Summary
ONEOK Inc. (OKE) has entered into an Accelerated Share Repurchase (ASR) Agreement with Goldman, Sachs & Co. for $150 million to repurchase its common stock. This ASR is part of a larger, board-authorized three-year stock repurchase program initially valued at $750 million, with a limit of $300 million per calendar year. As of this filing, following prior repurchases, approximately $300 million remains authorized under the program, with a maximum of $150 million potentially purchasable in 2012. This significant repurchase activity indicates management's confidence in the company's valuation and its commitment to returning capital to shareholders. Investors should note that the final number of shares repurchased will be determined by the volume-weighted average price during the repurchase period, with provisions for additional share deliveries or cash payments under certain conditions. The company also issued a press release on June 12, 2012, to disclose this agreement.
Key Highlights
- 1ONEOK entered into a $150 million Accelerated Share Repurchase (ASR) Agreement with Goldman, Sachs & Co.
- 2The ASR Agreement was executed on June 11, 2012, with a $150 million payment made on June 12, 2012.
- 3Approximately 3.6 million shares were repurchased, with 80% received immediately.
- 4The ASR is part of a broader $750 million three-year stock repurchase program authorized in October 2010.
- 5The program has an annual purchase limit of $300 million.
- 6Following this transaction and prior repurchases, approximately $300 million remains authorized under the program.
- 7A maximum of $150 million can be repurchased in 2012 under the existing authorization.
- 8The final share count is subject to volume-weighted average pricing and other terms of the ASR agreement.