Diversified energy company ONEOK Inc. (OKE) announced that it completed the buyback of its shares worth $300 million from Barclays Capital, the investment banking arm of Barclays Plc. (BCS). The company repurchased 4.27 million shares from Barclays Capital at an average price of $70.25 per share.
ONEOK continues to create shareholder value through share repurchase and payment of dividends to its shareholders. Earlier, in October 2010, the board of directors authorized a three-year share buyback program of $750 million subject to the limitation that share repurchases will not exceed $300 million in any calendar year. The buyback program will end when shares worth $750 million are repurchased or on December, 31, 2013, whichever is earlier.
The company boasts of a strong financial position. Cash and cash equivalents of the company as of June 30, 2011, were $45.4 million, while cash flow from operation during the second quarter was $227.3 million, ready to be leveraged by the company for repurchases of shares.
Considering the current share buyback, ONEOK pegs the average amount of diluted shares outstanding for 2011 at 107 million.
The company, consistently paying dividends to its shareholders, has increased the quarterly rate four times in the trailing six quarters. ONEOK paid a quarterly dividend of 56 cents on August 12, 2011, to shareholders of record of common stock on August 1, 2011, up 8% from the previous quarterly rate of 52 cents.
ONEOK presently retains a Zacks #3 Rank, which translates into a short-term Hold rating. The company’s primary competitors include Dynegy Inc. (DYN) and OGE Energy Corp. (OGE).
Based in Tulsa, Oklahoma, ONEOK Inc. operates as a natural gas distributor primarily in the United States. The company distributes natural gas to more than 2 million customers in Oklahoma, Kansas and Texas.
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