Summary
ONEOK, Inc. (OKE) announced on September 19, 2005, that it has entered into definitive agreements to sell its oil and gas production companies to TXOK Acquisition, Inc. for approximately $645 million. This strategic divestiture includes natural gas and oil properties located in Oklahoma and Texas, with estimated reserves of 240 billion cubic feet of natural gas equivalent as of August 1, 2005. The transaction, which is expected to close by October 14, 2005, involves the sale of all capital stock of ONEOK Energy Resources Company and membership interests in ONEOK Energy Resources Holdings, L.L.C. and its subsidiaries. The sale price is subject to customary adjustments at closing. This move signals a significant shift in ONEOK's business focus, likely towards its midstream operations, and provides a substantial cash infusion for the company.
Key Highlights
- 1ONEOK, Inc. to sell its oil and gas production businesses for approximately $645 million.
- 2The buyer is TXOK Acquisition, Inc., a privately held oil and natural gas company.
- 3The sale includes natural gas and oil properties in Oklahoma and Texas.
- 4Estimated reserves associated with the sale are approximately 240 billion cubic feet of natural gas equivalent (Bcfe).
- 5The transaction is expected to close by October 14, 2005.
- 6The sale involves the transfer of capital stock of ONEOK Energy Resources Company and membership interests in its holding company and subsidiaries.
- 7Most ONEOK production employees are expected to be offered positions with the acquiring company.