Oneok, a US gas-focused midstream company, has agreed to buy the US refined products and oil pipeline operator Magellan Midstream Partners in a cash-and-stock transaction valued at around US$18.8bn including assumed debt, resulting in a combined company with a total enterprise value of US$60bn. The combined company will own more than 25,000 miles (40,200 km) of liquids-oriented pipelines, with assets at the Gulf Coast and Mid-Continent market hubs. The new structure will have 44% of its business in natural gas liquids (NGLs), and 21% in refined products. The deal is expected to close in the third quarter of 2023.
Oneok owns and operates a NGL system, connecting NGL supply in the Rocky Mountain, Permian and Mid-Continent regions as well as a network of gathering, processing, fractionation, transportation and storage assets. Magellan Midstream Partners has a 9,800-mile (15,800 km) refined products pipeline system with 54 connected terminals and two marine storage terminals. The company also possesses around 2,200 miles (3,500 km) of crude oil pipelines, a condensate splitter and storage facilities with an aggregate storage capacity of about 39 mbl, of which 29 mbl are used for contract storage.