| |
C. | DISCONTINUED OPERATIONS |
On February 1, 2012, we sold ONEOK Energy Marketing Company, our Natural Gas Distribution segment’s retail natural gas marketing business, to Constellation Energy Group, Inc. for $22.5 million plus working capital. We received net proceeds of approximately $32.9 million and recognized a gain on the sale of approximately $13.5 million, net of taxes of $8.3 million. The proceeds from the sale were used to reduce short-term borrowings. The financial information of ONEOK Energy Marketing Company is reflected as discontinued operations in this Annual Report. All prior periods presented have been recast to reflect the discontinued operations.
The amounts of revenue, costs and income taxes reported in discontinued operations are set forth in the table below for the periods indicated:
|
| | | | | | | | |
| | One Month Ended | | Year Ended |
| | January 31, | | December 31, |
| | 2012 | | 2011 |
| | (Thousands of dollars) |
Revenues | | $ | 27,607 |
| | $ | 313,371 |
|
Cost of sales and fuel | | 25,961 |
| | 302,561 |
|
Net margin | | 1,646 |
| | 10,810 |
|
Operating costs | | 408 |
| | 7,147 |
|
Depreciation and amortization | | 8 |
| | 128 |
|
Operating income | | 1,230 |
| | 3,535 |
|
Other income (expense), net | | — |
| | (50 | ) |
Income taxes | | (468 | ) | | (1,255 | ) |
Income from discontinued operations, net | | $ | 762 |
| | $ | 2,230 |
|
Separation of Natural Gas Distribution Business - On January 31, 2014, we completed the separation of our natural gas distribution business into a standalone publicly traded company, ONE Gas. ONE Gas consists of ONEOK’s former Natural Gas Distribution segment that includes Kansas Gas Service, Oklahoma Natural Gas and Texas Gas Service. The Natural Gas Distribution segment was classified as discontinued operations, effective February 1, 2014. See additional discussion in Note U of the Notes to the Consolidated Financial Statements.
