According to Zhitong Finance, American oil pipeline operator ONEOK (OKE.US) and EnLink Midstream (ENLC.US) have signed a final merger agreement. Under the agreement, ONEOK will acquire all publicly held common shares of EnLink for $4.3 billion.

Under the agreement, each EnLink common share unit not already held by ONEOK will be converted into 0.1412 shares of ONEOK common stock. The exchange ratio is calculated by dividing $15.75 per unit (equivalent to EnLink's closing price on November 22, 2024) by ONEOK's 10-day volume weighted average price (VWAP).

Overall, ONEOK will issue approximately 37 million shares of stock under the proposed transaction, representing about 6.0% of ONEOK's total issued shares after the completion of the transaction.

As private equity firms sell assets to corporate buyers, the oil industry has seen a series of transactions, with the above deal being the latest. With cash-rich fossil fuel companies consolidating and updating their drilling inventories, oil and gas asset operators are seeking to scale up.

In August of this year, ONEOK agreed to acquire a competitor and controlling interest in another company in the Permian Basin, with a total value of $5.9 billion. At that time, ONEOK acquired Global Infrastructure Partners' (GIP) entire stake in EnLink Midstream LLC, and also acquired GIP's interest in Medallion Midstream, the largest crude oil gathering system in the Permian Basin.