EnLink unitholders vote overwhelmingly in favor of $4.3bn ONEOK takeover

ONEOK, Inc. (NYSE: OKE) has moved one step closer to completing its $4.3 billion acquisition of EnLink Midstream, LLC (NYSE: ENLC) after an overwhelming majority of EnLink unitholders voted in favor of the deal. The approval marks the final requirement before the transaction closes, with completion set for January 31, 2025.

According to preliminary results from EnLink’s Special Meeting of Unitholders, approximately 99.8% of the common units voted, representing 379.1 million units, were cast in favor of the merger. This accounts for 82.9% of all outstanding units supporting the acquisition. Following the vote, EnLink confirmed that its final tally would be reported via a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC).

What Happens Now That EnLink Unitholders Have Approved the Deal?

With ONEOK’s acquisition approval secured, EnLink’s common units will be delisted from the New York Stock Exchange (NYSE) before market open on January 31, 2025. Each outstanding EnLink unit will be converted into 0.1412 shares of ONEOK common stock, effectively consolidating the companies under a single corporate structure.

This transaction, which was first announced in November 2024, is structured as a tax-free, all-stock acquisition. Based on EnLink’s closing price of $15.75 on November 22, 2024, the agreement equates to approximately 37 million new ONEOK shares, expanding ONEOK’s total outstanding shares by 6% post-transaction.

Why Is ONEOK Acquiring EnLink?

The deal is a strategic move to enhance ONEOK’s position in the midstream energy sector, allowing the company to expand its infrastructure footprint while strengthening its ability to deliver higher shareholder returns.

ONEOK President and CEO Pierce H. Norton II emphasized that the acquisition aligns with the company’s long-term vision. He noted that the integration of EnLink’s assets into ONEOK’s existing operations would create greater operational efficiencies, improved cash flow, and additional revenue streams.

“This transaction strengthens ONEOK’s standing in the midstream energy sector by increasing scale, expanding capabilities, and positioning us for long-term success,” Norton stated. “We remain committed to delivering enhanced liquidity and dividend benefits to EnLink unitholders while driving sustainable growth for ONEOK shareholders.”

How Does This Acquisition Benefit ONEOK and EnLink Investors?

For EnLink unitholders, the acquisition provides immediate access to ONEOK’s liquidity and dividend structure, offering long-term stability in a volatile energy market. The stock-for-unit exchange ensures that EnLink investors transition seamlessly into ONEOK’s shareholder base while benefiting from the company’s strong dividend performance and enhanced capital flexibility.

For ONEOK shareholders, the acquisition is projected to be accretive, meaning it is expected to increase earnings per share (EPS) and shareholder value over time. Analysts have pointed out that the deal strengthens ONEOK’s ability to compete in a rapidly evolving midstream energy sector, particularly as the industry faces increasing demand for infrastructure development, pipeline expansion, and sustainable energy integration.

Were There Any Regulatory Hurdles in the Acquisition Process?

The acquisition faced no additional regulatory challenges, as ONEOK had already obtained antitrust clearance under the Hart-Scott-Rodino (HSR) Act during its previous purchase of Global Infrastructure Partners’ stake in EnLink. Additionally, with ONEOK already holding a 44% stake in EnLink, the company had a pre-existing majority influence over the decision, making the unitholder vote a final confirmation rather than a decisive factor.

With regulatory approvals in place and majority unitholder support confirmed, the transition is expected to proceed smoothly, allowing ONEOK to finalize the transaction without further legal or financial roadblocks.

What’s Next for ONEOK After Acquiring EnLink?

With the acquisition set to close within 24 hours, ONEOK will officially integrate EnLink’s operations, workforce, and assets into its existing business structure. Analysts believe that the acquisition will bolster ONEOK’s position in the midstream energy sector, allowing the company to expand its market share, optimize asset utilization, and improve overall operational efficiency.

Industry experts anticipate that ONEOK’s ability to consolidate EnLink’s pipeline network and processing facilities will lead to cost savings, synergies, and enhanced revenue generation opportunities. Additionally, the deal strengthens ONEOK’s standing among leading midstream energy companies that are capitalizing on growing U.S. energy production and increased global demand for natural gas and crude oil transportation infrastructure.

As ONEOK finalizes this acquisition, investors will be watching closely to see how the company leverages its expanded portfolio to maximize shareholder returns, optimize asset performance, and navigate the evolving energy landscape.