ONEOK Strikes $5.9 Billion Deal to Acquire Medallion and Major Stake in EnLink

ONEOK, Inc. has entered into a definitive agreement to acquire Global Infrastructure Partners' entire stake in EnLink Midstream. The acquisition, valued at approximately $3.3 billion, includes 43% of EnLink's outstanding common units and 100% of the managing member interests. This strategic move positions ONEOK to further expand its midstream footprint and enhance its ability to serve growing energy markets.

ONEOK and Global Infrastructure Partners (GIP) have finalized a separate definitive agreement for ONEOK to acquire all equity interests in Medallion Midstream, LLC ("Medallion") from GIP. Medallion, the largest privately held crude gathering and transportation system in the Permian Basin's Midland region, will be acquired for $2.6 billion in cash. This transaction values Medallion at approximately 6.3 times its estimated 2025 EBITDA, including anticipated base case run-rate synergies.

Pierce H. Norton II, ONEOK's President and CEO highlighted that ONEOK's latest transactions further reinforce its commitment to becoming a leading energy infrastructure company by acquiring assets that enhance its value chain. The company is particularly enthusiastic about expanding its footprint in the Permian Basin, a key driver of U.S. oil and gas growth. Norton emphasized ONEOK's track record of integrating assets to capture synergies, believing these strategic moves will boost stakeholder value and improve service offerings. He also expressed eagerness to welcome the employees from EnLink and Medallion to ONEOK.

The transactions will create a fully integrated platform in the Permian Basin for ONEOK, enhancing its existing natural gas liquids (NGL) and crude infrastructure with 1.7 billion cubic feet per day of gas processing and 1.6 million barrels per day of crude gathering capacity. This expansion is expected to enable new service offerings for regional producers. Additionally, the acquisition of EnLink will strengthen ONEOK’s presence in the Mid-Continent, North Texas, and Louisiana, improving its gas and NGL operations with new assets including 220,000 barrels per day of NGL fractionation and 4 billion cubic feet per day of natural gas pipeline capacity.

The acquisition of Medallion’s crude gathering business and EnLink’s assets will provide ONEOK with substantial synergies. By integrating Medallion’s Permian Basin operations and combining ONEOK's and EnLink's Mid-Continent gathering and processing systems, as well as optimizing Gulf Coast NGL assets, ONEOK anticipates significant commercial and operational efficiencies. The combined transactions are projected to generate annual synergies ranging from $250 million to $450 million within three years, enhancing overall value through streamlined operations and integrated asset management.

ONEOK is a prominent North American midstream energy company specializing in gathering, processing, fractionation, transportation, and storage of natural gas, NGLs, refined products, and crude oil. With an expansive pipeline network exceeding 50,000 miles, ONEOK plays a crucial role in ensuring the efficient and reliable delivery of energy resources to meet domestic and international demand.