Shareholders in ONEOK were told this past week their company’s nearly $19 billion acquisition and merger with Magellan Midstream Partners will see quick economic results.
During the company’s annual shareholders meeting, Pierce Norton, President, Chief Executive Officer and Director said, “We see value and significant potential for enhanced customer product offerings and export opportunities.”
He said the combined companies will be operating nearly 50,000 miles of pipeline assets primarily in the central U.S. and 25,000 miles are of liquids oriented pipelines.
“Given ONEOK’s and Magellan’s assets and operational expertise, we have forecasted significant corporate and commercial synergies that can be achieved within the next two to four years.”
ONEOK’s deal is expected to close in the third quarter of 2023 and it had to be subject to approval of both ONEOK shareholders and Magellan unitholders.
“Combining the assets from Magellan will introduce two additional platforms, refined products and crude oil transportation, further diversifying our business mix, fee-based earnings and generating significant incremental free cash flow,” added Norton in his address.
He called the acquisition the fifth transformative transaction in the past 20 years.
“Each of these transactions were contemplated from the standpoint of creating opportunities for future earnings growth. For example, ONEOK has a long history of having a strategic commercial mindset where we are always challenging ourselves to create new markets and additional capacity to move various NGL products on our pipelines throughout our vast networks adding value to our customers and ultimately to our investors.”
Norton said he and other leaders of ONEOK are proud of the culture built at the company.
