ONEOK and Magellan Midstream Partners have executed a definitive merger agreement, under which ONEOK will acquire all outstanding units of Magellan in a cash-and-stock transaction valued at $18.8 billion. The merger will result in a combined company with a total enterprise value of $60 billion.
Magellan is a publicly traded partnership based on Tulsa, Okla., that primarily transports, stores and distributes refined petroleum products and crude oil. The company has a 9,800-mile refined products pipeline system, with 54 connected terminals and two marine storage terminals (one of which is owned through a joint venture). It also owns about 2,200 miles of crude oil pipelines, a condensate splitter and storage facilities with an aggregate storage capacity of about 39 million barrels.
The transaction brings together two premier energy-infrastructure businesses with strong returns on invested capital and adds a leading refined products and crude oil transportation business to