What is the Medallion Transaction and what did ONEOK acquire?

The Medallion Transaction is ONEOK's acquisition of all issued and outstanding limited partner interests in Medallion and its assumption of general partner rights and obligations. This acquisition primarily strengthens ONEOK's infrastructure assets, particularly in the Permian Basin.

What was the total cost of these acquisitions?

The total cash consideration for the Medallion Transaction was approximately $2.4 billion. Additionally, the concurrent acquisition of the DoublePoint Interests in Medallion Midland Partners, LLC cost approximately $170 million in cash, bringing the total cash outlay to around $2.57 billion.

What is the strategic significance of acquiring Medallion Midland Partners, LLC?

The acquisition of the remaining 60.0% of Medallion Midland Partners, LLC significantly expands ONEOK's crude oil gathering pipeline network in the Permian Basin. This is a key growth area, and the expanded infrastructure is expected to enhance ONEOK's midstream services and market position.

Are there any outstanding conditions or future obligations related to these transactions?

The report indicates the transactions have been completed as of October 31, 2024. The information provided is based on the completion of the Purchase Agreement and associated transactions. The details are subject to the full text of the Purchase Agreement filed previously.

OKE 8-K: Regulation FD — Oct 31, 2024

Summary

ONEOK, Inc. (OKE) announced the successful completion of the Medallion Transaction on October 31, 2024. This strategic acquisition involves ONEOK purchasing all issued and outstanding limited partner interests in Medallion, for which the company paid approximately $2.4 billion in cash. Additionally, ONEOK became the general partner of Medallion as part of this transaction. Further enhancing its Permian Basin presence, ONEOK also concurrently acquired the remaining 60.0% of Medallion Midland Partners, LLC from the DoublePoint Group for approximately $170 million in cash. This joint venture is involved in the construction, ownership, and operation of crude oil gathering pipelines in the Permian Basin, solidifying ONEOK's position in this key energy-producing region.

Key Highlights

1ONEOK completed the Medallion Transaction, acquiring limited partner interests in Medallion for approximately $2.4 billion cash.
2ONEOK assumed the role of general partner for Medallion.
3ONEOK acquired the remaining 60.0% of Medallion Midland Partners, LLC from the DoublePoint Group.
4The acquisition of DoublePoint Interests cost approximately $170 million in cash.
5Medallion Midland Partners, LLC operates crude oil gathering pipelines in the Permian Basin.
6The transactions were completed on October 31, 2024.
7The company issued a press release on October 31, 2024, announcing the completion of the Medallion Transaction.

ONEOK INC /NEW/ 8-K Report, Regulation FD Disclosure (Oct 31, 2024)

Summary

Key Highlights

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