S&P: Oneok unaffected

Standard & Poor's said its ratings and outlook on Oneok Partners LP (BBB/stable) will not be immediately affected by the company's announcement that it has purchased an underground natural gas liquids storage facility in Mont Belvieu, Texas. The company is buying the facility from Valero Refining-Texas LP. The specific terms of the transaction were not disclosed, although the partnership indicated that it will spend roughly $40 million on both the acquisition and related infrastructure improvements. The acquired storage facility provides additional storage capacity adjacent to Oneok Partners' existing Sterling pipeline.

The agency said that, considering the moderate size of the transaction, it does not view the purchase as pivotal for ratings. Nevertheless, the natural gas liquids business is among the company's higher-risk segments, and the transaction is evidence of the expected surge in acquisition activity given Oneok Inc.'s general partner interest and growth objectives, S&P added.

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