Summary
ONEOK, Inc. (OKE) announced on October 28, 2003, through its subsidiary ONEOK Energy Resources Company, the agreement to acquire approximately $240 million of East Texas gas and oil properties and related gathering systems from Wagner & Brown, Ltd. This strategic acquisition significantly expands OKE's proved natural gas reserves by an estimated 177.2 billion cubic feet of gas equivalent (bcfe), with additional probable and possible reserves also identified. The acquired assets currently generate approximately 26,000 thousand cubic feet of gas equivalent per day in net production and are characterized by a long reserves-to-production index of 12.4 years, with 91% of the reserves being natural gas. The company plans to finance the acquisition initially through short-term borrowings, with potential for longer-term financing through available cash or equity issuance. The closing of this transaction is anticipated before the end of the year. This move demonstrates OKE's commitment to growing its natural gas asset base and strengthens its position in the East Texas region.
Key Highlights
- 1ONEOK, Inc. (OKE) to acquire approximately $240 million in East Texas gas and oil properties.
- 2Acquisition by subsidiary ONEOK Energy Resources Company from Wagner & Brown, Ltd.
- 3Adds approximately 177.2 billion cubic feet of gas equivalent (bcfe) of proved gas reserves.
- 4Acquired properties have current net production of approximately 26,000 mcfe per day.
- 5Reserves-to-production index of 12.4 years, with 91% being natural gas.
- 6Transaction expected to close before the end of 2003.
- 7Initial financing through short-term borrowings, with potential for cash or equity issuance for long-term funding.