Summary
ONEOK, Inc. (OKE) announced on July 1, 2005, the successful completion of its acquisition of natural gas liquids (NGL) businesses from several Koch Industries companies. This significant transaction, valued at approximately $1.35 billion, is poised to substantially expand ONEOK's NGL operations and market presence. The acquisition encompasses Koch's mid-continent NGL business, Koch's stake in the Mont Belvieu I NGL fractionation facility, and additional mid-continent NGL assets. This strategic move is expected to enhance ONEOK's vertical integration within the NGL value chain and bolster its infrastructure. Investors should monitor the integration progress and any associated synergies or challenges that may arise from this substantial investment.
Key Highlights
- 1ONEOK, Inc. completed the acquisition of natural gas liquids (NGL) businesses from Koch Industries' companies on July 1, 2005.
- 2The total purchase price for these assets was approximately $1.35 billion.
- 3The acquired assets include Koch's mid-continent NGL business unit.
- 4ONEOK also acquired Koch's 80 percent ownership interest in the Mont Belvieu I NGL fractionation facility.
- 5Additional mid-continent NGL assets from Koch Pipeline Company, L.P. were also part of the transaction.
- 6The acquisition also included Koch's 10.1765 percent membership interest in Venice Energy Services Company, L.L.C.