ONEOK To Buy Medallion And Controlling Stake In EnLink From GIP In $5.9 Bln Deal

(RTTNews) - ONEOK Inc. (OKE) said that it agreed to acquire Global Infrastructure Partners' entire interest in EnLink Midstream LLC (ENLC), consisting of 43% of EnLink's outstanding common units for $14.90 per unit and 100% of the interests in the managing member for $300 million, for total cash consideration of about $3.3 billion.

In addition, ONEOK will acquire from Global Infrastructure Partners or GIP all of the equity interests in Medallion Midstream, LLC, the largest privately held crude gathering and transportation system in the Permian's Midland Basin, for $2.6 billion in cash.

ONEOK expects the transactions will be to be immediately accretive to earnings per share and free cash flow per share. The expected accretion will further bolster ONEOK's capital allocation strategy and ability to execute share repurchases under its previously authorized $2 billion share repurchase program.

The transactions are expected to close early in the fourth quarter of 2024.

Upon closing of the EnLink transaction, ONEOK will have control of EnLink's managing member and intends to replace the board members currently designated by GIP with new board members designated by ONEOK.

ONEOK will maintain its headquarters in Tulsa, Oklahoma, and intends to retain a meaningful employee presence in the Dallas and Houston metropolitan areas.