Oneok Completes Sale of Texas Assets

By Journal Record Staff

Oneok has completed the sale of natural gas gathering and processing assets in Texas to Houston-based Eagle Rock Energy for $528 million.

Tulsa-based Oneok’s after-tax sale proceeds total $356 million. The sale generated an after-tax book gain of $162 million, or $1.49 per diluted share of common stock. The gain will be recorded in the fourth quarter.

Ninety Oneok employees are expected to join Eagle Rock. Eagle Rock expects to hire an additional 30 employees at its headquarters in Houston.

The properties are in the Texas Panhandle and include six gas processing plants with a capacity of 150 million cubic feet per day and current average throughput of 70 percent, 3,700 miles of gas gathering lines and natural gas liquid production of 13,500 barrels per day.

In trading Thursday, Oneok closed up 30 cents at $27.73 on the New York Stock Exchange. Market capitalization totals $2.7 billion.