Thursday, July 26, 2012

Wow -- ONEOK To Increase Investments in the Bakken

Updates

March 1, 2017: very upbeat 4Q16 and full year report.

December 2, 2016: one year ago,  shares trading at $20; today, shares trading at $55.

January 15, 2015: corporate presentation, January 8, 2015.

January 14, 2015: ONEOK increases dividend

December 15, 2014: ONEOK to add de-ethanizers at their two NG plants west of Williston, Stateline I and Stateline II.

July 30, 2013: update on projects in the Bakken for 2Q13.

January 17, 2013: ONEOK announces it will build a fifth natural gas gathering and procession plant in North Dakota, to be named Garden Creek III. 

December 10, 2012: public hearing on Garden Creek II, to be co-located with Garden Creek 1, ten miles northeast of Watford City; 100 million cubic feet/day of natural gas; 

November 27, 2012: ONEOK will not go forward with Bakken Crude Express Pipeline.

October 22, 2012:  Link to Oil & Gas Journal here, re: ONEOK, update:
Data points:
  • ONEOK announces "open season" for previously announced Bakken Crude Express Pipeline
  • 1,300 mile crud oil pipeline
  • from Williston Basin to Cushing hub
  • 200,000 bopd
  • construction to begin in early 2014; completion by mid-2015
September 24, 2012: Earnings forecast; dividend increase; outstanding report; 

September 7, 2012: ONEOK's presentation at Barclays. SeekingAlpha.com transcript here.

September 5, 2012: ONEOK presents at Barclays; transcript.

September 2, 2012Update on the ONEOK Bakken NGL Pipeline; problems in Crook County, Wyoming

Original Post
A huge "thank you" to a reader for sending me this note; I would have missed it.

The other day, in a series of comments regarding natural gas and ONEOK, I came very, very close to suggesting it was just a matter of time before ONEOK would announce another natural gas gathering and processing plant. Wow, I wish I had posted that, but I have become so well-known for my bias regarding the Bakken, I have backed off adding comments about what I think we might see in the Bakken.

Here's that story from Yahoo!Finance:
ONEOK Partners, L.P. today announced plans to invest approximately $980 million to $1.1 billion between now and 2014 to:
  • Build a new 75,000 barrel-per-day (bpd) natural gas liquids (NGL) fractionator, MB-3, at Mont Belvieu, Texas, and related infrastructure;
  • Build a new 100 million cubic feet per day (MMcf/d) natural gas processing facility – the Garden Creek II plant – in eastern McKenzie County, N.D., in the Bakken Shale in the Williston Basin, and related infrastructure;
  • Increase capacity on the Bakken NGL Pipeline to 135,000 bpd from 60,000 bpd; and
  • Build a new 40,000 bpd Ethane/Propane (E/P) splitter at Mont Belvieu, Texas.
This is an incredible announcement coming when it does -- regular readers have been treated to a series from articles from RBN Energy, ISA, and from readers talking about the coming natural gas boom in North Dakota.

And don't forget this Forbes article that Don sent me some time ago and I linked: natural gas is headed to $8.00.

4 comments:

  1. Should also be noted OKS increased their distribution from .635 to .66, and the parent company, OKE, move their dividend from .305 to .33.

    ReplyDelete
    Replies
    1. Thank you, yes. On one of my thousands of short throwaway lines I did note that OKS increased their distribution; I did not mention OKE, so this is news. Thank you.

      A fair number of energy companies are announcing positive news for their investors, I see.

      Delete
  2. Incredible, we are just beginning to see the potential of the Williston Basin.

    I think Harold Hamm and his Continental Resources and ONEOK have an attraction for North Dakota. These two are both Oklahoma oil and gas made and they know a good thing when they see it.

    ReplyDelete
    Replies
    1. It's ironic/coincidental you should be posting that at this moment: I just updated the story about the Bentek Study commissioned by NDIC at this post:


      http://www.milliondollarwayblog.com/2012/07/bakken-production-forecasts.html

      I initially did not give the Bentek Study much attention, too much other stuff going on, but then connecting the dots of that study and then seeing the ONEOK story -- it is quite incredible.

      Delete