ONEOK Partners LP will sell 5 million common units to reduce the outstanding debt under its $1 billion revolving credit facility and for general partnership purposes, the Tulsa-based natural gas company announced Tuesday.

The public offering is priced at $45.81 per unit, which was ONEOK Partners' value Tuesday at the close of trading on the New York Stock Exchange.

A first-quarter earnings report showed ONEOK Partners with about $436.7 million in outstanding debt under its revolving credit facility as of March 31. The company also repaid $100 million worth of maturing long-term debt in February, according to reports.

ONEOK Partners tallied $99.6 million in first-quarter net income despite much lower natural gas prices. Profit and cash flow, however, were down significantly from the same quarter in 2008, according to reports.

The company plans to lower its capital expenditures throughout this year, officials have said.

Underwriters have a 30-day option to buy an additional 750,000 shares to cover overallotments, according to the prospectus filed Tuesday with the Securities and Exchange Commission.

UBS Investment Bank, Citigroup Global Markets and Merrill Lynch are working together on the public offering, according to a ONEOK Partners release.

As a result of the public offering, ONEOK Partners will have approximately 59.4 million common units and 36.5 million Class B units outstanding.

ONEOK Partners gathers, processes and transports natural gas throughout the U.S.

ONEOK Inc. owns a controlling interest in the partnership and several utilities, including Oklahoma Natural Gas. ONEOK Inc. shares closed nearly 2 percent lower Tuesday at $29.13.

Rod Walton 581-8457

rod.walton@tulsaworld.com

Originally published by ROD WALTON World Staff Writer.

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