OKLAHOMA CITY—OGE Energy Corp., the parent company of utility Oklahoma Gas and Electric Co., said Thursday it is delaying the planned initial public offering of spin-off OGE Enogex Partners LP because of market volatility.
The IPO of 7.5 million common units was expected to price this week between $18 and $20 per unit. The units were to begin trading on the New York Stock Exchange under the symbol "OGP" following the pricing of the offering.
OGE Energy said it expects to proceed with the IPO at a future date and will continue to evaluate market conditions to determine appropriate timing.
Assuming an offering price of $19 per unit, OGE Enogex expects to raise about $132.7 million after underwriting discounts but before offering expenses.
The company plans to use the net proceeds, together with borrowings and cash on hand, to redeem its $400 million senior notes and to pay fees and expenses related to a credit facility.
OGE Enogex was formed by OGE Energy to further develop its natural-gas midstream assets and operations. OGE Enogex owns and operates about 2,283 miles of intrastate natural-gas transportation pipelines and two natural-gas storage facilities with about 23 billion cubic feet of total working gas capacity, according to filings with the Securities and Exchange Commission.
The company also owns and operates about 5,474 miles of natural-gas gathering pipelines and six natural-gas processing plants with about 720 million cubic feet per day of total inlet capacity. OGE Enogex has a 50 percent stake in an additional natural-gas processing plant, which it operates.
UBS Securities LLC, Lehman Brothers Inc., Citigroup Global Markets Inc., JPMorgan Securities Inc., Wachovia Capital Markets LLC, BOSC Inc. and Capital West Securities Inc. are underwriting the offering.
