Oneok maintains 'strong' balance sheet through increased growth

By Aleesia Forni

Columbus, Ohio, Dec. 6 - Oneok Partners LP said it has maintained its "strong" balance sheet and investment-grade credit rating through its annual compound growth rate of 8% since it became a sole general partner in 2006.

The company plans to execute strategic acquisitions that provide long-term value in the near future, while preserving its BBB credit rating.

"Our strategies have remained the same [or] changed very little," chief executive officer John Gibson said at the Wells Fargo Pipeline, MLP and Energy Symposium on Tuesday.

One of these strategies has been to "deliver consistent growth and sustainable earnings," which the company has accomplished since becoming a sole general partner.

Oneok is projecting its distributable cash flow for 2012 to be within the range of $845 million to $915 million, an increase from its current 2011 guidance of between $850 million to $880 million.

"This growth is driven by, again, new volumes as several projects from our $3 billion growth program come on later this year and into 2012," Gibson said during the company's presentation in New York City.

"This earning in cash flow growth gives us the opportunity to continue to increase distributions to our unit holders."

Oneok also projects 2012 EBITDA to be between $1.125 billion and $1.215 billion.

"We continue to see strong growth beyond 2012," Gibson said, adding that the company's average annual EBITDA is expected to grow between 18% and 22% through 2014.

This projected growth is driven by income from the $2 billion projects the company completed between 2006 and 2009, as well as $3 billion of planned projects between 2012 and 2014.

Oneok is a Tulsa, Okla.-based owner of natural gas pipelines and natural gas liquid systems.

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