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ONEOK has struck a deal with EnLink Midstream to buy its remaining assets in the Permian for $4.3 billion in stock, boosting its presence in the star of the shale patch further amid growing expectations of a surge in natural gas demand.
Earlier this year, the gas infrastructure operator acquired a 43% stake in EnLink Midstream, paying $3.3 billion for it. It also acquired a stake in another pipeline operator at the time, Medallion Midstream, for $2.6 billion.
ONEOK is one of the largest energy infrastructure operators in North America. It has a network of more than 50,000 miles of pipelines. Some of that was added to the company’s total last year when it acquired Magellan Midstream partners for $18.8 billion. The new deals demonstrate there is more space for growth.
“ONEOK has a longstanding 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,” the company said in the news release for the second EnLink acquisition deal.
The deals also highlight the fact that the merger and acquisition wave washing through the U.S. oil and gas industry is not only reserved for exploration and production. ONEOK’s Magellan Midstream deal last year was one instance. Another was Energy Transfer’s acquisition of Crestwood Equity Partners for a total consideration of $7.1 billion.
The midstream M&A rush continued into 2024, with gas station owner Sunoco LP announcing in January that it would buy pipeline and liquids terminal operator NuStar Energy in an all-equity transaction valued at around $7.3 billion, including debt.
Earlier in the year there were reports that Occidental may be interested in selling a 49% stake in its Western Midstream business and later in the year the company reported it had completed the divestment for a total of $700 million.
By Charles Kennedy for Oilprice.com
The post ONEOK Buys Out EnLink in $4.3 Billion Deal appeared first on Energy News Beat.
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