ONEOK to acquire Magellan in $18.8B cash-and-stock deal; $67.50/unit (22% premium)

ONEOK INC /NEW/

Magellan unitholders get $25 cash + 0.667 ONEOK shares per unit; deal valued at $18.8B including assumed debt.
Combined enterprise value ~$60B; expected EPS accretive 3-7% per year 2025-2027; FCF per share accretion >20% 2024-2027.
At least $200M annual synergies expected; potential $400M total within 2-4 years; step-up in tax basis valued at ~$3.0B (NPV ~$1.5B).
ONEOK secured $5.25B bridge loan commitment from Goldman Sachs; transaction subject to HSR, unitholder and shareholder votes.
Pro-forma net debt/EBITDA ~4.0x at 2024 year-end; targeting <3.5x by 2026 via free cash flow and growth projects.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ONEOK INC /NEW/ entered into Agreement and Plan of Merger with Magellan Midstream Partners, L.P. (effective 2023-05-14).

Action: entry
Agreement: merger
Counterparty: Magellan Midstream Partners, L.P.
Effective: 2023-05-14

Exact text from the filing

On May 14, 2023, ONEOK, Inc., an Oklahoma corporation (NYSE: OKE) (“ ONEOK ”), entered into an Agreement and Plan of Merger (the “ Merger Agreement ”) with Otter Merger Sub, LLC, a Delaware limited liability company and a newly formed, wholly owned subsidiary of ONEOK (“ Merger Sub ”), and Magellan Midstream Partners, L.P. (NYSE: MMP), a Delaware limited partnership (“ Magellan ”).

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ONEOK INC /NEW/ filing history →

Source: SEC EDGAR

accession 0001193125-23-144039

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