ONEOK Announces Closing of Controlling Interest in EnLink from Global Infrastructure Partners
ONEOK has successfully completed its acquisition of Global Infrastructure Partners' (GIP) entire interest in EnLink Midstream, for approximately $3.3 billion. The acquisition includes 43% of EnLink's outstanding common units at $14.90 per unit and 100% of the interests in the managing member for $300 million. This strategic move expands ONEOK's integrated assets in key production basins, including the Permian Basin, and establishes a new asset position in Louisiana.
With this transaction, ONEOK gains control of EnLink's managing member and has appointed new board members. The company intends to pursue the acquisition of the publicly held common units of EnLink in a tax-free transaction. The combined asset bases are expected to enhance synergies, reduce leverage, and increase accretion to ONEOK shareholders. EnLink will become a consolidated subsidiary of ONEOK for GAAP financial reporting purposes, while both companies' stocks will continue to be publicly traded on the NYSE.
ONEOK ha completato con successo l'acquisizione del 100% degli interessi di Global Infrastructure Partners (GIP) in EnLink Midstream, per un importo di circa 3,3 miliardi di dollari. L'acquisizione include il 43% delle unità comuni in circolazione di EnLink a 14,90 dollari per unità e il 100% degli interessi nell'azionista di maggioranza per 300 milioni di dollari. Questa mossa strategica espande gli asset integrati di ONEOK in importanti bacini produttivi, incluso il Permian Basin, e stabilisce una nuova posizione patrimoniale in Louisiana.
Con questa transazione, ONEOK ottiene il controllo dell'azionista di maggioranza di EnLink e ha nominato nuovi membri del consiglio. L'azienda intende procedere con l'acquisizione delle unità comuni pubblicamente detenute di EnLink in una transazione esente da tasse. Le basi patrimoniali combinate si prevede che migliorino le sinergie, riducano l'indebitamento e aumentino l'accrescimento per gli azionisti di ONEOK. EnLink diventerà una controllata consolidata di ONEOK ai fini della rendicontazione finanziaria GAAP, mentre le azioni di entrambe le aziende continueranno a essere quotate pubblicamente sul NYSE.
ONEOK ha completado con éxito la adquisición del 100% de los intereses de Global Infrastructure Partners (GIP) en EnLink Midstream, por aproximadamente 3,3 mil millones de dólares. La adquisición incluye el 43% de las unidades comunes en circulación de EnLink a 14,90 dólares por unidad y el 100% de los intereses en el socio gestor por 300 millones de dólares. Este movimiento estratégico amplía los activos integrados de ONEOK en cuencas productivas clave, incluidos el Permian Basin, y establece una nueva posición de activos en Louisiana.
Con esta transacción, ONEOK toma el control del socio gestor de EnLink y ha nombrado nuevos miembros de la junta. La compañía tiene la intención de proceder con la adquisición de las unidades comunes en manos del público de EnLink en una transacción libre de impuestos. Se espera que las bases de activos combinadas mejoren las sinergias, reduzcan el apalancamiento y aumenten la acumulación para los accionistas de ONEOK. EnLink se convertirá en una subsidiaria consolidada de ONEOK para los fines de informes financieros GAAP, mientras que las acciones de ambas compañías continuarán cotizando públicamente en el NYSE.
ONEOK은 Global Infrastructure Partners (GIP)의 EnLink Midstream에 대한 전체 지분을 약 33억 달러에 성공적으로 인수했습니다. 이번 인수에는 EnLink의 미상장 보통주 43%가 포함되어 있으며, 보통주당 14.90달러에 매입되었고, 관리 조합에 대한 지분 100%도 3억 달러에 포함됩니다. 이 전략적 움직임은 Permian Basin을 포함한 주요 생산 유역에서 ONEOK의 통합 자산을 확장하고 루이지애나에서 새로운 자산 포지션을 구축합니다.
이번 거래를 통해 ONEOK은 EnLink의 관리 조합에 대한 통제권을 얻고 새로운 이사회를 구성했습니다. 회사는 세금이 없는 거래로 EnLink의 상장 보통주 인수를 추진할 계획입니다. 결합된 자산 기반은 시너지를 강화하고 레버리지를 줄이며 ONEOK 주주에게 수익을 증가시킬 것으로 예상됩니다. EnLink는 GAAP 재무 보고 목적을 위한 ONEOK의 통합 자회사가 되며, 두 회사의 주식은 모두 NYSE에서 계속 공개 거래됩니다.
ONEOK a réussi à finaliser l'acquisition de l'intégralité des intérêts de Global Infrastructure Partners (GIP) dans EnLink Midstream, pour un montant d'environ 3,3 milliards de dollars. L'acquisition comprend 43% des unités communes d'EnLink à 14,90 dollars par unité et 100% des intérêts dans le membre gestionnaire pour 300 millions de dollars. Ce mouvement stratégique élargit les actifs intégrés de ONEOK dans les bassins de production clés, y compris le Permian Basin, et établit une nouvelle position d'actifs en Louisiane.
Avec cette transaction, ONEOK prend le contrôle du membre gestionnaire d'EnLink et a nommé de nouveaux membres au conseil d'administration. La société envisage de procéder à l'acquisition des unités communes détenues par le public d'EnLink dans le cadre d'une transaction exonérée d'impôts. Il est prévu que les bases d'actifs combinés améliorent les synergies, réduisent l'effet de levier et augmentent l'accroissement pour les actionnaires de ONEOK. EnLink deviendra une filiale consolidée de ONEOK aux fins de reporting financier GAAP, tandis que les actions des deux sociétés continueront d'être négociées publiquement sur le NYSE.
ONEOK hat erfolgreich die Übernahme des 100% Anteils von Global Infrastructure Partners (GIP) an EnLink Midstream für ungefähr 3,3 Milliarden Dollar abgeschlossen. Die Übernahme beinhaltet 43% der ausstehenden Stammanteile von EnLink zu 14,90 Dollar pro Anteil und 100% der Interessen des geschäftsführenden Gesellschafters für 300 Millionen Dollar. Dieser strategische Schritt erweitert die integrierten Vermögenswerte von ONEOK in wichtigen Produktionsbecken, einschließlich des Permian Basin, und schafft eine neue Vermögensposition in Louisiana.
Mit dieser Transaktion erlangt ONEOK die Kontrolle über den geschäftsführenden Gesellschafter von EnLink und hat neue Vorstandsmitglieder ernannt. Das Unternehmen beabsichtigt, die Übernahme der öffentlich gehaltenen Stammanteile von EnLink in einer steuerfreien Transaktion zu verfolgen. Es wird erwartet, dass die kombinierten Vermögenswerte Synergien verbessern, die Verschuldung reduzieren und die Erträge für die Aktionäre von ONEOK steigern. EnLink wird zu einer konsolidierten Tochtergesellschaft von ONEOK für GAAP-Rechnungslegungszwecke, während die Aktien beider Unternehmen weiterhin öffentlich an der NYSE gehandelt werden.
- Acquisition of 43% stake in EnLink Midstream for $3.3 billion
- Expansion of integrated assets in key production basins, including the Permian Basin
- Establishment of new strategic asset position in Louisiana
- Gain of control over EnLink's managing member
- Potential for enhanced synergies and reduced leverage
- Expected increase in accretion to ONEOK shareholders
- EnLink to become a consolidated subsidiary of ONEOK for GAAP reporting
- Significant cash outlay of $3.3 billion for the acquisition
Insights
This acquisition marks a significant strategic move for ONEOK, expanding its footprint in key production basins, particularly the Permian Basin. The
Key financial implications:
- Immediate consolidation of EnLink's financials into ONEOK's books, potentially boosting revenue and EBITDA
- Expected synergies and leverage reduction, which could improve overall financial health
- Increased exposure to the lucrative Permian Basin, potentially driving future growth
- Possible accretion to ONEOK shareholders, enhancing value
The transaction's structure, including the planned tax-free acquisition of remaining public units, demonstrates financial savvy. This move could lead to simplified operations and improved cost efficiencies. Investors should monitor how ONEOK leverages this expanded asset base to drive shareholder value in the competitive midstream sector.
This acquisition significantly reshapes the midstream energy landscape. ONEOK's strategic expansion into the Permian Basin and new asset position in Louisiana diversifies its portfolio and strengthens its competitive stance. The deal creates a more robust, integrated midstream operator capable of providing comprehensive services across the value chain.
Key industry implications:
- Enhanced ability to capture value from the Permian Basin's continued production growth
- Improved positioning in the evolving natural gas and NGL markets
- Potential for increased operational efficiencies and bargaining power with producers
- Greater scale to compete with other major midstream players
The consolidation trend in the midstream sector continues, as companies seek scale and operational synergies. This move positions ONEOK to better serve the evolving needs of producers and end-users in a dynamic energy market, potentially leading to improved long-term performance and stability.
Announces Expiration of HSR Act Waiting Period
Acquisition Expands and Extends Asset Positions in the Permian Basin, Mid-Continent,
The acquisition consists of
"With the closing of this acquisition, ONEOK expands our integrated assets in key production basins, including the prolific Permian Basin, and establishes a new strategic asset position in
"Additionally, we continue working toward the successful completion of our acquisition of GIP's equity interests in Medallion Midstream, further enhancing ONEOK's leading integrated midstream infrastructure position," added Norton.
With the close of this transaction, ONEOK has control of EnLink's managing member, and the board members currently designated by GIP will be replaced with new board members chosen by ONEOK, including:
- Pierce H. Norton II, president and chief executive officer of ONEOK and member of the ONEOK Board of Directors. Norton will serve as chairman of the EnLink Midstream Board of Directors.
- Walter S. Hulse III, executive vice president, chief financial officer, treasurer, investor relations and corporate development, of ONEOK.
- Lyndon C. Taylor, executive vice president, chief legal officer and assistant secretary of ONEOK.
With the closing of the purchase of GIP's interests in EnLink, ONEOK intends to pursue the acquisition of the publicly held common units of EnLink in a tax-free transaction. The fully combined ONEOK and EnLink asset bases are expected to enhance synergies, reduce leverage and increase accretion to ONEOK shareholders. In addition, a combination with ONEOK is expected to give EnLink unitholders access to ONEOK's stock which is part of the S&P 500 and has significantly greater trading liquidity and an attractive dividend yield.
As a result of the transaction with GIP, EnLink will be a consolidated subsidiary of ONEOK for GAAP financial reporting purposes. EnLink common units and shares of ONEOK common stock will continue to be publicly traded on the New York Stock Exchange (NYSE).
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in
As of Oct. 15, 2024, ONEOK is the managing member of EnLink Midstream, LLC (NYSE: ENLC) (EnLink) and owns
ONEOK is an S&P 500 company headquartered in
For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
FORWARD-LOOKING STATEMENTS:
This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this communication that address activities, events or developments that ONEOK expects, believes or anticipates will or may occur in the future are forward-looking statements. Words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "opportunity," "create," "intend," "could," "would," "may," "plan," "will," "guidance," "look," "goal," "target," "future," "build," "focus," "continue," "strive," "allow" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements include, but are not limited to, statements regarding the proposed transactions, the expected closing of the proposed transactions and the timing thereof, ONEOK's ability to acquire the publicly-held common units in EnLink following the completion of the acquisition of GIP's interest in EnLink and the timing thereof, descriptions of ONEOK and its operations after giving effect to the transactions, strategies and plans, integration, debt levels and leverage ratios, capital expenditures, cash flows and anticipated uses thereof, synergies, opportunities and anticipated future performance, including enhancements to ONEOK's investment-grade credit profile, the expected accretion to earnings per share and free cash flow per share, dividend payments and potential share repurchases, increase in the value of tax attributes and the expected impact on EBITDA. Information adjusted for the proposed transactions should not be considered a forecast of future results. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. These include the risk that ONEOK's, EnLink's and Medallion's businesses will not be integrated successfully; the risk that cost savings, synergies and growth from the proposed transactions may not be fully realized or may take longer to realize than expected; the risk that the credit ratings following the proposed transactions may be different from what ONEOK expects; the risk that a condition to closing of either of the proposed transactions may not be satisfied, that any party may terminate the applicable definitive agreements or that the closing of either of the proposed transactions might be delayed or not occur at all; the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transactions; the risk that the parties do not receive regulatory approval of the proposed transactions; risks related to the occurrence of any other event, change or circumstance that could give rise to the termination of the proposed transactions; the risk that changes in ONEOK's capital structure could have adverse effects on the market value of its securities; risks related to the ability of the parties to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on each of the companies' operating results and business generally; the risk that the proposed transactions could distract management from ongoing business operations or cause any of the companies to incur substantial costs; the risk that ONEOK may be unable to reduce expenses or access financing or liquidity; risks related to the impact of any economic downturn and any substantial decline in commodity prices; the risk of changes in governmental regulations or enforcement practices, especially with respect to environmental, health and safety matters; and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult to predict and are beyond ONEOK's control, including those detailed in ONEOK's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that are available on ONEOK's website at www.oneok.com and on the website of the Securities and Exchange Commission at www.sec.gov. All forward-looking statements are based on assumptions that ONEOK believes to be reasonable but that may not prove to be accurate. Any forward-looking statement speaks only as of the date on which such statement is made, and ONEOK does not undertake any obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Analyst Contact: Megan Patterson
918-561-5325
Media Contact: Brad Borror
918-588-7582
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SOURCE ONEOK, Inc.
FAQ
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