ONEOK, Inc. announced it completed its $2.6 billion acquisition of Medallion Midstream from Global Infrastructure Partners, a move that increased the Tulsa company’s extensive pipeline system in the oil and gas industry.
The acquisition of Medallion includes more than 1,200 miles of crude oil gathering pipelines providing approximately 1.3 million barrels per day of capacity and approximately 1.5 million barrels of crude oil storage in the Permian Basin. It adds to ONEOK’s 50,000 mile pipeline system.
“With the acquisition of Medallion, the largest privately held crude gathering and transportation system in the Permian’s Midland Basin, we continue our demonstrated track record of intentional and disciplined growth,” said Pierce H. Norton II, ONEOK president and chief executive officer.
“This acquisition further diversifies ONEOK’s asset portfolio and adds an expansive and well-connected crude oil gathering system to our Permian Basin platform.”
He said the acquisition should extend ONEOK’s value chain and continue to strengthen the company’s position as one of the largest diversified energy infrastructure companies deliving products vital to an advancing world.
ONEOK’s acquisition of Magellan was made through an exchange of shares. Each common unit of Magellan was exchanged for a fixed ratio of 0.667 shares of ONEOK common stock and $25.00 of cash, for a total consideration of $14.1 billion. A total of approximately 135 million shares of common stock were issued, with a fair value of approximately $9.0 billion as of the closing date of the Magellan Acquisition.
ONEOK funded the cash part of the acquisition with an understanding public offering of $5.25 billion senior unsecured notes.
The acquisition is one of a handful made in 2024 by ONEOK. as of Oct. 15, ONEOK became the managing member of EnLink Midstream, LLC and took control of 43% of EnLink’s outstanding common units, a move that gave ONEOK 100% ownership of the managing member of EnLink. EnLink provides integrated midstream infrastructure services for natural gas, crude oil and NGLs. ONEOK acquired the 43% of the outstanding EnLink units for $14.90 in cash per unit and 100% of the outstanding limited liability company interests in the managing member of EnLink for $300 million. It resulted in a total cash consideration of approximately $3.3 billion.
What it means is ONEOK now controls 13,600 mile of pipeline, 25 natural gas processing plants and seven fractionators formerly owned by EnLink.
In June, ONEOK also completed the acquisition of Gulf Coast NGL Pipelines from Easton Energy, a Houston-based midstream company, for $280 million The deal includes 450 miles of liquids products pipelines in the Gulf Coast market. Some of the assets were already connected to ONEOK’s Mont Belvieu operations.
