ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Energy Infrastructure Channel
  2. Additional ONEOK-Magellan Deal Details Disclosed in SEC Filings
Energy Infrastructure Channel
Share

Additional ONEOK-Magellan Deal Details Disclosed in SEC Filings

Elle Caruso FitzgeraldJun 26, 2023
2023-06-26

Recent regulatory filings from ONEOK (OKE) and Magellan Midstream Partners, LP (MMP) provide insight into the expected deal synergies.

Midstream corporation ONEOK announced last month it will acquire MLP Magellan in a cash-and-stock deal valued at $18.8 billion. The merger is expected to close in the third quarter of 2023, subject to ONEOK and Magellan shareholder approval and other customary conditions.

See more: OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle

The deal came as a surprise to the industry, but regulatory filings show preliminary discussions about a potential business combination began in the second quarter of 2019. There were no further discussions until August 2022. At that time, the president and CEO of ONEOK believed a potential combination would benefit shareholders due to increased scale, diversified product offerings, and synergies.

Details on the ONEOK-Magellan Deal

A joint proxy statement filed with the SEC last week provided more details on the deal, highlighting the financial considerations and potential synergies.

According to regulatory filings, ONEOK expects Magellan’s stable, primarily demand-driven businesses will generate significant free cash flow due to low capital expenditure requirements. ONEOK also expects the combined business will produce stable cash flows through varied commodity cycles.

See more: Raymond James Analyst on MLPs and the Outlook for Natural Gas

Increased scale and access to the water is another key opportunity for the combined company. The combined company will own more than 25,000 miles of liquids-oriented pipelines, with significant assets and operational expertise at the Gulf Coast and Mid-Continent market hubs, according to regulatory filings. International export opportunities should increase as a result of this synergy.

ONEOK anticipates the merger will result in synergies of at least $200 million annually, and potentially result in total annual synergies exceeding $400 million within two to four years, according to regulatory filings.

ONEOK expects the combined company will experience an increase in free cash flow, which will provide additional cash for debt reduction, growth capital and value returned to shareholders through dividends and/or repurchasing shares.

For more news, information, and analysis, visit the Energy Infrastructure Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X