TULSA, Okla., Sept. 17 /PRNewswire-FirstCall/ -- ONEOK, Inc. and ONEOK Partners, L.P. today announced that they have no material exposure from the bankruptcy filing of Lehman Brothers Holdings, Inc. earlier this week.
In addition, it is anticipated that the impact of Hurricane Ike will not affect ONEOK's and ONEOK Partners' 2008 earnings guidance range, which was updated on Aug. 5, 2008.
Financial Exposure is Limited
ONEOK and ONEOK Partners conduct business with Lehman Commodity Services and Eagle Energy, affiliates of Lehman Brothers Holdings, neither of which are named in the bankruptcy filing. None of the transactions with these entities, either individually or in aggregate, are material.
Specifically, ONEOK's energy services segment conducts financial transactions with Lehman Commodity Services and buys and sells natural gas with Eagle Energy. ONEOK Partners' natural gas gathering and processing segment utilizes Lehman Commodity Services to hedge a portion of its natural gas liquids production. The partnership's natural gas pipeline segment also transports natural gas for Eagle Energy.
In addition, Lehman Brothers Holdings, Inc. is not a participant in either ONEOK's or ONEOK Partners' revolving credit facilities.
Hurricane Impact on Operations
ONEOK Partners' Mont Belvieu-area natural gas liquids facilities were affected by Hurricane Ike; however, all employees have been accounted for. Electrical power has not yet been restored to the partnership's natural gas liquids storage facility or fractionation facility. In addition, the Mont Belvieu fractionation facility did experience damage to its cooling tower. Based on discussions with contractors, it is anticipated that repairs can be completed by the end of next week. If power is restored to the fractionation facility by then, start up can begin.
The Sterling Pipeline, which transports NGL products between the Mid-Continent area and the Texas Gulf Coast, is currently operating at reduced capacity. Once power is restored to the partnership's Mont Belvieu facilities and to its petrochemical customers, it is anticipated that the pipeline will operate at pre-hurricane levels. ONEOK Partners is currently working with its customers to minimize the impact of these disruptions.
ONEOK's Texas Gas Service division provides natural gas distribution service to approximately 16,000 customers in the Galveston area; all of its employees have been accounted for. Company crews are on site working to restore natural gas service as quickly and safely as possible.
ONEOK, Inc. is a diversified energy company. We are the general partner and own 47.7 percent of ONEOK Partners, L.P. , one of the largest publicly traded limited partnerships, which is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation's premier natural gas liquids (NGL) systems, connecting much of the natural gas and NGL supply in the Mid-Continent with key market centers. ONEOK is among the largest natural gas distributors in the United States, serving more than 2 million customers in Oklahoma, Kansas and Texas. Our energy services operation focuses primarily on marketing natural gas and related services throughout the U.S. ONEOK is a Fortune 500 company.
ONEOK Partners, L.P. is one of the largest publicly traded limited partnerships, and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation's premier natural gas liquids (NGL) systems, connecting much of the natural gas and NGL supply in the Mid-Continent with key market centers. Our general partner is a wholly owned subsidiary of ONEOK, Inc. , a diversified energy company, which owns 47.7 percent of the overall partnership interest. ONEOK is one of the largest natural gas distributors in the United States, and its energy services operation focuses primarily on marketing natural gas and related services throughout the U.S.
For more information, visit the Web sites at http://www.oneokpartners.com/ or http://www.oneok.com/.
OKE-FI OKS-FI Analyst Contact: Christy Williamson 918-588-7163 Media Contact: Megan Washbourne 918-588-7572
