Oneok Inc. Overview

Oneok Inc.

 The gathering, processing, putting into fraction, transporting, storage, and marketing of natural gas are all activities that Oneok Inc. engaged in. The following segments make up how it functions: Gathering and processing of natural gas, production of natural gas liquids, and natural gas pipelines. Midstream services are provided to producers in North Dakota, Montana, Wyoming, Kansas, and Oklahoma by the Natural Gas Gathering and Processing division. The Natural Gas Liquids segment owns and manages facilities in Oklahoma, Kansas, Texas, New Mexico, and the Rocky Mountain region, which includes the Williston, Powder River, and DJ Basins, where it offers midstream services to NGL producers and transports those products to the two market centers, one in the Mid-Continent at Conway, Kansas, and the other on the Gulf Coast. The Natural Gas Pipelines segment offers end consumers storage and transportation services. The business was established in1906, and its headquarters are in Tulsa, Oklahoma.

Dennis T. Flynn and Charles B. Ames, two lawyers who hoped to commercialize the natural gas that was a byproduct of the northern Oklahoma oilfields, created the Oklahoma Natural Gas Company (ONG) in 1906. On October9,1906, the company became a corporation under Oklahoma Territory law. The president of the company was Flynn, and the secretary was Ames. They also established the Oklahoma Gas and Electric Company (OG&E) to transport natural gas from the Cleveland Oil Field to Oklahoma City and use it to produce electricity, along with Chicago businessman H. M. Byllesby, for whom they worked. Glenn T. Braden and Theodore N. Barnsdall joined the company after Byllesby’s quick resignation. They were both seasoned oil workers. Their ownership of the Osage and Oklahoma Gas Company was joint. Both Braden and Barnsdall had previously held executive positions with the Standard Oil Company. On December28,1907, ONG put into operation a natural gas pipeline from the Osage oilfield to Oklahoma City. Guthrie and Shawnee were added to the line by ONG. Additionally, it constructed the state’s first compressor station for a gas pipeline in 1910. Braden succeeded Flynn as the company’s president.

Pipelines continued to be built by the company all over Oklahoma. At the time of Braden’s resignation in1921, the company owned more than 1,300 miles (2,100 km) of lines and served more than 500,000 customers in 48 of the state’s 77 counties. In Tulsa, it built the famed corporate offices in 1928.

Since1928, the Oklahoma Natural Gas Company (ONG), Oneok’s forerunner, maintained its headquarters in a Tulsa Art Deco structure on the northwest intersection of Seventh Street and Boston Avenue. J. E. Tyree, the chairman of Oneok, revealed plans to demolish the ONG building and erect a brand-new 16-story tower in 1982. This, however, did not take place. Instead, in August1982, Oneok purchased a new Cities Service Company structure that was still under construction and later changed its name to Citgo. The Cities Service Company already had a project going to construct a high-rise headquarters building at Fifth and Boulder, but they were having financial issues. Oneok realized that moving its offices there and capping the planned building at 17 floors would be more cost-effective than carrying out its original design. The company built the brand-new glass and black granite tower in 1984.

The Oklahoma Natural Gas board decided to restructure as a holding company, Oneok Inc., in December 1980. Oneok’s primary subsidiary, Oklahoma Natural Gas, established its Oklahoma City headquarters. The parent business is based in Tulsa.

The natural gas operations of Kansas utility Western Resources (now Westar Energy) were purchased by Oneok in1996, and they were reformed as Kansas Gas Service. It bought the Texas properties of Southern Union Gas in2003, and Texas Gas Service became another Oneok operating business.

Oneok was voted the most admired firm in the energy sector by Fortune magazine in 2007.

The new Tulsa Drillers minor league baseball stadium, Oneok Field, was built in downtown Tulsa thanks to sponsorship from Oneok in 2009.

 Three of the company’s natural gas distribution companies, Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Services, were divided into ONE Gas in February2014, a new publicly traded company. In essence, the core of the original Oklahoma Natural Gas had been spun off by Oneok.

For many years until 2017, the company was an MLP and issued its holders a K-1 every year. That year it became a regular company (C-corporation) and it issues its stockholders a yearly 1099 summarizing their income from the company.

Oneok revealed its intention to build Demicks Lake II, a second natural gas processing facility, for Bakken in McKenzie County, North Dakota, the US, in September. The company also signed a three-year credit deal for US$1.5 billion in November to pay off debt and fund capital projects.

The company declared its intention to finish the MB-5 and Demicks Lake III natural gas and natural gas liquids (NGL) infrastructure projects in November 2021.

The main aim of Oneok’s Energy Services division is to promote natural gas and related services across the United States. Energy Services, which receives more than 84 percent of its revenue from physical marketing, reported a $26.5 million increase in operating income. In Nebraska and Wyoming, the retail division of Energy Services takes part in the customer gas choice initiative.

Presently the company has a revenue of 21.4 billion dollars, a market cap of 24.06 billion dollars and an employee strength of approximately 2650 employees.