Wachovia Securities Pipeline & MLP Symposium

Transcription

1 Wachovia Securities Pipeline & MLP Symposium New York City December 6, 2007 Page 1

2 John W. Gibson Chairman, President and Chief Executive Officer ONEOK Partners, L.P. Page 2

3 Forward-Looking Statementt t Statements contained in this presentation that include company expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of It is important to note that the actual results of company earnings could differ materially from those projected in any forward-looking statements. For additional information, refer to ONEOK s and ONEOK Partners Securities and Exchange Commission Filings. Page 3

4 Agenda Natural Gas Natural Gas Liquids Growth Wrap-up Gathering & Processing Pipelines Gathering & Fractionation Pipelines Strategy Projects Financial Highlights Questions & Answers Page 4

5 ONEOK Partners One of the largest publicly traded MLPs 2007 Guidance Value creation through $181 integrated operations Natural Gas Gathering & Processing Diversified asset base and Natural Gas cash flows $112 Pipelines Aligned interests with general partner: ONEOK: general partner ONEOK: 45.7 percent owner $5.0 billion market capitalization $110 NGL Gathering & Fractionation $38 NGL Pipelines Other (-$15 ) $426 Million Operating Income Page 5

6 ONEOK Partners Natural Gas Gathering & Processing Natural Gas Pipelines Natural Gas Liquids Gathering & Fractionation Natural Gas Liquids Pipelines Page 6

7 Natural Gas Page 7

8 Natural Gas Gathering & Processing Key Points Stable earnings through diversity Multiple producing basins effectively offset natural volume declines Williston Supply mix between small and large producers spreads drilling and volume exposure Wind River Powder Makeup of contract portfolio: Eliminates material exposure to natural gas price fluctuations Natural Gas Gathering Pipeline Natural Gas Processing Plant Spreads NGL exposure among six products and revenue streams Gathering 14,700 miles of pipe Processing Production At third quarter 2007 Hugoton 13 active plants 0.7 Bcf/d capacity 1,170 BBtu/d gathered 617 BBtu/d processed 38 MBpd NGLs produced 448 BBtu/d residue produced Kansas Uplift Anadarko Page 8

9 Natural Gas Gathering & Processing Risk Mitigation Contract restructuring has reduced commodity price sensitivity and increased fee-based business Hedging strategy focuses on long NGL and natural gas positions Contract Mix by Volume 3% 3% 3% 6% 7% 10% 6% 2% 19% 25% 15% 31% 34% 27% 29% Commodity Price Sensitivity Margin Impact ($ Millions) $4.8 $4.5 $1.1 $1.3 $3.8 $1.0 $2.1 $1.7 $0.4 $0.5 -$0.1 $0.4 52% 51% 53% 61% 62% -$1.6 -$2.7 -$ G Fee - based Percent of proceeds Keep whole Keep whole w/ conditioning Commodity Natural Gas Liquids Natural Gas Crude Oil Sensitivity 1 cent/gallon increase 10 cent/mmbtu increase $1/barrel increase Page 9

10 Natural Gas Pipelines Key Points Provides fee-based income Over 75 percent is demand/firm Pipelines connect to key supply aggregation points: Guardian, Viking and Northern Border Northern Border Pipeline Viking Gas Transmission Guardian Pipeline Midwestern Gas acts as a hub, offering numerous interconnects for receipts and deliveries Storage provides premium swing services for intrastate pipelines Intrastate t t pipelines are diversified ifi d through connections to numerous supply and market points Natural Gas Interstate Pipeline Natural Gas Intrastate Pipeline Natural Gas Storage Pipelines Storage Equity Investment 6,970 miles, 4.9 Bcf/d peak capacity 51.6 Bcf active working capacity 50% Northern Border Pipeline Midwestern Gas Transmission Page 10

11 Natural Gas Liquids Page 11

12 NGL Gathering & Fractionation Key Points Extensive raw NGL gathering system in Oklahoma and Kansas with access to 76 gas processing plants Mid-Continent supply growth since July 2005: Gathering volume up 20 percent Thirteen new gas processing plant connections completed Gathering volume expected to increase to 30 percent by year end New supply commitments drive infrastructure upgrades and expansions Rockies Barnett Shale Woodford Shale NGL Gathering Pipeline NGL Storage NGL Fractionator NGL Market Hub Gathering 2,050 miles of pipe Fractionation 395,000 Bpd capacity Isomerization 9,000 Bpd capacity Storage 24.6 MMBbls capacity Page 12

13 NGL Gathering & Fractionation Sources of Margin Exchange and Storage Services Gather, fractionate, transport and store NGLs and deliver to market hubs Optimization Isomerization Marketing Obtain highest product price by directing product movement between Conway and Mont Belvieu Convert normal butane to isobutane Purchase approximately onehalf of exchange volumes in the Mid-Continent for resale on an index-related basis Fee-based Spread-based Spread-based Fee- and Commodity-based 14% 8% 6% 72% Gross Margin Contribution i 2007 Guidance: $200 million Page 13

14 NGL Pipelines Key Points Links key NGL market centers at tconway, Kansas, and Mont Belvieu, Texas Connects Mid-Continent to upper Midwest Significant supply sources in Mid-Continent Connected to 23 gas processing plants with access to another 53 Connected to seven fractionators Regulation FERC-approved tariffs Distribution Gathering 3,300 miles of pipe with 434,000 Bpd capacity 720 miles of pipe with 93,000 Bpd capacity NGL Pipeline NGL Market Hub Page 14

15 Growth Page 15

16 Roadmap to Growth Complements Existing Infrastructure re and Core Operating Capabilities Grasslands plant expansion $30 million Internal Growth Projects: $1.6 billion plus $300 million acquisition Piceance Lateral $120 million Overland Pass Pipeline $535 million Guardian II Expansion $250 million NGL & Refined Product System Acquisition $300 million Midwestern Extension $41 million NGL Upgrade Projects $216 million Natural Gas Gathering & Processing Natural Gas Pipelines Natural Gas Liquids Gathering & Fractionation Natural Gas Liquids Pipelines Growth Projects Arbuckle Pipeline $260 million Page 16

17 Growth Projects: Status MAJOR PROJECTS: Contracts/Volumes Fee Based Expected In Service Overland Pass Pipeline Related NGL projects Long-term supply agreement with Williams Infrastructure upgrades to accommodate growth Early 2008 Construction under way Arbuckle Pipeline Anchor customers committed Early 2009 Piceance Lateral Dedicated supplies from two Williams plants Early 2009 Grasslands Plant expansion Fort Union Gas Gathering expansion Guardian Pipeline extension Supply growth driven by drilling and production Backed by volume commitments Anchored by two 15-year agreements Phase I December 2007 Phase II 2Q 2008 Phase I Complete Phase II 2Q 2008 November 2008 Midwestern Gas extension Fully subscribed December 2007 Page 17

18 Growth Projects: Contribution Growth Projects Generate Significant ifi Cash Flow More than $1.6 billion of internally generated growth projects under way through 2009 Complements existing infrastructure and core operating capabilities Growth EBITDA generated is primarily fee-based from pipeline expansions.capital Expenditures... $814 $818 $165 $65 $60.EBITDA* Generated... $300+ $260+ In Millions $749 $758 In Millions $125- $150 $ $ $60 $ Maintenance Growth * EBITDA contributions assume projects are completed on schedule * Does not include WMB exercising its 50/50 option in OPPL or Piceance Lateral * Offsets natural declines in natural gas gathering and processing supplies Page 18

19 Growth by Design Applying Our Capabilities to the NGL Business Established Mid-Continent presence beginning g in 2000 Acquired NGL assets from Koch in 2005 Gained access to largest NGL market hubs: Conway, Kansas, and Mont Belvieu,Texas Extending our reach into the Rockies and Barnett Shale through internal growth projects Overland Pass Pipeline Piceance Lateral Arbuckle Pipeline Infrastructure upgrades Acquired NGL and refined petroleum products system to connect to the Midwest markets Stability of supply from Mid-Continent First entrance into refined products market NGL Pipelines NGL Gathering & Fractionation NGL Growth Projects Acquired NGL Pipeline System NGL Storage NGL Fractionator NGL Market Hub Page 19

20 Financial Highlights Page 20

21 Distribution Growth Distribution growth Seven increases with OKE $4.00 as General Partner 26 percent increase since $0.97 $3.00 the beginning of 2006 $0.80 Current annual indicated $0.95 $2.00 $0.80 rate of $4.04 Internal growth projects pave the way for future increases Target coverage ratio 1.05x to 1.10x $1.00 $0.00 $0.80 $0.88 $0.80 $0.80 $1.01 $1.00 $0.99 $ Q1 Q2 Q3 Q4 $4.40* Page 21

22 Stable Cash Flow Predominantly fee based Commodity and spread risk is measured and managed Cash flow stability managed within each segment Fee 61% Commodity 33% Spread 6% 2007 Gross Margin Guidance: $886 million Page 22

23 Strong Balance Sheet $1 billion revolver Funds 2007 and 2008 capital expenditures Capital structure Goal: 50/50 capitalization Strong credit rating Permanent debt financing $600 million issued in September 2007 Funded Kinder Morgan acquisition and repaid revolver Equity issuance ONEOK interested in additional units Total Debt 55% Equity 45% Capitalization: October 31, 2007 Page 23

24 Unitholder Return Unit price increase of 25 percent since 2006 Current yield is 6.7 percent Total Return on Units Purchase 100 units, reinvest distributions 62 percent since percent since 2003 Unit Price $70 $60 $50 $48.00 $49.99 $57.57 $63.34 $ $69.26 Total Return 90% 80% $59.50 $ % 62% 60% $40 50% $30 40% 30% $20 20% $10 ONEOK Partners Alerian MLP Index 10% $0 0% 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 Unit prices are closing prices at last day of quarter. Calculations through closing price on 11/29/07. Source: Bloomberg Page 24

25 Questions & Answers Page 25

26 Page 26

27 APPENDIX Page 27

28 ONEOK Partners Page 28

29 Natural Gas Two segments Natural Gas Gathering and Processing Natural Gas Pipelines Diversified supply basins, producers and contracts mitigate earnings volatility in gathering and processing Earnings on pipelines are fee based More than $470 million of internal growth projects under way through 2009 Grasslands Plant Expansion $30 million Fort Union Gas Gathering Expansion Natural Gas Gathering Pipeline Natural Gas Interstate Pipeline Natural Gas Intrastate Pipeline Natural Gas Storage Natural Gas Processing Plant Guardian II Expansion $250 million Midwestern Extension $41 million Page 29

30 Natural Gas Gathering & Processing Supply Strong supply focus New well connects and growth in the Rockies offset natural declines 1,190 Natural Gas Gathered * BBtu/d 1,182 1, , Q07 Rocky Mountain Mid-Continent * Volumes based on existing asset base Page 30

31 Natural Gas Gathering & Processing Growth Projects Grasslands Processing Plant Expansion Project Status Costs $30 Million Completion Dates Phase 1 Fourth Quarter 2007 Phase 2 Second Quarter 2008 Grasslands Expansion Phase 1: Processing Increased from 63 to 100 MMcf/d capacity Phase 2: Fractionation Increased from 8 to 12 MBpd capacity 12/07 Phase 1 Phase 2 Processing plant tie-ins completed Permits approved Construction nearing completion Equipment ordered Estimated start t up 05/08 Estimated start t up Page 31

32 Natural Gas Gathering & Processing Growth Projects Costs Fort Union Gas Gathering Project Status $110 Million (Project Financed) Completion Phase 1 Completed 11/07 Dates Phase 2 Second Quarter 2008 Phase 1 Phase 2 Customers committed * ONEOK Partners Gathering Fort Union (37%) Lost Creek (35%) Big Horn (49%) Construction Customers committed * Right of way Right of way cleared > 80% acquired Pipe delivered > 80% Pipe delivered Construction contracts let Construction contracts let Phase 1: Phase 2: Fort Union Gas Gathering Adds 44 miles of pipe and 200 MMcf/d capacity Adds 104 miles of pipe and 450 MMcf/d capacity Backed by volume commitments * Doubles capacity Page 32

33 Natural Gas Pipelines Growth Projects Costs Guardian Pipeline Project Statust $250 Million Completion Date Estimated November 2008 Existing Pipeline Proposed Extension Guardian Pipeline Capacity Incremental of 537 MMcf/d to eastern Wisconsin Extension 119 miles from Ixonia to Green Bay In Progress Customers committed * Pipe ordered Right of way acquired Permit application submitted 75% Pipe delivered Fully subscribed * Anchored by two 15-year agreements * Construction contracts let Page 33

34 Natural Gas Pipelines Growth Projects Costs Midwestern Gas Project Status $41 Million Completion Date December 2007 Existing Pipeline Proposed Extension Customers committed * Pipe delivered Right of way acquired Construction contracts let Permit approved Construction in progress Capacity Extension Midwestern Gas 120 MMcf/d 31 miles Fully subscribed * Page 34

35 Natural Gas Liquids Two segments NGL Gathering and Fractionation NGL Pipelines Overland Pass Largest gatherer and fractionator of raw NGLs in the Mid-Continent Connected to over 90 percent of the region s processing plants Allows us to provide a full range of services to our customers Piceance Lateral $120 million Pipeline $535 million NGL Upgrade Projects $216 million Integrated asset base creates opportunities for growth through major expansions into new supply areas More than $1.1 billion of internal growth projects under way through 2009 Arbuckle Pipeline $260 million NGL Pipelines NGL Gathering & Fractionation NGL Growth Projects NGL Storage NGL Fractionator NGL Market Hub Page 35

36 Natural Gas Liquids What We Do Connect raw-blended NGL production from gas processing plants to markets through: Gathering via extensive pipeline systems Fractionating to convert raw-blended NGLs to purity products Storage services through underground caverns Marketing NGL products to end-users Distributing purity product to markets Primarily fee-based businesses Opt timization Gathering & Fractionation Storage Distribution Markets Optimization NGLs Ethane Propane Isobutane Purity Products Normal Butane Natural Gasoline Petrochemical Heating Refining Page 36

37 NGL Gathering & Fractionation Supply Volume growth since acquisition of Koch s NGL system in July 2005 Gathering volume up 20 percent Fractionation volume up 20 percent Total Gathering Volume MBpd Total Fractionation Volume MBpd Up 20% Up 20% Q05 1Q06 3Q06 1Q07 3Q07 3Q05 1Q06 3Q06 1Q07 3Q07 Page 37

38 NGL Pipelines Strategic Acquisition NGL and Refined Petroleum Products System Acquisition from Kinder Morgan Project Status Cost $300 Million Closing Date October 2007 Footprint Expansion Geographically and in NGL Value Chain: Connects Bushton and Conway, Kansas, to Chicago, Illinois Adds a refined petroleum products line to our portfolio NGL Pipelines NGL Gathering & Fractionation NGL Growth Acquired NGL Pipeline System NGL Storage NGL Fractionator NGL Market Hub Revenues > 90% fee-based First entrance into refined petroleum products market Creates growth opportunities in Midwest markets Pipelines 1,585 miles, primarily 8-10 Capacity for Purity & Refined Products 134,000 Bpd of transport 978,000 Bbl of storage Page 38

39 NGL Pipelines Growth Projects Overland Pass Pipeline Project Status Cost Completion Date $535 Million Early 2008 Anchor customers committed * Pipe ordered Public right of way acquired Pipe delivered Overland Pass Pipeline Overland Pass Pipeline Pipeline 760 miles, Capacity 110,000 Bpd of raw NGLs with two pump stations Expandable to 150,000 Bpd with one additional pump station Permit approved and federal right of way acquired Construction contracts let 99/1% joint venture with 50/50 option within two years of first flow Long-term supply agreement with Williams (~60,000 bpd) * Additional commitments in various stages of negotiation Page 39

40 NGL Pipelines Growth Projects Piceance Lateral Project Status Cost $120 Million Completion Date Early 2009 Anchor customers committed * Late 2008 Permitting expected In progress Right of way acquired Mid 2008 Construction contracts let Overland Pass Pipeline Piceance Lateral Piceance Lateral Pipeline 150 miles, 14 Capacity 100,000 Bpd of raw NGLs 99/1% joint venture with 50/50 option within first two years of first flow Dedicated supplies from two Williams plants * Additional commitments in various stages of negotiation Page 40

41 NGL Pipelines Growth Projects Arbuckle Pipeline Project Status Cost $260 Million Completion Date Early 2009 Anchor customers committed * Mid 2008 Permitting expected In progress Right of way acquired Mid 2008 Construction contracts let NGL Gathering Pipeline NGL Pipeline NGL Arbuckle Pipeline NGL Storage NGL Fractionator NGL Market Hub Additional commitments in various stages of negotiation * Major expansion into one of the most active drilling areas in the U.S. Allows delivery to Gulf Coast fractionators Arbuckle Pipeline Pipeline 440 miles, Capacity 160,000 Bpd of raw NGLs with four pump stations Page 41

42 Natural Gas Liquids Growth Projects Infrastructure Upgrades Associated with the Overland Pass Pipeline Project Project Status NGL Gathering & Fractionation NGL Pipelines NGL Storage NGL Fractionator NGL Market Hub Cost Bushton Fractionator Bushton Storage Bushton-to- Medford Pipeline Sterling Expansion Bushton-to- Conway Pipeline $216 Million Expand facility from 80,000 to 120,000 Bpd Permit approved Construction under way Upgrade facility to accommodate raw NGLs and ethane/propane mix Construction under way Construct 135-mile pipeline with a capacity of 120,000 Bpd of ethane/propane mix Construction complete Expand pipeline by 60,000 Bpd Construction under way Expand pipeline by 14,000 Bpd Equipment ordered Page 42

43 Growth Capital Expenditures $ In Millions Total MAJOR PROJECTS: Overland Pass* $ 294 $195 $0 $ 489 EBITDA Contribution Related NGL projects* EBITDA Contribution Arbuckle Pipeline EBITDA Contribution Piceance Lateral EBITDA Contribution Guardian II extension* EBITDA Contribution Midwestern extension* EBITDA Contribution TOTAL MAJOR PROJECTS $ 1,334 OTHER GROWTH: Natural Gas Gathering & Processing $ 65 $ 59 $ 61 $ 185 EBITDA Contribution Natural a Gas Pipelines es EBITDA Contribution NGL Gathering & Fractionation EBITDA Contribution NGL Pipelines EBITDA Contribution TOTAL OTHER GROWTH $ 278 TOTAL ALL GROWTH $ 749 $ 758 $ 105 $ 1,612 *Capital was spent on project in 2006 Page 43

44 Aligning Our Interests How Growth at ONEOK Partners Benefits ONEOK Capital Projects EBITDA Growth Higher Distributions IDR and Equity Income Net Income Dividends Unit Price Appreciation Share Price Appreciation EBITDA Growth Distribution Growth OKS Incremental EBITDA of $1 million Increases OKE income by $664 thousand (pre-tax) Partnership is in high splits $500 thousand * from incentive distribution rights All incremental cash flow is distributed $164 thousand * in equity earnings from limited Annual depreciation is $125 thousand partner units owned Incentive Distribution Rights * Every 1 cent quarterly increase Results in $3.3 million annual increase in cash flow and income before taxes Limited Partner Units ** Every 1 cent quarterly increase Results in $1.5 million annual increase in cash flow * Assumes high splits ** ONEOK owns 37 million limited partner units Page 44

45 ONEOK, Inc. Page 45

46 ONEOK Today Three business segments ONEOK Partners -- General partner and 45.7 percent owner Distribution --Three distribution companies serving two million customers Energy Services -- A leading marketer of natural gas Expanding participation in energy value chain 2007 Guidance $426 ONEOK Partners $172 Distribution Fortune most admired d energy $205 company in 2007 $4.8 billion market capitalization Energy Services $803 Million Operating Income Page 46

47 ONEOK Today Three business segments: ONEOK Distribution ONEOK Energy Services Leased Pipeline Capacity Leased Storage Capacity ONEOK Partners General Partner 45.7% Ownership Page 47

48 Distribution Largest natural gas distributor in Oklahoma and Kansas; third largest in Texas Growth Efficient investment Customers, volumes, rate base Long-term focus has led to: Unbundling and restructuring in Oklahoma Weather normalization Capital recovery Bad-debt recovery Margin stability Customers Revenues Asset Base Rate Base Kansas Gas Service Oklahoma Natural Gas Texas Gas Service 2 million $1.9 billion $2.8 billion $1.7 billion Page 48

49 Distribution Integrated t Strategy t to Improve Profitability Return on equity 2006 Kansas and Texas rate cases Five rate filings in Texas for 2007 Capital recovery mechanisms in Kansas and Texas, filed in Oklahoma Disciplined approach to capital investment $54 million growth in 2007 $108 million maintenance in 2007 Expense control and recovery Expense recovery mechanisms Continuous process improvement Pipeline integrity management recovery Pension and other post-employment benefit costs * Return on Equity (% %) Closing the Gap Significant ifi progress since 2005 Ga ap Ga ap 5.3 Gap Allowed Total Distribution Companies G 2007 Allowed * ROE calculations are consistent with utility ratemaking in each jurisdiction and not consistent with GAAP returns Page 49

50 Energy Services Leased Assets Enhance Our Ability to Provide Premium m Service to Customers Access to prolific supply and high-demand areas Industry knowledge and customer relationships Deliver natural gas together with bundled reliable products and services Premium, no-notice services Primarily to LDCs, Storage Transportation Sales Margin 96 Bcf of capacity 2.4 Bcf/d of withdrawal rights 1.6 Bcf/d of injection rights 1.7 Bcf/d of firm capacity 3.2 Bcf/d in 2007 Guidance 3.1 Bcf/d in 2006 $0.18/MMBtu in 2007 Guidance $0.22/MMBtu in 2006 Leased Pipeline Leased Storage Page 50

51 Energy Services Sources of Income Storage Transportation Optimization Retail Trading Utilize leased capacity to meet customers Enhance storage and Sell natural gas supplies Extract trading baseload, swing and peaking requirements Provide marketing and risk management services transportation margins through application of market knowledge and risk management skills and provide risk management services to commercial and industrial customers and margins through market knowledge, volatility or inefficiencies Capture arbitrage opportunities to consumers who participate in LDC customer choice programs Spread- and demandbased Spread- and fee-based Spread-, commodityand derivative-based Commodity-based Spread-, commodityand derivative-based 5% 7% 8% 32% 48% 4% 6% 6% 28% 56% 2006 Operating Income 2007 Guidance Operating Income $229 million $205 million Page 51

52 Strong Balance Sheet Capital structure Goal: 50/50 capitalization Strong credit rating S&P: BBB Moody s: Baa2 Total Debt 53% Equity 47% Debt maturity $400 million in February 2008 Stand Alone Capitalization October 31, 2007 Page 52

53 Stable Cash Flow Continued strong free-cash flow available for: Investment in OKS Dividend increases Acquisitions Share repurchase Debt repayment 7.5 million share repurchase completed Surplus $190 million Dividends $150 million Capital Expenditures $174 million Stand Alone Cash Flow 2007 Guidance Page 53

54 Dividend Growth 11 dividend increases since January percent increase during that period Target: percent of recurring earnings $0.155 $0.18 $0.155 $0.17 $0.155 $0.17 $0.36 $0.32 $0.28 $0.36 $0.25 $0.32 $0.28 $0.23 $0.34 $0.28 $0.30 $0.21 $0.155 $0.17 $0.19 $0.25 $0.28 $ Q1 Q2 Q3 Q4 Page 54

55 Shareholder Return Share price increase of 41 percent since 2006 Current yield is percent Share Price Total Return Purchase 100 shares, reinvest dividends 87 percent since percent since 2003 Total Return 120% $50 $40 $30 $33.06 $34.83 $38.25 $43.12 $45.29 $51.68 $48.53 $ % 87% 80% 60% $20 40% $10 20% $0 ONEOK, Inc. S&P 500 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 0% Share prices are closing prices are last day of the quarter. Calculations through closing price on 11/29/07. Source: Bloomberg Page 55

56 ONEOK is Undervalued Growth at ONEOK Partners Benefits ONEOK $0.01/quarter OKS distribution increase = $3.77/share value to OKE $5/unit price increase at OKS = $1.76/share value to OKE EBIT* Depreciation EBITDA EBITDA Multiple Enterprise Value Distribution $172 $110 $282 9 $2,538 Energy Services $205 $ 2 $207 6 $1,242 ONEOK Partners Limited Partner Units** $2,217 General Partner Interest $60 $60 23 $1,380 TOTAL $437 $112 $549 $7,377 Long-term debt, net of cash and gas in storage*** $1,228 Equity value Equity Value $6,149 per share Outstanding t Shares 105 $46.61 Equity value per share $58.56 As of 11/29/07 Implied P/E 21.9 Current P/E (based on closing stock price, 11/29/07) 17.5 * 2007 Guidance ** Based on unit price of $59.91 and annual indicated distributions of $4.04 ***Amount as of September 30, 2007 Page 56

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