Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

ONEOK Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	527,592)	527,592)	527,592)	680,996)	681,100)
Gross intangible assets	381,435)	381,435)	381,435)	414,345)	411,650)
Accumulated amortization	(156,160)	(145,732)	(135,304)	(137,508)	(125,608)
Net intangible assets	225,275)	235,703)	246,131)	276,837)	286,042)
Goodwill and intangible assets	752,867)	763,295)	773,723)	957,833)	967,142)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Net intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	ONEOK Inc. net intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	ONEOK Inc. goodwill and intangible assets decreased from 2020 to 2021 and from 2021 to 2022.

ONEOK Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	24,379,094)	23,621,613)	23,078,754)	21,812,121)	18,231,671)
Less: Goodwill	527,592)	527,592)	527,592)	680,996)	681,100)
Total assets (adjusted)	23,851,502)	23,094,021)	22,551,162)	21,131,125)	17,550,571)
Adjustment to Total ONEOK Shareholders’ Equity
Total ONEOK shareholders’ equity (as reported)	6,493,885)	6,015,163)	6,042,398)	6,225,951)	6,579,543)
Less: Goodwill	527,592)	527,592)	527,592)	680,996)	681,100)
Total ONEOK shareholders’ equity (adjusted)	5,966,293)	5,487,571)	5,514,806)	5,544,955)	5,898,443)
Adjustment to Net Income Attributable To ONEOK
Net income attributable to ONEOK (as reported)	1,722,221)	1,499,706)	612,809)	1,278,577)	1,151,703)
Add: Goodwill impairment charge	—)	—)	153,400)	—)	—)
Net income attributable to ONEOK (adjusted)	1,722,221)	1,499,706)	766,209)	1,278,577)	1,151,703)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

ONEOK Inc., Financial Data: Reported vs. Adjusted

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ONEOK Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	7.69%	9.07%	7.17%	12.58%	9.15%
Adjusted net profit margin	7.69%	9.07%	8.97%	12.58%	9.15%
Total Asset Turnover
Reported total asset turnover	0.92	0.70	0.37	0.47	0.69
Adjusted total asset turnover	0.94	0.72	0.38	0.48	0.72
Financial Leverage
Reported financial leverage	3.75	3.93	3.82	3.50	2.77
Adjusted financial leverage	4.00	4.21	4.09	3.81	2.98
Return on Equity (ROE)
Reported ROE	26.52%	24.93%	10.14%	20.54%	17.50%
Adjusted ROE	28.87%	27.33%	13.89%	23.06%	19.53%
Return on Assets (ROA)
Reported ROA	7.06%	6.35%	2.66%	5.86%	6.32%
Adjusted ROA	7.22%	6.49%	3.40%	6.05%	6.56%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	ONEOK Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ONEOK Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	ONEOK Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	ONEOK Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	ONEOK Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

ONEOK Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ONEOK	1,722,221)	1,499,706)	612,809)	1,278,577)	1,151,703)
Revenues	22,386,892)	16,540,309)	8,542,242)	10,164,367)	12,593,196)
Profitability Ratio
Net profit margin¹	7.69%	9.07%	7.17%	12.58%	9.15%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ONEOK	1,722,221)	1,499,706)	766,209)	1,278,577)	1,151,703)
Revenues	22,386,892)	16,540,309)	8,542,242)	10,164,367)	12,593,196)
Profitability Ratio
Adjusted net profit margin²	7.69%	9.07%	8.97%	12.58%	9.15%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to ONEOK ÷ Revenues
= 100 × 1,722,221 ÷ 22,386,892 = 7.69%

² Adjusted net profit margin = 100 × Adjusted net income attributable to ONEOK ÷ Revenues
= 100 × 1,722,221 ÷ 22,386,892 = 7.69%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	ONEOK Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenues	22,386,892)	16,540,309)	8,542,242)	10,164,367)	12,593,196)
Total assets	24,379,094)	23,621,613)	23,078,754)	21,812,121)	18,231,671)
Activity Ratio
Total asset turnover¹	0.92	0.70	0.37	0.47	0.69
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenues	22,386,892)	16,540,309)	8,542,242)	10,164,367)	12,593,196)
Adjusted total assets	23,851,502)	23,094,021)	22,551,162)	21,131,125)	17,550,571)
Activity Ratio
Adjusted total asset turnover²	0.94	0.72	0.38	0.48	0.72

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 22,386,892 ÷ 24,379,094 = 0.92

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 22,386,892 ÷ 23,851,502 = 0.94

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ONEOK Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	24,379,094)	23,621,613)	23,078,754)	21,812,121)	18,231,671)
Total ONEOK shareholders’ equity	6,493,885)	6,015,163)	6,042,398)	6,225,951)	6,579,543)
Solvency Ratio
Financial leverage¹	3.75	3.93	3.82	3.50	2.77
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	23,851,502)	23,094,021)	22,551,162)	21,131,125)	17,550,571)
Adjusted total ONEOK shareholders’ equity	5,966,293)	5,487,571)	5,514,806)	5,544,955)	5,898,443)
Solvency Ratio
Adjusted financial leverage²	4.00	4.21	4.09	3.81	2.98

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total ONEOK shareholders’ equity
= 24,379,094 ÷ 6,493,885 = 3.75

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ONEOK shareholders’ equity
= 23,851,502 ÷ 5,966,293 = 4.00

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	ONEOK Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ONEOK	1,722,221)	1,499,706)	612,809)	1,278,577)	1,151,703)
Total ONEOK shareholders’ equity	6,493,885)	6,015,163)	6,042,398)	6,225,951)	6,579,543)
Profitability Ratio
ROE¹	26.52%	24.93%	10.14%	20.54%	17.50%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ONEOK	1,722,221)	1,499,706)	766,209)	1,278,577)	1,151,703)
Adjusted total ONEOK shareholders’ equity	5,966,293)	5,487,571)	5,514,806)	5,544,955)	5,898,443)
Profitability Ratio
Adjusted ROE²	28.87%	27.33%	13.89%	23.06%	19.53%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income attributable to ONEOK ÷ Total ONEOK shareholders’ equity
= 100 × 1,722,221 ÷ 6,493,885 = 26.52%

² Adjusted ROE = 100 × Adjusted net income attributable to ONEOK ÷ Adjusted total ONEOK shareholders’ equity
= 100 × 1,722,221 ÷ 5,966,293 = 28.87%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	ONEOK Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to ONEOK	1,722,221)	1,499,706)	612,809)	1,278,577)	1,151,703)
Total assets	24,379,094)	23,621,613)	23,078,754)	21,812,121)	18,231,671)
Profitability Ratio
ROA¹	7.06%	6.35%	2.66%	5.86%	6.32%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ONEOK	1,722,221)	1,499,706)	766,209)	1,278,577)	1,151,703)
Adjusted total assets	23,851,502)	23,094,021)	22,551,162)	21,131,125)	17,550,571)
Profitability Ratio
Adjusted ROA²	7.22%	6.49%	3.40%	6.05%	6.56%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income attributable to ONEOK ÷ Total assets
= 100 × 1,722,221 ÷ 24,379,094 = 7.06%

² Adjusted ROA = 100 × Adjusted net income attributable to ONEOK ÷ Adjusted total assets
= 100 × 1,722,221 ÷ 23,851,502 = 7.22%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	ONEOK Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

ONEOK Inc. (NYSE:OKE)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

ONEOK Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

ONEOK Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)