ONEOK and EnLink Midstream: ISS and Glass Lewis Recommend Approval of Pending Acquisition
TULSA, Okla., Jan. 22, 2025 – In a significant development for the energy industry, ONEOK, Inc. (NYSE: OKE) and EnLink Midstream, LLC (NYSE: ENLC) announced today that two leading independent proxy advisory firms, Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co. (Glass Lewis), have recommended that EnLink unitholders vote in favor of ONEOK’s pending acquisition of the remaining publicly held common units of EnLink at the upcoming Special Meeting of EnLink Unitholders (the “Special Meeting”).
Recommendations from ISS and Glass Lewis
ISS, in its report, stated that the deal is “fair from a financial point of view to EnLink unitholders.” Glass Lewis, on the other hand, concluded that the merger “is expected to create value for EnLink unitholders through increased scale and operational synergies.”
Impact on EnLink Unitholders
- Enhanced Scale: The merger will create a larger, more diversified midstream business, offering increased scale and operational efficiencies.
- Operational Synergies: ONEOK’s expertise in natural gas gathering and processing, combined with EnLink’s strength in natural gas liquids and crude oil transportation, will lead to significant synergies.
- Premium Offer: EnLink unitholders will receive a premium for their units, providing a favorable financial outcome.
Impact on the World
- Consolidation in the Midstream Sector: The acquisition represents another step in the consolidation of the midstream sector, which has seen numerous mergers and acquisitions in recent years.
- Efficiency and Cost Savings: The merger will result in increased operational efficiency and cost savings, benefiting both companies and their customers.
- Strategic Importance: The combined entity will be a significant player in the North American midstream sector, further consolidating the strategic importance of midstream infrastructure in the energy value chain.
Conclusion
The recommendations from ISS and Glass Lewis are a positive sign for the pending acquisition of EnLink by ONEOK. EnLink unitholders are expected to benefit from increased scale, operational synergies, and a favorable financial outcome. Meanwhile, the merger will contribute to the consolidation of the midstream sector, leading to increased efficiency, cost savings, and strategic importance in the energy value chain.
As the energy industry continues to evolve, mergers and acquisitions will play a crucial role in shaping its future. The ONEOK-EnLink acquisition is a prime example of this trend, illustrating the strategic importance of midstream infrastructure and the benefits of consolidation.
Stay tuned for further updates on this developing story.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.
