ONEOK Completes Acquisition of Medallion Midstream
Deal News | Nov 01, 2024 | EIN
ONEOK, Inc., a leading American pipeline operator, has successfully acquired Medallion Midstream LLC for $2.6 billion from Global Infrastructure Partners. Medallion Midstream, the largest closed crude oil transportation system in the Permian Basin, adds over 1,200 miles of pipelines with substantial crude oil transport and storage capacities to ONEOK's portfolio. This acquisition aligns with the trend of private equity firms offloading assets to corporates, as oil and gas operators prioritize expansion during industry consolidation. The purchase follows ONEOK's previous acquisition of a stake in EnLink Midstream LLC, forming part of a larger $5.9 billion agreement. ONEOK aims to leverage these acquisitions for significant commercial benefits due to their alignment with existing assets.
Sectors
- Energy
- Private Equity
- Infrastructure
Geography
- United States – The acquisition involves American companies, ONEOK and Medallion Midstream, operating within the United States, specifically focusing on the Permian Basin, Texas, and headquartered in Oklahoma and Texas.
Industry
- Energy – The article discusses ONEOK's acquisition of Medallion Midstream, both of which operate in the energy sector, focusing on crude oil and natural gas transportation and storage.
- Private Equity – The involvement of Global Infrastructure Partners, a private equity firm, in selling its assets aligns the article with the private equity sector.
- Infrastructure – With significant investment in pipeline and transportation infrastructure, the article pertains to the infrastructure sector through the construction and expansion of energy transport systems.
Financials
- $2.6 billion – The transaction value for ONEOK's acquisition of Medallion Midstream LLC.
- $3.3 billion – The transaction value for ONEOK's acquisition of a 43% stake in EnLink Midstream, LLC from GIP.
- $5.9 billion – The combined value for ONEOK's acquisition of assets from GIP including stakes in EnLink and Medallion Midstream.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ONEOK, Inc. | Acquirer | Company | ONEOK is a diversified energy infrastructure company focusing on the collection, processing, and transportation of natural gas. |
| Medallion Midstream LLC | Target | Company | Medallion Midstream operates the largest closed crude oil transportation system in the Permian Basin, specializing in oil and gas transportation and storage. |
| Global Infrastructure Partners (GIP) | Seller | Company | GIP is a private investment firm focusing on energy, transport, water supply, and waste management sectors. |
| EnLink Midstream, LLC | Other Company | Company | EnLink Midstream offers energy infrastructure services including transportation and storage, recently acquired in part by ONEOK from GIP. |