TULSA — ONE Gas Inc. is coming soon.
Parent company ONEOK Inc.'s board on Wednesday unanimously approved the separation of its natural gas distribution business into a stand-alone company.
ONE Gas, which will be based in Tulsa, is expected to begin trading on the New York Stock Exchange on Feb. 3 under the ticker symbol “OGS.”
The new company will pay about $1.13 million to ONEOK as part of the transfer. ONE Gas will issue its own long-term debt to fund the payment, but it expects to have a capital structure, balance sheet and financial policies consistent with investment-grade credit metrics.
ONE Gas will consist of Oklahoma Natural Gas, Texas Gas Service and Kansas Gas Service, making it one of the largest natural gas utilities in the country. Those public utilities serve more than 2 million customers.
ONEOK shareholders will receive one share of ONE Gas stock for every four shares of company stock they own on Jan. 21. ONE Gas shares will be distributed on Jan. 31, when the spinoff closes.
Pierce H. Norton II will be the new company's president and CEO. He also will serve on ONE Gas' six-member board.
Other board members will be retired Duke Energy Americas CEO Robert B. Evans; retired Deloitte and Touche partner Michael G. Hutchinson; retired CEO Douglas H. Yaeger of The Laclede Group Inc.; and ONEOK board members Pattye L. Moore and Eduardo A. Rodriguez.
Moore, nonexecutive chairman of Red Robin Gourmet Burgers, and Rodriguez, president of Strategic Communications Consulting Group, will remain on the ONEOK board.
ONEOK and ONEOK Partners LP CEO John W. Gibson will retire when the ONE Gas separation is completed, but will remain as nonexecutive chairman of all three entities.
Terry K. Spencer will succeed Gibson as chief executive officer of ONEOK at ONEOK Partners.
Spencer also will join the ONEOK board. Spencer already is a member of the ONEOK Partners board.