Eagle & Beagle
This week's eagle is flying high on a warm updraft. And this bird knows a little something about heat.
Tulsa-based ONEOK Inc. announced last week that it would spin off its regulated gas distribution business, which includes Oklahoma Natural Gas, into a separate, publicly traded corporation. The new firm, ONE Gas, will be the nation's only 100 percent regulated pure play natural gas distribution utility.
Shareholders will retain their current shares of ONEOK stock and receive a pro rata dividend of shares of stock in ONE Gas. And both issues will pay cash dividends.
Folks rushed out to grab some of that OKE stock, sending the price up nearly 20 percent on the week in very heavy trading, and setting a new all-time high for the shares. It closed Friday just off that record, at $52.16.
To borrow an old-fashioned phrase, OKE was cooking with gas last week.
Last week's worst-performing local stock also has been making some news.
Tulsa-based Syntroleum, which produces synthetics fuels, on July 17 said it was “evaluating strategic alternatives” to enhance shareholder value, but then declined to discuss what those alternative might be.
Wall Street hates a mystery.
The price of SYNM shares dived, and finished last week with a 14.4 percent loss, closing at $6.40.
On Friday, Syntroleum disclosed that it was considering offers to buy the company, its assets and/or its intellectual property. That produced a small rally, but couldn't erase the preceding plunge.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) stocks by Business Editor Don Mecoy.