Wyoming Pipeline Authority October 28, 2003Wyoming Pipeline Authority October 28, 2003

Mark QuinlanDirector Marketing.

Mark QuinlanDirector Marketing.

ONEOK – A Diversified Energy CompanyONEOK – A Diversified Energy Company

Operate existing assets to improve returnsAcquire assets that compliment and strengthen

our core businessAchieve an average growth of 10 percent in

earnings annually

Operate existing assets to improve returnsAcquire assets that compliment and strengthen

our core businessAchieve an average growth of 10 percent in

earnings annually

ProductionProduction Gathering &Processing

Gathering &Processing

Transportation& Storage

Transportation& Storage

Marketing& TradingMarketing& Trading

DistributionDistribution

Business StrategyBusiness Strategy

ProductionStrategyProductionStrategy

Acquire and develop reserves

Expand footprint- Looking for Rockies Play

Exploitation Company

Acquire and develop reserves

Expand footprint- Looking for Rockies Play

Exploitation Company

Production AreasProduction Areas

ProductionProduction

28.49.6

72.2

272.0

0

50

100

150

200

250

300

1998 1999 2000 2001 2002E Post-Divestiture

Production Reserves

Total Production & Reserves (Bcfe)Total Production & Reserves (Bcfe)

Gathering & ProcessingStrategyGathering & ProcessingStrategy

ONEOK Processing PlantsONEOK Processing Plants

ONEOK Gathering AreasONEOK Gathering Areas

Consolidate and rationalize assets

Business focus- Fee-based versus commodity

spread

Mitigate processing margin volatility

- Contract renegotiations

- Change in operation

Consolidate and rationalize assets

Business focus- Fee-based versus commodity

spread

Mitigate processing margin volatility

- Contract renegotiations

- Change in operation

Transportation & StorageStrategyTransportation & StorageStrategy

StorageStorage

TransportationTransportation

Increase throughput and margins

Maintain competitive cost structure

Strategically expand network of storage and pipeline assets

Increase throughput and margins

Maintain competitive cost structure

Strategically expand network of storage and pipeline assets

DistributionStrategyDistributionStrategy

Kansas Gas Service CompanyKansas Gas Service Company

Oklahoma Natural Gas CompanyOklahoma Natural Gas Company

Texas Gas Service CompanyTexas Gas Service Company

Focus on costs per customerLook for acquisition

opportunities

Focus on costs per customerLook for acquisition

opportunities

Financial ReviewFinancial Review

Cash FlowNet of Acquisition CapitalCash FlowNet of Acquisition Capital

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

-$150

-$100

-$50

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

ShortageShortageSurplusSurplus CapExCapExDividendsDividends

$311.4(a)

$311.4(a)

$341.6(a)

$341.6(a)

$232.5 (a)

$232.5 (a)

20002000 2002200220012001

(a) Includes amounts reported as discontinued operations in 2002 Form 10-K.(a) Includes amounts reported as discontinued operations in 2002 Form 10-K.

($Million)($Million)

Estimated 2003Estimated 2003

$215$215

Operating Income DiversityOperating Income Diversity

2002 Est.

$386 Million

Gathering &Processing

6%

Marketing & Trading47%

Transportation & Storage

15%

Distribution26%

Production6%

Strong Credit QualityStrong Credit Quality

Focus on maintaining strong credit ratings- A /Baa1 (S&P / Moody’s)

Focus on maintaining solid liquidity

Focus on maintaining strong credit ratings- A /Baa1 (S&P / Moody’s)

Focus on maintaining solid liquidity

2003200320012001

Equity51%

Equity51%

Debt49%Debt49%

Equity35%

Equity35%

Debt65%Debt65%

Forward Looking StatementForward Looking Statement

Statements 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 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 Securities and Exchange Commission filings.

Statements 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 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 Securities and Exchange Commission filings.

Marketing & TradingMarketing & Trading

Market and trade natural gas, natural gas liquids, crude oil and electricity

Trade around asset base to optimize marginsLease gas storage and pipeline capacity assetsLocated in the heart of the natural gas producing areaProvide service to most of the U.S.

Market and trade natural gas, natural gas liquids, crude oil and electricity

Trade around asset base to optimize marginsLease gas storage and pipeline capacity assetsLocated in the heart of the natural gas producing areaProvide service to most of the U.S.

Marketing & TradingStrategyMarketing & TradingStrategy

Leased StorageLeased Storage

Increase leased storage and pipeline capacity

Grow markets served

Increase leased storage and pipeline capacity

Grow markets served

Marketing & TradingOperating RevenuesMarketing & TradingOperating Revenues

2003 Plan2003 Plan

Marketing and Trading RevenuesMarketing and Trading Revenues

Marketing and transportation servicesMarketing and transportation services 40.0%40.0%

Storage arbitrageStorage arbitrage 40.0%40.0%

Retail sales to industrial customersRetail sales to industrial customers 7.0%7.0%

Power/crude oil/other marketed commoditiesPower/crude oil/other marketed commodities 13.0%13.0%

Marketing & TradingStorage Revenue StreamsMarketing & TradingStorage Revenue Streams

Winter and summer spreadDemand peaking businessCall option strategy

Winter and summer spreadDemand peaking businessCall option strategy

Firm

Transportation

Firm

Storage

Supply/Market

Split Connected

ReliabilityReliability OptionalityOptionality

ArbitrageArbitrage

ONEOKONEOK$$

OEMT’s success is derived from its ability to optimize and trade around assets

OEMT StrategyOEMT Strategy

OEMT’s Pricing MethodsOEMT’s Pricing Methods

OEMT’s Pricing is Market sensitive and Producer Friendly- OEMT can create a portfolio of pricing if desired by the producer

OEMT’s utilizes a variety of pricing methods- Fixed price

- Inside FERC first of the month index

- Gas Daily index

- NYMEX/Basis triggers

OEMT’s Pricing is Market sensitive and Producer Friendly- OEMT can create a portfolio of pricing if desired by the producer

OEMT’s utilizes a variety of pricing methods- Fixed price

- Inside FERC first of the month index

- Gas Daily index

- NYMEX/Basis triggers

OEMT PurchasesOEMT Purchases

Volumes are purchased to fill OEMT’s transportation position and market commitments.

Purchases are not weather driven. OEMT purchases baseload and swing volumes. OEMT provides a reliable market for its producers.

Volumes are purchased to fill OEMT’s transportation position and market commitments.

Purchases are not weather driven. OEMT purchases baseload and swing volumes. OEMT provides a reliable market for its producers.

Rockies TransportationRockies Transportation

OEMT holds a significant amount of long term transportation on KMIGT, WIC, Trailblazer, and Cheyenne Plains

Pipeline Volume Term - KMIGT 150,000 MMBtu/day 9/30/07

- WIC 40,000 MMBtu/day 12/31/07

- Trailblazer 50,000 MMBtu/day 3/31/18

- Cheyenne Plains 95,000 MMBtu/day 3/31/15

- CIG 5,800 MMBtu/day 10/31/23

OEMT holds a significant amount of long term transportation on KMIGT, WIC, Trailblazer, and Cheyenne Plains

Pipeline Volume Term - KMIGT 150,000 MMBtu/day 9/30/07

- WIC 40,000 MMBtu/day 12/31/07

- Trailblazer 50,000 MMBtu/day 3/31/18

- Cheyenne Plains 95,000 MMBtu/day 3/31/15

- CIG 5,800 MMBtu/day 10/31/23

Raton BasinRaton Basin

Cheyenne Hub

TX

KS

WYMT

UTAZ

Powder RiverBasin

Uinta Basin

PiceanceBasin

Wind River Basin

AnadarkoBasin

Denver

3

CONM

TX

KS

AZ

Uinta Basin

Wind River Basin

Raton BasinTX

KS

Denver-JulesburgBasin

Bighorn Basin

Green River Basin

CIGWICPEPLNGPL

Cheyenne PlainsTrail BlazerSouthern Star KN/Pony Express

Glen Rock

Kanda

Natural Gas Marketer Customer Satisfaction Study

ONEOK Energy Marketing & Trading ONEOK Energy Marketing & Trading was rated 3was rated 3rdrd in the Major Marketer in the Major Marketer Index for 2002.Index for 2002.

Mastio & Company’sMastio & Company’s

Expand Physical Trading Grow Financial Trading Emphasize Growth in the Rockies

- Secure long term supply- Maximize transportation position to the Mid-continent

OEMT ConclusionOEMT Conclusion