Summary
ONEOK, Inc. (OKE) announced on September 27, 2005, the closing of a significant transaction: the sale of its oil and gas production companies to TXOK Acquisition, Inc. for a total consideration of $645 million. This strategic divestiture includes natural gas and oil properties located in four fields across Oklahoma and Texas. The primary use of the net proceeds, estimated to be around $500 million after taxes, will be to reduce outstanding debt. This move signals a focus on deleveraging the company's balance sheet. As part of the agreement, ONEOK will provide transition services to the buyer, TXOK Acquisition, Inc., ensuring a smooth handover of operations.
Key Highlights
- 1ONEOK Inc. completed the sale of its oil and gas production companies on September 27, 2005.
- 2The sale was made to TXOK Acquisition, Inc. for a total of $645 million.
- 3The divested assets include natural gas and oil properties in four fields located in Oklahoma and Texas.
- 4ONEOK expects to use approximately $500 million in after-tax proceeds to reduce debt.
- 5The company will provide transition services to the buyer as part of the agreement.