Contribution of fee-based earnings
OKE’s president and CEO, Terry K. Spencer, said during the company’s annual meeting of shareholders in May 2016, “Companywide, we anticipate our 2016 fee-based earnings will increase to approximately 85 percent from 66 percent in 2014, which we expect will positively impact our full-year 2016 earnings.”
The above graph shows growth in OKS’s fee-based earnings over the years. Contract restructuring efforts have positively impacted OKS’s Natural Gas Gathering and Processing segment’s earnings.
In the final part of this series, we’ll take a look at ONEOK’s outlook for capital projects in 2017.