Investing.com– ONEOK Inc (NYSE: ) said it will buy the remaining EnLink Midstream LLC (NYSE: ) shares it does not own in a stock deal, as the pipeline operator looks to grow its position in the Permian once again. Mid-Continent Dishes.
OK will issue 0.1412 shares for each EnLink common share, representing a per share value of $16.52746. The figure is a 4.7% premium to EnLink’s close on Friday, and values a roughly 57% stake in the midstream operator at $4.3 billion.
ONEOK said it has entered into a direct merger agreement with EnLink, and will issue about 37 million shares in the transaction.
The move comes after ONEOK earlier this year bought Global Infrastructure Partners’ entire stake in EnLink- representing a 43% stake in the company- for about 3.3 billion. ONEOK said it will buy the remainder of all publicly traded shares in the company later.
ONEOK also bought GIP’s stake in Medallion Midstream for $2.6 billion, amid broader consolidation in the US pipeline and storage industry.
The US oil industry is expected to start growing in the coming years, especially as President-elect Donald Trump vows to increase energy production.
