Following the news of a takeover move, shares of EnLink Midstream, LLC (NYSE: ENLC) are soaring this morning, up 9.80% to trade at $14.45 as of the most recent check. A formal agreement has been reached between Global Infrastructure Partners (GIP) and ONEOK, Inc. for GIP to purchase the entirety of GIP’s holding in EnLink, including a majority position in the business.
Details of the Acquisition
As per the terms of the deal, 100% of the interests in the managing member and GIP’s 43% stake in EnLink’s outstanding common units will be purchased by ONEOK for $300 million and $14.90 per unit, respectively. The overall financial outlay for the acquisition is estimated to be $3.3 billion. With the addition of complementary assets and enhancements to its value chain, this transaction is expected to further establish ONEOK’s position as a top supplier of energy infrastructure.
Strategic Expansion in Vital Domains
The transaction enhances ONEOK’s integrated gas and NGL platform in Oklahoma and provides new gas gathering and processing operations in North Texas, contributing to solid cash flows and direct connectivity to Mont Belvieu via ONEOK’s NGL pipelines.
New Opportunities in Louisiana and Potential Synergies
ONEOK’s acquisition of EnLink also brings a strategic position in Louisiana, adding 220,000 barrels per day of NGL fractionation capacity and approximately 4.0 billion cubic feet per day of natural gas pipeline capacity connected to key demand centers. The company expects these assets to benefit from robust industrial demand growth, particularly in data centers, liquefied natural gas, ammonia, and hydrogen.
The deal is anticipated to generate annual synergies of approximately $250 million to $450 million within three years, driven by integrating EnLink’s Mid-Continent gathering and processing systems and optimizing Gulf Coast NGL assets.
Leadership Changes Following Acquisition
Upon completing the transaction, ONEOK will assume control of EnLink’s managing member and intends to replace the current board members designated by GIP with new members selected by ONEOK. This strategic move further consolidates ONEOK’s influence over EnLink, aligning both companies’ interests for future growth.
