XML 41 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
SEGMENTS
12 Months Ended
Dec. 31, 2013
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
SEGMENTS
R.
SEGMENTS

Segment Descriptions - Following the separation of our natural gas distribution business into ONE Gas and wind down of our energy services business, our chief operating decision maker reviews the financial performance of each of the three businesses of ONEOK Partners on a regular basis to assess the performance of, and allocate resources to, ONEOK Partners. As a result, our reportable segments have changed to reflect the three business segments of ONEOK Partners. Prior periods presented have been recast to conform to the current presentation.
Our reportable business segments are the following:
the Natural Gas Gathering and Processing segment gathers and processes natural gas;
the Natural Gas Liquids segment gathers, treats, fractionates and transports NGLs and stores, markets and distributes NGL products; and
the Natural Gas Pipelines segment operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities.

Other and eliminations consist of the operating and leasing operations of our headquarters building and related parking facility and other amounts needed to reconcile our reportable segments to our consolidated financial statements.

Accounting Policies - We evaluate performance based principally on each segment’s operating income and equity earnings. The accounting policies of the segments are the same as those described in Note A.  Affiliate and intersegment sales are recorded on the same basis as sales to unaffiliated customers and are discussed in further detail in Note P.  Net margin is comprised of total revenues less cost of sales and fuel.  Cost of sales and fuel includes commodity purchases, fuel, and storage and transportation costs. Revenues from sales and services provided by ONEOK Partners to our former natural gas distribution business, which were previously eliminated in consolidation, are now reported as third-party revenues for all periods presented.

Customers - The primary customers of the Natural Gas Gathering and Processing segment are major and independent crude oil and natural gas production companies.  The Natural Gas Liquids segment’s customers are primarily NGL and natural gas gathering and processing companies, major and independent crude oil and natural gas production companies, propane distributors, ethanol producers and petrochemical, refining and NGL marketing companies. The Natural Gas Pipelines segment’s customers include natural gas distribution, electric-generation, natural gas marketing, industrial and major and independent crude oil and natural gas production companies.

For the years ended December, 31 2013 and 2012, ONEOK Partners’ had no single external customer from which it received 10 percent or more of the consolidated gross revenues. For the year ended December 31, 2011, ONEOK Partners had one customer, Dow Hydrocarbons and Resources, L.L.C., from which it received $1.2 billion, or approximately 11 percent, of our consolidated revenues. All of these revenues were earned in the Natural Gas Liquids segment.

Operating Segment Information - The following tables set forth certain selected financial information for our operating segments for the periods indicated:
Year Ended December 31, 2013
 
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Other and
Eliminations
(c)
 
Total
 
 
(Thousands of dollars)
Sales to unaffiliated customers
 
$
665,169

 
$
10,644,117

 
$
219,244

 
$
2,606

 
$
11,531,136

Sales to affiliated customers
 
238,600

 

 
102,143

 

 
340,743

Intersegment revenues
 
1,147,713

 
133,910

 
4,127

 
(1,285,750
)
 

Total revenues
 
$
2,051,482

 
$
10,778,027

 
$
325,514

 
$
(1,283,144
)
 
$
11,871,879

 
 
 
 
 
 
 
 
 
 
 
Net margin
 
$
500,627

 
$
869,938

 
$
285,719

 
$
(6,618
)
 
$
1,649,666

Operating costs
 
193,293

 
236,638

 
101,182

 
10,473

 
541,586

Depreciation and amortization
 
103,962

 
89,240

 
43,541

 
2,600

 
239,343

Gain on sale of assets
 
436

 
843

 
10,602

 

 
11,881

Operating income
 
$
203,808

 
$
544,903

 
$
151,598

 
$
(19,691
)
 
$
880,618

 
 
 
 
 
 
 
 
 
 
 
Equity earnings from investments
 
$
23,493

 
$
21,978

 
$
65,046

 
$

 
$
110,517

Investments in unconsolidated affiliates
 
$
333,179

 
$
491,856

 
$
404,803

 
$

 
$
1,229,838

Total assets
 
$
3,949,813

 
$
6,938,633

 
$
1,817,675

 
$
5,035,360

 
$
17,741,481

Noncontrolling interests in consolidated subsidiaries
 
$
4,521

 
$

 
$

 
$
2,502,808

 
$
2,507,329

Capital expenditures
 
$
774,379

 
$
1,128,345

 
$
34,699

 
$
319,162

 
$
2,256,585

(a) - The Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $534.8 million, of which $449.9 million related to sales within the segment, net margin of $327.4 million and operating income of $190.5 million.
(b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $246.9 million, net margin of $217.6 million and operating income of $90.5 million.
(c) - The Other segment includes assets and capital expenditures of discontinued operations of $4.4 billion and $292.1 million, respectively.

Year Ended December 31, 2012
 
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Other and
Eliminations
(c)
 
Total
 
 
(Thousands of dollars)
Sales to unaffiliated customers
 
$
436,629

 
$
9,176,389

 
$
217,034

 
$
1,970

 
$
9,832,022

Sales to affiliated customers
 
253,136

 

 
98,963

 

 
352,099

Intersegment revenues
 
825,948

 
80,274

 
4,388

 
(910,610
)
 

Total revenues
 
$
1,515,713

 
$
9,256,663

 
$
320,385

 
$
(908,640
)
 
$
10,184,121

 
 
 
 
 
 
 
 
 
 
 
Net margin
 
$
455,170

 
$
907,340

 
$
286,060

 
$
(4,768
)
 
$
1,643,802

Operating costs
 
164,033

 
223,844

 
101,899

 
1,949

 
491,725

Depreciation and amortization
 
83,031

 
74,344

 
45,726

 
2,233

 
205,334

Gain (loss) on sale of assets
 
2,278

 
(932
)
 
5,390

 

 
6,736

Operating income
 
$
210,384

 
$
608,220

 
$
143,825

 
$
(8,950
)
 
$
953,479

 
 
 
 
 
 
 
 
 
 
 
Equity earnings from investments
 
$
29,103

 
$
20,701

 
$
73,220

 
$

 
$
123,024

Investments in unconsolidated affiliates
 
$
333,210

 
$
494,878

 
$
393,317

 
$

 
$
1,221,405

Total assets
 
$
3,040,198

 
$
5,620,420

 
$
1,812,711

 
$
5,427,644

 
$
15,900,973

Noncontrolling interests in consolidated subsidiaries
 
$
4,752

 
$

 
$

 
$
2,098,089

 
$
2,102,841

Capital expenditures
 
$
566,126

 
$
968,549

 
$
25,383

 
$
306,095

 
$
1,866,153

(a) - The Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $470.6 million, of which $397.7 million related to sales within the segment, net margin of $276.3 million and operating income of $162.8 million.
(b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $251.5 million, net margin of $220.3 million and operating income of $99.3 million.
(c) - The Other segment includes assets and capital expenditures of discontinued operations of $4.5 billion and $280.3 million, respectively.

Year Ended December 31, 2011
 
Natural Gas
Gathering and
Processing
 
Natural Gas
Liquids (a)
 
Natural Gas
Pipelines (b)
 
Other and
Eliminations
(c)
 
Total
 
 
(Thousands of dollars)
Sales to unaffiliated customers
 
$
363,491

 
$
10,325,124

 
$
230,389

 
$
2,363

 
$
10,921,367

Sales to affiliated customers
 
298,040

 

 
105,563

 

 
403,603

Intersegment revenues
 
871,943

 
36,155

 
1,847

 
(909,945
)
 

Total revenues
 
$
1,533,474

 
$
10,361,279

 
$
337,799

 
$
(907,582
)
 
$
11,324,970

 
 
 
 
 
 
 
 
 
 
 
Net margin
 
$
402,854

 
$
891,788

 
$
284,393

 
$
690

 
$
1,579,725

Operating costs
 
153,686

 
198,907

 
108,635

 
15,950

 
477,178

Depreciation and amortization
 
68,255

 
63,904

 
45,390

 
1,955

 
179,504

Loss on sale of assets
 
(299
)
 
(378
)
 
(286
)
 

 
(963
)
Operating income
 
$
180,614

 
$
628,599

 
$
130,082

 
$
(17,215
)
 
$
922,080

 
 
 
 
 
 
 
 
 
 
 
Equity earnings from investments
 
$
30,523

 
$
19,853

 
$
76,870

 
$

 
$
127,246

Investments in unconsolidated affiliates
 
$
324,610

 
$
475,185

 
$
423,603

 
$

 
$
1,223,398

Total assets
 
$
2,424,626

 
$
4,595,852

 
$
1,886,046

 
$
4,801,015

 
$
13,707,539

Noncontrolling interests in consolidated subsidiaries
 
$

 
$

 
$
5,171

 
$
1,555,988

 
$
1,561,159

Capital expenditures
 
$
623,739

 
$
401,278

 
$
37,846

 
$
273,204

 
$
1,336,067

(a) - The Natural Gas Liquids segment has regulated and nonregulated operations. Our Natural Gas Liquids segment’s regulated operations had revenues of $393.3 million, of which $267.0 million related to sales within the segment, net margin of $250.8 million and operating income of $144.8 million.
(b) - The Natural Gas Pipelines segment has regulated and nonregulated operations. Our Natural Gas Pipelines segment’s regulated operations had revenues of $265.2 million, net margin of $218.2 million and operating income of $88.0 million.
(c) - The Other segment includes assets and capital expenditures of discontinued operations of $4.0 billion and $242.6 million, respectively.