ONEOK Announces Deal to Acquire Remaining EnLink Stock for $4.3B

ONEOK, Inc. OKE announced that it has signed a definitive merger agreement, under which it will acquire all of the outstanding publicly held common units of EnLink Midstream ENLC for $4.3 billion in ONEOK common stock.This new deal was initiated after ONEOK successfully completed its acquisition of Global Infrastructure Partners' entire interest in EnLink on Oct. 15, 2024, for a total cash consideration of nearly $3.3 billion.Key Details of OKE’s Merger DealAs per the agreement, each outstanding common unit of EnLink that ONEOK does not already own will be converted into 0.1412 shares of ONEOK common stock. The exchange ratio was calculated by dividing the 10-day volume-weighted average price of ONEOK by $15.75 per unit, which was the market close price of EnLink on Nov. 22, 2024.ONEOK will issue around 37 million shares in relation to the proposed deal, which amounts to roughly 6% of all ONEOK shares that will be outstanding when the deal is completed.ONEOK agreed to support the deal by voting its units, which account for about 44% of the remaining EnLink common units. To finish the deal, no vote from ONEOK shareholders is needed. The deal is expected to be closed in the first quarter of 2025.Merger & Acquisitions in Oil & Gas SectorHere are some oil and gas companies that are also focused on expanding their operations through mergers and acquisitions.Energy Transfer ET recently completed the acquisition of WTG Midstream Holdings LLC. The firm paid $2.28 billion in cash and nearly 50.8 million newly issued ET common units to complete the agreement. This acquisition expanded Energy Transfer’s presence in the Midland Basin by adding 6,000 miles of complementary gas-gathering pipelines in the region. The partnership expects the WTG assets to add approximately 4 cents of distributable cash flow per common unit in 2025, increasing to approximately 7 cents per common unit in 2027.ET’s long-term (three to five-year) earnings growth rate is 23.24%. The Zacks Consensus Estimate for 2024 earnings per unit indicates a year-over-year increase of 22.9%.TotalEnergies SE TTE: During the third quarter of 2024, it acquired $1.8 billion worth of assets. These strategic acquisitions should assist the company in further expanding its multi-energy assets worldwide.TTE’s long-term earnings growth rate is 3.91%. The Zacks Consensus Estimate for 2024 earnings per share indicates a year-over-year decrease of 16.1%.OKE’s Stock Price PerformanceOver the past three months, ONEOK’s shares have risen 32.1% compared with the industry’s 18.3% growth. Image Source: Zacks Investment ResearchOKE’s Zacks RankONEOK currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ONEOK, Inc. (OKE): Free Stock Analysis Report Energy Transfer LP (ET): Free Stock Analysis Report EnLink Midstream, LLC (ENLC): Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks