Contribution of fee-based earnings
ONEOK (OKE) has been making focused efforts to increase fee-based earnings through contract restructuring in its natural gas gathering and processing segment. OKE president and chief executive officer, Terry Spencer, said at the 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 ONEOK’s fee-based earnings over the years. Contract restructuring efforts have positively affected the company’s natural gas gathering and processing segment’s earnings.