Raises Quarterly Dividend 3.7%
Authorizes $2
Billion Share Repurchase Program
Combination of Dividends and Share
Repurchases to Target 75% to 85% of Cash Flow From
Operations After Capital Expenditures
TULSA,
Okla., Jan. 17, 2024 /PRNewswire/ -- The
board of directors of ONEOK, Inc. (NYSE: OKE) today increased its
quarterly dividend to 99 cents per
share, an increase of 3.7%. This increase results in an annualized
dividend of $3.96 per share.
The dividend is payable Feb. 14,
2024, to shareholders of record at the close of business
Jan. 30, 2024.
For future dividend increases, ONEOK expects to target an annual
dividend growth rate ranging between 3% to 4%.
ONEOK's board has also authorized a $2
billion share repurchase program and targets it to be
largely utilized over the next four years. This program will
complement the dividend growth rate as a key pillar of shareholder
return in the future.
The combination of common dividends and share repurchases is
expected to trend towards a target of approximately 75% to 85% of
forecasted cash flow from operations after capital expenditures
over the next four years, allowing ONEOK to continue pursuing
additional high-return growth opportunities, debt reduction or
share repurchases.
ONEOK has also opportunistically repurchased approximately
$300 million of face value of its
outstanding notes at a discount to par value during the fourth
quarter of 2023 and finished the year with approximately
$340 million of cash on hand. ONEOK
remains committed to its previously stated target debt-to-EBITDA
ratio of approximately 3.5 times.
"ONEOK is poised to generate substantial cash flow from
operations in the coming years," said Pierce H. Norton II, ONEOK president and chief
executive officer. "Our commitment to capital-growth opportunities
continues as our highest priority in our capital allocation
strategy. This priority, combined with dividend growth and share
repurchases, reinforces our commitment to maximizing total
shareholder return and our belief that ONEOK represents a highly
compelling investment opportunity," added Norton.
At ONEOK (NYSE: OKE), we deliver energy products and services
vital to an advancing world. We are a leading midstream operator
that provides gathering, processing, fractionation, transportation
and storage services. Through our more than 50,000-mile pipeline
network, we transport the natural gas, natural gas liquids (NGLs),
refined products and crude that help meet domestic and
international energy demand, contribute to energy security and
provide safe, reliable and responsible energy solutions needed
today and into the future. As one of the largest diversified energy
infrastructure companies in North
America, ONEOK is delivering energy that makes a difference
in the lives of people in the U.S. and around the world.
ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, X
and Instagram.
Some of the statements contained and incorporated in this news
release are forward-looking statements as defined under federal
securities laws. The forward-looking statements relate to our
anticipated financial performance (including projected levels of
quarterly and annual dividends), liquidity, market conditions and
other matters. We make these forward-looking statements in reliance
on the safe harbor protections provided under federal securities
laws and other applicable laws.
Forward-looking statements include the items identified in the
preceding paragraph, the information concerning possible or assumed
future results of our operations and other statements contained or
incorporated in this news release identified by words such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"forecast," "goal," "guidance," "intend," "may," "might,"
"outlook," "plan," "potential," "project," "scheduled," "should,"
"target," "will," "would" and other words and terms of similar
meaning.
One should not place undue reliance on forward-looking
statements. Known and unknown risks, uncertainties and other
factors may cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by forward-looking statements.
Those factors may affect our operations, markets, products,
services and prices. These and other risks are described in greater
detail in Item 1A, Risk Factors, in our most recent Annual Report
on Form 10-K and in the other filings that we make with the
Securities and Exchange Commission (SEC), which are available on
the SEC's website at www.sec.gov. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these factors. Any such
forward-looking statement speaks only as of the date on which such
statement is made, and, other than as required under securities
laws, we undertake no obligation to update publicly any
forward-looking statement whether as a result of new information,
subsequent events or change in circumstances, expectations or
otherwise.
Analyst
Contact:
|
Megan
Patterson
|
|
918-561-5325
|
Media
Contact:
|
Brad Borror
|
|
918-588-7582
|
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SOURCE ONEOK, Inc.