8-K/ARegulation FDExhibits & Filings

ONEOK INC /NEW/ 8-K/A Report, Regulation FD Disclosure (May 11, 2005)

Filed May 11, 2005For Securities:OKE

Summary

ONEOK, Inc. (OKE) filed an 8-K/A amendment to a prior 8-K filing, primarily to correct a date on an exhibit. The core news remains the company's agreement to acquire natural gas liquids (NGL) businesses from several Koch companies for approximately $1.35 billion. This strategic acquisition significantly expands ONEOK's NGL infrastructure and market presence. Investors should note that the financing for this substantial acquisition is planned through a combination of short-term credit facilities, existing cash, long-term debt, and equity unit settlements, with an expected closing contingent upon antitrust clearance. The acquired assets include extensive NGL gathering, fractionation, storage, and marketing operations, particularly in the mid-continent region, and critical pipeline connections to major market centers like Mont Belvieu. This move signals a significant growth initiative for ONEOK in the NGL sector.

Key Highlights

  • 1ONEOK agreed to acquire Koch companies' NGL businesses for approximately $1.35 billion.
  • 2The acquisition includes significant mid-continent NGL gathering, fractionation, storage, and marketing assets.
  • 3Key acquired assets include fractionators in Oklahoma, Kansas, and a stake in a Mont Belvieu facility.
  • 4The transaction involves approximately 1,800 miles of interstate and 2,600 miles of gathering NGL pipelines.
  • 5Financing will involve a mix of bridge loans/short-term credit, cash, long-term debt, and equity unit settlements.
  • 6Permanent financing is expected by February 2006, with potential proceeds from asset sales.
  • 7The closing of the acquisition is subject to Federal Trade Commission (FTC) antitrust clearance under the Hart-Scott-Rodino Act.

Frequently Asked Questions

The primary purpose of this 8-K/A filing is to amend a previously filed Form 8-K to correct a specific date error in Exhibit 99.1. The core information regarding the acquisition remains the same.

ONEOK has agreed to acquire the natural gas liquids (NGL) businesses owned by several Koch companies for approximately $1.35 billion. This includes substantial NGL infrastructure and operations.

Initial financing will be through a bridge loan or short-term credit facility. Permanent financing is planned through a combination of available cash, long-term debt issuance, proceeds from equity unit settlements expected in February 2006, and potentially from the sale of less strategic assets.

The acquired assets include Koch Hydrocarbon's mid-continent NGL business with gathering, fractionation, and storage capabilities, including significant fractionator capacity in Oklahoma and Kansas, and pipeline systems connecting to Mont Belvieu. ONEOK will also acquire interests in facilities at Mont Belvieu and near Venice, Louisiana.

Yes, the closing of the transaction is subject to obtaining antitrust clearance from the Federal Trade Commission (FTC) under the Hart-Scott-Rodino Act.