Summary
ONEOK, Inc. (OKE) announced on March 11, 2008, a significant transaction involving its master limited partnership, ONEOK Partners, L.P. The company entered into a Common Unit Purchase Agreement to acquire an additional 5,400,000 common units of ONEOK Partners, L.P. for approximately $303.2 million in a private placement. This strategic move is aimed at increasing ONEOK's stake in its subsidiary, which operates midstream energy infrastructure and services. In conjunction with this purchase, ONEOK also contributed approximately $9.4 million to maintain its two percent general partner interest in ONEOK Partners, L.P. These combined actions will raise ONEOK's total ownership in the partnership to approximately 47.8 percent. Investors should note that this increase in ownership could lead to greater consolidated financial results and potentially a more significant influence over the strategic direction of ONEOK Partners, L.P.
Key Highlights
- 1ONEOK, Inc. entered into a Common Unit Purchase Agreement with ONEOK Partners, L.P. on March 11, 2008.
- 2ONEOK agreed to purchase 5,400,000 common units of ONEOK Partners, L.P. in a private placement.
- 3The aggregate purchase price for these common units is approximately $303.2 million.
- 4ONEOK contributed approximately $9.4 million to maintain its two percent general partner interest in ONEOK Partners, L.P.
- 5Following these transactions, ONEOK's ownership interest in ONEOK Partners, L.P. will increase to approximately 47.8 percent.
- 6The filing includes the Common Unit Purchase Agreement as Exhibit 1.1 and a related news release as Exhibit 99.1.