OKE - Oneok to settle Medford claims for $930M in insurance payments

Oneok ( NYSE: OKE ) said Monday it reached an agreement with its insurers to settle all claims for physical damage and business interruption related to the Medford incident last July for $930M in total insurance payments, including $100M received to date.

The proceeds will serve as settlement for property damage and as a payment in lieu of future business interruption insurance claims, the company said.

With the insurance claim resolved, Oneok ( OKE ) said it plans to construct a new 125K bbl/day natural gas liquids fractionator at its Mont Belvieu, Texas, facility, which will increase the company's total fractionation capacity to ~700K bbl/day and better align its fractionation capacity with NGL market demand in the Gulf Coast.

The company expects construction of the MB-6 fractionator will be completed in ~24 months at a total cost of ~$550M with a more favorable completion schedule when compared with rebuilding at Medford.

Oneok ( OKE ) offers "robust financials and an attractive dividend yield," RCK Analytics writes in an analysis posted recently on Seeking Alpha .

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