SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q/A
Amendment 1
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 4
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This amendment is to correct an error on page 7 of the 10-Q for the quarter
ended November 30, 1993. The amended page is included as page 3 in this
filing. The correction is on the third line of Note 5. "Other Assets." In
the original filing, the investment amount to Ozark Gas Transmission
System was incorrect.
<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 $11.2
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>
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 12, 1994 By: (J. D. Neal)
J. D. Neal
Vice President,
Chief Financial Officer,
and Treasurer
