Summary
ONEOK Inc. (OKE) announced on June 4, 2002, the sale of its remaining common stock in Magnum Hunter Resources, Inc. (MHR). This transaction involved 4,963,504 shares, generating net proceeds of approximately $35.8 million. The company intends to utilize these funds to reduce its outstanding commercial paper debt. While ONEOK has divested its direct equity stake, it retains warrants to purchase 1,515,300 shares of Magnum Hunter common stock at an exercise price of $15.00 per share, with these warrants expiring in March 2005. This strategic move signals a focus on debt reduction, which is generally viewed positively by investors seeking financial stability and improved balance sheet health.
Key Highlights
- 1ONEOK Inc. sold its entire remaining stake in Magnum Hunter Resources, Inc.
- 2The sale generated approximately $35.8 million in net proceeds.
- 3Proceeds will be used to reduce ONEOK's outstanding commercial paper indebtedness.
- 4ONEOK still holds warrants for 1,515,300 shares of Magnum Hunter common stock.
- 5The warrants have an exercise price of $15.00 per share and expire in March 2005.
- 6The transaction was announced on June 4, 2002.