Summary
ONEOK, Inc. (OKE) has filed an 8-K report detailing two significant definitive agreements entered into on August 28, 2024. The first is the EnLink Purchase Agreement, through which ONEOK will acquire approximately 43% of EnLink Midstream's common units for $14.90 per unit in cash, along with 100% of the limited liability company interests in EnLink Midstream Manager, LLC for $300.0 million in cash. The second agreement is the Medallion Purchase and Sale Agreement, under which ONEOK will acquire the general partner interests and all limited partner interests in Medallion for $2,434,300,000, subject to adjustments. Medallion indirectly owns 40% of Medallion Midland Partners, LLC (MMP), with ONEOK also gaining the right to acquire the remaining 60% of MMP from other members. These transactions are expected to close in the fourth quarter of 2024, subject to customary closing conditions including HSR Act approval. To finance these acquisitions, ONEOK has secured a $6.0 billion unsecured term loan facility. The report also includes forward-looking statements and mentions a press release issued on August 28, 2024, announcing these strategic moves.
Key Highlights
- 1ONEOK entered into a definitive agreement to acquire approximately 43% of EnLink Midstream's common units for cash at $14.90 per unit.
- 2ONEOK will also acquire 100% of EnLink Midstream Manager, LLC for $300.0 million in cash.
- 3A separate agreement to acquire Medallion, which indirectly owns 40% of MMP, for approximately $2.43 billion is in place.
- 4The Medallion transaction includes the right for ONEOK to acquire the remaining 60% of MMP from other members.
- 5Both transactions are expected to close in Q4 2024, subject to regulatory approvals (HSR Act) and other customary conditions.
- 6ONEOK has secured a $6.0 billion unsecured term loan facility to finance these acquisitions and related expenses.
- 7The company issued a press release on August 28, 2024, to announce these significant strategic transactions.