(Bloomberg) -- US pipeline operator Oneok Inc. will buy the rest of EnLink Midstream LLC for $4.3 billion in common stock, the companies said in a joint statement.
The move is the latest in a spate of deals in the US oil and gas industry as private equity firms offload assets to corporate buyers. Oneok had said in August it would acquire Global Infrastructure Partners’ entire interest in EnLink and also buy GIP’s equity interests in Medallion Midtstream LLC. The purchases expand its presence in the Permian Basin.
Oneok expects its gas transport business to benefit from from higher power generation for data centers, rising liquefied natural gas exports, and existing and permitted ammonia and hydrogen facilities. The company has a 50,000-mile network of pipelines that carry fuels including natural gas liquids and refined products, it said in a presentation this month.
Each outstanding EnLink common unit that Oneok doesn’t already own will be converted into 0.1412 shares of Oneok common stock, according to the statement. Oneok will be issuing about 37 million shares for the transaction, which is expected to be completed in the first quarter of 2025.
--With assistance from Stephen Stapczynski.
(Updates with additional details from 3rd paragraph.)
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