ONEOK Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income attributable to ONEOK	1,722,221)	1,499,706)	612,809)	1,278,577)	1,151,703)
Net income attributable to noncontrolling interests	—)	—)	—)	—)	3,329)
Net noncash charges	1,180,339)	1,188,339)	1,446,760)	832,098)	825,282)
Changes in assets and liabilities	3,395)	(141,773)	(160,501)	(163,896)	206,405)
Cash provided by operating activities	2,905,955)	2,546,272)	1,899,068)	1,946,779)	2,186,719)
Cash paid for interest, net of amounts capitalized, net of tax¹	445,321)	522,936)	581,240)	336,992)	318,033)
Capitalized interest, net of tax²	43,965)	19,008)	57,618)	83,074)	21,338)
Capital expenditures, less allowance for equity funds used during construction	(1,202,057)	(696,854)	(2,195,381)	(3,848,349)	(2,141,475)
Free cash flow to the firm (FCFF)	2,193,185)	2,391,362)	342,545)	(1,481,504)	384,615)

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
FCFF	Free cash flow to the firm is the cash flow available to the ONEOK Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	ONEOK Inc. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

ONEOK Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	23.44%	24.42%	23.62%	22.56%	23.96%
Interest Paid, Net of Tax
Cash paid for interest, net of amounts capitalized, before tax	581,663)	691,897)	760,984)	435,165)	418,244)
Less: Cash paid for interest, net of amounts capitalized, tax²	136,342)	168,961)	179,744)	98,173)	100,211)
Cash paid for interest, net of amounts capitalized, net of tax	445,321)	522,936)	581,240)	336,992)	318,033)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	57,426)	25,150)	75,436)	107,275)	28,062)
Less: Capitalized interest, tax³	13,461)	6,142)	17,818)	24,201)	6,724)
Capitalized interest, net of tax	43,965)	19,008)	57,618)	83,074)	21,338)

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).

¹ See details »

² 2022 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= 581,663 × 23.44% = 136,342

³ 2022 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 57,426 × 23.44% = 13,461

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ONEOK Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	42,141,201)
Free cash flow to the firm (FCFF)	2,193,185)
Valuation Ratio
EV/FCFF	19.21
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	15.52
ConocoPhillips	16.65
Exxon Mobil Corp.	14.14
Marathon Petroleum Corp.	6.53
Occidental Petroleum Corp.	12.00
Valero Energy Corp.	7.27
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	7.59
EV/FCFF, Industry
Energy	8.01

Based on: 10-K (reporting date: 2022-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

ONEOK Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	42,693,473)	41,998,057)	34,036,023)	43,137,106)	35,859,514)
Free cash flow to the firm (FCFF)²	2,193,185)	2,391,362)	342,545)	(1,481,504)	384,615)
Valuation Ratio
EV/FCFF³	19.47	17.56	99.36	—	93.23
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	8.27	13.33	106.63	16.67	—
ConocoPhillips	7.43	10.72	92.48	13.21	—
Exxon Mobil Corp.	7.84	10.06	—	44.38	—
Marathon Petroleum Corp.	5.22	7.80	—	13.14	—
Occidental Petroleum Corp.	5.95	8.39	25.58	45.65	—
Valero Energy Corp.	5.39	10.62	—	9.96	—
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	7.32	10.61	399.27	21.17	—
EV/FCFF, Industry
Energy	7.80	10.93	210.37	21.44	—

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).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 42,693,473 ÷ 2,193,185 = 19.47

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	ONEOK Inc. EV/FCFF ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

ONEOK Inc. (NYSE:OKE)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical