ONEOK, Inc. announced a decrease in its 2020 growth capital expenditure plans due to the current commodity price environment. ONEOK, which operates in the Williston Basin and Montana, now expects capital-growth expenditures in the range of $1.60 billion to $2.40 billion with a midpoint of $2.0 billion, a decrease of approximately $500 million compared with the previously announced midpoint.

The changes include suspending plans for the expansion of the company’s natural gas processing facility in the Williston Basin and the reduction of plans to expand the Elk Creek Pipeline. They will also suspend plans for the expansion of the West Texas LPG pipeline in the Permian Basin.

The company said that it has the capacity to quickly resume these suspended capital-growth projects should economic conditions change.

This updated range provides ONEOK with the flexibility to adjust to market fluctuations.

“Given the significant inventory of flared natural gas in the Williston Basin and fully contracted growth in the Permian Basin, and factoring in the current commodity price environment and assumed rig reductions, we expect our 2020 results to be within our previously announced guidance ranges,” said Terry K. Spencer, ONEOK president and chief executive officer.

“Break-even prices for our well-capitalized producer customers have improved significantly over the last several years, which gives us the confidence that the Williston Basin is expected to remain a competitive producing region through this volatile and uncertain commodity price environment,” continued Spencer. “The potential for ethane recovery to meet downstream pipeline BTU specifications also provides a tailwind to our natural gas liquids volume expectations.”

“Despite the volatile commodity price environment in recent days, ONEOK’s financial flexibility, significant dividend coverage and investment-grade balance sheet position ONEOK well to weather these challenging market conditions,” said Spencer. “We recently completed a $1.75 billion debt offering enabling us to repay all of our commercial paper, leaving us with the full borrowing capacity available on our $2.5 billion credit agreement and approximately $600 million of cash on hand, demonstrating our strong financial position.”

ONEOK, Inc. is a leading midstream service provider and owner of one of the nation’s premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.