ONEOK has completed its previously announced acquisition of Global Infrastructure Partners’ (GIP) controlling interest in EnLink Midstream for approximately $3.3 billion in cash. As the new managing member of EnLink, ONEOK plans to pursue the acquisition of the company’s publicly held common units.
For some background, Devon Energy, one of EnLink’s largest customers, spun off most of its midstream business back in 2013 to create EnLink Midstream LLC and EnLink Midstream Partners LP in a joint venture with Crosstex Energy. Devon later sold its ownership stake in EnLink to an affiliate of GIP in 2018 for a little over $3.1 billion, relinquishing control of the company it had originally helped form. EnLink simplified a few years back, collapsing to a single entity – EnLink Midstream.
This acquisition significantly expands ONEOK’s integrated asset portfolio in key production areas, including the prolific Permian Basin, North Texas, Oklahoma and Louisiana (see map below). In the Permian, EnLink operates about 500 miles of crude oil gathering pipelines (the Greater Chickadee and Avenger systems), more than 1,400 miles of gas gathering pipelines (the MEGA and Delaware systems), and over 1.6 Bcf/d of gas processing capacity. EnLink also holds a 15% stake in the 2.5-Bcf/d Matterhorn Express gas pipeline, which recently came online, transporting gas from the Permian’s Waha Hub to the Katy, TX, area.
