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I see that ONEOK has several spinoffs in the past: Which means it is possible




ONEOK Inc. sets spinoff of ONE Gas for Jan. 31

Posted by: Anthony Rome in Business, Eagle Ford News, Oil January 9,

ONEOK Inc. will spin off its natural gas distribution business ONE Gas Inc. at the end of this month, according to a plan approved Wednesday by ONEOK’s board of directors.

The Tulsa-based natural gas and natural gas liquids gathering and transport company said the transaction to create ONE Gas will close Jan. 31, when shares of the new company are distributed to ONEOK stockholders.

ONE Gas will consist of three regional natural gas utilities including Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service.

Tulsa financial adviser Jake Dollarhide said the spinoff could create opportunities for shareholders that want a more specific investment vehicle.

“When you have a bullish stock market, I think management teams and boards of directors are under pressure to maximize shareholder value,” said Dollarhide, CEO of Longbow Asset Management Co. “Some people want a pure natural gas company and others want to invest in a utility.”

Dollarhide’s assessment concurs with statements made by John Gibson, CEO of ONEOK Inc. and ONEOK Partners LP, when the separation plan was announced in July.

“We believe this plan will enhance the strategic and financial strength and flexibility along with the growth potential of ONEOK, our master limited partnership ONEOK Partners and ONE Gas,” Gibson said. “This transaction is expected to allow our capital investments and corporate resources to be allocated in a manner more aligned with each company’s independent strategic priorities.”

Gibson, who has run ONEOK and ONEOK Partners for seven years, will retire when the spinoff occurs. He is staying on as the non-executive chairman of all three companies.

As previously announced, ONEOK Inc. President Terry Spencer is taking over as CEO and president of ONEOK and ONEOK Partners, while Pierce Norton will be president and CEO of ONE Gas. Norton is currently executive vice president-commercial for ONEOK and ONEOK Partners.

ONEOK Inc. is the parent company of ONEOK Partners, the natural gas gathering, processing, storing and transporting segment.

Shares of ONE Gas will be given to ONEOK shareholders of record as of Jan. 21. ONEOK shareholders will receive one share of ONE Gas for every four shares of ONEOK they own. Fractional shares will be distributed as cash.

Shares of ONE Gas will start trading on the New York Stock Exchange on Feb. 3 under the symbol OGS.

ONEOK employs about 1,100 people locally. It has not disclosed how many employees will work under the new ONE Gas banner.

In a guidance statement last month, ONEOK said ONE Gas is expected to earn a profit of $95 million to $105 million in 2014.

ONEOK Inc. also announced the board of directors for ONE Gas. It will include Gibson and Norton, as well as Robert B. Evans, Michael G. Hutchinson, Pattye L. Moore, Eduardo A. Rodriguez and Douglas H. Yaeger.

Kyle Arnold 918-581-8380

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SOURCE
http://eaglefordtexas.com/news/id/1011/oneok-inc-sets-spinoff-one-gas-jan-31/