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ONEOK Announces Closing of Medallion Midstream Acquisition

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ONEOK (NYSE: OKE) has completed the acquisition of Medallion Midstream from Global Infrastructure Partners for $2.6 billion in cash. The acquisition includes the largest privately held crude oil gathering and transportation system in the Permian's Midland Basin, comprising over 1,200 miles of crude oil gathering pipelines with 1.3 million barrels per day capacity and 1.5 million barrels of crude oil storage. The assets connect with ONEOK's existing long-haul crude oil pipelines, enabling commercial synergies and expanding the company's Permian Basin platform.

ONEOK (NYSE: OKE) ha completato l'acquisizione di Medallion Midstream da Global Infrastructure Partners per 2,6 miliardi di dollari in contanti. L'acquisizione include il più grande sistema privato di raccolta e trasporto di petrolio greggio nella Midland Basin del Permiano, comprendente oltre 1.200 miglia di oleodotti per la raccolta di petrolio greggio con una capacità di 1,3 milioni di barili al giorno e 1,5 milioni di barili di stoccaggio di petrolio greggio. Le risorse si collegano con gli attuali oleodotti di lungo percorso di ONEOK, consentendo sinergie commerciali e ampliando la piattaforma dell'azienda nel Bacino del Permiano.

ONEOK (NYSE: OKE) ha completado la adquisición de Medallion Midstream de Global Infrastructure Partners por 2.6 mil millones de dólares en efectivo. La adquisición incluye el sistema privado de recolección y transporte de petróleo crudo más grande en la Cuenca Midland del Pérmico, que comprende más de 1,200 millas de oleoductos de recolección de petróleo crudo con una capacidad de 1.3 millones de barriles por día y 1.5 millones de barriles de almacenamiento de petróleo crudo. Los activos se conectan con los oleoductos de largo recorrido existentes de ONEOK, lo que permite sinergias comerciales y expande la plataforma de la compañía en la Cuenca Pérmica.

ONEOK (NYSE: OKE)는 Global Infrastructure Partners로부터 Medallion Midstream26억 달러에 현금으로 인수했다고 발표했습니다. 이 인수에는 Permian의 Midland Basin에서 가장 큰 민간 원유 수집 및 운송 시스템이 포함되어 있으며, 1,200마일 이상의 원유 수집 파이프라인과 1.3백만 배럴/일의 용량, 150만 배럴의 원유 저장 용량을 포함하고 있습니다. 이 자산은 ONEOK의 기존 장거리 원유 파이프라인과 연결되어 상업적 시너지를 창출하고 회사의 Permian Basin 플랫폼을 확장합니다.

ONEOK (NYSE: OKE) a finalisé l'acquisition de Medallion Midstream auprès de Global Infrastructure Partners pour 2,6 milliards de dollars en espèces. L'acquisition comprend le plus grand système privé de collecte et de transport de pétrole brut dans le bassin Midland du Permien, comprenant plus de 1 200 miles de pipelines de collecte de pétrole brut avec une capacité de 1,3 million de barils par jour et 1,5 million de barils de stockage de pétrole brut. Les actifs se connectent aux pipelines de pétrole brut existants de longue distance de ONEOK, permettant des synergies commerciales et élargissant la plateforme de l'entreprise dans le bassin du Permien.

ONEOK (NYSE: OKE) hat die Übernahme von Medallion Midstream von Global Infrastructure Partners für 2,6 Milliarden Dollar in bar abgeschlossen. Die Übernahme umfasst das größte privat gehaltene System zur Sammlung und den Transport von Rohöl im Midland Basin des Perms, das mehr als 1.200 Meilen an Rohöl-Sammelpipelines mit einer Kapazität von 1,3 Millionen Barrel pro Tag und 1,5 Millionen Barrel Lagerung von Rohöl umfasst. Die Vermögenswerte verbinden sich mit den bestehenden Langstrecken-Rohölpipelines von ONEOK und ermöglichen kommerzielle Synergien und erweitern die Plattform des Unternehmens im Perm Basin.

Positive
  • Strategic acquisition of largest private crude gathering system in Permian's Midland Basin
  • Adds 1,200 miles of pipeline with 1.3M barrels/day capacity
  • Provides 1.5M barrels of crude oil storage capacity
  • Integration with existing ONEOK infrastructure enables commercial synergies
  • Further diversifies ONEOK's asset portfolio
Negative
  • Substantial cash outlay of $2.6 billion for acquisition

Insights

The $2.6 billion acquisition of Medallion Midstream significantly expands ONEOK's crude oil infrastructure footprint in the strategic Permian Basin. The deal adds 1,200 miles of gathering pipelines with 1.3 million barrels per day capacity and 1.5 million barrels of storage capacity. This strategic move enhances ONEOK's vertical integration by connecting with their existing long-haul crude pipelines, creating operational synergies and strengthening their competitive position in the Midland Basin.

The acquisition's scale and immediate infrastructure addition should boost ONEOK's revenue streams and market share in the important Permian region. The transaction leverages ONEOK's existing operations while diversifying their asset portfolio, potentially reducing business risk and creating new growth opportunities through enhanced operational flexibility and market reach.

The Medallion acquisition represents a significant strategic expansion in the Permian's Midland Basin, positioning ONEOK as a more comprehensive midstream operator. The integration of Medallion's assets with ONEOK's existing infrastructure creates a more robust and interconnected system that can capture additional value across the energy supply chain. The expanded crude gathering network complements ONEOK's natural gas and NGL operations, creating a more diversified service offering that can better serve producers in the region.

Completes Acquisition of the Largest Privately Held Crude Oil Gathering and Transportation System in the Permian's Midland Basin

TULSA, Okla., Oct. 31, 2024 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced the successful completion of its acquisition of Medallion Midstream (Medallion) from Global Infrastructure Partners, for a total cash consideration of approximately $2.6 billion.

"With the acquisition of Medallion, the largest privately held crude gathering and transportation system in the Permian's Midland Basin, we continue our demonstrated track record of intentional and disciplined growth," said Pierce H. Norton II, ONEOK president and chief executive officer. "This acquisition further diversifies ONEOK's asset portfolio and adds an expansive and well-connected crude oil gathering system to our Permian Basin platform.

"We expect to drive meaningful commercial synergies from these complementary assets, which already connect with ONEOK's long-haul crude oil pipelines out of the basin," added Norton. "Through this transaction, we further extend our value chain and continue to enhance ONEOK's position as one of the largest diversified energy infrastructure companies delivering products and services vital to an advancing world."    

The acquisition of Medallion includes more than 1,200 miles of crude oil gathering pipelines providing approximately 1.3 million barrels per day of capacity and approximately 1.5 million barrels of crude oil storage in the Permian Basin.

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 North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.

As of Oct. 15, 2024, ONEOK is the managing member of EnLink Midstream, LLC (NYSE: ENLC) (EnLink) and owns 43% of EnLink's outstanding common units. EnLink provides integrated midstream infrastructure services for natural gas, crude oil and NGLs.  

ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.

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 ONEOK and its operations after giving effect to the acquisition of Medallion (the "Acquisition"), including strategies and plans, integration, synergies, opportunities and anticipated future performance. 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 and Medallion's businesses will not be integrated successfully; the risk that cost savings, synergies and growth from the Acquisition may not be fully realized or may take longer to realize than expected; the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Acquisition; 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; 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:   

Alicia Buffer


918-861-3749

 

Cision View original content:https://www.prnewswire.com/news-releases/oneok-announces-closing-of-medallion-midstream-acquisition-302293091.html

SOURCE ONEOK, Inc.

FAQ

How much did ONEOK (OKE) pay for Medallion Midstream?

ONEOK paid approximately $2.6 billion in cash for Medallion Midstream.

What assets did ONEOK (OKE) acquire in the Medallion Midstream deal?

ONEOK acquired over 1,200 miles of crude oil gathering pipelines with 1.3 million barrels per day capacity and 1.5 million barrels of crude oil storage in the Permian Basin.

When did ONEOK (OKE) complete the Medallion Midstream acquisition?

ONEOK completed the Medallion Midstream acquisition on October 31, 2024.

What is the significance of the Medallion acquisition for ONEOK (OKE)?

The acquisition gives ONEOK the largest privately held crude gathering system in the Permian's Midland Basin, diversifying its portfolio and enabling commercial synergies with existing infrastructure.

Oneok, Inc.

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