ONEOK Inc. will end its energy services segment through an accelerated wind down process, releasing non-affiliated, third-party natural gas transportation and storage contracts to interested parties. The energy services segment is expected to be classified as discontinued operations, effective April 1.
“Our decision to discontinue operating our energy services segment will reduce ONEOK’s earnings risk profile over the long term, while removing any earnings uncertainty associated with this segment in the near term,” said John W. Gibson, ONEOK chairman and CEO.
The energy services segment began in 1995 by purchasing and storing natural gas, then reselling it to customers during the winter. It leases natural gas pipeline and storage capacity and provides peak-load, no-notice premium services to natural gas utilities, including ONEOK’s. It employs 49 people.
“We also believe that the energy services segment no longer fits into our long-term strategy and vision,” Gibson said. “We will continue to focus our resources on gathering, processing, transporting, storing, fractionating and distributing natural gas, NGLs and other energy commodities through our ONEOK Partners and natural gas distribution segments.”