8-KOther Events

ONEOK INC /NEW/ 8-K Report (Feb 3, 2003)

Filed February 3, 2003For Securities:OKE

Summary

ONEOK, Inc. (OKE) announced on January 31, 2003, the successful closing of the sale of certain natural gas and oil producing properties to Chesapeake Energy for $300 million in cash. This transaction is expected to significantly impact the company's financial results for the first quarter of 2003. Investors should note that ONEOK anticipates recording a substantial pre-tax gain, estimated to be between $66 million and $70 million, from this sale. This gain reflects customary closing adjustments, including operating income and capital expenditures incurred since the effective date of the agreement in November 2002. The divestiture represents a strategic move, and its financial implications will be a key focus for analysts and shareholders in the upcoming reporting period.

Key Highlights

  • 1ONEOK, Inc. completed the sale of natural gas and oil producing properties.
  • 2The buyer was Chesapeake Energy.
  • 3The transaction generated $300 million in cash for ONEOK.
  • 4A pre-tax gain of approximately $66 to $70 million is expected.
  • 5The gain will be recognized in the first quarter of 2003.
  • 6The sale closed on January 31, 2003.

Frequently Asked Questions

The main event is the closing of ONEOK's sale of certain natural gas and oil producing properties to Chesapeake Energy for $300 million in cash.

ONEOK expects to record the financial impact, including the pre-tax gain, in the first quarter of 2003.

The company estimates a pre-tax gain of approximately $66 million to $70 million from the sale of these properties.

The gain reflects adjustments for operating income and capital expenditures that occurred between the November 30, 2002 effective date and the January 31, 2003 closing date, as well as other standard closing adjustments.