SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File No.
November 30, 1993 1-2572
ONEOK Inc.
(Exact name of registrant as specified in its charter)
Delaware 73-0383100
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
100 West Fifth Street, Tulsa, OK 74103
(Address, including zip code, of principal executive offices)
Registrant's telephone number, including area code: (918) 588-7000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Class Outstanding at November 30, 1993
Common stock, without par value 26,634,058
Page 1 of 18
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ONEOK Inc.
TABLE OF CONTENTS
FORM 10-Q FOR THE QUARTER ENDED NOVEMBER 30, 1993
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Consolidated Condensed Statements of Earnings -
Three Months Ended November 30, 1993 and 1992 3
Consolidated Condensed Balance Sheets -
November 30, 1993 and August 31, 1993 4
Consolidated Condensed Statements of
Cash Flows - Three Months Ended
November 30, 1993 and 1992 5
Notes to Consolidated Condensed Financial
Statements 6-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 16
Item 2. Changes in the Rights of the Company's
Security Holders 17
Item 3. Defaults by the Company on its Senior Securities 17
Item 4. Submission of Matters to a Vote of Security
Holders 17
Item 5. Other Information 17
Item 6. Exhibits and Reports on Form 8-K 17
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ONEOK Inc.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(STATED IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
3 Months Ended
November 30,
1993 1992
OPERATING REVENUES
Utility revenues $134,342 $118,500
Oil and gas production 6,645 6,153
Natural gas liquids and
residue gas sales 17,824 17,317
Other gas sales 11,794 13,494
Other operating revenues 6,586 3,986
Total operating revenues 177,191 159,450
OPERATING EXPENSES
Utility gas purchased expense 75,931 66,009
Other gas purchased expense 11,293 13,164
Operations and maintenance 51,013 46,187
Depreciation, depletion,
and amortization 13,059 12,503
Income taxes 4,794 2,346
Other taxes 4,509 4,295
Total operating expenses 160,599 144,504
Operating income 16,592 14,946
Net interest 8,780 8,949
Net income 7,812 5,997
Preferred stock dividends 107 107
Balance for common stock $ 7,705 $ 5,890
Earnings per common share $.29 $.22
Dividends per common share $.27 $.25
Average common shares
outstanding 26,634 26,629
See accompanying notes to consolidated condensed financial statements.
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ONEOK Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
(STATED IN THOUSANDS)
(UNAUDITED)
Nov. 30, Aug. 31,
1993 1993
ASSETS
Property, plant, and equipment, at cost $1,210,632 $1,196,433
Less accumulated depreciation, depletion,
and amortization 483,454 474,685
Net property, plant, and equipment 727,178 721,748
Current assets:
Cash and cash equivalents 15,750 9,667
Accounts receivable 93,073 51,545
Inventories 91,103 92,907
Other current assets 18,830 13,966
Total current assets 218,756 168,085
Deferred debits and other assets:
Take-or-pay 109,699 109,682
Other assets 106,557 104,953
Total deferred debits and other assets 216,256 214,635
$1,162,190 $1,104,468
CAPITALIZATION AND LIABILITIES
Common shareholders' equity:
Common stock $ 194,365 $ 194,365
Retained earnings 169,298 168,784
Total common shareholders' equity 363,663 363,149
Preferred stock 9,000 9,000
Long-term debt, excluding current maturities 375,897 375,897
748,560 748,046
Current liabilities:
Current maturities of long-term debt 16,050 16,050
Accounts and notes payable 110,853 60,782
Accrued liabilities 46,156 42,760
Customers' deposits 6,849 6,091
Total current liabilities 179,908 125,683
Deferred credits 233,722 230,739
$1,162,190 $1,104,468
See accompanying notes to consolidated condensed financial statements.
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ONEOK Inc.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(STATED IN THOUSANDS)
(UNAUDITED)
3 Months Ended
November 30,
1993 1992
OPERATING ACTIVITIES
Net income $ 7,812 $ 5,997
Depreciation, depletion, and amortization 13,059 12,503
Deferred income taxes 713 (7,713)
Nonproductive well drilling 416 160
Net losses of equity investees 352 433
Gain on sale of property (2,053) -
Changes in assets and liabilities (32,758) (7,198)
Net cash provided by (used in)
operating activities (12,459) 4,182
INVESTING ACTIVITIES
(Increase) decrease in investments, net (308) 155
Capital expenditures (18,769) (15,920)
Salvage, net of removal costs 1,917 (352)
Cash used in investing activities (17,160) (16,117)
FINANCING ACTIVITIES
Repayment of long-term debt - (1,200)
Increase in notes payable, net 43,000 25,000
Dividends paid (7,298) (6,764)
Cash provided by financing activities 35,702 17,036
Change in cash and cash equivalents $ 6,083 $ 5,101
SUPPLEMENTAL DISCLOSURES
Cash paid during the period for:
Income taxes $ 698 $ 1
Interest $13,218 $12,986
Noncash transactions:
Gas received as payment-in-kind $21,859 $21,228
Decrease in take-or-pay deferrals
reflected by decrease in take-or-pay
liabilities $ - $20,000
See accompanying notes to consolidated condensed financial statements.
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ONEOK Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1. The interim consolidated condensed financial statements reflect
all adjustments which are, in the opinion of management, necessary for a
fair presentation of the results for the interim periods presented. All
such adjustments are of a normal recurring nature. Due to the seasonal
nature of the business, the results of operations for the three-month
period ended November 30, 1993, are not necessarily indicative of the
results that may be expected for the year ended August 31, 1994. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for
the year ended August 31, 1993.
Note 2. The Company provides certain health care and life insurance
benefits for retired employees and adopted Statement of Financial
Accounting Standards (SFAS) No. 106, "Employers' Accounting for
Postretirement Benefits Other Than Pensions," on September 1, 1993. SFAS
No. 106 requires companies to actuarially determine a present liability,
the accumulated postretirement benefit obligation (APBO), for future
postretirement benefits on the basis that those benefits are earned during
the employees' active service years. The Company has elected to defer its
initial APBO of $72.2 million and amortize it over 20 years as a component
of net periodic postretirement benefit cost as permitted by SFAS No. 106.
The estimated amount of net periodic postretirement benefit costs, as
determined by an independent actuary, for the year ended August 31, 1994,
includes the following:
Service cost $ 1,942,000
Interest cost 5,114,000
Amortization of initial APBO 3,609,000
Estimated net periodic postretirement
benefit cost computed in accordance
with SFAS No. 106 $10,665,000
During fiscal 1994 approximately 95 percent of the estimated net periodic
postretirement benefit cost in excess of the cost recognized for benefits
actually paid will be deferred in accordance with recommendations made by
the Oklahoma Corporation Commission (OCC) Staff until the OCC issues a
final order providing for recovery of such costs. The Company estimates
that it will pay approximately $3.2 million in postretirement benefits
during fiscal 1994 resulting in a deferral of postretirement benefit costs
for regulatory purposes of approximately $6.8 million.
A one percent increase in the medical trend rate on the service and
interest cost components of the net periodic postretirement benefit cost
results in an increase of 19.8 and 9.8 percent, respectively.
<PAGE>
The following table sets forth the components of the APBO as of
September 1, 1993.
Retirees and disableds $42,950,000
Fully eligible active employees 185,000
Other active employees 29,031,000
$72,166,000
The APBO was determined using an annual discount rate of 7.25 percent and a
medical trend rate of 11.5 percent for 1994. The medical trend rate is
assumed to decline to a rate of 5.0 percent over ten years.
The Company's ultimate accounting recognition and funding policy with
respect to postretirement benefits will depend, in part, on the position of
the OCC in regard to recovery of those costs through the rate process.
Until a final rate order has been received on recovery of benefit costs
determined under SFAS No. 106, there can be no assurance that the Company
will be able to recover all such costs. Consequently, the Company is
unable to determine the final impact of SFAS No. 106.
Note 3. Recovery of Settlement Costs for Take-or-Pay and Similar Claims:
At November 30, 1993, the consolidated condensed balance sheet reflects a
deferred debit of $109.7 million, which represents the unamortized portion
of take-or-pay and other settlement costs. On January 6, 1994, the OCC
signed a stipulation and settlement agreement providing for the continued
recovery of those costs. The agreement provides for recovery and return by
an annual $6.7 million revenue amount over a period not to exceed 20 years.
Revenue to recover the amortized costs will come from a volumetric gas
surcharge not exceeding $6.0 million annually, and revenue from
transportation under Section 311(a) of the NGPA and other nonjurisdictional
intrastate transportation revenue. If such revenue falls below $3.0
million in a year, the Company will be required to absorb 25 percent of the
shortfall, up to a maximum of $750,000.
Note 4. Rate Proceedings: Hearings on the Company's pending application
for a rate increase commenced on October 25, 1993, and concluded on
December 15, 1993, except for rate design for which additional hearings are
scheduled for January 11 and 12, 1994. Written comments by the Company,
the OCC Staff, and the Oklahoma Attorney General are due January 31, 1994.
Both fiscal quarters included utility revenue resulting from an interim
annualized rate increase of $18.2 million, which is subject to refund until
the OCC rules on the pending rate case.
Note 5. Other Assets: Included in other assets are the Company's 25
percent investments in two natural gas transmission systems, Ozark Gas
Transmission System (Ozark) and Red River Pipeline (Red River) of $22.1
million and 14.1 million, respectively. Ozark continues to negotiate an
exit fee with one of its two firm shippers, Columbia Gas Transmission
Corporation (Columbia), which previously commenced a voluntary case under
the Federal Bankruptcy laws. The Company is attempting to improve the
performance of Red River, which continues to be unprofitable and required
cash calls from the partners in the past. If an acceptable exit fee cannot
be negotiated with Columbia by Ozark or Red River's operations do not
become profitable, the Company may not be able to recover its investments.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
ONEOK Inc. and its subsidiaries, hereinafter referred to as the Company,
engage in several aspects of the energy business. The Company purchases,
gathers, compresses, transports, and stores natural gas for distribution to
consumers. It transports gas for others, leases pipeline capacity to
others for their use in transporting gas, and is a partner in a gas
marketing business and two natural gas transmission systems that transport
gas for others. The Company explores for and produces oil and gas,
extracts and sells natural gas liquids, and performs contract drilling of
oil and gas wells. In addition, it leases and operates a headquarters
office building (leasing excess space to others) and owns and operates a
related parking facility.
The following is a discussion of selected changes in financial condition
from the end of the 1993 fiscal year to the end of the first quarter of the
1994 fiscal year and results of operations with respect to the three months
ended November 30, 1993 and 1992.
LIQUIDITY AND CAPITAL RESOURCES
The estimated sources of funds (cash) for the 1994 fiscal year are as
follows:
Source of Funds (Millions of $)
Proceeds from:
Issuance of short-term debt $ 23.4
Issuance of long-term debt -
Sale of property 1.3
Cash provided by operating activities 94.7
Total $119.4
The Company had $65 million in short-term debt outstanding on November 30,
1993 and January 6, 1994. The Company has $77 million in notes outstanding
under its $150 million medium-term note facility. On November 30, 1993,
the Company could have issued approximately $229 million of additional
long-term debt under the most restrictive of the provisions contained in
its various lending agreements.
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The Company invests available funds on a short-term basis. There were no
short-term investments on November 30, 1993, and $5 million on January 6,
1994.
FUNDS GENERATED FROM OPERATIONS
RATE PROCEEDINGS
Hearings on the Company's pending application for a rate increase commenced
on October 25, 1993, and concluded on December 15, 1993, except for rate
design for which additional hearings are scheduled for January 11 and 12,
1994. Written comments by the Company, the OCC Staff, and the Oklahoma
Attorney General are due January 31, 1994.
RECOVERY OF SETTLEMENT COSTS FOR TAKE-OR-PAY AND SIMILAR CLAIMS
Hearings on the stipulation and settlement agreement providing for the
recovery of amounts relating to past settlements of take-or-pay and similar
gas contract claims were held on December 21 and 22, 1993, and the OCC
approved the agreement on January 6, 1994. This approved agreement
provides for the continued recovery of these costs. The agreement also
contains incentives for the Company to increase applicable NGPA Section
311(a) and other nonjurisdictional intrastate transportation revenue. Such
increased revenue will minimize the reduction in earnings resulting from
the annual amortization of the deferred costs provided for in the
agreement. See Note 3. "Recovery of Settlement Costs for Take-or-Pay and
Similar Claims" to the consolidated condensed financial statements for
further discussion.
CAPITAL EXPENDITURES
Capital expenditures budgeted for the 1994 fiscal year, compared with
actual expenditures for the 1993 and 1992 fiscal years, are as follows:
Est. Actuals
Capital Expenditures (Millions of $) 1994 1993 1992
Natural gas distribution $40.5 $45.8 $42.4
Natural gas transmission 14.2 13.0 14.9
Exploration and production 10.0 24.9 (1) 10.6
Other operations 4.4 2.5 1.8
$69.1 $86.2 $69.7
(1) Includes the April 1993 acquisition of the North Frisco City Field in
Monroe County, Alabama, at a cost of approximately $16.7 million.
<PAGE>
RESULTS OF OPERATIONS
A summary of consolidated earnings is as follows:
3 Months Ended
(Stated in Thousands, November 30,
Except Per Share Data) 1993 1992
Net income $7,812 $5,997
Earnings per common share $.29 $.22
The consolidated effective income tax rate was 38.0 percent for the first
quarter of 1994, compared with 28.1 percent for the same period last year.
The 1994 effective tax rate was higher due to the recently enacted 1
percent federal tax rate increase and adjustments made in the first quarter
of 1993 to revise prior tax estimates.
Consolidated net interest expense decreased due to lower interest rates on
long-term debt.
Following is a summary of financial results and operating information for
the various operating segments of the Company:
UTILITY OPERATIONS
3 Months Ended
November 30,
1993 1992
FINANCIAL RESULTS
(Thousands of dollars, except per share amounts)
Utility revenues:
From unaffiliated customers $134,342 $118,500
Intersegment sales 80 115
Total 134,422 118,615
Other nonutility revenues 1,632 1,381
Total revenues 136,054 119,996
Gas purchased expense 75,931 66,009
Operating expenses 42,108 38,703
Operating income
before income taxes 18,015 15,284
Income taxes 3,841 2,443
Net interest expense 7,869 8,165
Net income $ 6,305 $ 4,676
Earnings per share $.23 $.17
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UTILITY OPERATIONS (CONTINUED)
3 Months Ended
November 30,
1993 1992
OPERATING STATISTICS
Revenues (thousands of dollars):
Utility gas sales:
Residential and commercial $ 85,943 $ 72,290
Industrial 25,501 25,152
Wholesale 1,050 1,522
Total utility gas sales 112,494 98,964
SISP margins 4,930 4,515
Pipeline capacity leases 13,179 11,749
Transportation 1,835 1,356
Other utility revenues 1,904 1,916
Total utility revenues 134,342 118,500
Less utility gas purchases 75,931 66,009
Net utility revenues $ 58,411 $ 52,491
Volumes (MMcf):
Utility gas sales:
Residential and commercial 18,373 15,325
Industrial 11,803 11,809
Wholesale 427 579
Total utility gas sales 30,603 27,713
Pipeline capacity leases 30,026 26,970
Transportation 14,165 11,234
Total volumes 74,794 65,917
Average cost of gas purchased (per Mcf):
General system $2.89 $2.94
SISP $1.98 $1.67
Degree days:
Actual 895 682
Normal 618 619
Number of customers at end of period 722,501 712,946
Revenue for residential and commercial gas sales increased because of
weather which was colder than last year's first quarter and 45 percent
colder than normal. In addition, the Company was serving an additional
9,555 customers at the end of the period.
<PAGE>
Volumes sold to industrial customers or delivered under pipeline capacity
leases (PCLs) are as follows:
3 Months Ended
November 30,
INDUSTRIAL DELIVERIES 1993 1992
Volumes (MMcf):
Sales 11,803 11,809
PCLs 27,887 25,143
Total 39,690 36,952
Amount (thousands of $):
Sales $25,501 $25,152
PCL's 12,142 10,991
Total $37,643 $36,143
Revenues from industrial customers increased for the period because of
increased PCL volumes.
Utility gas purchased expense increased due to increased sales volumes.
Operating expenses increased in the current period primarily because of
increased labor costs and regulatory expenses. Depreciation expense
increased because of additional utility property in service.
GAS PROCESSING
3 Months Ended
(Stated in Thousands, November 30,
Except Per Share Data) 1993 1992
Natural gas liquids and gas sales:
From unaffiliated customers $27,428 $30,811
Intersegment sales - 5,354
Total sales 27,428 36,165
Other revenues 2,115 -
Total revenues 29,543 36,165
Operating expenses 25,986 33,608
Operating income before
income taxes 3,557 2,557
Income taxes 1,291 635
Net interest expense 220 240
Net income $ 2,046 $ 1,682
Earnings per share $.07 $.06
<PAGE>
3 Months Ended
November 30,
OPERATING STATISTICS 1993 1992
Natural gas liquids sales:
Volumes (Mgals.) 53,728 42,394
Average price (per gal.) $.26 $.32
Margin (per gal.) $.03 $.05
Residue gas sales:
Volumes (MMcf) 1,781 1,882
Average price (per Mcf) $2.03 $2.01
Other gas sales:
Volumes (MMcf) 4,382 9,434
Average price (per Mcf) $2.19 $1.97
Margin (per Mcf) $.11 $.03
Volumes of natural gas liquids sold were up due to higher total throughput
resulting in increased revenues, up 27 percent to $14.2 million for the
three-month period. However, lower product prices reduced margins on
natural gas liquids sales.
During the quarter, ONEOK Products Company sold a gas gathering system for
$2.1 million. The gain on the sale, $2.1 million, is included in other
revenues.
EXPLORATION AND PRODUCTION
3 Months Ended
(Stated in Thousands, November 30,
Except Per Share Data) 1993 1992
Oil and gas production sales:
From unaffiliated customers $6,645 $6,153
Intersegment sales 376 1
Total sales 7,021 6,154
Other revenues 28 -
Total revenues 7,049 6,154
Operating expenses 6,334 5,966
Operating income (loss)
before income taxes 715 188
Income taxes 97 60
Net interest expense 464 335
Net income (loss) $ 154 $ (207)
Earnings (loss) per share $.01 $(.01)
<PAGE>
3 Months Ended
November 30,
OPERATING STATISTICS 1993 1992
Oil production:
Volumes (bbls.) 155,100 93,872
Average price (per bbl.) $15.42 $20.68
Gas production:
Volumes (MMcf) 2,300 2,069
Average price (per Mcf) $2.01 $2.06
Revenue from oil production increased 23 percent for the quarter because of
increased sales volumes. The increase in oil sales was primarily
production from the North Frisco City Field acquired in April 1993.
Dry hole costs, which increased for the period, were primarily responsible
for the increase in operating expenses.
GAS MARKETING
3 Months Ended
(Stated in Thousands, November 30,
Except Per Share Data) 1993 1992
Gas sales:
From unaffiliated customers $ 2,202 $ -
Intersegment sales 23,299 -
Total sales 25,501 -
Equity in loss of partnership (20) (77)
Total revenues 25,481 (77)
Operating expenses 25,569 35
Operating income (loss)
before income taxes (88) (112)
Income taxes (42) (42)
Net interest expense 20 -
Net income (loss) $ (66) $ (70)
Earnings (loss) per share $ - $ -
ONEOK Gas Marketing supplies natural gas to the gas marketing partnership
and to other affiliates at cost.
ONEOK Gas Marketing Company began operations in October 1992.
<PAGE>
CONTRACT DRILLING
3 Months Ended
(Stated in Thousands, November 30,
Except Per Share Data) 1993 1992
Revenues $2,052 $1,853
Operating expenses 2,506 2,274
Operating income (loss)
before income taxes (454) (421)
Income taxes (196) (121)
Net interest expense 55 63
Net income (loss) $ (313) $ (363)
Earnings (loss) per share $(.01) $(.01)
OPERATING STATISTICS
Rig utilization rate 41% 40%
The contract drilling industry remains depressed, which is reflected in
this segment's results for the quarter. Currently five of the Company's
twelve rigs are operating.
BUILDINGS
3 Months Ended
(Stated in Thousands, November 30,
Except Per Share Data) 1993 1992
Revenues:
From unaffiliated customers $ 706 $ 754
Intersegment sales 1,621 1,616
Total revenues 2,327 2,370
Operating expenses 2,759 2,648
Operating income (loss)
before income taxes (432) (278)
Income taxes (198) (628)
Net interest expense 80 71
Net income (loss) $ (314) $ 279
Earnings (loss) per share $(.01) $.01
Buildings operations remained relatively static, with slight increases in
operating expenses and income taxes causing a decrease in net income.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
CARMEN FIELD LIMITED PARTNERSHIP V. ONEOK INC., ET AL., No. C-89-77,
District Court, Woods County. The Plaintiff has dismissed its claims for
tortious interference with contractual relationship.
CHESAPEAKE OPERATING, INC. V. ONEOK RESOURCES COMPANY, No. C-93-187,
District Court, Garvin County. An agreed Journal Entry of Judgment has
been entered establishing the Company's interest in the Well.
APPLICATION OF CREEK SYSTEMS FOR DETERMINATION THAT RULE 1-305 OF OCC-OGR
DOES NOT APPLY TO PURCHASES OF GAS BY ONEOK INC. FROM APPLICANT, Cause CD
No. 154064, Oklahoma Corporation Commission. This matter has been settled.
The Application has been dismissed on motion of the parties.
APPLICATION OF CREEK SYSTEMS FOR MODIFICATION OF ORDER NO. 339261 APPROVING
OKLAHOMA NATURAL GAS COMPANY'S PAYMENT IN KIND PROGRAM, Cause PUD No. 889,
Oklahoma Corporation Commission. This matter has been settled. The
Application has been dismissed on motion of the parties.
APPLICATION OF CREEK SYSTEMS FOR LIMITED DEVIATION FROM PRIORITY SCHEDULE
UNDER RULE 1-305 OF OCC-OGR, Cause CD No. 163035, Oklahoma Corporation
Commission. This matter has been settled. The Application has been
dismissed on motion of the parties.
OKLAHOMA CORPORATION COMMISSION V. ANTHONY, No. 80,661, Oklahoma Supreme
Court. The matter has been concluded and an order of dismissal entered.
OKLAHOMA NATURAL GAS COMPANY V. CREEK SYSTEMS, No. CJ-90-01011, District
Court, Tulsa County, and OKLAHOMA NATURAL GAS COMPANY V. CREEK SYSTEMS, ET
AL, Case No. CJ-91-04455, District Court, Tulsa County. (Consolidated).
This matter has been settled. An Order dismissing the action with
prejudice has been filed.
SNYDER V. ONEOK INC., No. 88-C-1500-E, United States District Court for the
Northern District of Oklahoma. The Settlement Agreement has been approved
by the Court.
APPLICATION OF OKLAHOMA NATURAL GAS COMPANY TO AMORTIZE SETTLEMENT ACCOUNT,
Cause PUD No. 910001151, Oklahoma Corporation Commission. Hearing was held
on December 21 and 22, 1993, before the Commission EN BANC to consider the
stipulation and settlement agreement. The Agreement has been approved.
IN THE MATTER OF THE APPLICATION OF OKLAHOMA NATURAL GAS COMPANY, A
DIVISION OF ONEOK INC., FOR A REVIEW AND DETERMINATION CONCERNING ITS RATES
AND EARNINGS IN COMPLIANCE WITH THE REQUIREMENTS OF 17 O.S. SUPP. 1990,
SECTION 263, AND FOR OTHER APPROPRIATE RELIEF, Cause PUD No. 910001190,
Oklahoma Corporation Commission. Hearings on the pending Application for a
rate increase commenced on October 25, 1993, and concluded on December 15,
1993, except for rate design for which additional hearings were held on
January 11 and 12, 1994. Written comments by the Company, the Staff and
Attorney General are due January 31, 1994.
<PAGE>
Item 2. Changes in the Rights of the Company's Security Holders
(a) None
(b) None
Item 3. Defaults by the Company on its Senior Securities
(a) None
(b) None
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the first
quarter of the 1994 fiscal year.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
One Current Report on Form 8-K was filed during the first quarter of the
1994 fiscal year. It was dated October 18, 1993, and reported that the
Oklahoma Corporation Commission (OCC) Staff, the Oklahoma Attorney General,
and the Company had jointly recommended to the OCC a stipulation and
settlement agreement of take-or-pay and similar claims.
There were no financial statements filed with the Form 8-K.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ONEOK Inc.
(Registrant)
Date: January 10, 1994 By: (J. D. Neal)
J. D. Neal
Vice President,
Chief Financial Officer,
and Treasurer
