Exhibit
99.1












January
      19, 2010Analyst
      Contact:  Dan Harrison
              
              
              Analyst
      Contact:  Andrew Ziola918-588-7950
              
              
              918-588-7163Media
      Contact:  Megan Washbourne
              
              
              Media
      Contact:  Brad Borror918-588-7572
              
              
              918-588-7582




ONEOK
and ONEOK Partners Provide 2010 Earnings Guidance;
 Update
2009 Earnings Guidance
 
 TULSA,
Okla. – Jan. 19, 2010 - ONEOK, Inc. (NYSE: OKE) and ONEOK Partners, L.P. (NYSE:
OKS) today released their 2010 earnings guidance.
 
 ONEOK
also announced that its 2009 financial results are expected to be in the range
of $2.85 to $2.89 per diluted share, slightly above the high end of the earnings
guidance range provided on Nov. 3, 2009. ONEOK Partners also announced that its
2009 results are expected to be at the high end of the earnings guidance range
provided on Nov. 3, 2009.
 
 ONEOK’s
2010 net income is expected to be in the range of $300 million to $335 million,
reflecting higher anticipated earnings in the ONEOK Partners and distribution
segments, partially offset by lower expected earnings in the energy services
segment, compared with 2009. Additional information is available in Exhibit A in
the guidance tables on the ONEOK Web site.
 
 ONEOK
Partners’ 2010 net income is expected to be in the range of $450 million to $490
million, primarily reflecting higher anticipated earnings in the natural gas
liquids segment following the completion of the more than $2 billion capital
investment program. Preliminary estimates for the partnership’s 2010
distributable cash flow (DCF) are expected to be in the range of $580 million to
$620 million. Additional information is available in Exhibits D and E in the
guidance tables on the ONEOK Partners Web site.
 
 “We
expect improved financial performance in our ONEOK Partners and distribution
segments during 2010,” said John W. Gibson, president and chief executive
officer of ONEOK and chairman, president and chief executive officer of ONEOK
Partners.
 
 “Our 2010
earnings expectations primarily reflect higher anticipated natural gas
processing volumes and natural gas liquids throughput at ONEOK Partners. The
distribution segment will benefit from the implementation of new rates in
Oklahoma and continued
 
  ONEOK and ONEOK Partners Provide 2010
Earnings Guidance;
 Update 2009 Earnings Guidance
  Page
2
 
 
 
 operating
efficiencies. The energy services segment is expected to experience lower
transportation margins in 2010 due to anticipated narrower basis differentials,”
Gibson added.
 
 “ONEOK
Partners’ recently completed internal growth projects – which are primarily fee
based – will add incremental earnings to both ONEOK Partners and ONEOK in 2010,”
Gibson added. “We expect higher earnings and distributable cash flow to enable
the partnership to increase distributions to unitholders, which will also
benefit ONEOK as general partner and 45.1 percent owner of ONEOK
Partners.”
 
 2010
earnings guidance for ONEOK and ONEOK Partners includes a 1 cent per quarter
increase in unitholder distributions, while maintaining a minimum coverage ratio
of 1.05 times distributable cash flow. Actual unitholder distribution
declarations are subject to ONEOK Partners board approval.
 
 ONEOK’s
2010 earnings guidance reflects moving ONEOK’s retail natural gas marketing
business, which is forecasted to earn $8 million in operating income, to the
distribution segment from the energy services segment. This change enables
energy services to continue its focus on providing premium services to its
wholesale customers, and provides the retail marketing business with more growth
opportunities.
 
 ONEOK
expects its 2009 results to be in the range of $2.85 to $2.89 per diluted share,
slightly above the high end of the 2009 net income guidance range of $2.65 to
$2.85 per diluted share provided on Nov. 3, 2009. This is primarily due to
additional optimization opportunities and premium service margins in the energy
services segment and improved performance in the ONEOK Partners
segment.
 
 ONEOK
Partners expects its 2009 results to be at the high end of the net income
guidance range of $3.40 to $3.60 per unit provided on Nov. 3, 2009.
Distributable cash flow (DCF) is expected to be $556 million to $560 million,
above the high end of the 2009 DCF guidance range of $530 million to $550
million provided on Nov. 3, 2009. This is primarily a result of ONEOK Partners
selling its Lehman Brothers bankruptcy claim related to receivables owed to the
partnership for $6.5 million, after expenses, and higher distributions of $6
million from its equity investments.
 
 2010 EARNINGS GUIDANCE FOR
ONEOK
 
 The
midpoint for ONEOK’s 2010 operating income guidance is $958 million. The
midpoint for ONEOK’s 2010 net income guidance is $318 million.
 
 The
midpoint of the ONEOK Partners segment’s 2010 operating income guidance is
approximately $625 million. The 2010 guidance reflects higher expected NGL
volumes gathered, transported and fractionated in the partnership’s natural gas
liquids business, primarily as a result of completing several large internal
growth projects in 2009; higher anticipated natural gas processing volumes in
the partnership’s natural gas gathering and processing business; and higher
fee-based revenues in the natural gas pipelines business.
   -more-
 ONEOK and ONEOK Partners
Provide 2010 Earnings Guidance;
 Update 2009 Earnings Guidance
  Page
3
 
 The
midpoint of the distribution segment’s 2010 operating income guidance is
approximately $223 million, reflecting the recent approval of new rates in
Oklahoma within a performance-based structure that is expected to add $14
million of operating income in 2010; continued implementation of rate strategies
in Kansas and Texas; and the moving of the retail marketing business to the
distribution segment from the energy services segment; offset by the $17 million
2009 Oklahoma capital investment recovery mechanism not recurring in
2010.
 
 The
midpoint of the energy services segment’s 2010 operating income guidance is
approximately $107 million, reflecting the moving of the retail marketing
business to the distribution segment; lower expected transportation margins from
narrower anticipated natural gas basis differentials; and lower premium service
fees; partially offset by higher storage margins from higher anticipated
seasonal storage differentials. A financial profile of the energy services
segment’s 2010 earnings guidance is included in Exhibit B in the guidance tables
on the ONEOK Web site.
 
 For 2010,
approximately 62 percent of energy services’ transportation position and 75
percent of its storage position are hedged. Energy services will continue to
execute its strategy to reduce earnings volatility by aligning its leased
natural gas storage and transportation capacity with the needs of its premium
services customers. Year-end 2010 leased storage capacity is expected to be 71.3
Bcf, compared with 82.5 Bcf in 2009 and a year-end 2011 target of 65 Bcf.
Year-end 2010 long-term leased transportation capacity is expected to be 1.3 Bcf
per day compared with 1.5 Bcf per day in 2009 and a year-end 2012 target of 1.0
Bcf per day.
  2010
other income is estimated to be significantly lower due to lower allowance for
funds used during construction (AFUDC), and interest expense is expected to be
higher due to lower capitalized interest costs in the ONEOK Partners segment.
The lower AFUDC and capitalized interest costs are due to the 2009 completion of
the large growth projects in the ONEOK Partners segment.
 
 For 2010,
ONEOK’s capital expenditures are expected to be approximately $241 million on a
stand-alone basis. The distribution segment plans to invest approximately $31
million to install automated meters in selected residential communities in
Oklahoma, in addition to increased investments related to pipeline integrity and
non-discretionary compliance projects.
 
 On a stand-alone basis, the midpoint of
ONEOK’s 2010 guidance for cash flow before changes in working capital is $584
million. Cash flow before changes in working capital is expected to exceed
capital expenditures and dividends by $135 million to $170 million. ONEOK’s 2010
cash flow guidance anticipates dividend increases of 2 cents per share semi
annually during the year. Actual dividend declarations are subject to ONEOK,
Inc. board approval. Additional information is available in Exhibit C in the
guidance tables on the ONEOK Web site.
   -more-
 ONEOK and ONEOK Partners
Provide 2010 Earnings Guidance;
 Update 2009 Earnings Guidance
  Page
4
 
 
 At Dec.
31, 2009, ONEOK had $358.9 million outstanding and $804.1 million available
under its revolving credit facility.
 
 2010 EARNINGS GUIDANCE FOR
ONEOK PARTNERS
 
 The
midpoint for ONEOK Partners’ 2010 operating income guidance is $625 million. The
midpoint of ONEOK Partners’ 2010 net income guidance is $470
million.
 
 The
midpoint of the natural gas gathering and processing segment’s 2010 operating
income guidance is approximately $172 million, reflecting higher anticipated
natural gas processing volumes. Natural gas processed volumes are expected to
increase approximately 6 percent from 2009 levels, while natural gas gathered
volumes are expected to remain relatively flat compared with 2009.
 
 For 2010,
financial hedges are in place on 75 percent of the natural gas gathering and
processing segment’s expected equity natural gas liquids production at an
average price of $1.03 per gallon; 75 percent of its expected equity condensate
production at an average price of $1.80 per gallon; and 75 percent of its
expected equity natural gas production at $5.55 per MMBtu. Additionally, for
2011, financial hedges are in place on 13 percent of the natural gas gathering
and processing segment’s expected equity natural gas liquids production at an
average price of $1.34 per gallon; 25 percent of its expected equity condensate
production at an average price of $2.12 per gallon; and 43 percent of its
expected equity natural gas production at $6.29 per MMBtu.
 
 The
average unhedged prices used in ONEOK Partners’ 2010 guidance are $80 per barrel
for New York Mercantile Exchange (NYMEX) crude oil, $6.30 per MMBtu for NYMEX
natural gas and $1.00 per gallon for composite natural gas liquids.
 
 For 2010,
the partnership estimates that in its natural gas gathering and processing
segment a 1 cent per gallon increase in the composite price of natural gas
liquids would increase annual net margin by approximately $1.0 million. A $1.00
per barrel increase in the price of crude oil would increase annual net margin
by approximately $1.1 million. Also, a 10 cent per MMBtu increase in the price
of natural gas would increase annual net margin by approximately $1.2 million.
All of these sensitivities exclude the effects of hedging and assume normal
operating conditions.
 
 The
midpoint of the natural gas pipelines segment’s 2010 operating income guidance
is approximately $156 million. The partnership’s Midwestern Pipeline
interconnection with the Rockies Express pipeline, completion of the Fargo
lateral extension and the full-year impact of the Guardian Pipeline expansion
and extension are reflected in the segment’s 2010 earnings.
 
 The
midpoint of the natural gas liquids segment’s 2010 operating income guidance is
approximately $297 million. The segment’s operating income guidance reflects
anticipated supply growth in the Mid-Continent, on the Overland Pass Pipeline,
D-J and Piceance Lateral Pipelines and the Arbuckle Pipeline. Exchange and
transportation margins are expected to
 
 
 -more-
 ONEOK and ONEOK Partners
Provide 2010 Earnings Guidance;
 Update 2009 Earnings Guidance
  Page
5
 
 
 
 increase,
while marketing and optimization margins are expected to be lower as a result of
narrower anticipated NGL product-price differentials. 2010 guidance assumes the
Conway-to-Mont Belvieu average ethane price differential to be 10 cents per
gallon, compared with 11 cents per gallon in 2009.
 
 Equity
earnings from investments are estimated to be approximately $80 million in 2010
and primarily reflect higher anticipated earnings from Northern Border Pipeline,
in which ONEOK Partners owns a 50 percent interest.
 
 2010
other income is estimated to be significantly lower due to lower allowance for
funds used during construction (AFUDC), and interest expense is expected to be
higher due to lower capitalized interest. The lower AFUDC and capitalized
interest costs are due to the 2009 completion of the large growth
projects.
 
 For 2010,
ONEOK Partners’ capital expenditures are expected to be approximately $362
million, comprised of $278 million in growth capital and $84 million in
maintenance capital. Growth capital expenditures include approximately $32
million for new well connections in the natural gas gathering and processing
segment. The anticipated increase in maintenance capital is primarily related to
increased investments related to pipeline integrity and non-discretionary
compliance projects.
 
 At Dec.
31, 2009, ONEOK Partners had $523.0 million outstanding and $389.7 million
available under its revolving credit facility.
 
 2009 FINANCIAL
RESULTS
 
 ONEOK and
ONEOK Partners will release their full-year 2009 financial results on Feb. 22,
2010, following the close of market. The management of ONEOK and ONEOK Partners
will conduct a joint conference call on Tuesday, Feb. 23, 2010, at 11 a.m.
Eastern Standard Time (10 a.m. Central Standard Time). The call will also be
carried live on ONEOK’s and ONEOK Partners’ Web sites.
  To
participate in the telephone conference call, dial 866-814-1913, pass code
1427228, or log on to the webcast at www.oneokpartners.com or www.oneok.com.
 For those
unable to participate in the conference call or the webcast, the replay will be
available on ONEOK’s Web site, www.oneok.com, or ONEOK Partners’ Web
site, www.oneokpartners.com. A
recording will be available by phone for seven days. The playback call may be
accessed at 866-837-8032, pass code 224735.
 
 LINK TO
EXHIBITS
 
 http://www.oneok.com/~/media/ONEOK/GuidanceDocs/OKE2010GuidanceEXHIBITS_A-E.ashx
   -more-
 ONEOK and ONEOK Partners
Provide 2010 Earnings Guidance;
 Update 2009 Earnings Guidance
  Page
6
 
 NON-GAAP FINANCIAL
MEASURES
  ONEOK has
disclosed in this news release a forecasted stand-alone cash flow, before
changes in working capital, amount that is a non-GAAP financial measure.
Stand-alone cash flow, before changes in working capital, is a non-GAAP
financial measure used by management, industry analysts, investors, lenders and
rating agencies to assess the financial performance and the operating results of
our fundamental business activities. ONEOK stand-alone cash flow, before changes
in working capital, should not be considered in isolation or as a substitute for
net income, income from operations or other measures of cash flow. A
reconciliation of forecasted stand-alone cash flow, before changes in working
capital, to forecasted net income is included in the guidance
tables.
 
 ONEOK
Partners has disclosed in this news release forecasted EBITDA and DCF amounts
that are non-GAAP financial measures. Management believes EBITDA and DCF provide
useful information to investors as a measure of comparison with peer companies.
However, these calculations may vary from company to company, so the
partnership’s computations may not be comparable with those of other companies.
DCF is not necessarily the same as available cash as defined in the Partnership
Agreement. Management further uses EBITDA to compare the financial performance
of its segments and to internally manage those business segments.
Reconciliations of forecasted EBITDA to forecasted net income, and forecasted
computations of DCF are included in the guidance tables.
 
 
 ONEOK,
Inc. (NYSE: OKE) is a diversified energy company. We are the general partner and
own 45.1 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest
publicly traded limited partnerships, which is a leader in the gathering,
processing, storage and transportation of natural gas in the U.S. and owns one
of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply
in the Mid-Continent and Rocky Mountain regions with key market centers. ONEOK
is among the largest natural gas distributors in the United States, serving more
than 2 million customers in Oklahoma, Kansas and Texas. Our energy services
operation focuses primarily on marketing natural gas and related services
throughout the U.S. ONEOK is a Fortune 500 company.
 
 ONEOK
Partners, L.P. (NYSE: OKS) is one of the largest publicly traded limited
partnerships, and is a leader in the gathering, processing, storage and
transportation of natural gas in the U.S. and owns one of the nation’s premier
natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent
and Rocky Mountain regions with key market centers. Our general partner is a
wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a diversified energy
company, which owns 45.1 percent of the partnership. ONEOK is one of the largest
natural gas distributors in the United States, and its energy services operation
focuses primarily on marketing natural gas and related services throughout the
U.S.
 
 For more
information, visit the Web sites at www.oneokpartners.com or www.oneok.com.
 
 Some of
the statements contained and incorporated in this news release are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The forward-looking statements relate to:
anticipated financial performance; management’s plans and objectives for future
operations; business prospects; outcome of regulatory and legal proceedings;
market conditions and other matters. The Private Securities Litigation Reform
Act of 1995 provides a safe harbor for forward-looking statements in certain
circumstances. The following
 
 
 -more-
 ONEOK and ONEOK Partners
Provide 2010 Earnings Guidance;
 Update 2009 Earnings Guidance
  Page
7
 
  discussion
is intended to identify important factors that could cause future outcomes to
differ materially from those set forth in the forward-looking
statements.
 
 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,” “plan,” “estimate,” “expect,” “forecast,”
“guidance,” “intend,” “believe,” “projection,” “goal” or similar
phrases.
  You
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. In
addition to any assumptions and other factors referred to specifically in
connection with the forward-looking statements, factors that could cause our
actual results to differ materially from those contemplated in any
forward-looking statement include, among others, the following:
 
 • actions by
rating agencies concerning the credit ratings of ONEOK and ONEOK
Partners;
 • the effects
of weather and other natural phenomena on our operations, including energy sales
and prices and demand for pipeline capacity;
 • competition
from other U.S. and Canadian energy suppliers and transporters as well as
alternative forms of energy;
 • the capital
intensive nature of our businesses and our ability to achieve positive returns
from capital expenditures;
 • the
profitability of assets or businesses acquired by us;
 • risks of
marketing, trading and hedging activities, including the risks of changes in
energy prices or the financial condition of our counterparties;
 • economic
climate and growth in the geographic areas in which we do business;
 • the risk of
a significant slowdown in growth or decline in the U.S. economy or the risk of
delay in growth recovery in the U.S. economy;
 • the
uncertainty of estimates, including accruals and costs of environmental
remediation;
 • the timing
and extent of changes in commodity prices for natural gas, NGLs, electricity and
crude oil;
 • the effects
of changes in governmental policies and regulatory actions, including changes
with respect to income and other taxes, environmental compliance, and authorized
rates or recovery of gas and gas transportation costs;
 • changes in
demand for the use of natural gas because of market conditions caused by
concerns about global warming or changes in governmental policies and
regulations due to climate change initiatives;
 • the impact
of recently issued and future accounting pronouncements and other changes in
accounting policies;
 • the
possibility of future terrorist attacks or the possibility or occurrence of an
outbreak of, or changes in, hostilities or changes in the political conditions
in the Middle East and elsewhere;
 • the risk of
increased costs for insurance premiums, security or other items as a consequence
of terrorist attacks;
 • the impact
of unforeseen changes in interest rates, equity markets, inflation rates,
economic recession and other external factors over which we have no control,
including the effect on pension expense and funding resulting from changes in
stock
 and bond
market returns;
 • risks
associated with pending or possible acquisitions and dispositions, including our
ability to finance or integrate any such acquisitions and any regulatory delay
or conditions imposed by regulatory bodies in connection with any such
acquisitions
 and dispositions;
 • the results
of administrative proceedings and litigation, regulatory actions and receipt of
expected regulatory clearances involving the OCC, KCC, Texas regulatory
authorities or any other local, state or federal regulatory body, including the
FERC;
 • our ability
to access capital at competitive rates or on terms acceptable to
us;
 • risks
associated with adequate supply to our gas gathering and processing,
fractionation and pipeline facilities, including decreased drilling and
production declines that outpace new drilling;
 • the risk
that material weaknesses or significant deficiencies in our internal controls
over financial reporting could emerge or that minor problems could become
significant;
 • the impact
of the outcome of pending and future litigation;
 • the
possible loss of gas distribution franchises or other adverse effects caused by
the actions of municipalities;
   -more-
 
 
 • the impact of
unsold pipeline capacity being greater or less than expected;
 • the ability
to market pipeline capacity on favorable terms, including the effects of:
 -future
demand for and prices of natural gas;
 -competitive
conditions in the overall natural gas and electricity markets;
 -imports of
liquefied natural gas (LNG);
 -availability
of supplies of Canadian and U.S. natural gas;
 -availability
of additional storage capacity;
 -weather
conditions; and
 -competitive
developments by Canadian and U.S. natural gas transmission peers;
 • performance
of contractual obligations by our customers and shippers;
 • the ability
to recover operating costs and amounts equivalent to income taxes, costs of
property, plant and equipment and regulatory assets in our state and
FERC-regulated rates;
 • timely
receipt of approval by applicable governmental entities for construction and
operation of any new pipeline projects and required regulatory
clearances;
 • our ability
to acquire all necessary rights-of-way permits and consents in a timely manner,
our ability to promptly obtain all necessary materials and supplies required for
construction and our ability to construct pipelines without labor or
 contractor
problems;
 • our ability
to promptly obtain all necessary materials and supplies required for
construction of gathering, processing and transportation
facilities;
 • our ability
to control construction costs and completion schedules of our pipeline projects
and other projects;
 • the
composition and quality of the natural gas we gather and process in our plants
and transport on our pipelines;
 • the
efficiency of our plants in processing natural gas and extracting
NGLs;
 • the
mechanical integrity of facilities operated;
 • demand for
our services in the proximity of our facilities;
 • the impact
of potential impairment charges;
 • our ability
to control operating costs;
 • the risk
inherent in the use of information systems in our respective businesses,
implementation of new software and hardware, and the impact on the timeliness of
information for financial reporting;
 • acts of
nature, sabotage, terrorism or other similar acts causing damage to our
facilities or our suppliers’ or shippers’ facilities; and
 • the risk
factors listed in the reports we have filed and may file with the SEC, which are
incorporated by reference.
 
 These
factors are not necessarily all of the important factors that could cause actual
results to differ materially from those expressed in any of our forward-looking
statements. Other factors could also have material adverse effects on our future
results. All forward-looking statements attributable to us or persons acting on
our behalf are expressly qualified in their entirety by these factors. 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. OKE-FG
OKS-FG
 
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