Investing.com– ONEOK Inc (NYSE:) said it will buy the remainder of EnLink Midstream LLC (NYSE:) shares it does not hold in an all-stock deal, as the pipeline operator looks to boost its position in the Permian and Mid-Continent basins.
ONEOK will offer 0.1412 shares for each common share of EnLink, representing a per-share value of $16.52746. The figure is a 4.7% premium to EnLink’s close on Friday, and values a roughly 57% stake in the midstream operator at $4.3 billion.
ONEOK said it had executed a definitive merger agreement with EnLink, and will issue about 37 million shares for the transaction.
The move comes after ONEOK earlier this year bought the entirety of Global Infrastructure Partners’ stake in EnLink- representing a 43% stake in the firm- for about $3.3 billion. ONEOK had said it would buy the remainder of all publicly-traded shares in the firm later in the year.
ONEOK had also bought GIP’s stake in Medallion Midstream for $2.6 billion in cash, amid a broader consolidation in the U.S. pipeline and storage industry.
The U.S. oil industry is expected to pick up in the coming years, especially as President-elect Donald Trump vowed to ramp up local energy production.