ONEOK to Acquire Remaining EnLink Units in $4.3 Billion Deal

(P&GJ) — ONEOK announced plans to acquire all remaining publicly held common units of EnLink Midstream in a $4.3 billion stock deal. Under the agreement, each EnLink unit will convert into 0.1412 shares of ONEOK stock, based on EnLink’s closing price of $15.75 on Nov. 22.

(P&GJ) — ONEOK Inc. announced plans to acquire all remaining publicly held common units of EnLink Midstream LLC in a $4.3 billion stock deal.

Under the agreement, each EnLink unit will convert into 0.1412 shares of ONEOK stock, based on EnLink’s closing price of $15.75 on Nov. 22.

"This tax-free transaction is expected to be accretive to ONEOK shareholders and offer EnLink unitholders greater liquidity and an attractive dividend yield," said Pierce H. Norton II, ONEOK’s president and CEO.

The deal will issue approximately 37 million ONEOK shares, representing 6% of its outstanding stock post-transaction. ONEOK already owns around 44% of EnLink’s units and has committed to voting in favor of the deal. No shareholder vote from ONEOK or further regulatory approvals are needed.

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The Board of Directors of the managing member of EnLink delegated to the Conflicts Committee of such board, consisting of three independent directors, the authority to review, evaluate, negotiate and approve the transaction. The EnLink Conflicts Committee, after evaluating the transaction with its independent legal and financial advisors, unanimously determined that the transaction is in the best interests of EnLink and the public unitholders and approved the transaction.

The EnLink Conflicts Committee recommended approval of the transaction to the EnLink Board, which also unanimously approved the transaction. Subject to the satisfaction of customary closing conditions, completion of the transaction is expected to occur in the first quarter of 2025.  

The move follows ONEOK's October acquisition of Global Infrastructure Partners’ stake in EnLink for $3.3 billion.