ONEOK Inc. completed its acquisition of Magellan Midstream Partners LP on Sept. 25 following its narrow approval by Magellan shareholders on Sept. 21, the Tulsa, Oklahoma-based midstream service provider announced in a press release.
The acquisition adds refined products and crude oil transportation assets to ONEOK’s natural gas and NGL portfolio, creating more than 50,000 miles of pipeline infrastructure and a connection to almost 50% of the U.S.’ refining capacity, according to ONEOK’s website.
Magellan unitholders received $25 in cash and 0.667 shares of ONEOK common stock for each outstanding Magellan common unit. Magellan common units will no longer be publicly traded on the New York Stock Exchange, while ONEOK will continue to trade on the NYSE.
"This is a significant day for Tulsa and the industry as we bring together the talented ONEOK and Magellan teams and look to the future as one company," Pierce H. Norton II, ONEOK president and CEO, said in the press release. "Our expanded products platform will present additional opportunities in ONEOK's core businesses and further enhance the resiliency of our company. We are committed to ensuring a smooth transition aimed at delivering on the many benefits of this combination for our customers, employees and shareholders."
Recommended Reading
US NatGas Flows to Freeport LNG in Texas Seen at Five-month High, LSEG Data Shows
2024-05-17 - The startup and shutdown of Freeport and other U.S. LNG export plants often has a major impact on global gas prices.
Waha NatGas Prices Go Negative
2024-03-14 - An Enterprise Partners executive said conditions make for a strong LNG export market at an industry lunch on March 14.
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
‘Oversupplied’ NatGas Market Aiding Williams’ Storage Business
2024-05-08 - Midstream company Williams saw overall demand growth as heavy gas volumes passed through its network.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.