Pipeline operator ONEOK to buy remaining shares of EnLink in $4.3-B deal
Pipeline operator ONEOK says it will buy the remaining shares of peer EnLink Midstream for $4.3 B in an all-stock deal, boosting its presence in the Permian Basin amid increased consolidation in the U.S. energy sector.
In August, ONEOK acquired a 43% controlling interest in Enlink, which has a solid presence in the Permian basin, from Global Infrastructure Partners for about $3.3 B in cash.
ONEOK said it will offer 0.1412 shares of its common stock for each EnLink unit.
The deal values Enlink at about $7.6 B, while the stake purchase would be at a premium of about 5% to EnLink's Friday close, according to calculations based on EnLink's and ONEOK's last close.
The U.S. pipeline and storage sector is seen as ripe for deals following increased consolidation among oil and gas producers, as well as hurdles in getting new energy infrastructure approved and built.
Earlier in the month, another pipeline operator DT Midstream agreed to acquire three natural gas transmission pipelines from ONEOK for $1.2 B in cash, to boost its presence in the Midwest market.
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