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

ONEOK Completes Acquisition of EnLink Midstream

On January 31, 2025, ONEOK, Inc. announced that it has officially concluded the acquisition of EnLink Midstream, LLC, a significant move designed to bolster its position within the energy sector. This strategic acquisition was approved by EnLink unitholders during a special meeting held just a day prior, on January 30, 2025.

Pierce H. Norton II, the CEO and President of ONEOK, expressed that the completion of this acquisition enhances the company's integrated midstream operations and provides heightened value to all stakeholders involved. This includes the unitholders of EnLink, who will now become shareholders of ONEOK. Norton remarked, “We welcome EnLink's employees to the ONEOK team and look forward to the numerous benefits this acquisition can provide.”

Under the terms of the transaction, EnLink unitholders will receive 0.1412 shares of ONEOK common stock for each outstanding EnLink common unit. Following this exchange, EnLink common units will cease to be publicly traded on the New York Stock Exchange.

The Significance of the Acquisition

The acquisition not only strengthens ONEOK's position in the midstream sector but also aids in diversifying its operational platform extensively. ONEOK is a well-established midstream operator with an impressive infrastructure network that spans approximately 60,000 miles of pipelines. This extensive network is instrumental in transporting essential energy products, including natural gas, natural gas liquids (NGLs), refined products, and crude oil, thereby supporting both domestic and international energy demands.

ONEOK is recognized as one of North America’s largest diversified energy infrastructure companies. Its commitment to delivering reliable energy solutions has significant implications for energy security in the region. The integration of EnLink into ONEOK's operations promises enhanced efficiencies and capabilities, further contributing to the stable and responsible provision of energy resources globally.

About EnLink Midstream

Founded and headquartered in Dallas, EnLink Midstream offers integrated midstream infrastructure services catering to natural gas, crude oil, NGLs, and carbon dioxide transportation for carbon capture and storage initiatives. EnLink boasts substantial, cash-flow-generating asset platforms strategically located within major production basins, as well as core demand centers in highly active regions like the Permian Basin, Louisiana, Oklahoma, and North Texas. This strategic positioning enhances its operational excellence and provides financial flexibility for sustainable growth.

Moving forward, ONEOK aims to effectively integrate EnLink's operations, a process that may yield considerable long-term benefits for both companies. While these benefits are anticipated, caution is advised as the integration process can pose various risks and challenges. Factors such as capacity to realize synergy, retain essential personnel, and maintain customer relationships are pivotal in determining the success of this acquisition.

Norton’s leadership at ONEOK will be crucial during this transitional phase. His comments suggest a strong commitment to establishing an inclusive and effective work environment that maximizes the potential of the newly merged teams. He emphasized that this merger will enhance service delivery and operational efficiencies, ultimately focusing on creating sustainable value for stakeholders.

As the energy landscape evolves, such mergers and acquisitions become significant for companies looking to adapt to market dynamics and consumer demands. ONEOK’s acquisition of EnLink Midstream illustrates a significant trend where larger midstream operators are strategically positioning themselves to meet future energy needs, ensuring they remain competitive in a rapidly changing industry.

A Bright Future Ahead

With the integration of EnLink, ONEOK is poised to enhance not just its operational strategy but also its overall stakeholder engagement. The commitment to delivering energy solutions that can make a meaningful difference underlines the company’s objectives as it navigates through this new landscape. As they work through the integration process, the combined expertise and resources of both entities signal a promising future for this energy powerhouse.

For further updates and information, stakeholders and interested parties can stay connected with ONEOK through their official website, as well as various social media platforms, including LinkedIn, Facebook, X, and Instagram.