ONEOK Completes $18.8B Magellan Acquisition
Ticker: OKE · Form: 8-K · Filed: Apr 19, 2024 · CIK: 1039684
Sentiment: bullish
Topics: acquisition, energy, infrastructure, merger
Related Tickers: MMP
TL;DR
ONEOK just bought Magellan for $18.8B, creating a bigger energy infrastructure giant.
AI Summary
On April 18, 2024, ONEOK, Inc. announced the completion of its acquisition of Magellan Midstream Partners, L.P. for approximately $18.8 billion. This strategic move aims to enhance ONEOK's natural gas liquids (NGL) and refined products infrastructure, creating a diversified energy infrastructure company.
Why It Matters
This significant acquisition positions ONEOK as a larger, more diversified energy infrastructure player, potentially impacting its market share and operational scale in the NGL and refined products sectors.
Risk Assessment
Risk Level: medium — The integration of a large acquisition like Magellan carries inherent risks related to operational synergy, debt management, and market reception.
Key Numbers
- $18.8B — Acquisition Value (Total cost of acquiring Magellan Midstream Partners, L.P.)
Key Players & Entities
- ONEOK, Inc. (company) — Acquiring company
- Magellan Midstream Partners, L.P. (company) — Acquired company
- $18.8 billion (dollar_amount) — Acquisition price
- April 18, 2024 (date) — Completion date of acquisition
FAQ
What is the primary strategic rationale behind ONEOK's acquisition of Magellan Midstream Partners?
ONEOK aims to enhance its natural gas liquids (NGL) and refined products infrastructure, creating a more diversified energy infrastructure company.
When did ONEOK officially complete the acquisition of Magellan Midstream Partners?
The acquisition was completed on April 18, 2024.
What was the total financial consideration for the acquisition of Magellan Midstream Partners?
The acquisition was valued at approximately $18.8 billion.
What types of infrastructure does ONEOK expect to strengthen with this acquisition?
ONEOK expects to strengthen its natural gas liquids (NGL) and refined products infrastructure.
What is the expected outcome of this acquisition for ONEOK's business?
The acquisition is expected to create a more diversified energy infrastructure company.
Filing Stats: 617 words · 2 min read · ~2 pages · Grade level 10.6 · Accepted 2024-04-19 16:23:38
Key Financial Figures
- $0.01 — registered Common stock, par value of $0.01 OKE New York Stock Exchange Indicate
- $3.96 — resulting in an annualized dividend of $3.96 per share. The dividend is payable May
Filing Documents
- oke-20240418.htm (8-K) — 27KB
- a04-18x24okedividendfina.htm (EX-99.1) — 4KB
- a04-18x24okedividendfina001.jpg (GRAPHIC) — 242KB
- oke-20240418_g1.jpg (GRAPHIC) — 13KB
- 0001039684-24-000029.txt ( ) — 553KB
- oke-20240418.xsd (EX-101.SCH) — 3KB
- oke-20240418_def.xml (EX-101.DEF) — 14KB
- oke-20240418_lab.xml (EX-101.LAB) — 25KB
- oke-20240418_pre.xml (EX-101.PRE) — 15KB
- oke-20240418_htm.xml (XML) — 3KB
01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure On April 18, 2024, we announced that our board of directors declared a quarterly dividend of 99 cents per share of common stock, unchanged from the previous quarter, resulting in an annualized dividend of $3.96 per share. The dividend is payable May 15, 2024, to shareholders of record at the close of business May 1, 2024. A copy of the news release is attached as Exhibit 99.1 and is incorporated herein by reference.
01 Other Events
Item 8.01 Other Events On April 18, 2024, we announced that our board of directors declared a quarterly dividend of 99 cents per share of common stock, unchanged from the previous quarter, resulting in an annualized dividend of $3.96 per share. The dividend is payable May 15, 2024, to shareholders of record at the close of business May 1, 2024.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit Number Description 99.1 News release issued by ONEOK, Inc. dated April 18, 2024. 104 Cover page interactive data file (embedded within the Inline XBRL document and contained in Exhibit 101). 2 SIGNATURE Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. ONEOK, Inc. Date: April 19, 2023 By: /s/ Walter S. Hulse III Walter S. Hulse III Chief Financial Officer, Treasurer and Executive Vice President, Investor Relations and Corporate Development 3