ONEOK is the largest natural gas distributor in Kansas and Oklahoma, and the third largest in Texas. Kansas Gas Service, Oklahoma Natural Gas and Texas Gas Service serve more than two million customers.

Results
(For The Year Ended Dec. 31)	2007	2006	2005
Total throughput (MMcf)	380,599	379,223	451,996
Capital expenditures ($000)	$162,044	$159,026	$143,765
Number of customers (Average)	2,050,767	2,031,551	2,018,900
Customers per employee (Average)	732	713	689
Operating income ($000)	$174,199	$117,497	$113,917

Highlights and Features:

• ONEOK is the 8th largest natural gas distributor in the U.S. according to a recent report by Pipeline & Gas Journal.
• ONEOK’s distribution companies recorded operating income of $174.2 million in 2007, a 48 percent increase over the prior year's results. Net margins increased $63.9 million, primarily due to implementation of new rates schedules in Kansas and Texas and from higher customer sales volumes as a result of a return to more normal weather in our entire service territory.
• Oklahoma Natural Gas was recently authorized by the Oklahoma Corporation Commission to implement a natural gas hedge program as a three-year pilot program to reduce commodity price volatility for our customers.
• Kansas Gas Service implemented new rates for its more than 642,000 customers on January 1, 2007, making it the first base rate increase since 2003.
• Texas Gas Service received several regulatory approvals to implement rate increases in various municipalities in Texas. A total of $1.7 million in annual rate increases were approved and implemented in the fourth quarter 2007. Additionally, in February 2008, a $3.1 million annual rate adjustment was approved in the segment’s El Paso jurisdiction.
• Oklahoma Natural Gas received regulatory approval of its pipeline integrity management program, allowing for the recovery of $7.2 million in deferred costs.
• Oklahoma Natural Gas also received approval of a capital investment recovery mechanism in February 2008. The mechanism will allow for timely recovery and a return on capital investment to maintain and operate its infrastructure.