Summary
ONEOK Inc. (OKE) announced a significant strategic move to separate its natural gas distribution business into a new, independent, publicly traded company, to be named ONE Gas, Inc. This separation aims to create two distinct, highly focused energy companies, allowing each to pursue its growth strategies more effectively. Concurrently with this separation plan, ONEOK is also implementing key leadership changes. John W. Gibson will transition from CEO to non-executive chairman of the Board, while current president Terry K. Spencer is slated to become the new CEO of ONEOK Inc. Pierce H. Norton II, currently Executive Vice President of Commercial, will depart ONEOK to lead the newly formed ONE Gas, Inc. as its president and CEO.
Key Highlights
- 1ONEOK Inc. plans to separate its natural gas distribution business into a standalone, publicly traded company named ONE Gas, Inc.
- 2The separation is intended to create two independent, highly focused energy companies.
- 3John W. Gibson will transition from CEO to non-executive Chairman of the Board for ONEOK Inc. and ONEOK Partners, L.P.
- 4Terry K. Spencer, currently President of ONEOK Inc. and ONEOK Partners, L.P., will assume the role of CEO for both entities.
- 5Pierce H. Norton II will resign from ONEOK to become President and CEO of the newly created ONE Gas, Inc.
- 6Robert F. Martinovich will shift from EVP of Operations to EVP of Commercial.
- 7A conference call and webcast were scheduled for July 26, 2013, to discuss the proposed separation and related details.
Frequently Asked Questions
ONEOK announced a plan to separate its natural gas distribution business into a new, independent, publicly traded company called ONE Gas, Inc. This move aims to create two distinct, more focused energy companies.
John W. Gibson will move from CEO to non-executive Chairman. Terry K. Spencer, currently President, will become the new CEO of ONEOK Inc. Pierce H. Norton II will leave ONEOK to lead the new ONE Gas, Inc. as its President and CEO.
The natural gas distribution business will be spun off into a separate, publicly traded entity named ONE Gas, Inc. This new company will be independent and focused solely on natural gas distribution.
The announcement was made on July 25, 2013. Additional details regarding the separation plan were available in a press release (Exhibit 99.1) and a presentation (Exhibit 99.2) furnished with the 8-K filing. A conference call was held on July 26, 2013, to discuss these developments.