ONEOK to acquire Medallion and controlling interest in EnLink from GIP in $5.9 billion deal

CANBERA (dpa-AFX) – ONEOK Inc. (OKE) announced that it has agreed to acquire Global Infrastructure Partners’ entire interest in EnLink Midstream LLC (ENLC), consisting of 43% of EnLink’s outstanding common stock for $14.90 per share and 100% of the managing member’s interests for $300 million, for total cash consideration of approximately $3.3 billion.

Additionally, ONEOK will acquire from Global Infrastructure Partners of GIP all equity interests in Medallion Midstream, LLC, the largest privately owned crude oil gathering and transportation system in the Midland Basin of the Permian Basin, for $2.6 billion in cash.

ONEOK expects the transactions to be immediately accretive to earnings per share and free cash flow per share. The expected accretion will further strengthen ONEOK’s capital allocation strategy and ability to execute share repurchases under the previously authorized $2 billion share repurchase program.

The transactions are expected to close in early Q4 2024.

Following completion of the EnLink transaction, ONEOK will gain control of EnLink’s management board and it is intended to replace the board members currently appointed by GIP with new board members appointed by ONEOK.

ONEOK will maintain its headquarters in Tulsa, Oklahoma, and plans to maintain a meaningful employee presence in the Dallas and Houston metropolitan areas.

Copyright(c) 2024 RTTNews.com. All rights reserved.

Copyright RTT News/dpa-AFX