CM - Oneok has largest midstream equity offering in 2.5 years - June 2020Oneok Inc. sold 29.9 million shares at $32 each for gross proceeds of $956.8 million in a public offering launched June 11. The 3.9 million-share greenshoe was exercised in full, delivering $124.8 million of the total gross proceeds. The offering is the midstream sector’s largest public common equity sale since January 2018 when—coincidentally— Oneok sold 19 million shares for $55.02 each to raise over $1.02 billion. Oneok’s offering is the second public midstream common equity sale this year,...
Jun 26, 2020
MI - Oneok’s $832MM common sale is sector’s biggest in 2.5 years - June 2020In what’s become a rare event in the midstream sector—a public common stock offering—Oneok, Inc. sold 26 million shares at $32 each to gross $832 million on June 11. Oneok also granted underwriters a 30-day option for 3.9 million additional common shares, which if exercised in full will deliver $124.8 million in additional gross proceeds. The offering is the midstream sector’s largest public common equity sale since January 2018 when, coincidentally, Oneok sold 19 million shares for $55.02 each...
Jun 17, 2020
MI - Midstream working through compression; keeps flowing - June 2020Oneok, Inc. came to the equity market last week to sell 26 million common shares for $832 million. It’s the largest sale by a midstream issuer since, well, Oneok’s January 2018 sale. Proceeds from the surprise sale could exceed $950 million upon full exercise of the 3.9 millionshare overallotment option, bringing the company closer to its $1.04 billion haul two and a half years ago (PG.1). Analysts see Oneok’s decision as a way to help bring reliance on debt down during these precarious times,...
Jun 17, 2020
MI - Analyst Notes - June 17, 2020Enterprise Products Partners, LP (NYSE: EPD; $21.78-June 10; Buy; PT-$21) Updated capital budget of $2.5-3.0B came in ~$1.0B below prior guide, earning generally favorable feedback from investors. Reduced cash outlay combined with management commentary that FY marketing contribution may be similar to 2019’s $500-600mm on the back of contango benefits has seen EPD outperform in recent weeks as market looks to balance need for upside leverage with a general mistrust of the continued beta...
Jun 17, 2020
MI - Oneok sells $1.5B of new notes, now has $14.5B outstanding - May 2020Oneok Inc. closed an offering on May 4 to sell $1.5 billion of senior notes through three tranches. It used the net proceeds to repay all $1.25 billion outstanding under its term loan facility, which matures in November 2021. Adjusted for the new notes, Oneok has $14.5 billion of long-term debt outstanding. It was undrawn on both its commercial paper program and $2.5 billion revolving credit facility as of the closing date. The triple-tranche offering consisted of $600 million aggregate...
May 27, 2020
CM - Oneok’s $1.75B in notes brings YTD industry total to $28.1B - March 2020Oneok, Inc. priced offerings on March 5 and March 6 to sell $1.75 billion aggregate principal amount of senior notes to repay commercial paper, fund capital expenditures and potentially pay down some existing debt. The offerings consisted of $400 million of five-year senior notes with a 2.2% coupon, $850 million of 10-year senior notes paying 3.1% p.a. and backto-back $400 million and $100 million offerings of 4.5% senior notes due 2050. Though there were two offerings, the 2050 notes formed a...
Mar 13, 2020
MI - Out with the old projects, in with the new capex limits - January 2020As the old year wound down, it seemed as if companies used December to check off their 2019 to-do list. Start up a $1.4 billion NGL pipeline? Check for Oneok. Export first LNG cargo? Check for Kinder Morgan Inc. Sell a majority stake in a $5 billion gas pipeline? Check for TC Energy. Agree to terms for going private? Check for Tallgrass Energy (PG.9). Oneok put into service its $1.4 billion Elk Creek pipeline, part of its $5.1 billion effort to turn gas currently being flared into...
Jan 03, 2020
CM - Analyst Notes - August 26, 2019Bonanza Creek Energy, Inc. (NYSE: BCEI; $22.03-Aug. 9; Outperform; PT-$30) BCEI reported adjusted EPS of $1.62, CFPS of $2.68, and adjusted EBITDA of $56mn, exceeding consensus estimates of $1.46, $2.62, and $55mn, respectively. The company pre-announced production volume and LOE, and other costs or revenue items were consistent with our estimates. Realized oil price of $54.10/bbl was consistent with our estimate, the realized gas price of $1.94/mcf was 10% better, and NGL of $11.66/bbl...
Aug 26, 2019
CM - ONEOK sells $1.25B in notes including $550MM add-on - March 2019ONEOK Inc. closed an offering of $1.25 billion of senior notes, consisting of $700
million aggregate principal amount of 4.35% senior notes due 2029 and $550 million
in 5.2% senior notes due 2048. The 2048 sale is an add-on to a $450 million tranche
issued last June, bringing the total principal amount outstanding of those
notes to $1 billion. BBB rated ONEOK sold the 2029s at 99.687 and the latest
tranche of the 2048s for 99.086.
The net proceeds from the offerings of $1.23 billion...
Mar 28, 2019
MI - ONEOK adds to July offering as it sells $1.25B in notes - March 2019ONEOK Inc. sold $1.25 billion of senior notes, consisting of $700 million of 10-year senior notes at 4.35% and $550 million in 5.20% senior notes due 2048 that are an add-on to an issue of 30-year notes last July. The new 2048 senior notes are being offered as additional senior notes under an indenture where ONEOK issued $450 million of 5.20% senior notes due 2048. ONEOK also issued $800 million in 10-year senior notes at 4.55% last year and exited 2018 with $8.87 billion in long-term...
Mar 19, 2019
CM - People & Companies - March 07, 2019Directors who have announced
they do not intend to stand for re-election
at their company’s next annual meeting
of shareholders: Mark C. McKinley
from Anadarko Petroleum, George
D. Lawrence from Apache, Martin S.
Craighead, vice chairman, from Baker
Hughes, a GE company, Charles
L. Fabrikant from Diamond Offshore
Drilling, Inc., B.Z. (Bill) Parker from
Laredo Petroleum, Inc., Gary L. Warren
from Newpark Resources, Inc. Berry Petroleum Corp. elected
Donald L. Paul to its board of...
Mar 07, 2019
MI - People & Companies - February 26, 2019Enbridge appointed Teresa
Madden and Susan Cunningham as
directors. Most recently, Madden was
working as EVP and CFO of Xcel Energy,
and Cunningham was working as EVP
of Noble Energy. Boardwalk Pipeline Partners
promoted Mercy Kamps to SVP of human
resources, communications and investor
relations. Mercy previously served as
Boardwalk’s VP, assistant general counsel,
and led the legal operations team. Chevron Corp. announced its
EVP of downstream and chemicals,
Pierre Breber,...
Feb 26, 2019
ONEOK signs new $1.5B syndicated term loanONEOK, Inc. announced a new $1.5 billion, three-year unsecured syndicated
term loan agreement at 112.5 bps over LIBOR. The loan was upsized from an initially
contemplated $1.25 billion principal as a result of strong demand by the 15 other
institutions that flocked to the Mizuholed
syndicate, which closed
the loan Nov. 19.
The loan includes a delayed
draw feature enabling ONEOK to draw
for up to 180 days from Nov. 19, and is
partially or completely pre-payable at any
time without...
Dec 06, 2018
Oneok opens $1.5 billion, three-year term loanOneok Inc. entered into a new $1.5 billion, three-year unsecured term loan agreement, an upsize from the prior $1.25 billion term loan that would have matured in January 2019. Proceeds will be used for general corporate purposes, including funding of its planned $6 billion in growth projects or repaying existing indebtedness.“This term loan and our $2.5 billion credit facility, which supports our commercial paper program, enhances Oneok’s liquidity,” CEO Terry Spencer said. “This term...
Nov 27, 2018
Martin turns ONEOK proceeds into $135MM dropdownMartin Midstream Partners LP (MMLP) will acquire Martin Transport Inc. in a $135 million dropdown from Martin Resource Management Corp. The terminaling and storage company will borrow from its revolving credit facility, which it paid down with the $193.7 million it received from ONEOK in August by divesting its 20% stake in the West Texas LPG Pipeline Limited Partnership.MMLP said the price reflects an EBITDA multiple of 5.7x-6.0x based on MTI's forecasted 2019 earnings. MTI is expected...
Nov 06, 2018