ONE Gas Joining The S&P Midcap 400

S&P announced yesterday that upcoming Oneok (OKE) spinoff ONE Gas will be joining the S&P Midcap 400 after the spin is completed this Friday (January 31st). The new company will be one of the largest natural gas utilities in the US and consist of the Kansas Gas Service, Oklahoma Natural Gas Company and the Texas Gas Service. ONE Gas will be giving Valassis Communications (VCI) the boot from the midcap index, but no further moves by S&P were necessary in this instance as Valassis is in the process of being acquired by Harland Clarke Holdings.

ONE Gas will be listed on the NYSE under the ticker ‘OGS’ and Oneok shareholders as of January 21st will receive one share of OGS for every 4 shares of OKE owned. The company recently released an updated presentation on ONE Gas and Oneok will be meeting investors today at a conference so it’s possible some new information on its strategy will be released shortly. In the meantime be sure to check out all of our earlier coverage of this situation. ONEOK will remain in the S&P 500 so there is a chance this transaction could lead to some forced selling of ONE Gas by S&P 500 index and mutual funds. It’s worth keeping an eye on this one.

Disclosure: Author holds no position in any stock mentioned