ONEOK Reaches Settlement on Medford NGL Facility Insurance coverage Declare for $930 million

Proclaims Plans to Construct NGL Fractionator in Mont Belvieu

Preserving Medford Tools for Potential Future Use

TULSA, Okla., Jan. 9, 2023 /PRNewswire/ — ONEOK, Inc. (NYSE: OKE) immediately introduced that it has reached an settlement with its insurers to settle all claims for bodily harm and enterprise interruption associated to the Medford incident that occurred in July 2022.

Beneath the phrases of the settlement settlement, ONEOK agreed to resolve its declare for complete insurance coverage funds of $930 million, together with $100 million obtained thus far. The excellent settlement fee is required to be paid by the insurers inside 45 days. The proceeds will function settlement for property harm and as a fee in lieu of future enterprise interruption insurance coverage claims.

With the insurance coverage declare now resolved, the corporate can also be saying plans to assemble a brand new 125,000-barrel per day (bpd) NGL fractionator at its Mont Belvieu, Texas, facility. Upon completion, the brand new fractionator, MB-6, will improve the corporate’s complete fractionation capability in Mont Belvieu to roughly 700,000 bpd and higher align ONEOK’s fractionation capability with NGL market demand within the Gulf Coast.

Moreover, the MB-6 fractionator will produce purity ethane as an alternative of an ethane/propane (E/P) combine beforehand produced on the Medford facility. The brand new 125,000 bpd MB-6 fractionator could be equal to roughly 185,000 bpd of capability on the Medford facility. The demand for E/P combine has decreased whereas the demand for purity ethane has elevated within the Gulf Coast, inflicting a lot of the Medford E/P combine to be transported south and break up into purity ethane and propane consuming capability at ONEOK’s current Mont Belvieu amenities. ONEOK’s E/P combine output from the remaining Mid-Continent fractionation amenities at Bushton, Hutchinson and Conway is predicted to be sufficient to satisfy market demand.

Building of MB-6 is predicted to be accomplished in roughly 24 months at a complete price of roughly $550 million and has a extra favorable completion schedule when put next with rebuilding at Medford because of the following:

  • Allowing for the MB-6 facility is full by relevant regulatory businesses;
  • Engineering is considerably full because of the potential to make the most of related engineering designs and buy orders from the 2 earlier fractionation amenities, MB-5 and MB-4; and
  • The corporate’s potential to effectively transition the present development sources at ONEOK’s MB-5 fractionator to the MB-6 fractionator.

MB-5, having a capability of 125,000 bpd, stays on schedule to be accomplished early within the second quarter 2023 thus lowering the present want for third-party fractionation by way of the rebuild course of.

ONEOK will proceed to function NGL pipeline property in Medford together with current places of work for regional operations. As well as, ONEOK is preserving property for future potential NGL amenities that may very well be constructed in Medford to boost its NGL enterprise because the market evolves.

“We’re happy to have come to a profitable settlement with our insurance coverage carriers that was the results of a collaborative course of,” stated Pierce H. Norton II, ONEOK president and chief government officer. “This settlement supplies us the knowledge of insurance coverage restoration, and shortens the development interval to revive probably the most environment friendly fractionation capability to our built-in system to satisfy anticipated progress in NGL provide for petrochemical and export demand.”

When the insurance coverage proceeds are obtained, the corporate expects to use money from the settlement fee to the stability of any insurance coverage receivables excellent as of December 31, 2022, and document a acquire for the remaining settlement proceeds within the first quarter 2023.

ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a number one midstream service supplier and proprietor of one of many nation’s premier pure fuel liquids (NGL) methods, connecting NGL provide within the Rocky Mountain, Mid-Continent and Permian areas with key market facilities and an in depth community of pure fuel gathering, processing, storage, and transportation property.

ONEOK is a FORTUNE 500 firm and is included in S&P 500.

For details about ONEOK, go to the web site:

For the newest information about ONEOK, discover us on LinkedIn, Instagram, Fb and Twitter.

A number of the statements contained and included on this information launch are forward-looking statements as outlined beneath federal securities legal guidelines. The forward-looking statements relate to our anticipated monetary efficiency (together with projected ranges of quarterly and annual dividends), liquidity, market situations and different issues. We make these forward-looking statements in reliance on the protected harbor protections offered beneath federal securities legal guidelines and different relevant legal guidelines.

Ahead-looking statements embody the objects recognized within the previous paragraph, the knowledge regarding attainable or assumed future outcomes of our operations and different statements contained or included on this information launch recognized by phrases corresponding to “anticipate,” “imagine,” “proceed,” “might,” “estimate,” “count on,” “forecast,” “aim,” “steerage,” “intend,” “could,” “may,” “plan,” “potential,” “proposed,” “undertaking,” “scheduled,” “ought to,” “will,” “would” and different phrases and phrases of comparable which means.

One mustn’t place undue reliance on forward-looking statements. Identified and unknown dangers, uncertainties and different elements could trigger our precise outcomes, efficiency or achievements to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by forward-looking statements. These elements could have an effect on our operations, markets, merchandise, providers and costs. These and different dangers are described in larger element in Merchandise 1A, Threat Elements, in our most up-to-date Annual Report on Kind 10-Ok and within the different filings that we make with the Securities and Change Fee (SEC), which can be found on the SEC’s web site at All forward-looking statements attributable to us or individuals performing on our behalf are expressly certified of their entirety by these elements. Any such forward-looking assertion speaks solely as of the date on which such assertion is made, and, aside from as required beneath securities legal guidelines, we undertake no obligation to replace publicly any forward-looking assertion whether or not because of new info, subsequent occasions or change in circumstances, expectations or in any other case.

Analyst Contact:

Andrew Ziola


Media Contact:

Brad Borror



Source link

You May Also Like

About the Author: GPF