Strategic alliance between ONEOK and Costilla terminated

The previously announced strategic alliance between ONEOK and Costilla Energy has been terminated after the announcement by Costilla that it had terminated a purchase sale agreement with Pioneer Natural Resources Company.
The strategic alliance was contingent upon the success of Costilla's agreement to acquire $ 335 mm in certain oil and gas properties owned by Pioneer Natural Resources. The ONEOK alliance with Costilla involved a $ 35 mm acquisition of properties and a $ 65 mm equity investment in Costilla.

ONEOK is an integrated natural gas company involved in production, processing, gathering, storage and transmission. The company is also the largest natural gas distributor in Kansas and Oklahoma operating as Oklahoma Natural Gas Company and Kansas Gas Service Company, serving 1.4 mm customers.