ONEOK Expands Energy Infrastructure with $4.3 Billion EnLink Acquisition
In a strategic move to consolidate its position in the energy infrastructure sector, ONEOK has entered into a definitive agreement to acquire all remaining publicly held common units of EnLink Midstream. The tax-free transaction, valued at $4.3 billion, is expected to close in the first quarter of 2025.
Unlocking Value for Shareholders
Under the terms of the deal, ONEOK will issue approximately 37 million shares, with each outstanding EnLink unit converted into 0.1412 shares of ONEOK common stock. The acquisition is expected to be accretive to ONEOK shareholders, providing EnLink unitholders with increased trading liquidity and an attractive dividend yield.
Commitment to Growth
The EnLink Conflicts Committee, comprising three independent directors, evaluated the transaction with independent legal and financial advisors. The committee unanimously determined that the transaction is in the best interests of EnLink and its public unitholders, recommending approval to the EnLink Board. ONEOK has committed to voting its 44% stake in EnLink in favor of the transaction.
Streamlining Operations
The merger requires approval from a majority of EnLink’s outstanding common units and is subject to customary closing conditions. With the Hart-Scott-Rodino Act waiting period already completed, no further regulatory approvals are needed. This acquisition builds on ONEOK’s recent purchase of Global Infrastructure Partners’ entire interest in EnLink for approximately $3.3 billion, solidifying its control over the company.
Enhancing Energy Infrastructure
Headquartered in Dallas, EnLink offers integrated midstream infrastructure services for natural gas, crude oil, and natural gas liquids (NGLs), as well as CO₂ transportation for carbon capture and sequestration. ONEOK, a midstream operator, provides gathering, processing, fractionation, transportation, and storage services through its 50,000-mile pipeline network. This acquisition will enable the company to expand and extend its value chain, creating value for stakeholders.
ONEOK’s Vision
According to Pierce H. Norton II, ONEOK’s president and CEO, “This transaction further solidifies our reputation as a premier energy infrastructure company, allowing us to continue growing and creating value for our stakeholders.” With this acquisition, ONEOK is poised to strengthen its position in the energy sector, providing critical infrastructure services to meet domestic and international energy demand.
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