ONEOK to buy EnLink stake, Medallion Midstream from GIP in two deals worth $5.9 bln (updated)

EnLink Midstream LLC

29/08/2024 03:33

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       Aug 28 (Reuters) - U.S. pipeline operator ONEOK  OKE.N 
said on Wednesday that it struck two deals worth $5.9 billion
with infrastructure investor GIP to boost its presence in the
Permian Basin as well as mid-continent, North Texas and
Louisiana regions.
    ONEOK said it would buy GIP's 43% stake in EnLink Midstream
 ENLC.N  for $14.90 per unit and GIP's full interest in EnLink's
managing member for a total of about $3.3 billion in cash.
    The price per unit is a 12.8% premium to EnLink's closing
market price on Aug. 27.
    ONEOK said it would also buy from GIP its equity interests
in Medallion Midstream, a crude gathering and transportation
system in the Permian's Midland Basin, for $2.6 billion in cash.
    ONEOK said it expects the deals to immediately add to its
earnings and free cash flow, bolstering its ability to execute
its planned $2 billion share repurchase program.
    It expects synergies between $250 million and $450 million
over the next three years as a result of these acquisitions, it
said in a statement.
    ONEOK said it has secured financing commitments worth up to
$6 billion from JPMorgan Chase and Goldman Sachs to fund the
deals.

 (Reporting by Kanjyik Ghosh; Editing by Savio D'Souza)
 ((Kanjyik.Ghosh@thomsonreuters.com;))