Oneok to move to 75pc fee-based gas contracts

OREANDA-NEWS. June 06, 2016.  Oneok Partners' gas gathering fees averaged 68?/mmBtu in the first quarter, up from 35?/mmBtu a year ago, according to the Tulsa-based midstream operator's presentation to an MLP Investor conference in Orlando, Florida, yesterday.

The higher fees come as Oneok and other pipeline operators shift to a higher percentage of fee-based contracts in a lower-priced environment.

"In restructuring these contracts we significantly reduced the segment's price sensitivity and it has contributed to much higher fee-based earnings for the partnership," said Oneok president Terry Spencer. "We expect this segment's earnings to be more than 75pc fee-based this year, driven by these successful restructuring efforts."