Summary
ONEOK, Inc. (OKE) announced via an 8-K filing on August 2, 2004, that its division, ONEOK Energy Marketing & Trading Company, L.P., has secured a significant multi-year agreement to supply natural gas to Peoples Gas Light and Coke Company, the primary natural gas distributor serving the city of Chicago. This agreement represents a material expansion of OKE's natural gas marketing and trading operations. The financial implications of this deal are substantial, with estimated gas revenues projected to fall between $300 million and $575 million over the agreement's duration, based on current NYMEX gas prices. Investors should view this as a positive development, indicating increased contracted revenue streams and a strengthened market position for ONEOK in the natural gas sector, particularly in a key metropolitan area.
Key Highlights
- 1ONEOK's Energy Marketing & Trading division secured a multi-year natural gas supply agreement with Peoples Gas Light and Coke Company.
- 2Peoples Gas Light and Coke Company is the natural gas distributor for the city of Chicago.
- 3The agreement is expected to generate significant revenue for ONEOK.
- 4Estimated gas revenues range from a minimum of $300 million to a maximum of $575 million over the term of the agreement.
- 5Revenue estimates are based on current NYMEX gas prices.
- 6This deal expands ONEOK's presence in the natural gas marketing and trading sector.
- 7The filing was made on August 1, 2004, with an event date of July 29, 2004.