Summary
ONEOK Inc. (OKE) announced the completion of its sale of certain natural gas gathering and processing assets located in Texas on December 1, 2005. The transaction was finalized with Eagle Rock Energy for a total of $528 million. After accounting for taxes, the net proceeds to ONEOK are expected to be approximately $356 million. This divestiture is significant as it generates a substantial after-tax book gain of approximately $162 million. This gain translates to roughly $1.49 per diluted share of common stock and will be recognized as income from continuing operations in the fourth quarter of 2005. Investors should note this as a positive impact on the company's earnings for the current reporting period.
Key Highlights
- 1Completion of sale of Texas natural gas gathering and processing assets to Eagle Rock Energy.
- 2Total sale price of $528 million.
- 3Net after-tax sale proceeds of $356 million.
- 4Recognition of an after-tax book gain of approximately $162 million.
- 5The gain is equivalent to approximately $1.49 per diluted share of common stock.
- 6The gain will be recorded in income from continuing operations for Q4 2005.
- 7The transaction closed on December 1, 2005.