Tulsa-based pipeline operator ONEOK said Wednesday it will acquire Medallion Midstream and controlling interest in EnLink Midstream from Global Infrastructure Partners for $5.9 billion. By acquiring Medallion – the largest privately held crude gathering and transportation system in Midland Basin – along with 43 percent interest in EnLink, ONEK establishes a fully integrated platform at scale in Permian Basin. The transactions include 1.7 billion cfd of Permian gas processing capacity and 1.6 million barrels per day of Permian crude gathering capacity.
Pierce H. Norton II, president and CEO of ONEOK, said, “ONEOK has a longstanding reputation as being intentional in building a premier energy infrastructure company, and these transactions further solidify that status by adding complementary assets that allow us to continue expanding and extending our value chain. We are particularly excited to meaningfully increase our company’s presence in the Permian Basin.”
Closing is expected in 4Q. Reuters said ONEOK intends to pursue the other 57 percent interest in EnLink, although there “could potentially be additional interest in the rest of EnLink from other companies.”