Oneok CEO explains why 'bigger is better' in the pipeline business

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As CERAWeek continues, Yahoo Finance's Julie Hyman is joined by Oneok (OKE) CEO Pierce H. Norton to discuss the company's expansion and outlook on the energy...

Norton highlights that Oneok is a"fee-based business," explaining that the company makes money by"transporting molecules to where they have the most value." He further elaborates that natural gas has to be processed and traded to get it into a"marketable form," which is a service Oneok provides.

Norton emphasizes that their acquisition of Magellan, which aimed to diversify Oneok's asset base, opened up many"organic opportunities." The expansion enabled Oneok to broaden its footprint, opening the door for them to move different products"with the same pieces of pipe" – a process called batching.

Regarding energy sources, Norton claims that the country has been experiencing an energy transition for over 200 years, with factors such as population and standard of living contributing to these changes. He suggests that there will be"continued growth," but the focus will shift from an"energy transition" to an"energy transformation," where different energy sources can be utilized in"a different way.

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