti d linatural production declines

• Commodity and spread risk mitigated significantly

363636

OKS Gathering and Processing Contract Mix -- Volume Weighted

19%

3%

4%

15%

3%

4%

10%

3%

5%6%6%

6%5%4%

%

90%

100%

22%

3%

27% 30%

12%

22%

16%

24%

60%

70%

80%

42%

10%

41%

10%

43%

10%

49% 45%30%

40%

50%

42% 41% 43%

0%

10%

20%

Keep Whole w/ Conditioning

Keep Whole w/o Conditioning

373737

2003 2004 2005 2006 2007G POP - Rocky Mountain

POP - Mid-Continent

Fee Based - Rocky Mountain

Fee Based - Mid-Continent

Contract Mix without Texas - Volume Weighted(Mid-Continent and Rocky Mountain combined-all years)

OKS Gathering & Processing Risk Mitigation• In 2007 keep-whole volumes are forecast at:• In 2007, keep-whole volumes are forecast at:

– 9 percent of total contract mix (50 percent of these volumes have conditioning language)– Q1 2007: 6 percent of net margin

• Hedging:• Hedging:– 2007: 43 percent of NGLs under POP; 52 percent of gross processing spread– 2008: 8 percent of NGLs under POP; 9 percent of gross processing spread– Ceiling: up to 75 percent of commodity position– Ceiling: up to 75 percent of commodity position

• Sensitivities, excluding hedging:

2007 2006 2005 2004 20032007 2006 2005 2004 2003COMMODITY SENSITIVITY

Natural Gas 10 cent/MMBtu increase +$0.2 -$0.1 -$1.6 -$2.7 -$3.5N t l G Li id 1 t/ ll i $1 9 $2 1 $3 8 $4 5 $4 8

Margin Impact ($ millions)

383838

Natural Gas Liquids 1 cent/gallon increase +$1.9 +$2.1 +$3.8 +$4.5 +$4.8Crude Oil $1/barrel increase +$0.5 +$0.4 +$1.0 +$1.3 +$1.1

OKS Natural Gas Liquids -- Key Points

• Growing NGL supply through an aggressive plant connection program

– Connected to majority of pipeline-connected gas plants in Oklahoma, Kansas and Texas Panhandle

– Many new gas processing plants are being developed in our core areaou co e a ea

• Increasing value in the services provided• Primarily a fee-based business

M th 80 t f i – More than 80 percent of gross margin

393939

OKS Natural Gas Liquids -- Mid-Continent Activities• Exchange and Storage Services

– Gather, fractionate and transport NGLs from processing plants to storage and market hubs Marketing

Isomerization4%

– Fee-based contracts• Optimization

– Obtain highest product price by directing Exchange &

Storage

Optimization4%

Marketing12%

g p p y gproduct movement between Conway and Mont Belvieu

• IsomerizationConverts normal butane to iso butane

80

– Converts normal butane to iso-butane– Fee-based contracts

• MarketingWe purchase approximately one half of

Gross Margin Contribution2007 Guidance: $173 million

404040

– We purchase approximately one-half of fee-exchange volumes in the Mid-Continent for resale on an index-related basis

2007 Guidance: $173 million

OKS Pipelines & Storage -- Key Points

• Pipelines and Storage produces a steady earnings stream– 40 percent fixed rate (demand based)– 60 percent variable rate (commodity rate)

• Overland Pass and Arbuckle pipelines are significant growth opportunitiesAb d f i t l th j t• Abundance of internal growth projects

– Natural gas storage expansion and acquisition– Pipeline expansions

New projects– New projects

414141

OKS Interstate Pipelines -- Key Points

• Provide fee-based income (demand-charge revenues) Viking Gas Viking Gas

• Access to diverse supply sources with connections to growing marketsHigh utilization rates Northern Border Northern Border

Guardian Guardian PipelinePipeline

TransmissionTransmission

• High utilization rates• Transferred operating

responsibility of Northern Border Pipeline to TransCanada affiliate

Northern Border Northern Border PipelinePipeline

PipelinePipeline

Pipeline to TransCanada affiliate– Own 50 percent Midwestern Gas Midwestern Gas

TransmissionTransmission

424242

OKE Distribution -- Operating Statistics

• Largest natural gas distributor in Oklahoma and Kansas and third largest in Texas

642,000 642,000 customerscustomers

in Texas– 2,036,000 customers

• Revenues: $1.9 billion 821,000 821,000 customerscustomers

573,000 573,000 • Asset base: $2.8 billion• Rate base: $1.7 billion• Approximately 2,850 employees

573,000 573,000 customerscustomers

pp y , p y

434343Year-end 2006 statistics

OKE Distribution -- Rate StrategiesSynchronized rate filings• Synchronized rate filings

• Maintain positive relationships with regulators

Issue Solution Oklahoma Kansas TexasIssue Solution Oklahoma Kansas TexasBad Debt Commodity recovery in PGA 2/17

Fixed-price Plan 1/17Average Payment Plan 17/17g yFinancial Hedging 6/17Physical Hedging 17/17

Earnings Lag More frequent filingsLag in Capital Recovery Accelerated capital recovery 5/17Capital Recovery Return on gas in storage 2/17Volumetric sensitivity Two-tier rate plan

D li 1/17

444444

Decoupling 1/17Margin Fluctuation Weather Normalization 7/17Optimize capacity Revenue sharing 2/17

OKE Distribution -- Oklahoma Natural Gas

• Three commissioners elected to six-year staggered terms

• Largest customer base• 2005 rate case decision

– Increased revenues by $57.5 million• Straight fixed-variable rate design

• Customer Choice rate design• Weather normalization• Weather normalization

454545

OKE Distribution -- Kansas Gas Service

• Three commissioners appointed by governor to four-year terms

• Coldest jurisdiction• $73.3 million rate case filed in May 2006

– $52 million approved in Novemberpp– Adds $45 million to 2007 operating income

• Bad debt recovery mechanismW th li ti• Weather normalization

• Capital recovery mechanism• Revenue sharing mechanism

464646

g

OKE Distribution -- Texas Gas Service • Home rule regulation in 93 communities, 17 rate

jurisdictions, with Texas Railroad Commission the appellate authority – diversifies risk

• Highest potential growth area• 2006 approved rate filings of $4.8 million in

three jurisdictions• Annual Cost of Service Filings in six cities• El Paso rate case in 2007• Bad debt recovery mechanism• Bad debt recovery mechanism• Capital recovery mechanism in five jurisdictions• Revenue sharing mechanism

474747

• 78 percent of revenue insensitive to weather

MarginOKE Energy Services -- Operating Statistics

Margin• $0.22 MMBtu in 2006• $0.14/MMBtu in 2005Storageg• Capacity of 96 Bcf

– 23 facilities under lease– Geographic diversity

• Deliverabilityy– 2.3 Bcf/d of withdrawal rights– 1.5 Bcf/d of injection rights

Transportation• Over 1.8 Bcf/d of firm capacityO e 8 c /d o capac tySales• Averaged approximately 3.1 Bcf/d of natural gas

sales in 2006Staff

Wholesale OfficesWholesale OfficesLeased StorageLeased StorageRetail OfficesRetail Offices

484848

Staff• 17 regional wholesale and retail offices• 101 employees

OKE Energy Services -- Sources of MarginStorage: Winter/summer spread demand revenues storage financial arbitrage• Storage: Winter/summer spread, demand revenues, storage financial arbitrage

• Transportation: basis hedging, optionality, marketing services• Optimization: daily/monthly from storage, transportation, split connect supplies• Retail: customer choice programs, LDC unbundling, small commercial and industrial• Trading: based on knowledge and opportunities to extract trading margins

2006 Operating Income 2007 G id

Storage

Optimization5%

Retail7% Trading

8%

2006 Operating IncomeRetail

7%Optimization

11%Storage

2007 Guidance

Transportation32%

48% 48%Transportation

34%

494949$229 million $205 million

505050