Natural gas transmission company ONEOK has signed an agreement to acquire all of EnLink Midstream’s remaining public common units in a tax-exempt transaction valued at $4.3 billion.
The acquisition, which is expected to close in the first quarter of 2025, will see ONEOK issue approximately 37 million shares.
Under the deal, each outstanding EnLink unit will be converted into 0.1412 shares of ONEOK common stock.
The EnLink Conflicts Committee, consisting of three independent directors, reviewed 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 shareholders and recommended approval to EnLink’s board.
ONEOK has committed to voting its 44% stake in EnLink in favor of the transaction. The merger requires approval of a majority of EnLink’s outstanding common units and is subject to customary closing conditions.
No further regulatory approvals are needed as the waiting period of the Hart-Scott-Rodino Act has expired.
Pierce H. Norton II, president and CEO of ONEOK, said: “This tax-free transaction to acquire the remaining outstanding EnLink units is expected to provide ONEOK shareholders and EnLink unitholders with significantly greater trading liquidity and an attractive dividend yield offer.
“ONEOK has a long-standing reputation for being single-minded in building a leading energy infrastructure company. This next step further strengthens that status, allowing us to continue to grow and expand our value chain while creating value for our stakeholders.”
ONEOK recently completed the acquisition of Global Infrastructure Partners’ entire stake in EnLink for approximately $3.3 billion.
The current transaction builds on this acquisition and consolidates ONEOK’s control over EnLink.
Headquartered in Dallas, EnLink provides 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 is a midstream operator that provides collection, processing, fractionation, transportation and storage services. Through its 50,000-mile pipeline network, it transports natural gas, NGLs, refined products and crude oil to help meet domestic and international energy demand.
“ONEOK to Acquire Remaining EnLink Midstream Units in $4.3 Billion Deal” was originally created and published by Offshore Technology, a brand owned by GlobalData.
The information on this site has been included in good faith for general information purposes only. It is not intended to amount to advice on which reliance should be placed and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking or refraining from any action on the basis of the content on our site.
