Summary
ONEOK Inc. (OKE) filed an 8-K on December 31, 2013, to announce a temporary suspension of trading under its employee benefit plans, specifically the ONEOK, Inc. 401(k) Plan and the ONEOK, Inc. Profit Sharing Plan. This trading restriction, commonly known as a 'blackout period,' is necessitated by the anticipated separation of ONEOK's natural gas distribution business into a new publicly traded entity, ONE Gas, Inc., expected on January 31, 2014. The blackout period is designed to allow for the necessary adjustments within the Plans' ONEOK Stock Fund to reflect this significant corporate restructuring.
Key Highlights
- 1ONEOK Inc. is implementing a temporary trading suspension ('blackout period') for its employee benefit plans.
- 2The blackout period is directly related to the planned separation of its natural gas distribution business into a new company, ONE Gas, Inc.
- 3The anticipated separation date for ONE Gas, Inc. is January 31, 2014.
- 4The blackout period is scheduled to commence on January 30, 2014, and is expected to conclude around February 2, 2014.
- 5This measure is required to facilitate adjustments to the ONEOK Stock Fund within the employee plans.
- 6ONEOK also notified its directors and executive officers of this blackout period, in compliance with Sarbanes-Oxley Act (SOX) Section 306 and SEC Regulation BTR, which restricts their trading activities during such periods.
Frequently Asked Questions
A blackout period is a temporary restriction placed on the ability of participants in an employee benefit plan to engage in transactions (like buying or selling) involving the plan's assets, specifically in this case, ONEOK's common stock.
The blackout period is necessary to accommodate the upcoming separation of ONEOK's natural gas distribution business into a new company called ONE Gas, Inc. This allows for the required administrative and accounting adjustments to be made to the ONEOK Stock Fund within the company's 401(k) and profit sharing plans.
The blackout period is expected to begin on January 30, 2014, and conclude during the week of February 2, 2014. During this time, you will not be able to make trades involving ONEOK stock held within the ONEOK, Inc. 401(k) Plan or the ONEOK, Inc. Profit Sharing Plan.
Yes, in compliance with Section 306 of the Sarbanes-Oxley Act and SEC Regulation BTR, ONEOK has notified its directors and executive officers that they are prohibited from trading ONEOK securities during this blackout period.