OKE · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

ONEOK INC /NEW/ · 2026-08-04 · Importance 46 · Surprise 42

In April 2026, ONEOK entered into a $1.2 billion term loan bearing interest at Term SOFR plus a 95-basis-point margin and maturing 364 days after June 23, 2026. Borrowings outstanding were $600 million at a 4.59% interest rate as of June 30, 2026, and the remaining availability was fully drawn in July 2026. ONEOK also redeemed $491 million of its 4.85% senior notes due July 2026 using short-term borrowings, while maintaining a $3.5 billion credit agreement expiring in February 2030 and a $3.5 billion commercial paper program.

Key facts

• If our credit ratings were downgraded, our cost to borrow funds under our $3.5 Billion Credit Agreement could increase, and a potential loss of access to the commercial paper market could occur. source
• Our credit ratings as of July 27, 2026: Moody's Baa2 / Prime-2 (Stable); S&P BBB / A-2 (Stable); Fitch BBB / F2 (Stable). source
• Borrowings under the $1.2 Billion Term Loan Agreement bear interest at Term SOFR plus an applicable margin of 95 basis points. source
• ONEOK could incur significant costs to comply with the regulation of greenhouse gas emissions. source
• ONEOK identifies actions by rating agencies concerning its credit as a risk factor. source
• We may manage interest-rate risk through the use of fixed-rate debt, floating-rate debt, Treasury locks and interest-rate swaps. source
• ONEOK states that forward-looking statements speak only as of the date on which such statement is made and that, other than as required under securities laws, it undertakes no obligation to update publicly any forward-looking statement. source