Oneok to Buy Rest of EnLink Midstream for $4.3 Billion in Stock

By Janine Phakdeetham

November 24, 2024 at 9:59PM EST

The Trans-Alaska Pipeline in Fairbanks, Alaska, US, on Tuesday, Sept. 17, 2024. The Federal Energy Regulatory Commission last week defended the methodology used in determining the value of different types of crude oil underlying tariffs for fossil fuel companies using the Trans Alaska Pipeline System. Photographer: Stefani Reynolds/Bloomberg (Stefani Reynolds/Bloomberg)

(Bloomberg) -- US pipeline operator Oneok Inc. will acquire the common units of EnLink Midstream LLC it doesn’t own for $4.3 billion, according to a statement.

The EnLink shares will be converted into 0.1412 shares of Oneok common stock, the statement said. Oneok, which owns 44% of EnLink, will issue approximately 37 million shares for the transaction, with completion expected in the first quarter of 2025.

“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,” Pierce Norton, Oneok’s president and chief executive officer, said in the statement.

Oneok said last month it completed its acquisition of Global Infrastructure Partners’ interest in EnLink for $3.3 billion.

Shares of Tulsa, Oklahoma-based Oneok have climbed 67% in the year to date, while Dallas-based EnLink added about 30%.