ONEOK Closes $3.3 Billion Acquisition of EnLink Midstream
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ONEOK, has successfully completed its acquisition of Global Infrastructure Partners’ (GIP) entire interest in EnLink Midstream for a total cash consideration of approximately $3.3 billion.
The acquisition consists of 43 percent of EnLink’s outstanding common units for $14.90 per unit and 100 percent of the interests in the managing member for $300 million.
“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 Louisiana,” said Pierce Norton II, ONEOK president and chief executive officer.
“As we add another meaningful platform to ONEOK’s businesses, we’re confident in the enhanced service offerings and value we can provide our stakeholders,” added Norton.
“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,” concluded 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 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 Hulse III, executive vice president, chief financial officer, treasurer, investor relations, and corporate
development, of ONEOK.
• Lyndon Taylor, executive vice president, chief legal officer, and assistant secretary of ONEOK.
The fully combined ONEOK and EnLink asset bases are expected to enhance synergies, reduce leverage and increase accretion to ONEOK shareholders. As a result of the transaction with GIP, EnLink will be a consolidated subsidiary of ONEOK for GAAP financial reporting purposes.
ONEOK delivers energy products and services vital to an advancing world. They are a leading midstream operator that provides gathering, processing, fractionation, transportation, and storage services. Through their more than 50,000-mile pipeline network, they transport the natural gas, natural gas liquids (NGLs), refined products, and crude 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.
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