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Pipeline operator ONEOK, Inc. (OKE) entered a merger agreement on November 24, 2024, to acquire peer EnLink Midstream, LLC (ENLC) in an all-stock deal valued at $13.50 billion.
ONEOK will acquire all the outstanding shares of EnLink, which it doesn’t already own, for $4.3 billion in ONEOK common stock.
Under the terms of the agreement, each outstanding common unit of EnLink that ONEOK does not already own will be converted into 0.1412 shares of ONEOK common stock. The deal values EnLink at about $16.53 per share, representing a premium of 4.95% from the stock’s last close.
EnLink is a Dallas-based midstream energy company providing natural gas, crude oil, NGL, and CO2 transportation services through its extensive infrastructure in key U.S. basins, including the Permian Basin, Haynesville Shale, and Barnett Shale.
ONEOK is a Tulsa-based energy infrastructure leader, operating a 50,000-mile pipeline network to provide gathering, processing, transportation, and storage services for natural gas and NGLs across key U.S. regions, including the Mid-Continent, Rocky Mountain, and Gulf Coast areas.
In October, ONEOK completed its purchase of a 43% controlling interest in EnLink from Global Infrastructure Partners for about $3.3 billion in cash, strengthening its position in the Permian Basin.
As part of the transaction, ONEOK will issue approximately 37.0 million shares, which will account for about 6.0% of the total outstanding ONEOK shares once the deal is finalized, which is expected in the first quarter of 2025.
“This tax-free transaction to acquire the remaining outstanding EnLink units is expected to be accretive to ONEOK shareholders and provide EnLink unitholders with significantly greater trading liquidity and an attractive dividend yield,” said Pierce H. Norton II, ONEOK president and chief executive officer.
ONEOK is paying 9.53 times EBITDA for EnLink Midstream.
For further details about this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of EnLink Midstream, LLC (ENLC) by ONEOK, Inc. (OKE)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And more.
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Editor’s Note: Baranjot Kaur contributed to this article