Oneok to acquire remaining stake in Oneok Partners for $9.3 billion
Tulsa-based Oneok Inc. will acquire all of the outstanding common units of Oneok Partners LP not already owned by Oneok for $9.3 billion in Oneok common stock.
Under the agreement, each outstanding common unit of Oneok Partners that Oneok does not already own will be converted into .985 shares of Oneok common stock, representing a 22.4% premium to the Oneok Partners closing price on Jan. 27.
The deal is expected to close in the second quarter. Upon completion, Oneok does not expect to pay cash income taxes through at least 2021.
The deal is expected to assign Oneok a more than $30-billion enterprise value. The firm will continue to operate as a diversified midstream service provider with an integrated 37,000-mile network of natural gas liquids and natural gas pipelines, processing plants, fractionators, and storage facilities in the Williston basin, Mid-Continent region, Permian basin, Midwest, and Gulf Coast.
"The transaction will not impact our employees or their day-to-day responsibilities," said Terry K. Spencer, president and chief executive officer of Oneok and Oneok Partners. "The merger of our companies will enhance future opportunities for our businesses and employees, allowing us to continue growing as one of North America's largest midstream service providers."