ONEOK and Magellan Midstream Partners said Sunday they executed a merger agreement for ONEOK to acquire Magellan in a cash-and-stock transaction valued at $18.8 billion, including $5 billion of debt. Magellan will be a wholly owned subsidiary of ONEOK. The combined company, valued at $60 billion, will have 25,000 miles of liquids-oriented pipelines with operational expertise in Gulf Coast and Mid-Continent.
ONEOK provides midstream services and owns one of the nation’s premier NGL systems connecting Permian Basin, Mid-Continent and Rocky Mountains with key market hubs. Magellan owns a refined petroleum products pipeline system of 9,800 miles in the U.S.