#United States #Acquisition #Tulsa #ONEOK #EnLink Midstream

Overview of ONEOK's Acquisition of EnLink Midstream

In a significant move within the energy sector, ONEOK, Inc. (NYSE: OKE) has initiated the acquisition of EnLink Midstream, LLC (NYSE: ENLC). This acquisition involves the remaining publicly held common units of EnLink. The announcement was made just recently, alongside the filing of EnLink's definitive proxy statement with the U.S. Securities and Exchange Commission (SEC).

Special Meeting Scheduled for Unitholders

As part of this acquisition process, the Special Meeting of EnLink's unitholders is scheduled for January 30, 2025. This virtual meeting will begin at 10 a.m. Central Time (11 a.m. Eastern Time). All EnLink unitholders on record since December 23, 2024, have the right to vote their units during this gathering. The Board of Directors of EnLink, along with its Conflicts Committee, have recommended that unitholders vote “FOR” all proposals laid out in the definitive proxy statement. ONEOK has also committed to voting its own EnLink units in favor of the transaction.

Details of the Acquisition

This acquisition transaction represents a paradigm shift for ONEOK as it aims to consolidate its position in the Mid-Continent region, with significant footprints in North Texas and Louisiana. Under the terms outlined, each outstanding common unit of EnLink that is not currently owned by ONEOK will be transformed into 0.1412 shares of ONEOK common stock. This acquisition is expected to be tax-free, providing a seamless transition for EnLink unitholders.

The anticipated completion of this transaction is slated for the first quarter of 2025, pending the approval of the majority of outstanding EnLink common units, as well as fulfilling usual closing conditions.

Strategic Implications of the Acquisition

Combining the resources of ONEOK and EnLink is expected to yield significant synergies. The alignment of their asset positions is projected to enhance operational efficiencies. The enlarged platform will offer expanded capabilities across the highly productive Permian Basin, ultimately strengthening ONEOK's robust balance sheet and capital allocation strategy.

Both companies believe that this transaction will enable them to better meet the increasing demand for energy, thus promoting energy security on both national and global scales. By integrating resources and networks, the merger is set to create a comprehensive midstream operation tailored to modern energy needs.

Looking Ahead

Despite the clear advantages presented by the merger, stakeholders also recognize that risks are inherent in such large-scale acquisitions. ONEOK must successfully manage the integration of EnLink’s business operations while ensuring that anticipated cost savings and synergies materialize efficiently. Moreover, external economic factors or fluctuations in commodity prices could impact the anticipated benefits of the acquisition.

The merger's announcement has generated interest and speculation within the industry, positioning both companies at a critical juncture. Investors & unitholders are strongly encouraged to participate in the upcoming Special Meeting and to consider the potential implications of both the merger and its outcomes on their investment.

Conclusion

As ONEOK gears up for this transformative phase, the focus remains on achieving a smooth transition that favors all parties involved—investors, unitholders, and stakeholders alike. The unfolding of this acquisition will likely shape the landscape of midstream operations within the energy sector, paving the way for future expansions and innovations.

For unitholders with questions regarding the voting process or the Special Meeting details, EnLink's proxy solicitor, Innisfree MA Incorporated, is available for assistance.

Overall, the ONEOK and EnLink merger marks an exciting development for proponents of sustainable energy solutions and economic advancements within the industry.