The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Brian Patrick Reynolds - UBS Investment Bank, Research Division - Analyst
: Maybe to start off on synergies. I know that you've only had 4 weeks into the pro forma ONEOK and the larger growth CapEx projects will likely
take some time to commercialize and talk about. So curious if you can just talk about some of the smaller low-hanging fruit synergies that you've
seen over the last few weeks, particularly around just commercial discussions around batching, blending and bundling. Have you seen some initial
commercial success? And when can we see some realizations there?
Question: Brian Patrick Reynolds - UBS Investment Bank, Research Division - Analyst
: Great. Appreciate all that. Maybe to pivot just towards the forward growth CapEx outlook relative to the initial S-4, it seems like ONEOK has pulled
forward some CapEx related to West Texas LPG and Elk Creek expansion. And it seems like Saguaro is trending towards more of a JV type relationship,
which could defer capital further. So perhaps could you just update us on kind of a forward CapEx outlook maybe for '24 and beyond? Just given
some of these recent trends? And does it imply that ONEOK could be trading closer to a 10% free cash flow yield if CapEx trends lower?
Question: Tristan James Richardson - Scotiabank Global Banking and Markets, Research Division - Analyst
: Appreciate the comments on what you're seeing so far early in the merger. Just curious, like we've replaced the concentric circle with a telescope,
but in that telescope, you talked about mid- to high-single-digit dividend growth. Curious about capital allocation now that the merger is closed
and thinking about balancing project opportunities with allocating free cash for repurchases and dividend growth to be competitive with peers.
Question: Tristan James Richardson - Scotiabank Global Banking and Markets, Research Division - Analyst
: Appreciate it, Walt. And then maybe, Sheridan, where do you see sort of this GOR theme, particularly in the Bakken going long term, particularly
as producers consolidate -- operator consolidation drives producer efficiency, but just where -- what's the end game or in terms of where do we
top out from a GOR perspective long term?
Question: Neel Mitra - Bank of America - Analyst
: So it seems like everything is going well, you're going to be below 4x leverage easily for 2024 and the $6 billion in guidance seems pretty conservative.
How are you looking at shareholder returns right now? Is a repurchase program in 2024 on the table, just as we look for how to return cash to
shareholders after this merger and when we can think about how we're going to do that?
Question: Neel Mitra - Bank of America - Analyst
: Okay. Great. And then second question on building an LPG terminal on the Gulf Coast. Some of your peers have talked about how they initially
priced at greenfield and now they will price everything at brownfield to try to combat new entrants. Does this make LPG exports or a new terminal
kind of lower on the priority list than the batching, bundling, et cetera, when you consider the barriers to entry just with pricing for existing players
that are -- that are in the space right now?
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NOVEMBER 01, 2023 / 3:00PM, OKE.N - Q3 2023 ONEOK Inc Earnings Call
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