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ONEOK Announces Plans to Make Natural Gas Distribution into Seperate Business (OKE)

Shares of ONEOK (NYSE: OKE) are up about 17 percent in mid-day trading Thursday after the company announced that it would pursue a plan to separate its natural gas distribution business into a separate, publicly-traded company.

ONEOK shareholders would retain their current allotment of shares and receive a certain percentage of shares in the new company. The company notes that it should be tax-free to ONEOK and its shareholders.

“This transaction should unlock the value of the assets currently in the ONEOK structure and is consistent with the board of directors’ commitment to create long-term, sustainable shareholder value,” said John W. Gibson, ONEOK chairman and chief executive officer.  “Creating two well-capitalized entities will help ensure that each has the financial strength and flexibility to pursue its own independent strategic priorities,” he added.

[stock-tools exchange="NYSE" symbol="OKE" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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