ONEOK Acquires Remaining Publicly Held Common Units

ONEOK has recently made an exciting announcement about acquiring all outstanding publicly held common units of EnLink Midstream in a tax-free transaction valued at $4.3 billion in ONEOK common stock. Under this agreement, each EnLink common unit will be converted into 0.1412 shares of ONEOK common stock.

The decision on the exchange ratio was made based on EnLink’s market close price on Nov. 22, 2024, and ONEOK’s 10-day volume-weighted average price. In total, around 37.0 million shares will be issued by ONEOK as part of this acquisition, which represents about 6.0% of the total ONEOK shares at the completion of this transaction.

The EnLink Conflicts Committee, comprising three independent directors, thoroughly evaluated the transaction with their legal and financial advisors. They unanimously determined that this acquisition is in the best interest of EnLink and its public unitholders, leading to the EnLink Board’s unanimous approval. This transaction is slated for completion in the first quarter of 2025, subject to customary closing conditions and approvals from EnLink common unit holders.

ONEOK President and CEO, Pierce H. Norton II, highlighted the benefits of this transaction for both ONEOK shareholders and EnLink unitholders. This acquisition is expected to enhance trading liquidity for EnLink unitholders and offer an attractive dividend yield while being accretive to ONEOK shareholders. This move underlines ONEOK’s commitment to building a leading energy infrastructure company, creating value for all stakeholders.

Earlier in October 2024, ONEOK successfully concluded its acquisition of the controlling interest in EnLink, reinforcing its position as a premier energy infrastructure company. This strategic acquisition underscores ONEOK’s dedication to expanding and enhancing its value chain, setting the stage for continued growth and value creation for investors.