Natural gas transmission company Oneok has signed an agreement to acquire all remaining publicly held common units of EnLink Midstream through a tax-free transaction valued at $4.3bn.
The acquisition, expected to close in Q1 2025, will see ONEOK issue approximately 37 million shares.
As per the deal, each outstanding EnLink unit will be converted into 0.1412 shares of ONEOK common stock.
The EnLink Conflicts Committee, comprising three independent directors, evaluated the transaction with independent legal and financial advisors.
The committee unanimously determined that the transaction is in the best interests of EnLink and its public unitholders, recommending approval to the EnLink Board.
ONEOK has committed to voting its 44% stake in EnLink in favour of the transaction. The merger requires approval from a majority of EnLink's outstanding common units and is subject to customary closing conditions.
No further regulatory approvals are needed, as the Hart-Scott-Rodino Act waiting period has been completed.
ONEOK president and CEO Pierce H. Norton II said: "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.
"ONEOK has a long-standing reputation as being intentional in building a premier energy infrastructure company. This next step further solidifies that status, allowing us to continue expanding and extending our value chain, while creating value for our stakeholders."
ONEOK recently completed the acquisition of Global Infrastructure Partners' entire interest in EnLink for approximately $3.3bn.
The current transaction builds on this acquisition, consolidating ONEOK's control over EnLink.
Headquartered in Dallas, EnLink offers integrated midstream infrastructure services for natural gas, crude oil and natural gas liquids (NGLs), as well as CO₂ transportation for carbon capture and sequestration.
ONEOK is a midstream operator that provides gathering, processing, fractionation, transportation and storage services. Via its 50,000-mile pipeline network, it transports natural gas, NGLs, refined products and crude oil to help meet domestic and international energy demand.
