Summary
ONEOK Inc. (OKE) has entered into a new Equity Distribution Agreement on August 3, 2023, establishing an at-the-market (ATM) equity program with BofA Securities, Inc. This agreement allows OKE to offer and sell up to $1 billion of its common stock over time through various sales channels, including ordinary brokers' transactions on the NYSE, block transactions, or directly to the manager as principal. The reestablishment of this ATM program is part of a routine, recurring process to update its shelf registration statements, with the prior program having expired. The company also has the option to enter into separate forward sale agreements with Bank of America, N.A. The net proceeds from any stock sales or forward sale settlements are intended for general corporate purposes. These purposes may include repaying or refinancing outstanding debt, funding working capital, supporting capital expenditures, or financing acquisitions. Investors should note that OKE is not obligated to sell any shares and can suspend sales at any time, providing flexibility in managing its capital structure and funding needs.
Key Highlights
- 1ONEOK Inc. (OKE) has entered into an Equity Distribution Agreement with BofA Securities, Inc.
- 2The company can issue and sell up to $1 billion of its common stock through this new at-the-market (ATM) program.
- 3Sales can be made via brokers on the NYSE, block transactions, or directly to the manager as principal.
- 4The agreement allows for potential forward sale agreements with Bank of America, N.A.
- 5Proceeds are intended for general corporate purposes, including debt repayment, working capital, capital expenditures, and acquisitions.
- 6OKE is not obligated to sell any shares and can suspend the program at any time.
- 7This ATM program replaces a prior program that expired as part of a routine update of shelf registration statements.