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MAGELLAN ACQUISITION (Tables) | 9 Months Ended
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Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
Schedule of Business Acquisitions, by Acquisition | The following tables set forth the acquisition consideration and preliminary purchase price allocation of assets acquired and liabilities assumed:
| At September 25, 2023
| (Millions of dollars and shares/units, except per share/unit data)
Magellan public common units outstanding | 202.1 |
Cash consideration per Magellan unit | $25.00
Cash consideration | $ | 5,052 |
Magellan public common units outstanding | 202.1 |
ONEOK exchange ratio per Magellan unit | 0.667 |
Shares of ONEOK common stock issued | 134.8 |
ONEOK common stock closing price on September 25, 2023 | $66.54
Fair value of common stock issued | $ | 8,969 |
Fair value of Magellan replacement equity awards | 93 |
Equity consideration | $ | 9,062 |
Total consideration | $ | 14,114 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
| At September 25, 2023
Assets acquired: | (Millions of dollars)
Cash and cash equivalents | $ | 44 |
Accounts receivables, net | 245 |
Inventories | 348 |
Other current assets | 65 |
Property, plant and equipment | 11,562 |
Investments in unconsolidated affiliates | 909 |
Intangible assets | 645 |
Other assets | 112 |
Total assets acquired | 13,930 |
Liabilities assumed: |
Accounts payable | 221 |
Other current liabilities | 533 |
Long-term debt, excluding current maturities | 4,013 |
Other deferred credits and liabilities | 203
Total liabilities assumed | 4,970
Total identifiable net assets | 8,960
Goodwill | 5,154 |
Total purchase price | $ | 14,114 |
Goodwill by Segment | The following table sets forth the amounts of goodwill by segment for the periods indicated:
| Natural Gas Gathering and Processing |  | Natural Gas Liquids |  | Natural Gas Pipelines |  | Refined Products and Crude |  | Total
| (Millions of dollars)
Gross goodwill | $ | 153 |  |  | $ | 371 |  |  | $ | 157 |  |  | $ | — |  |  | $ | 681 |
Accumulated impairment losses | (153) |  |  | — |  |  | — |  |  | — |  |  | (153) |
December 31, 2022 | — |  |  | 371 |  |  | 157 |  |  | — |  |  | 528 |
Acquisitions (a) | — |  |  | — |  |  | — |  |  | 5,154 |  |  | 5,154 |
September 30, 2023 | $ | — |  |  | $ | 371 |  |  | $ | 157 |  |  | $ | 5,154 |  |  | $ | 5,682 |
(a) - Goodwill from the Magellan Acquisition primarily represents expected commercial and cost synergies and is expected to be fully deductible for tax purposes. Allocation is preliminary and may be updated as we continue to evaluate the benefits of expected commercial and cost synergies to reporting units.
Business Combination, Separately Recognized Transactions | The following table sets forth the impact of acquisition related transaction costs in our Consolidated Statements of Income as of the periods indicated:
|  | Three Months Ended | Nine Months Ended
|  | September 30, | September 30,
|  | 2023 |  | 2023
|  | (Millions of dollars)
Transaction costs |  | $ | 123 |  |  | $ | 133 |
Interest expense |  | 13 |  |  | 21 |
Total |  | $ | 136 |  |  | $ | 154 |
Business Acquisition, Pro Forma Information | The following table sets forth the unaudited supplemental pro forma financial information for the three and nine months ended September 30, 2023 and 2022, as if we had completed the Magellan Acquisition on January 1, 2022:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | (Millions of dollars)
Revenue |  | $ | 4,850 |  |  | $ | 6,723 |  |  | $ | 14,764 |  |  | $ | 19,548 |
Net income |  | $ | 572 |  |  | $ | 596 |  |  | $ | 2,364 |  |  | $ | 1,336 |

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