$20 Billion -- 20 Minutes Ago -- OKE-MMP -- May 14, 2023

Locator: 44646B.

From The WSJ:

As of Friday, the companies’ combined stock-market value of nearly $40 billion exceeded that of large U.S. competitors Energy Transfer, Kinder Morgan, and Williams Cos.

Among operators based in the U.S., only Enterprise Products Partners was valued at a higher amount, at $56.4 billion. Canadian rivals Enbridge and TC Energy were also worth more.

Magellan owns almost 10,000 miles of pipelines carrying refined products, such as gasoline, with dozens of interconnected storage facilities in Texas and Oklahoma through the Midwestern U.S. to North Dakota.

It also owns marine storage facilities in the Houston area and Corpus Christi, Texas.

Oneok has a vast network of natural gas liquids pipelines, storage terminals and natural gas pipelines in many of the same regions in the Midwestern U.S., particularly in its home state of Oklahoma and in Texas.

Oneok expects it will be able to generate $1 billion of free cash flow in the first four years after the transaction closes.

From Reuters. Link below.

Magellan's market cap at close, last trading day: $11 billion.

From the Reuters link:

May 14 (Reuters) - ONEOK Inc agreed on Sunday to buy U.S. pipeline operator Magellan Midstream Partners in a cash-and-stock deal valued at about $18.8 billion including debt, bringing natural gas-focused ONEOK into transporting refined products and oil

ONEOK will pay $25 and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit, representing a premium of 22% based on Magellan shares' closing price on May 12. The buyer will also assume Magellan's $5 billion debt pile.

A twitter thread.

Another twitter link from same source: 

Map.

Link here. 

Compare the share price of OKE on Friday, especially going into the close, with the share price of OKE for the past five days, one month, one year, max. 

This is huge.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 

Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.