Careers at ONEOK
ONEOK operates a network of natural gas gathering, processing, and distribution assets across parts of the US, with a view to providing efficient and reliable services to regional natural gas operators.
ONEOK organises its operations into three business segments:
- Natural Gas Gathering and Processing, which provides nondiscretionary gathering and processing services to contracted natural gas producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma;
- Natural Gas Liquids, which owns and operates facilities that gather, fractionate, treat and distribute natural gas liquids and store natural gas liquid products, primarily in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region, where it provides nondiscretionary services to producers of natural gas liquids and delivers those products to two primary market centres, in the Mid-Continent in Conway, Kansas, and in the Gulf Coast in Mont Belvieu, Texas; and
- Natural Gas Pipelines, which provides transportation and storage services to end users through its wholly owned assets and its 50 percent ownership in Northern Border Pipeline.
ONEOK traces its roots back to the foundation of Oklahoma Natural Gas Company in 1906 by Dennis Flynn and Charles Ames, who planned to develop a business around the natural gas created as a byproduct of operations at the northern Oklahoma oilfields. Oklahoma Natural Gas Company built a natural gas pipeline in 1907 that connected the Osage fields to Oklahoma City, later extending the line to reach Guthrie and Shawnee. It also built the first gas pipeline compressor station in the state in 1910.
ONG continued to build pipelines throughout Oklahoma, and by the 1920s owned more than 1,300 miles of lines and served over 500,000 customers in 48 of the state's 77 counties. The Company has since expanded further providing a full range of natural gas gathering, processing, and distribution services toc customers across several US states, including North Dakota, Montana, Wyoming, Kansas, Oklahoma, Texas, New Mexico. The Company trades a portion of its shares on the New York Stock Exchange and has a current market capitalisation of $9.78 billion.
Business model of ONEOK
ONEOK provides a range of services to companies operating across various segments of the natural gas sector. The Company’s customer base can be organised into three segments, corresponding with the Company’s reportable business segments:
- Natural Gas Gathering and Processing Customers, principally comprising crude oil and natural gas producers, including both large integrated and independent exploration and production companies;
- Natural Gas Liquids Customers, comprising natural gas liquid and natural gas gathering and processing companies, major and independent crude oil and natural gas production companies, propane distributors, and ethanol producers, as well as petrochemical, refining and natural gas liquid marketing companies; and
- Natural Gas Pipeline Customers, local natural gas distribution companies, electric-generation facilities, large industrial companies, municipalities, irrigation customers, and marketing companies.
ONEOK has a large and diversified customers base. In 2015, no single customer represented more than 10% of ONEOK’s consolidated revenues and only 15 customers individually represented 1%or more of the Company’s consolidated revenues.
ONEOK serves a regional client base across parts of the US. It primarily operates across North Dakota, Montana, Wyoming, Kansas, Oklahoma, Texas, New Mexico and the Rocky Mountain region. It does not serve an international customer base.
ONEOK provides value to its customers in the following ways:
- Its full range of services, with the Company operating as a full-service natural gas company, serving all segments of the natural gas chain, including gathering, processing, treatment, and pipeline distribution of natural gas for a broad range of industry clients;
- Its extensive regional infrastructure, with the Company controlling thousands of miles of natural gas gathering pipelines, natural gas liquids distribution pipelines, and natural gas delivery pipelines, as well as various processing and treatment facilities that enable it to provide a reliable and efficient service to its customers;
- Its access to prolific supply basins and key regional markets, with the Company operating strategically-placed assets close to major upstream supply basins, ensuring that the Company maintains a reliable supply of natural gas for its customers;
- Its industry and environmental record, with the Company established as an effective and trusted operators, having received a number of industry awards and being named in Platt’s list of Top 250 Global Energy Companies and Newsweek’s Green Rankings; and
- Its industry expertise and specialist personnel, with the Company employing highly-trained operational personnel across its three business segments, as well experienced industry executives.
ONEOK operates a website at www.oneok.com, through which it provides information on its various services, operating regions, and target markets. The Company does not operate an online sales channel, and does not provide access to an online customer portal.
ONEOK provides its services to customers through dedicated sales and service teams, organised by operating segment and division. The Company’s sales personnel agree service and distribution contracts with clients through direct negotiations, and operate out of the Company’s regional network of offices and facilities, including in North Dakota, Montana, Wyoming, Kansas, Oklahoma, Texas, New Mexico.
ONEOK operates its own extensive infrastructure, through which it serves its customers. The Company gathers, compresses and transports raw natural gas through proprietary pipelines to processing facilities, delivering processed natural gas and natural gas liquids through separate pipeline networks directly to customers. The Company also operates its own network of storage and distribution facilities
ONEOK does not provide products or services to customers on a self-service basis. The Company makes its sales through a direct sales force, which works closely with its clients, and consulting with over a period of time before agreeing upon the details of individual sales and distribution contracts. The Company seeks to establishing long-term relationships with its customers, with supply contracts often spanning multiple years.
ONEOK provides ongoing support to its customers through dedicated account management teams, and more general support and service personnel across the Company’s departments. New and existing customers are also able to make enquiries through an online contact form placed on the Company’s website.
Customers are able to stay updated with company development at ONEOK through its newsroom portal, which provides news releases and access to an email alert subscription service. ONEOK also operates social media accounts with Facebook, Twitter, and LinkedIn, which enables it to interact with customers directly.
ONEOK is the sole general partner of ONEOK Partners LP, a master limited partnership engaged in the gathering, processing, treatment, storage, and distribution of natural gas and natural gas products across parts of the US.
The Company’s operations are aligned into three business segments: Natural Gas Gathering and Processing, which provides non-discretionary services to producers, including the gathering and processing of natural gas produced from crude oil and natural gas wells; Natural Gas Liquids, which owns and operates a network of facilities that gather, process, treat and distribute natural gas liquids, and store natural gas liquid products; and Natural Gas Pipelines, which owns and operates regulated natural gas transmission pipelines and natural gas storage facilities.
ONEOK works in conjunction with a network of partner companies and organisations across its three operating segments. These partners can be categorised broadly as:
- Supplier and Vendor Partners, principally suppliers of raw materials, equipment, and technologies that are used in the Company’s processing and distribution operations, as well as providers of services that support the Company’s operations more broadly;
- Joint Venture Partners, comprising a range of natural gas sector operators, with which the Company jointly conducts various processing and distribution activities through mutually owned entities; and
- Affiliate Partners, comprising a range of natural gas service providers that work closely with the Company and provide certain services or functions on ONEOK’s behalf
ONEOK has a number of joint venture partnerships in place. The Company recently agreed a deal with Mexico City-based Fermaca Infrastructure to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to Mexico.
ONEOK’s key resources are its raw materials and supply chain, its gathering and processing infrastructure, its network of distribution pipelines, its IT and communications infrastructure, its sales and marketing channels, its partnerships, and its personnel.
ONEOK’s gathering, processing, and distribution infrastructure is key to its operations. This includes an extensive pipeline network that comprises thousands of miles of natural gas gathering pipelines, natural gas liquids gathering pipelines, natural gas liquids distribution pipelines, refined petroleum products distribution pipelines, and interstate natural gas pipelines, as well as natural gas processing plants, natural gas liquid fractionators, and underground natural gas storage facilities.
ONEOK incurs costs in relation to the procurement of raw materials and supplies, the operation of its gathering and processing facilities, the operation and maintenance of its distribution pipelines, the maintenance of its IT and communications infrastructure, the operation of its sales and marketing channels, the management of its partnerships, and the retention of its personnel.
In 2015 ONEOK recorded total cost of sales and fuel in the amount of $5.64 billion, primarily in relation to the Company’s natural gas liquids operations which accounted for $5.33 billion worth of these costs. The Company’s total operating costs for the year amounted to $693.3 million.
ONOEOK generates revenue through the gathering, processing, and distribution of natural gas and natural gas liquid products and the provision of related services. These operations form two principal revenue streams:
- Revenue derived from fees charged for the gathering, treating, compressing and processing the producer’s natural gas, and the retention of a percentage of the proceeds from the sale of residue natural gas, condensate and natural gas liquids; and
- Revenue derived from the provision of fee-based services provided directly to customers and from the physical optimisation of assets.
In 2015 ONEOK generated total annual revenue of $7.76 billion, down considerably on the 12.20 billion recorded by the Company in 2014. This was due largely to the Company’s separation of its natural gas distribution business in 2014. The bulk of the Company’s revenue for the years was generated through the sales of commodities, which accounted for $6.10 billion in annual revenue.
info: Terry Spencer has served as President at ONEOK since 2012 and has been the Company’s Chief Executive Officer since 2014. He also serves as a director of the Company and of ONEOK Partners. Spencer first joined ONEOK in 2001 as Director of Project Development for the Company’s Natural Gas Gathering and Processing segment. He has since held numerous senior executive functions at the Company, including spells as Vice President of Natural Gas Supply and Project Development in the Natural Gas Gathering and Processing segment, Senior Vice President of Natural Gas Liquids, Executive Vice President, and Chief Operating Officer of ONEOK Partners. Prior to joining ONEOK, Spencer held positions of increasing responsibility in the natural gas gathering and processing industry with Continental Natural Gas, Stellar Gas Company, and Texas Oil and Gas Corporation’s Delhi Gas Pipeline subsidiary.
info: Derek Reiners (“Reiners”) has served as Senior Vice President, Treasurer, and Chief Financial Officer at ONEOK since 2013. He is also a director of both the Company and of ONEOK Partners. Reiners first joined ONEOK in 2009 as Senior Vice President and Chief Accounting Officer. Reiners is a certified public accountant and a member of the American Institute of Certified Public Accountants. He began his career at Arthur Andersen in 1994, where he served in a management role for several years. He moved to Grant Thornton in 2002, where he was a partner and served as the north Texas energy industry practice leader, before joining ONEOK.
info: Robert Martinovich (“Martinovich”) has served as Executive Vice President and Chief Administrative Officer at ONEOK since 2015. He is responsible for overseeing the Company’s human resources, corporate services and information technology systems. Martinovich has been with ONEOK since 2007. He has held a number of senior roles at the Company, including spells as Chief Operating Officer, and President of ONEOK Partners’ Natural Gas Gathering and Processing segment. Martinovich is an experienced natural resources sector executive. He joined Phillips Petroleum Company in 1980, where he held a number of roles over the course of 20 years, including a spell as Senior Vice President of the company’s gas gathering and processing subsidiary GPM Gas. Martinovich went on to join DCP Midstream, where he served as Group Vice President of Environment, Health and Safety, Operations and Technical S, before joining ONEOK.
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