ONEOK Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$27.00 | Zjmjmv | Xzfrlry |
Oneok: A Surprising Set of Transactions Yields Substantial Shareholder Value
Narrow-moat Oneok has agreed to a complicated multistage collection of transactions. On Aug. 29, it announced that it will acquire Global Infrastructure Partners’ interests in EnLink, consisting of its 43% interest in its common units at $14.90 a unit for $3 billion, and another $300 million for its managing (general partner) interest. It’s also agreed to acquire GIP’s 100% ownership stake of Medallion Midstream for $2.6 billion. Following the completion of its initial stake in EnLink in late 2024, Oneok expects to acquire the remaining 57% of the public units, which would be an incremental $9 billion by our estimates.