ONEOK, a natural gas transmission company headquartered in Oklahoma, has agreed to acquire Global Infrastructure Partners’ (GIP) entire interests in EnLink Midstream and Medallion Midstream in transactions valued at $5.9 billion.
ONEOK will acquire from GIP 43 percent of EnLink’s outstanding common units and 100 percent of the interests in the managing member for $300 million for a total cash consideration of $3.3 billion. In addition, ONEOK and GIP entered into a separate definitive agreement under which ONEOK will acquire all of GIP’s equity interests in Medallion Midstream, the largest privately held crude gathering and transportation system in the Permian's Midland Basin, for $2.6 billion in cash.
Upon closing of the EnLink transaction, ONEOK intends to replace the board members currently designated by GIP with new board members designated by ONEOK.
ONEOK said the transactions are highly complementary to its existing Permian natural gas liquids (NGL) a