Oneok to Acquire EnLink Midstream in $4.3B Deal

By Tamara Parker • Monday, November 25 16:29 • Permanent Link

Oneok, Inc. (NYSE: OKE) has announced an agreement to acquire all outstanding publicly held common units of Enlink Midstream, LLC (NYSE: ENLC) in a tax-free transaction valued at $4.3 billion. The consideration for this acquisition will be 0.1412 shares of Oneok common stock for each outstanding publicly held Enlink common unit.

This transaction will result in Oneok issuing approximately 37.0 million shares, representing about 6.0% of the total Oneok shares outstanding upon completion of the transaction. The completion of the merger is expected to occur in the first quarter of 2025 and is subject to approval by a majority of the outstanding Enlink common units.

Pierce H. Norton II, President and CEO of Oneok, anticipates that this tax-free transaction will be accretive to Oneok shareholders and will provide Enlink unitholders with significantly greater trading liquidity and an attractive dividend yield.

Notably, Oneok recently completed the acquisition of Global Infrastructure Partners' entire interest in Enlink for a total cash consideration of approximately $3.3 billion on October 15, 2024.

Goldman Sachs & Co. LLC is serving as the lead financial advisor to Oneok, with Barclays and Citi also advising the company. Kirkland & Ellis LLP is serving as Oneok’s legal advisor. Evercore is acting as financial advisor to the Enlink conflicts committee, while Richards, Layton & Finger, P.A. and Baker Botts L.L.P. are serving as legal advisors to the Enlink conflicts committee and Enlink, respectively. Today the company's shares have moved -1.0% to a price of $15.6. For the full picture, make sure to review EnLink Midstream's 8-K report.

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