ONEOK (OKE) Announces Merger Agreement with EnLink Midstream, LLC

On November 24, 2024, ONEOK, Inc. (NYSE:OKE) disclosed a pivotal move in its corporate strategy by entering into a definitive Agreement and Plan of Merger with EnLink Midstream, LLC. The merger agreement involves TWOOK acquiring all outstanding publicly held common units of EnLink in a tax-free transaction valued at $4.3 billion in ONEOK common stock.

The merger agreement outlines a structured process wherein EnLink is expected to merge with Elk Merger Sub I, L.L.C., followed by a subsequent merger with Elk Merger Sub II, L.L.C., both wholly-owned subsidiaries of ONEOK. The board of directors of ONEOK, the EnLink Conflicts Committee, and the EnLink Board have unanimously approved the Merger Agreement and the transactions therein.

Upon completion of the initial merger, EnLink’s common unit holders are set to receive 0.1412 shares of ONEOK Common Stock for each EnLink Unit held. The merger includes provisions for EnLink equity awards, converting EnLink RIU and PU awards into time-based restricted stock units of ONEOK Common Stock, based on predetermined ratios.

The completion of the transaction is subject to customary closing conditions, including the approval of EnLink unit holders, legal conditions, and effective registration of ONEOK Common Stock to be issued in the merger. The merging entities will work towards obtaining all necessary consents and approvals to finalize the transaction, which is expected to close in the first quarter of 2025.

The Merger Agreement provides termination rights for both ONEOK and EnLink, including mutual consent, failure to close by a specified date, or failure to obtain necessary approvals. In case of termination under certain scenarios, termination fees or expense reimbursements are stipulated in the agreement.

ONEOK concurrently entered into a Support Agreement with EnLink, wherein ONEOK agreed to vote its EnLink units in favor of the Merger Proposal and related matters, reflecting commitment towards a successful transaction.

The disclosure also included a cautionary statement regarding forward-looking statements, outlining potential risks and uncertainties associated with the merger. The communication emphasized that this release is not an offer to buy or sell securities and urged investors to examine relevant documents filed with the SEC for a comprehensive understanding of the transaction.

The comprehensive contents of the 8-K filing detailed the intricacies of the merger agreement and the subsequent steps to be undertaken for the successful execution of this significant corporate event.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read ONEOK’s 8K filing here.

About ONEOK

ONEOK, Inc engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude.