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

Reports
Regulation FD·Other Events·Exhibits & Filings
Filing Date
Filed October 31, 2024
Period End
October 31, 2024
Security
OKE
In the record · 2016–202610-K1110-Q328-K365

OKE filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 365 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jul ’17Jul ’17
  2. Leadership change8-K · Feb ’19Feb ’19
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed October 31, 2024. Cited figures are marked; the original filing is the authoritative source.

On October 31, 2024, ONEOK (NYSE: OKE) completed its acquisition of Medallion Midstream from Global Infrastructure Partners (GIP III).

ONEOK acquired all limited partner interests in GIP III Trophy Intermediate Holdings, L.P. (Medallion) for approximately $2.4 billiona in cash and became Medallion's general partner. In a related transaction, ONEOK also bought the remaining 60.0% of Medallion Midland Partners, LLC, a crude gathering joint venture with the DoublePoint Group, for about $170 million in cash.

Combined cash consideration is roughly $2.6 billionb, consistent with the figure in the press release. The acquired system is the largest privately held crude oil gathering and transportation system in the Permian Basin's Midland Basin. It includes more than 1,200 miles of crude gathering pipelines, about 1.3 million barrels per day of capacity, and roughly 1.5 million barrels of crude storage.

Management expects commercial synergies because the assets already connect with ONEOK's long-haul crude pipelines out of the basin. The deal extends ONEOK's crude value chain and diversifies its Permian exposure. The filing does not disclose purchase price allocation, expected EBITDA contribution, financing structure, or updated guidance.

The disclosure is furnished under Regulation FD and Item 8.01 rather than filed, so it is not subject to Section 18 liability. The press release also notes that ONEOK became managing member of EnLink Midstream, LLC as of October 15, 2024, and owns 43%c of EnLink's common units. Investors should review ONEOK's subsequent periodic reports for accounting details, integration progress, and the effect on leverage and distributable cash flow.

02—Key points

Key Highlights

  1. Closed the Medallion Midstream acquisition on October 31, 2024, with approximately $2.4 billion in cash for the limited partner interests, plus ONEOK becoming Medallion's general partner.
  2. Acquired the remaining 60.0% of Medallion Midland Partners, LLC from the DoublePoint Group for approximately $170 million in cash, completed concurrently with the main transaction.
  3. Total cash consideration is approximately $2.6 billion across both transactions.
  4. Medallion adds more than 1,200 miles of Permian Midland Basin crude gathering pipelines, about 1.3 million barrels per day of capacity, and roughly 1.5 million barrels of crude storage.
  5. Management cites commercial synergies, since the assets connect with ONEOK's existing long-haul crude pipelines out of the Permian.
  6. The transaction diversifies ONEOK's asset base and extends its crude oil value chain, with the Permian Basin as a key platform.
  7. As of October 15, 2024, ONEOK is managing member of EnLink Midstream, LLC and owns 43% of EnLink's outstanding common units.

03—Questions

Frequently Asked Questions

  1. How much did ONEOK pay for Medallion Midstream?

    ONEOK paid approximately $2.4 billion in cash for the limited partner interests in Medallion and became its general partner. It also paid approximately $170 million in cash for the remaining 60.0% of Medallion Midland Partners, LLC from the DoublePoint Group, for total cash consideration of about $2.6 billion.

  2. What assets does Medallion bring to ONEOK?

    Medallion owns more than 1,200 miles of crude oil gathering pipelines in the Permian Basin's Midland Basin, with approximately 1.3 million barrels per day of capacity and about 1.5 million barrels of crude oil storage. The press release describes it as the largest privately held crude gathering and transportation system in the Midland Basin.

  3. What strategic rationale did management give for the deal?

    Management expects meaningful commercial synergies because Medallion's gathering system already connects with ONEOK's long-haul crude oil pipelines out of the Permian. The deal is positioned as diversifying ONEOK's asset portfolio, extending its crude value chain, and strengthening its Permian Basin platform.

  4. Does the filing provide financial projections or accounting impact?

    No. The filing and press release do not disclose expected EBITDA contribution, purchase price allocation, financing sources, or updated guidance. Investors should look to ONEOK's subsequent quarterly and annual reports for these details.

  5. Is the information in this 8-K legally filed with the SEC?

    The Item 7.01 disclosure, including the press release in Exhibit 99.1, is furnished rather than filed. It is therefore not subject to Section 18 of the Exchange Act liability and is not incorporated by reference into Securities Act or Exchange Act filings unless specifically referenced.

04—Continue

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