ONEOK Reaches Settlement on Medford NGL Facility Insurance coverage Declare for $930 million

Proclaims Plans to Construct NGL Fractionator in Mont Belvieu

Preserving Medford Tools for Potential Future Use

TULSA, Okla., Jan. 9, 2023 /PRNewswire/ — ONEOK, Inc. (NYSE: OKE) immediately introduced that it has reached an settlement with its insurers to settle all claims for bodily harm and enterprise interruption associated to the Medford incident that occurred in July 2022.

Beneath the phrases of the settlement settlement, ONEOK agreed to resolve its declare for complete insurance coverage funds of $930 million, together with $100 million obtained thus far. The excellent settlement fee is required to be paid by the insurers inside 45 days. The proceeds will function settlement for property harm and as a fee in lieu of future enterprise interruption insurance coverage claims.

With the insurance coverage declare now resolved, the corporate can also be saying plans to assemble a brand new 125,000-barrel per day (bpd) NGL fractionator at its Mont Belvieu, Texas, facility. Upon completion, the brand new fractionator, MB-6, will improve the corporate’s complete fractionation capability in Mont Belvieu to roughly 700,000 bpd and higher align ONEOK’s fractionation capability with NGL market demand within the Gulf Coast.

Moreover, the MB-6 fractionator will produce purity ethane as an alternative of an ethane/propane (E/P) combine beforehand produced on the Medford facility. The brand new 125,000 bpd MB-6 fractionator could be equal to roughly 185,000 bpd of capability on the Medford facility. The demand for E/P combine has decreased whereas the demand for purity ethane has elevated within the Gulf Coast, inflicting a lot of the Medford E/P combine to be transported south and break up into purity ethane and propane consuming capability at ONEOK’s current Mont Belvieu amenities. ONEOK’s E/P combine output from the remaining Mid-Continent fractionation amenities at Bushton, Hutchinson and Conway is predicted to be sufficient to satisfy market demand.

Building of MB-6 is predicted to be accomplished in roughly 24 months at a complete price of roughly $550 million and has a extra favorable completion schedule when put next with rebuilding at Medford because of the following:

• Allowing for the MB-6 facility is full by relevant regulatory businesses;
• Engineering is considerably full because of the potential to make the most of related engineering designs and buy orders from the 2 earlier fractionation amenities, MB-5 and MB-4; and
• The corporate’s potential to effectively transition the present development sources at ONEOK’s MB-5 fractionator to the MB-6 fractionator.

MB-5, having a capability of 125,000 bpd, stays on schedule to be accomplished early within the second quarter 2023 thus lowering the present want for third-party fractionation by way of the rebuild course of.

ONEOK will proceed to function NGL pipeline property in Medford together with current places of work for regional operations. As well as, ONEOK is preserving property for future potential NGL amenities that may very well be constructed in Medford to boost its NGL enterprise because the market evolves.

“We’re happy to have come to a profitable settlement with our insurance coverage carriers that was the results of a collaborative course of,” stated Pierce H. Norton II, ONEOK president and chief government officer. “This settlement supplies us the knowledge of insurance coverage restoration, and shortens the development interval to revive probably the most environment friendly fractionation capability to our built-in system to satisfy anticipated progress in NGL provide for petrochemical and export demand.”

When the insurance coverage proceeds are obtained, the corporate expects to use money from the settlement fee to the stability of any insurance coverage receivables excellent as of December 31, 2022, and document a acquire for the remaining settlement proceeds within the first quarter 2023.

ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a number one midstream service supplier and proprietor of one of many nation’s premier pure fuel liquids (NGL) methods, connecting NGL provide within the Rocky Mountain, Mid-Continent and Permian areas with key market facilities and an in depth community of pure fuel gathering, processing, storage, and transportation property.

ONEOK is a FORTUNE 500 firm and is included in S&P 500.

For details about ONEOK, go to the web site: www.oneok.com.

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SOURCE ONEOK, Inc.