Mergers and acquisitions in the oil industry continue as OKE (US) acquires EnLink Midstream (ENLC) for $4.3 billion

Zhitong Finance learned that OKE.US and EnLink Midstream (ENLC.US) have signed a definitive merger agreement, under which OKE will acquire all outstanding publicly held common shares of EnLink for $4.3 billion in OKE common stock.

Under the terms of the agreement, each outstanding EnLink common share unit will be converted into 0.1412 shares of OKE common stock. The exchange ratio was determined by dividing the unit price of $15.75 (the closing price of EnLink on November 22, 2024) by the ten-day volume-weighted average price (VWAP) of OKE.

Overall, OKE will issue approximately 37 million shares of stock under the proposed transaction, representing approximately 6.0% of the total issued shares of OKE after the transaction.

The transaction is the latest in a series of deals in the oil industry as private equity firms sell assets to corporate buyers as fossil fuel companies consolidate and update their drilling inventory. Oil and gas asset operators are seeking to grow as well-funded fossil fuel companies integrate and update their drilling inventory.

In August, OKE agreed to acquire the controlling interest in two competitors and another company in the Permian Basin for a total of $5.9 billion. OKE acquired the entire interest of GIP in EnLink Midstream LLC and the interest of GIP in Medallion Midstream, the largest crude oil gathering system in the Permian Basin.