Summary
ONEOK Inc. announced a significant strategic acquisition on January 3, 2003, with the closing of its purchase of the Texas gas distribution assets of Southern Union Company for $420 million. This transaction is expected to substantially expand ONEOK's operational footprint and customer base in the natural gas distribution sector. The acquired assets include a regulated transmission system and various other energy-related businesses, positioning ONEOK as a major player in the industry.
Key Highlights
- 1ONEOK Inc. acquired the Texas gas distribution assets of Southern Union Company for $420 million.
- 2The acquisition closed on January 3, 2003.
- 3The new division will operate as Texas Gas Service Company, Inc., a division of ONEOK, Inc.
- 4Included in the purchase are 125 miles of natural gas transmission system regulated by the Texas Railroad Commission.
- 5The acquisition also encompasses gas marketing, retail propane, and natural gas distribution investments in Mexico.
- 6ONEOK's gas customer base will grow to over 1.9 million customers across Oklahoma, Kansas, and Texas.
- 7This move makes ONEOK the fifth-largest gas-only distributor in the United States by customer count.