2017 Form 10-K Financial Statement

#000103968418000021 Filed on February 27, 2018

View on sec.gov

Income Statement

Concept 2017 2016 Q4 2016 Q3
Revenue $12.17B $2.654B $2.358B
YoY Change 36.46% 37.47% 24.17%
Cost Of Revenue $9.538B $2.022B $1.752B
YoY Change 46.83% 51.62% 28.72%
Gross Profit $2.636B $633.0M $606.3M
YoY Change 8.7% 5.92% 12.67%
Gross Profit Margin 21.65% 23.85% 25.71%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $406.3M $99.30M $98.55M
YoY Change 3.77% 6.32% 11.61%
% of Gross Profit 15.42% 15.69% 16.25%
Operating Expenses $1.229B $303.5M $282.7M
YoY Change 7.9% 9.09% 11.97%
Operating Profit $1.392B $329.5M $329.4M
YoY Change 7.41% 3.16% 15.59%
Interest Expense $485.7M -$74.90M $118.2M
YoY Change 3.41% -4.71% 10.58%
% of Operating Profit 34.89% -22.73% 35.9%
Other Income/Expense, Net -$20.00M -$5.000M $3.500M
YoY Change 150.0% -238.89% -148.61%
Pretax Income $1.041B $249.6M $249.8M
YoY Change 8.65% -1935.29% 23.06%
Income Tax $447.3M $54.90M $55.01M
% Of Pretax Income 42.97% 22.0% 22.02%
Net Earnings $387.8M $90.51M $92.14M
YoY Change 10.17% 254.71% 12.16%
Net Earnings / Revenue 3.19% 3.41% 3.91%
Basic Earnings Per Share $1.30 $0.44
Diluted Earnings Per Share $1.29 $424.5K $0.43
COMMON SHARES
Basic Shares Outstanding 297.5M shares 210.5M shares 211.3M shares
Diluted Shares Outstanding 299.8M shares 212.9M shares

Balance Sheet

Concept 2017 2016 Q4 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $37.00M $249.0M $237.0M
YoY Change -85.14% 154.08% 523.68%
Cash & Equivalents $37.00M $248.9M $237.4M
Short-Term Investments
Other Short-Term Assets $92.00M $45.99M $50.76M
YoY Change -14.02% 15.12% -33.33%
Inventory $433.0M $140.0M $217.8M
Prepaid Expenses
Receivables $1.203B $872.0M $737.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.764B $1.430B $1.369B
YoY Change 23.36% 46.6% 43.71%
LONG-TERM ASSETS
Property, Plant & Equipment $12.70B $12.57B $12.53B
YoY Change 1.01% 1.6% 2.02%
Goodwill $525.5M
YoY Change 0.0%
Intangibles $479.8M
YoY Change -2.42%
Long-Term Investments $1.003B $958.8M $943.4M
YoY Change 4.59% 1.12% -17.03%
Other Assets $387.0M $163.0M $121.5M
YoY Change 123.7% 44.76% 5.02%
Total Long-Term Assets $15.08B $14.71B $14.61B
YoY Change 2.54% 1.65% 0.39%
TOTAL ASSETS
Total Short-Term Assets $1.764B $1.430B $1.369B
Total Long-Term Assets $15.08B $14.71B $14.61B
Total Assets $16.85B $16.14B $15.98B
YoY Change 4.38% 4.48% 3.05%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.141B $874.7M $711.8M
YoY Change 30.4% 42.01% 14.7%
Accrued Expenses $135.0M $113.0M $104.0M
YoY Change 19.47% -12.4% -3.7%
Deferred Revenue
YoY Change
Short-Term Debt $615.0M $1.110B $693.5M
YoY Change -44.59% 103.22% 141.41%
Long-Term Debt Due $433.0M $410.7M $460.7M
YoY Change 5.35% 271.13% -30.27%
Total Short-Term Liabilities $2.667B $2.837B $2.342B
YoY Change -5.99% 73.15% 19.44%
LONG-TERM LIABILITIES
Long-Term Debt $8.092B $7.920B $8.320B
YoY Change 2.17% -4.85% 7.03%
Other Long-Term Liabilities $349.0M $321.8M $296.8M
YoY Change 6.08% 21.8% 6.47%
Total Long-Term Liabilities $8.441B $8.242B $8.617B
YoY Change 2.33% -4.03% 7.01%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.667B $2.837B $2.342B
Total Long-Term Liabilities $8.441B $8.242B $8.617B
Total Liabilities $11.32B $11.08B $10.96B
YoY Change -29.04% 8.34% 9.44%
SHAREHOLDERS EQUITY
Retained Earnings $0.00 $0.00
YoY Change
Common Stock $2.458M $2.458M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $893.7M $897.9M
YoY Change -2.63% -3.41%
Treasury Stock Shares 35.13M shares 35.29M shares
Shareholders Equity $5.528B $188.7M $214.3M
YoY Change
Total Liabilities & Shareholders Equity $16.85B $16.14B $15.98B
YoY Change 4.38% 4.48% 3.05%

Cashflow Statement

Concept 2017 2016 Q4 2016 Q3
OPERATING ACTIVITIES
Net Income $387.8M $90.51M $92.14M
YoY Change 10.17% 254.71% 12.16%
Depreciation, Depletion And Amortization $406.3M $99.30M $98.55M
YoY Change 3.77% 6.32% 11.61%
Cash From Operating Activities $1.315B $431.4M $390.5M
YoY Change -2.79% 31.6% 8.26%
INVESTING ACTIVITIES
Capital Expenditures $512.4M -$133.1M $158.3M
YoY Change -17.97% -48.41% -47.39%
Acquisitions
YoY Change
Other Investing Activities -$3.879M $2.300M -$27.90M
YoY Change -75.79% -293.75%
Cash From Investing Activities -$567.6M -$130.8M -$186.1M
YoY Change -7.77% -47.36% -35.02%
FINANCING ACTIVITIES
Cash Dividend Paid $829.4M
YoY Change 60.24%
Common Stock Issuance & Retirement, Net $471.4M
YoY Change 2045.36%
Debt Paid & Issued, Net $994.8M
YoY Change -10.22%
Cash From Financing Activities -$959.5M -289.1M -147.8M
YoY Change 63.59% 1345.5% -43.63%
NET CHANGE
Cash From Operating Activities $1.315B 431.4M 390.5M
Cash From Investing Activities -$567.6M -130.8M -186.1M
Cash From Financing Activities -$959.5M -289.1M -147.8M
Net Change In Cash -$211.7M 11.50M 56.60M
YoY Change -239.95% -80.61% -130.12%
FREE CASH FLOW
Cash From Operating Activities $1.315B $431.4M $390.5M
Capital Expenditures $512.4M -$133.1M $158.3M
Free Cash Flow $803.0M $564.5M $232.2M
YoY Change 10.22% -3.64% 288.13%

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us-gaap Business Acquisition Date Of Acquisition Agreement1
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2017-06-30
us-gaap Business Acquisition Description Of Acquired Entity
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we completed the acquisition of all of the outstanding common units of ONEOK Partners that we did not already own at a fixed exchange ratio of 0.985 of a share of our common stock for each ONEOK Partners common unit. We issued 168.9 million shares of our common stock to third-party common unitholders of ONEOK Partners in exchange for all of the 171.5 million outstanding common units of ONEOK Partners that we previously did not own. No fractional shares were issued in the Merger Transaction, and ONEOK Partners common unitholders instead received cash in lieu of fractional shares. As a result of the completion of the Merger Transaction, common units of ONEOK Partners are no longer publicly traded.
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0.01
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0.01
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33000 USD
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15000 USD
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We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our pension and postretirement obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds.
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354620000 USD
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391585000 USD
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0 USD
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0 USD
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16100000 USD
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20200000 USD
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74415000 USD
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29500000 USD
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828787000 USD
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517600000 USD
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829400000 USD
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767000 USD
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100000 USD
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600000 USD
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1.17
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1.67
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1.30
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1.16
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1.66
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1.29
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0.35 Rate
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0.35 Rate
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0.35 Rate
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0.21 Rate
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13799000 USD
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31981000 USD
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13421000 USD
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4900000 USD
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0 USD
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4270000 USD
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151907000 USD
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70434000 USD
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1954966000 USD
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2064024000 USD
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200064000 USD
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293921000 USD
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347692000 USD
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524496000 USD
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578542000 USD
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639102000 USD
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958807000 USD
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1003156000 USD
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73400000 USD
CY2016 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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-320000 USD
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212000 USD
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0 USD
CY2017 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Net
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0 USD
CY2016 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Gain Loss Included In Other Comprehensive Income Loss
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CY2016Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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113708000 USD
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11900000 USD
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11900000 USD
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11900000 USD
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11900000 USD
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11900000 USD
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5629000 USD
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0 USD
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0 USD
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835123000 USD
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251058000 USD
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354090000 USD
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387074000 USD
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521876000 USD
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957956000 USD
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1040801000 USD
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194761000 USD
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745550000 USD
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593519000 USD
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0.41
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0.44
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0.43
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0.41
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0.34
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0.43
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0.16
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1.30
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1.19
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0.40
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0.43
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1.67
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0.41
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0.33
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0.43
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0.16
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1.29
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-6081000 USD
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-952000 USD
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-576000 USD
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-2051000 USD
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0 USD
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-6081000 USD
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-2051000 USD
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0 USD
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-0.02
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0.00
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-0.03
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-0.01
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0.00
CY2015 us-gaap Income Loss From Equity Method Investments
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125300000 USD
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139690000 USD
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159278000 USD
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136600000 USD
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212406000 USD
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447282000 USD
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928000 USD
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43000 USD
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141283000 USD
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135680000 USD
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198274000 USD
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292293000 USD
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-5808000 USD
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1786000 USD
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-2491000 USD
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5800000 USD
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12303000 USD
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16197000 USD
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3324000 USD
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361000 USD
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-205143000 USD
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261305000 USD
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32370000 USD
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24166000 USD
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-16529000 USD
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22795000 USD
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-6050000 USD
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11950000 USD
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202259000 USD
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40259000 USD
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-37998000 USD
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15532000 USD
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-157051000 USD
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285806000 USD
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330521000 USD
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342293000 USD
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CY2017Q4 us-gaap Investments And Other Noncurrent Assets
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2383353000 USD
us-gaap Key Provisions Of Operating Or Partnership Agreement Description
KeyProvisionsOfOperatingOrPartnershipAgreementDescription
Cash Distributions - Prior to the consummation of the Merger Transaction, we received distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which included our incentive distribution rights. Under the Partnership Agreement, distributions were made to the partners with respect to each calendar quarter in an amount equal to 100 percent of available cash as defined in the Partnership Agreement. Available cash generally was distributed 98 percent to limited partners and 2 percent to the general partner. The general partner’s percentage interest in quarterly distributions were increased after certain specified target levels were met during the quarter. Under the incentive distribution provisions, as set forth in the Partnership Agreement, the general partner received:15 percent of amounts distributed in excess of $0.3025 per unit; 25 percent of amounts distributed in excess of $0.3575 per unit; and 50 percent of amounts distributed in excess of $0.4675 per unit.
CY2016Q4 us-gaap Liabilities And Stockholders Equity
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16138751000 USD
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16845937000 USD
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2836701000 USD
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19841000 USD
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7471000 USD
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0 USD
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1953139000 USD
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401621000 USD
us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
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0.412 Rate
CY2016Q4 us-gaap Long Term Debt
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8300000000 USD
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8500000000 USD
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410650000 USD
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432650000 USD
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8800000000 USD
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9300000000 USD
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432700000 USD
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1453200000 USD
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7700000 USD
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307700000 USD
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1007700000 USD
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7919996000 USD
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8091629000 USD
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90301000 USD
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3240170000 USD
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535825000 USD
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549419000 USD
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276260000 USD
CY2017Q4 us-gaap Minority Interest Ownership Percentage By Noncontrolling Owners
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0.20 Rate
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-75193000 USD
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151256000 USD
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-211682000 USD
CY2015 us-gaap Net Cash Provided By Used In Discontinued Operations
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43000 USD
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121000 USD
CY2016Q4 us-gaap Other Assets Current
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45986000 USD
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53008000 USD
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0 USD
CY2015 us-gaap Net Cash Provided By Used In Financing Activities
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92741000 USD
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-586519000 USD
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-959461000 USD
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-1190719000 USD
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-615445000 USD
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-567633000 USD
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1022828000 USD
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1353341000 USD
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1315412000 USD
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244977000 USD
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85944000 USD
CY2016Q3 us-gaap Net Income Loss
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92144000 USD
CY2016Q4 us-gaap Net Income Loss
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90505000 USD
CY2016 us-gaap Net Income Loss
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352039000 USD
CY2017Q1 us-gaap Net Income Loss
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87361000 USD
CY2017Q2 us-gaap Net Income Loss
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71693000 USD
CY2017Q3 us-gaap Net Income Loss
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165742000 USD
CY2017Q4 us-gaap Net Income Loss
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63045000 USD
CY2017 us-gaap Net Income Loss
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387841000 USD
CY2015 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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134218000 USD
CY2016 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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391460000 USD
CY2017 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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205678000 USD
CY2015 us-gaap Net Income Loss Attributable To Parent Diluted
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251058000 USD
CY2016 us-gaap Net Income Loss Attributable To Parent Diluted
NetIncomeLossAttributableToParentDiluted
354090000 USD
CY2017 us-gaap Net Income Loss Attributable To Parent Diluted
NetIncomeLossAttributableToParentDiluted
387074000 USD
CY2015 us-gaap Net Income Loss Available To Common Stockholders Basic
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244977000 USD
CY2016 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
352039000 USD
CY2017Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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87361000 USD
CY2017Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
71476000 USD
CY2017Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
165466000 USD
CY2017Q4 us-gaap Net Income Loss Available To Common Stockholders Basic
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62771000 USD
CY2017 us-gaap Net Income Loss Available To Common Stockholders Basic
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387074000 USD
CY2015 us-gaap Noncash Contribution Expense
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Derivatives and Risk Management</font><font style="font-family:inherit;font-size:10pt;"> -</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font><font style="font-family:inherit;font-size:10pt;">We utilize derivatives to reduce our market-risk exposure to commodity price and interest-rate fluctuations and to achieve more predictable cash flows. We record all derivative instruments at fair value, with the exception of normal purchases and normal sales transactions that are expected to result in physical delivery. Commodity price and interest-rate volatility may have a significant impact on the fair value of derivative instruments as of a given date. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our Consolidated Financial Statements:</font></div><div style="line-height:120%;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5" rowspan="1"></td></tr><tr><td style="width:23%;" rowspan="1" colspan="1"></td><td style="width:3%;" rowspan="1" colspan="1"></td><td style="width:35%;" rowspan="1" colspan="1"></td><td style="width:3%;" rowspan="1" colspan="1"></td><td style="width:36%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Recognition and Measurement</font></div></td></tr><tr><td colspan="2" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Accounting Treatment</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Balance Sheet</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Income Statement</font></div></td></tr><tr><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">Normal purchases and</font></div><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">normal sales</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Fair value not recorded</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Change in fair value not recognized in earnings</font></div></td></tr><tr><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Mark-to-market</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Recorded at fair value</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Change in fair value recognized in earnings</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Cash flow hedge</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Recorded at fair value</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">Ineffective portion of the gain or loss on the</font></div><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">derivative instrument is recognized in earnings</font></div></td></tr><tr><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Effective portion of the gain or loss on the</font></div><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">derivative instrument is reported initially as a</font></div><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">component of accumulated other</font></div><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">comprehensive income (loss)</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">Effective portion of the gain or loss on the</font></div><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">derivative instrument is reclassified out of</font></div><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">accumulated other comprehensive income (loss)</font></div><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">into earnings when the forecasted transaction</font></div><div style="vertical-align:top;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;vertical-align:top;">affects earnings</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Fair value hedge</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Recorded at fair value</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">The gain or loss on the derivative instrument is</font></div><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">recognized in earnings</font></div></td></tr><tr><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Change in fair value of the hedged item is</font></div><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">recorded as an adjustment to book value</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">-</font></div></td><td style="vertical-align:top;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Change in fair value of the hedged item is</font></div><div style="font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">recognized in earnings</font></div></td></tr></table></div></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">To reduce our exposure to fluctuations in natural gas, NGLs and condensate prices, we periodically enter into futures, forward purchases and sales, options or swap transactions in order to hedge anticipated purchases and sales of natural gas, NGLs and condensate. Interest-rate swaps are used from time to time to manage interest-rate risk. Under certain conditions, we designate our derivative instruments as a hedge of exposure to changes in fair values or cash flows. We formally document all relationships between hedging instruments and hedged items, as well as risk-management objectives and strategies for undertaking various hedge transactions, and methods for assessing and testing correlation and hedge ineffectiveness. We specifically identify the forecasted transaction that has been designated as the hedged item in a cash flow hedge relationship. We assess the effectiveness of hedging relationships quarterly by performing an effectiveness analysis on our fair value and cash flow hedging relationships to determine whether the hedge relationships are highly effective on a retrospective and prospective basis. We also document our normal purchases and normal sales transactions that we expect to result in physical delivery and that we elect to exempt from derivative accounting treatment.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The realized revenues and purchase costs of our derivative instruments not considered held for trading purposes and derivatives that qualify as normal purchases or normal sales that are expected to result in physical delivery are reported on a gross basis. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cash flows from futures, forwards and swaps that are accounted for as hedges are included in the same category as the cash flows from the related hedged items in our Consolidated Statements of Cash Flows.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See Notes </font><font style="font-family:inherit;font-size:10pt;">C</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">D</font><font style="font-family:inherit;font-size:10pt;"> for more discussion of our fair value measurements and risk-management and hedging activities using derivatives.</font></div></div>
us-gaap Incentive Distribution Policy Managing Member Or General Partner Description
IncentiveDistributionPolicyManagingMemberOrGeneralPartnerDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Cash Distributions</font><font style="font-family:inherit;font-size:10pt;"> - Prior to the consummation of the Merger Transaction, we received distributions from ONEOK Partners on our common and Class B units and our 2 percent general partner interest, which included our incentive distribution rights. Under the Partnership Agreement, distributions were made to the partners with respect to each calendar quarter in an amount equal to 100 percent of available cash as defined in the Partnership Agreement. Available cash generally was distributed 98&#160;percent to limited partners and 2 percent to the general partner. The general partner&#8217;s percentage interest in quarterly distributions were increased after certain specified target levels were met during the quarter. Under the incentive distribution provisions, as set forth in the Partnership Agreement, the general partner received:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">15 percent of amounts distributed in excess of $0.3025 per unit;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">25 percent of amounts distributed in excess of $0.3575 per unit; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">50 percent of amounts distributed in excess of $0.4675 per unit.</font></div></td></tr></table></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font><font style="font-family:inherit;font-size:10pt;"> - The preparation of our Consolidated Financial Statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amounts on our Consolidated Financial Statements. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets, liabilities and equity-method investments, obligations under employee benefit plans, provisions for uncollectible accounts receivable, expenses for services received but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. In addition, a portion of our revenues and cost of sales and fuel are recorded based on current month estimated volumes and prices. The estimates are reversed in the following month and recorded with actual volumes and prices. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We evaluate these estimates on an ongoing basis using historical experience, consultation with experts and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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