ONEOK Closes Sale of Wholly Owned Interstate Natural Gas Pipelines
ONEOK (NYSE: OKE) has completed the sale of its three wholly owned interstate natural gas pipeline systems to DT Midstream for $1.2 billion in cash. The transaction, which closed on December 31, 2024, includes the Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission systems.
The sale aligns with ONEOK's strategic portfolio optimization and capital allocation priorities. The company plans to use the net proceeds to enhance its financial flexibility as it works toward achieving its leverage target of 3.5 times during 2026. Employees associated with these pipeline systems will transition to DT Midstream and will be instrumental in establishing the company's new Tulsa office.
ONEOK (NYSE: OKE) ha completato la vendita dei suoi tre sistemi di gasdotti interstatali interamente posseduti a DT Midstream per 1,2 miliardi di dollari in contante. La transazione, che si è conclusa il 31 dicembre 2024, include i sistemi Guardian Pipeline, Midwestern Gas Transmission e Viking Gas Transmission.
La vendita è in linea con l'ottimizzazione strategica del portafoglio di ONEOK e le priorità di allocazione del capitale. L'azienda prevede di utilizzare il ricavato netto per migliorare la propria flessibilità finanziaria mentre lavora per raggiungere il suo obiettivo di indebitamento di 3,5 volte entro il 2026. I dipendenti associati a questi sistemi di gasdotto passeranno a DT Midstream e saranno strumentali nell'istituzione del nuovo ufficio di Tulsa dell'azienda.
ONEOK (NYSE: OKE) ha completado la venta de sus tres sistemas de gasoductos interestatales de propiedad total a DT Midstream por 1.200 millones de dólares en efectivo. La transacción, que se cerró el 31 de diciembre de 2024, incluye los sistemas Guardian Pipeline, Midwestern Gas Transmission y Viking Gas Transmission.
La venta se alinea con la optimización estratégica del portafolio y las prioridades de asignación de capital de ONEOK. La empresa planea utilizar los ingresos netos para mejorar su flexibilidad financiera mientras trabaja para alcanzar su objetivo de deuda de 3,5 veces para 2026. Los empleados asociados con estos sistemas de gasoducto se trasladarán a DT Midstream y serán fundamentales para establecer la nueva oficina de Tulsa de la compañía.
ONEOK (NYSE: OKE)는 DT Midstream에 12억 달러에 자사의 세 개의 완전 자회사인 주간 천연가스 파이프라인 시스템의 매각을 완료했습니다. 이 거래는 2024년 12월 31일에 종료되었으며 Guardian Pipeline, Midwestern Gas Transmission, Viking Gas Transmission 시스템을 포함합니다.
이 판매는 ONEOK의 전략적 포트폴리오 최적화 및 자본 배치 우선 사항에 부합합니다. 회사는 순수익금을 사용해 2026년까지 3.5배의 레버리지 목표를 달성하기 위한 재정적 유연성을 강화할 계획입니다. 이 파이프라인 시스템에 관련된 직원들은 DT Midstream로 전환되어 회사의 새로운 털사 사무소 설립에 중요한 역할을 할 것입니다.
ONEOK (NYSE: OKE) a finalisé la vente de ses trois systèmes de pipelines de gaz naturel inter-États entièrement détenus à DT Midstream pour 1,2 milliard de dollars en espèces. La transaction, conclue le 31 décembre 2024, comprend les systèmes Guardian Pipeline, Midwestern Gas Transmission et Viking Gas Transmission.
Cette vente s'inscrit dans l'optimisation stratégique du portefeuille et les priorités d'allocation de capital de ONEOK. L'entreprise prévoit d'utiliser le produit net pour renforcer sa flexibilité financière pendant qu'elle travaille à atteindre son objectif d'endettement de 3,5 fois d'ici 2026. Les employés associés à ces systèmes de pipelines seront transférés à DT Midstream et joueront un rôle essentiel dans l'établissement du nouveau bureau de Tulsa de la société.
ONEOK (NYSE: OKE) hat den Verkauf seiner drei vollständig im Besitz befindlichen interstaatlichen Erdgas-Pipelinesysteme an DT Midstream für 1,2 Milliarden Dollar in bar abgeschlossen. Die Transaktion, die am 31. Dezember 2024 abgeschlossen wurde, umfasst die Systeme Guardian Pipeline, Midwestern Gas Transmission und Viking Gas Transmission.
Der Verkauf steht im Einklang mit der strategischen Portfolioptmierung und den Prioritäten der Kapitalallokation von ONEOK. Das Unternehmen plant, die Nettomittel zu nutzen, um seine finanzielle Flexibilität zu erhöhen, während es daran arbeitet, sein Verschuldungsziel von 3,5 Mal bis 2026 zu erreichen. Die mit diesen Pipelinesystemen verbundenen Mitarbeiter werden zu DT Midstream wechseln und werden entscheidend an der Errichtung des neuen Büro in Tulsa beteiligt sein.
- Sale of three pipeline systems generates $1.2 billion in cash proceeds
- Transaction supports progress toward leverage target of 3.5x by 2026
- Strategic optimization of asset portfolio improves financial flexibility
- Divestment reduces ONEOK's interstate natural gas pipeline network coverage
- Loss of recurring revenue streams from three major pipeline systems
Insights
The
By divesting these non-core assets, ONEOK can focus capital and operational resources on higher-growth opportunities while maintaining its competitive position in the midstream sector. The company retains its extensive 50,000-mile pipeline network and core business segments. Think of this as selling a rental property to pay down mortgage debt - it improves the balance sheet while keeping the main house intact.
This transaction exemplifies the ongoing trend of midstream companies optimizing their asset portfolios amid evolving energy market dynamics. For investors, this strategic divestiture signals management's commitment to disciplined capital allocation and deleveraging, which should support long-term shareholder value creation.
The sale of Guardian, Midwestern and Viking pipelines represents a calculated realignment of ONEOK's infrastructure portfolio. These interstate systems, while valuable, were not central to ONEOK's core NGL and natural gas gathering operations. The transaction allows for operational streamlining while maintaining critical infrastructure that serves key markets.
DT Midstream's acquisition of these assets makes strategic sense - it expands their interstate pipeline footprint and establishes a new operational hub in Tulsa. The seamless transfer of operational personnel ensures continuity of service and maintains institutional knowledge, important for these regulated assets. It's like a specialized tool being transferred to a craftsman who will make better use of it.
For the broader energy infrastructure sector, this deal highlights the ongoing consolidation and optimization trends as companies focus on their core competencies. The transaction value suggests strong market interest in regulated interstate pipeline assets, particularly given their stable cash flow characteristics and strategic positioning in natural gas transportation networks.
Guardian, Midwestern and Viking Gas Transmission Pipelines
Sold to DT Midstream for
"The closing of this transaction represents another milestone in the strategic optimization of our integrated asset portfolio and advances our capital allocation priorities," said Pierce H. Norton II, ONEOK president and chief executive officer. "As the new owner of these pipelines, DT Midstream brings a shared commitment to safety, reliability and excellence that will serve all stakeholders well.
"We appreciate the dedication of our employees transitioning to DT Midstream, where they will play a vital role in establishing the company's new
The three interstate natural gas pipeline systems included in the sale are Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission.
The net proceeds from the sale are expected to enhance ONEOK's financial flexibility as it progresses toward its previously announced leverage target of 3.5 times during 2026.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in
ONEOK is an S&P 500 company headquartered in
For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
Cautionary Statement Regarding Forward-Looking Statements:
This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this communication that address activities, events or developments that ONEOK expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking or conditional words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "opportunity," "create," "intend," "could," "would," "may," "plan," "will," "guidance," "look," "goal," "target," "future," "build," "focus," "continue," "strive," "allow" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements include, but are not limited to, statements regarding ONEOK's ability to achieve the intended operational, financial and strategic benefits from the consummation of the transaction with DT Midstream, Inc. (the "Transaction"), including with respect to deleveraging. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. Such risks include, but are not limited to, our ability to achieve the benefits expected from, and other risks associated with, the consummation of the Transaction; the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the consummation of the Transaction; the risk that the consummation of the Transaction disrupts current plans and operations of ONEOK; changes in domestic and foreign business, market, financial, political and legal conditions; risks related to the impact of any economic downturn and any substantial decline in commodity prices; the risk of changes in governmental regulations or enforcement practices, especially with respect to environmental, health and safety matters; and other important factors that could cause actual results to differ materially from those projected. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. All such risks are difficult to predict and are beyond ONEOK's control, including those detailed in ONEOK's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that are available on ONEOK's website at www.oneok.com and on the website of the Securities and Exchange Commission at www.sec.gov. All forward-looking statements are based on assumptions that ONEOK believes to be reasonable but that may not prove to be accurate. Any forward-looking statement speaks only as of the date on which such statement is made, and ONEOK does not assume or undertake any obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Analyst Contact:
Megan Patterson
918-561-5325
Media Contact:
Alicia Buffer
918-861-3749
View original content to download multimedia:https://www.prnewswire.com/news-releases/oneok-closes-sale-of-wholly-owned-interstate-natural-gas-pipelines-302340640.html
SOURCE Oneok, Inc.
FAQ
How much did ONEOK (OKE) sell its interstate pipeline systems for?
Which pipeline systems did ONEOK (OKE) sell to DT Midstream?
What is ONEOK's (OKE) leverage target following the pipeline sale?
How will the $1.2 billion pipeline sale affect ONEOK's (OKE) financial position?
