Tulsa-based Oneok Inc. is selling subsidiary Oneok Energy Marketing Co., to Baltimore-based Constellation Energy Group Inc. for $22.5 million plus working capital.

Oneok Energy Marketing provides physical and financial natural gas products and services to about 26,000 retail customers mainly in Kansas, Oklahoma, Missouri, Texas, Nebraska, Wyoming and Illinois. The business is accounted for in the Oneok natural gas distribution segment.

“We are excited by this opportunity to acquire Oneok Energy Marketing and broaden the natural gas services we can offer to our growing customer base,” said Mark Huston, head of Constellation Energy’s retail business. Constellation recently reached 1 million retail customers, and the addition of Oneok’s retail gas marketing business will give Constellation almost 1.1 million customers.

Earlier this year, Constellation Energy acquired MXenergy, a Connecticut-based supplier of natural gas and electricity with a half million customers in 15 states and two Canadian provinces; and StarTex Power, a Houston-based retail electric provider with approximately 170,000 customers.

“We determined that retail natural gas marketing is no longer a core business to Oneok and have made the decision to exit the business,” said Oneok COO Pierce H. Norton. “Constellation is a logical buyer since it is active in most states where Oneok Energy Marketing Co. has customers. It also has the resources and capabilities to compete and grow the retail natural gas marketing business.”

Oneok said it will continue its wholesale gas marketing activities through its energy services business segment.

Oneok Energy Marketing employs 39, with 14 employees in Tulsa and the remaining employees in various locations in Kansas, Texas, Oklahoma, Nebraska and Wyoming. All current Oneok Energy Marketing employees will be considered for positions with Constellation. Those not offered positions with Constellation will have the opportunity to apply for other open positions within Oneok. Employees who do not find a position or choose not to apply for another job within Oneok will receive severance and other benefits from Oneok, the company said.

The transaction is expected to close during the first quarter.

Last month shareholders of Constellation and Exelon Corp. approved the merger of the two companies. Last spring the companies said they had agreed to merge in a stock-for-stock deal valued at about $8 billion (see Daily GPI, April 29).

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