October 16, 2024 [Storage Terminals Magazine]- ONEOK, Inc. has successfully completed the acquisition of Global Infrastructure Partners’ entire interest in EnLink Midstream, LLC for a total cash consideration of approximately $3.3 billion.

 
The acquisition includes 43 percent of EnLink’s outstanding common units, purchased at $14.90 per unit, and 100 percent of the interests in the managing member for $300 million.
 

The transaction, following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, significantly expands ONEOK’s assets in key production regions, notably the Permian Basin and a new strategic position in Louisiana.

Pierce H. Norton II, president and chief executive officer of ONEOK, expressed confidence in the enhanced value the acquisition will provide:
“This acquisition broadens our integrated assets, adding a meaningful platform to ONEOK’s businesses. We are confident in the enhanced service offerings and value we can deliver to our stakeholders as a result.”

Norton also highlighted ONEOK’s ongoing efforts to finalise the acquisition of GIP’s equity interests in Medallion Midstream, further strengthening ONEOK’s midstream infrastructure.

With the closing of this transaction, ONEOK now controls EnLink’s managing member, and will replace board members previously designated by GIP with new members selected by ONEOK. These include:

• Pierce H. Norton II, president and CEO of ONEOK, who will serve as chairman of EnLink Midstream’s board of directors.
• Walter S. Hulse III, executive vice president, chief financial officer, treasurer, and corporate development officer of ONEOK.
• Lyndon C. Taylor, executive vice president and chief legal officer of ONEOK.

Following the completion of this transaction, ONEOK intends to acquire the publicly held common units of EnLink in a tax-free transaction. The combination of ONEOK and EnLink’s asset bases is expected to enhance synergies, reduce leverage, and offer significant accretion to ONEOK shareholders. EnLink unitholders will benefit from access to ONEOK’s stock, part of the S&P 500, which offers greater trading liquidity and an attractive dividend yield.

As a result of this acquisition, EnLink will be a consolidated subsidiary of ONEOK for financial reporting purposes, although EnLink common units and ONEOK common stock will continue to be traded publicly on the New York Stock Exchange.

This transaction further positions ONEOK as a leading player in the midstream energy sector, offering gathering, processing, fractionation, transportation, and storage services for natural gas, NGLs, refined products, and crude oil. With an extensive 50,000-mile pipeline network, ONEOK is committed to delivering energy solutions that meet growing domestic and international demand, while contributing to energy security and sustainability.

Headquartered in Tulsa, Oklahoma, ONEOK is an S&P 500 company and one of the largest diversified energy infrastructure companies in North America, delivering safe, reliable, and responsible energy solutions across the US and beyond. Following this acquisition, ONEOK owns 43 percent of EnLink’s outstanding common units and will leverage this ownership to continue advancing its integrated midstream services.

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