ONEOK to sell retail natural gas marketing subsidiary to Constellation

Source: ONEOK, Inc.

ONEOK, Inc. (NYSE: OKE) today announced that it has entered into a definitive agreement to sell its subsidiary, ONEOK Energy Marketing Company, to Constellation Energy Group, Inc. (NYSE: CEG) for $22.5 million plus working capital.

ONEOK Energy Marketing Company provides physical and financial natural gas products and services to retail customers primarily located in the Mid-Continent and Texas . The business is accounted for in the ONEOK natural gas distribution segment.

"We determined that retail natural gas marketing is no longer a core business to ONEOK and have made the decision to exit the business," said Pierce H. Norton , ONEOK chief operating officer. "Constellation is a logical buyer since it is active in most states where ONEOK Energy Marketing Company has customers. It also has the resources and capabilities to compete and grow the retail natural gas marketing business."

ONEOK will continue its wholesale natural gas marketing activities through its energy services business segment.

ONEOK Energy Marketing Company currently employs 39, with 14 employees located in Tulsa and the remaining located in various locations in Kansas , Texas , Oklahoma , Nebraska and Wyoming.

All current ONEOK Energy Marketing Company employees will be considered for positions with Constellation. Those not offered positions with Constellation will have the opportunity to apply for other open positions within ONEOK. Employees who do not find a position or choose not to apply for another job within ONEOK will receive severance and other benefits from ONEOK.

The transaction is expected to close in the first quarter of 2012.

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