ONEOK Spends $3B On EnLink Midstream Stake, $2.6B On Medallion
Portfolio Pulse from Lekha Gupta
ONEOK, Inc. (NYSE:OKE) is acquiring a 43% stake in EnLink Midstream (NYSE:ENLC) for $3 billion and all equity interests in Medallion Midstream for $2.6 billion. The transactions, valued at $5.9 billion, will enhance ONEOK's capacity in the Permian Basin and are expected to close in Q4 2024. ENLC shares rose 13.22% premarket.
August 29, 2024 | 1:38 pm
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POSITIVE IMPACT
Alerian MLP ETF, which includes EnLink Midstream, might experience positive effects due to the increase in ENLC's share price after ONEOK's acquisition news.
AMLP's exposure to EnLink Midstream means the ETF could benefit from the positive movement in ENLC's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
EnLink Midstream shares rose 13.22% premarket after ONEOK announced a $3 billion acquisition of a 43% stake, representing a 12.8% premium over the previous closing price.
The acquisition by ONEOK at a premium price has led to a significant increase in EnLink's share price, indicating positive investor sentiment.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Global X MLP ETF, which provides exposure to EnLink Midstream, may see positive impacts due to the rise in ENLC's share price following ONEOK's acquisition announcement.
As MLPA holds EnLink Midstream, the rise in ENLC's share price could positively impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
ONEOK is acquiring significant stakes in EnLink Midstream and Medallion Midstream for a total of $5.9 billion, enhancing its capacity in the Permian Basin. The acquisitions are expected to close in Q4 2024 and support a $2 billion share repurchase program.
The acquisitions significantly expand ONEOK's capacity and are expected to generate substantial synergies, supporting its share repurchase program. This is likely to positively impact ONEOK's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100