Return of Capital Information

Note: Return of capital amounts included in Form 8937 filings are estimates, based on assumptions at the time of filing. This estimate is subject to change based on a variety of factors, some of which are beyond ONEOK’s control. These estimates are updated throughout the year and are typically finalized in December for the calendar year. ONEOK cannot assure that these periodic updates to these estimates will provide an approximation of the final return of capital amounts at year-end.

2024 OKE Dividends - UPDATED: No return of capital for calendar year 2024

2023 OKE Dividends - OKE Form 8937 - Dividends Paid in 2023

2022 OKE Dividends - OKE Form 8937 - Dividends Paid in 2022

2021 OKE Dividends - OKE Form 8937 - Dividends Paid in 2021

2020 OKE Dividends - OKE Form 8937 - Dividends Paid in 2020

2019 OKE Dividends - OKE Form 8937 - Dividends Paid in 2019

2018 OKE Dividends - OKE Form 8937 - Dividends Paid in 2018

2017 OKE Dividends - OKE Form 8937 - Dividends Paid in 2017

ONEOK, Inc. (OKE) Return of Capital
Frequently Asked Questions (FAQs)

THIS DOCUMENT IS PROVIDED FOR GENERAL INFORMATION ONLY AND DOES NOT CONTAIN A COMPLETE ANALYSIS OR DESCRIPTION OF ALL POTENTIAL U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. INCOME TAX CONSEQUENCES. EACH HOLDER OF SHARES OF ONEOK COMMON STOCK IS STRONGLY URGED TO CONSULT WITH AND RELY UPON ITS OWN TAX ADVISOR AS TO THE SPECIFIC U.S. FEDERAL, STATE, LOCAL AND NON-U.S. TAX CONSEQUENCES TO SUCH HOLDER RELATED TO THE RETURN OF CAPITAL.

What is Earnings & Profits?

Earnings & Profits (E&P) is an economic concept of a corporation’s ability to pay dividends without distributing any of the capital contributed by either its shareholders or its creditors. E&P is increased through earnings and decreased through losses and dividend payments to shareholders. The statutory provisions of Internal Revenue Code Section 312, and the related regulations, address the computation of E&P.

If the current year’s E&P are sufficient to cover all dividend payments made during the year, each payment is a taxable dividend. If the year’s cash payments exceed current and accumulated E&P, the portion of the payment not covered by E&P is generally a non-taxable return of capital which reduces a shareholders cost basis.

What is a return of capital?

A return of capital is a payment in excess of an entity’s current and accumulated E&P. It is generally a non-taxable payment that reduces a shareholder’s cost basis of shares held. The amount of return of capital will be reported in Box 3 of the 1099-DIV form.

How is return of capital treated for U.S. Federal and State income tax purposes?

A return of capital payment is not taxable, but rather used to reduce the shareholder’s tax basis in ONEOK shares. Once the tax basis is exhausted, the return of capital portion of the dividend is treated as a capital gain. Generally, state law conforms to Federal law regarding the treatment of return of capital. Shareholders should consult their own tax advisors as to their specific tax consequences.

Do I need to file any additional documentation as a result of the return of capital?

No. However, the return of capital payment will reduce the shareholder’s tax basis. If tax basis information is not maintained by the shareholders’ broker, the shareholder will need to track their reduction in tax basis.

How do I calculate the change in tax basis resulting from the receipt of this return of capital?

ONEOK is required to complete IRS Form 8937 for each dividend that affects shareholder basis and post it on the Investor Relations section of the ONEOK website within 45 days of the dividend payment date. This form will provide details on the expected changes in the tax basis of the shares. The final determination of the tax treatment of annual dividends vs. return of capital is reported to shareholders on Form 1099-DIV.

Where can I find further information regarding the income tax treatment of return of capital?

See IRS Publication 550, Investment Income and Expenses. Shareholders should consult a tax professional as to their specific tax consequences.

Return of Capital Example

Assume an individual owns one share of ONEOK stock. The share was purchased for $50.00.

The shareholder receives a dividend payment of $0.80 on his or her share of ONEOK stock. Assume ONEOK communicates that 25% of the payment should be treated as a return of capital and that 75% should be treated as a taxable dividend. Therefore, for U.S. income tax reporting, the shareholder should treat $0.20 of the $0.80 payment, or 25%, as a return of capital and $0.60 of the $0.80 payment, or 75%, as a taxable dividend.

The portion of the payment that is treated as a dividend ($0.60) for U.S. income tax purposes is taxable to the shareholder in the year received and should be reported as dividend income on the shareholders' U.S. Income Tax Return.

The portion of the dividend payment that is treated as a non-taxable return of capital for U.S. tax purposes will reduce the shareholder’s basis in his or her stock and will therefore impact the amount of the taxable gain or loss recognized by the shareholder in the year the stock is sold. Assuming that this shareholder sells the OKE share for $60.00 in the subsequent year, the U.S. taxable gain should be calculated as follows:

Original adjusted basis: $50.00

Less: return of capital: ($0.20)

New adjusted basis: $49.80

Sale proceeds: $60.00

Less: new adjusted basis (above): $49.80

Capital Gain: $10.20