What is the primary purpose of the public offering of ONEOK's common stock?

The primary purpose of the public offering is to raise capital to fund significant capital expenditures for growth projects, notably the Elk Creek Pipeline Project, and to support other projects in late-stage development. It also allows for general corporate purposes, potentially including debt reduction.

How many shares of common stock were offered and sold?

ONEOK offered 21,850,000 shares of common stock. This figure includes the full exercise of the underwriters' option to purchase an additional 2,850,000 shares.

What are the key terms and conditions outlined in the Underwriting Agreement?

The Underwriting Agreement contains standard terms for such offerings, including representations and warranties from ONEOK, indemnification obligations for both the company and the underwriters (particularly concerning securities laws), and provisions for termination of the agreement.

Where can investors find more detailed information about this offering?

Investors can refer to Exhibit 1.1 of the 8-K filing, which contains the full text of the Underwriting Agreement. Additionally, a press release announcing the pricing of the offering is included as Exhibit 99.1.

OKE 8-K: Material Agreements & Regulation FD

Summary

ONEOK Inc. (OKE) filed an 8-K on January 8, 2018, reporting a material definitive agreement related to a public underwritten offering of its common stock. The offering involved 21,850,000 shares, including an exercise of the underwriters' option for an additional 2,850,000 shares, conducted under an existing shelf registration statement. This action signals a significant capital raise designed to fuel the company's growth initiatives. The net proceeds from this offering are earmarked for crucial capital expenditures, specifically mentioning the Elk Creek Pipeline Project and other growth projects. Additionally, funds will be allocated to pre-fund projects nearing the late stages of development and for general corporate purposes, which may include deleveraging through the repayment of outstanding debt. This strategic deployment of capital indicates a proactive approach to expanding operations and strengthening the company's financial position.

Key Highlights

1ONEOK, Inc. entered into an Underwriting Agreement on January 4, 2018, for a public underwritten offering of common stock.
2The offering size is 21,850,000 shares, with underwriters exercising an option for an additional 2,850,000 shares.
3The offering is conducted under an existing shelf registration statement filed in July 2017.
4Net proceeds will be used to fund capital expenditures, including the Elk Creek Pipeline Project and other growth projects.
5Funds may also be used to pre-fund upcoming projects and for general corporate purposes, including potential debt repayment.
6The Underwriting Agreement includes customary representations, warranties, indemnification, and termination provisions.

ONEOK INC /NEW/ 8-K Report, Material Agreement (Jan 9, 2018)

Summary

Key Highlights

Frequently Asked Questions