8-KRegulation FD

ONEOK INC /NEW/ 8-K Report, Regulation FD Disclosure (Feb 15, 2007)

Filed February 15, 2007For Securities:OKE

Summary

This 8-K filing from ONEOK Inc. (OKE) on February 15, 2007, provides an update on the performance of its investment in ONEOK Partners, L.P., which in turn holds a 50% interest in Northern Border Pipeline Company. The primary focus is the disclosure of unaudited operating and financial information for Northern Border Pipeline Company for the three and twelve months ended December 31, 2006, compared to the same periods in 2005. Investors should note that ONEOK Inc.'s reported equity earnings and partner distributions are derived from its stake in ONEOK Partners, L.P. Key takeaways include a decrease in Northern Border Pipeline Company's net income for both the quarter and the full year 2006 compared to 2005. This decline is attributed to higher operations and maintenance expenses and, for the full year, lower net operating revenues, partly due to a one-time revenue boost in Q3 2005 from Enron bankruptcy claim sales. Despite the decrease, Northern Border Pipeline Company remains a significant contributor to ONEOK Inc.'s results.

Key Highlights

  • 1ONEOK Inc. reported its share of Northern Border Pipeline Company's equity earnings: $16.7 million for Q4 2006 and $72.4 million for FY 2006.
  • 2Partner distributions received by ONEOK Inc. from its stake in ONEOK Partners, L.P. related to Northern Border Pipeline Company were $24.4 million for Q4 2006 and $98.4 million for FY 2006.
  • 3Northern Border Pipeline Company's net income decreased to $33.5 million in Q4 2006 from $36.7 million in Q4 2005, primarily due to increased operations and maintenance expenses.
  • 4For the full year 2006, Northern Border Pipeline Company's net income was $129.9 million, down from $152.3 million in 2005.
  • 5The full-year net income decline was also impacted by a decrease in net operating revenues, partly due to a $9.4 million one-time revenue recognition in Q3 2005 from Enron claim sales.
  • 6Total operating expenses for Northern Border Pipeline Company increased in 2006, with higher operations and maintenance expenses being a key driver.
  • 7Capital expenditures for Northern Border Pipeline Company decreased significantly in 2006 compared to 2005, particularly for maintenance.

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