Summary
This 8-K filing by ONEOK INC (OKE) on October 25, 2010, primarily relates to an announcement by its subsidiary, ONEOK Partners, L.P. (OKE Partners). OKE Partners declared an increase in its quarterly cash distribution to $1.13 per unit for the third quarter of 2010, up from $1.12 per unit, resulting in an annualized distribution of $4.52 per unit. This distribution is a positive signal for unitholders, indicating the partnership's financial health and commitment to returning capital to investors. For ONEOK INC itself, this distribution increase is significant as the company holds a substantial ownership stake in ONEOK Partners. Specifically, ONEOK INC owns approximately 42.4 million common and Class B limited partner units, along with the entire 2 percent general partner interest, representing a combined 42.8 percent ownership. Consequently, ONEOK INC will benefit directly from the higher cash distributions from its subsidiary, which will positively impact its own financial performance and ability to potentially increase its own distributions or reinvest in its business. The distribution is payable on November 12, 2010, to unitholders of record as of October 29, 2010.
Key Highlights
- 1ONEOK Partners, L.P. increased its quarterly cash distribution to $1.13 per unit (from $1.12), effective for Q3 2010.
- 2The annualized cash distribution for ONEOK Partners units is now $4.52.
- 3This distribution increase reflects positively on the operational performance and cash flow generation of ONEOK Partners.
- 4ONEOK INC holds a significant 42.8% ownership interest in ONEOK Partners, L.P.
- 5ONEOK INC will receive a larger share of cash distributions due to its ownership stake, directly benefiting its financial results.
- 6The third-quarter distribution is scheduled to be paid on November 12, 2010, to unitholders of record as of October 29, 2010.