Summary
ONEOK, Inc. (OKE) announced on September 16, 2004, an agreement to acquire Northern Plains Natural Gas Company for $175 million. This acquisition includes a controlling interest in Northern Borders Partners, L.P. (NBP), specifically 82.5% of the general partnership interest and a 2.73% limited partnership interest. The transaction is contingent upon the successful completion of CCE Holdings, LLC's acquisition of CrossCountry Energy, LLC from Enron Corp. and its affiliates, which is anticipated by mid-December 2004. This strategic move represents a significant expansion for ONEOK, enhancing its existing North American natural gas transportation and storage infrastructure. The acquisition of a substantial stake in NBP is expected to strengthen ONEOK's position in the energy midstream sector and potentially create synergistic opportunities. Investors should monitor the closing of the CCE Holdings acquisition as a key determinant for the completion of this transaction.
Key Highlights
- 1ONEOK, Inc. to acquire Northern Plains Natural Gas Company for $175 million.
- 2Acquisition includes 82.5% general partnership interest in Northern Borders Partners, L.P. (NBP).
- 3Acquisition also includes 500,000 limited partnership units in NBP, representing a 2.73% ownership interest.
- 4Transaction is conditional on CCE Holdings, LLC closing its acquisition of CrossCountry Energy, LLC from Enron Corp.
- 5Expected closing date for the CCE Holdings acquisition is mid-December 2004.
- 6The filing was made on September 16, 2004, with the earliest event reported being September 15, 2004.