Pipeline operator ONEOK to buy remaining shares of EnLink in $4.3 bln deal (updated)

EnLink Midstream LLC

25/11/2024 03:27

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       Nov 24 (Reuters) - Pipeline operator ONEOK  OKE.N  said
on Sunday it would buy the remaining shares of peer EnLink
Midstream  ENLC.N  for $4.3 billion 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 billion 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 billion, while the
stake purchase would be at a premium of about 5% to EnLink's
Friday close, according to Reuters 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 billion in cash, to boost its presence in the
Midwest market.
  

 (Reporting by Kanjyik Ghosh; Editing by Eileen Soreng)
 ((Kanjyik.Ghosh@thomsonreuters.com;))