ONEOK Partners Announces Completion of First Phase of Roadrunner Gas Transmission Pipeline

Mar 09, 2016, 16:15 ET from ONEOK Partners, L.P.

TULSA, Okla., March 9, 2016 /PRNewswire/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced the completion of the first phase of the Roadrunner Gas Transmission pipeline project (Roadrunner) in West Texas.

"The addition of Roadrunner to our extensive natural gas pipeline infrastructure in West Texas positions ONEOK Partners to serve Mexico's rapidly expanding natural gas markets by connecting them with U.S. producers in the Permian Basin," said Terry K. Spencer, president and chief executive officer of ONEOK Partners. "This project is a good example of our commitment to grow stable, long-term, fee-based earnings for the partnership." 

Roadrunner is a 200-mile pipeline connecting ONEOK Partners' existing WesTex natural gas pipeline system near Coyanosa, Texas, to a new international border-crossing connection at the U.S. and Mexico border near San Elizario, Texas. The project is fully subscribed under 25-year firm fee-based commitments. The completed first phase provides 170 million cubic feet per day (MMcf/d) of capacity to markets in Mexico and El Paso, Texas.

The second phase, which will increase the pipeline's capacity to 570 MMcf/d, currently is under construction and is expected to be completed in the first quarter 2017. The third and final phase of the project is expected to be completed in 2019 and will increase the total capacity on the pipeline to 640 MMcf/d.

The project is a 50-50 joint venture with Mexico City-based natural gas infrastructure company Fermaca and is estimated to cost approximately $430 million to $480 million, a decrease of $20 million from previously announced cost estimates. The reduction in project capital is a result of lower material and labor costs associated with construction.

ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a pure-play publicly traded general partner, which owns 41.2 percent of the overall partnership interest, as of Dec. 31, 2015. 

For more information, visit the website at www.oneokpartners.com.

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Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our anticipated financial performance (including projected levels of quarterly and annual distributions and distribution coverage), liquidity, management's plans and objectives for our growth projects and other future operations (including plans to construct additional natural gas and natural gas liquids pipelines and processing facilities), our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters.  We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.

Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.

One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.

Analyst Contact:

T.D. Eureste

918-588-7167

Media Contact:

Stephanie Higgins

918-591-5026

 

SOURCE ONEOK Partners, L.P.



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