ONEOK to decrease 2020 capital spending

ONEOK, Inc. will decrease its 2020 growth capital guidance due to the current commodity price environment. ONEOK expects capital-growth expenditures in the range of US$1.60 billion to US$2.40 billion with a midpoint of US$2 billion, a decrease of US$500 million compared with the previously announced midpoint.

This updated range provides ONEOK with the flexibility to adjust accordingly based on expected producer activity, the company said.

“Given the significant inventory of flared natural gas in the Williston Basin and fully contracted growth in the Permian Basin, and factoring in the current commodity price environment and assumed rig reductions, we expect our 2020 results to be within our previously announced guidance ranges,” said Terry K. Spencer, ONEOK president and chief executive officer. “We are working with our producers on any updates to their drilling plans and evaluating the impact on our future volume expectations, and we will make adjustments to financial guidance if appropriate.”

ONEOK has made adjustments for planned capital expenditures and is suspending the following announced expansion projects:

• The 100,000 b/d additional expansion of the West Texas LPG pipeline in the Permian Basin.
• The 200 MMcfd (5.6 X 10⁶ m³/d) expansion of the Demicks Lake natural gas processing facility, the Demicks Lake III project and related infrastructure in the Williston Basin.
• The scope of the Elk Creek Pipeline expansion will be reduced, with the ability to add pump stations incrementally to meet customer needs as necessary.

“The planning and work we have already completed allow us to quickly resume these suspended capital-growth projects when the environment improves and our customers require these services,” Spencer said.