ONEOK To Separate Natural Gas Distribution Business

(RTTNews) - ONEOK, Inc. (OKE), Thursday said it plans to separate its natural gas distribution business into a standalone publicly traded company, thereby forming two independent energy companies. The new company to be known as ONE Gas, Inc., will be listed on the New York Stock Exchange.

ONEOK said, "ONE Gas will be one of the largest natural gas utilities in the United States, serving more than 2 million customers in three states, and will be the only publicly traded, 100 percent regulated, pure-play natural gas distribution utility in the United States."

ONE Gas, to be headquartered in Tulsa, Okla will contain Oklahoma Natural Gas Company, Kansas Gas Service and Texas Gas Service.

According to the plan, ONEOK shareholders will retain their ONEOK shares while receiving a  pro-rata dividend of shares in ONE Gas. Post the completion of the deal, which is expected during the first quarter 2014, ONEOK will continue to hold its interests in ONEOK Partners, L.P.