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Researched by Industrial Info Resources (Sugar Land, Texas)--ONEOK Incorporated's (NYSE:OKE) (Tulsa, Oklahoma) planned $18.8 billion acquisition of Magellan Midstream Partners, L.P. (NYSE:MMP) (Tulsa) will create a company with a total enterprise value of $60 billion with nearly 50,000 miles of combined pipeline assets, according to company executives.
The two companies announced the cash and stock acquisition on Sunday. The deal would close in the third quarter of this year. Industrial Info is tracking more than $3.21 billion worth of ONEOK projects and $1.5 billion worth of Magellan projects.
ONEOK is a major midstream service provider; its natural gas liquids (NGL) system connects NGL supply in the Rocky Mountain, Permian and Mid-Continent regions with key market centers, and it owns a network of gathering, processing, fractionation, transportation and storage assets. Magellan transports, stores and distributes refined petroleum products and crude oil. Magellan says it owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
Click on the image at right for a visual description of the pro-forma company resulting from ONEOK's acquisition of Magellan (Source: ONEOK and Magellan).
ONEOK Chief Executive Officer Pierce Norton II said in a press release the combination of the two companies "will create a diversified North American midstream infrastructure company with predominately fee-based earnings, a strong balance sheet and significant financial flexibility focused on delivering essential energy products and services to our customers and continued strong returns to investors."
He added, "Our expanded products platform will present further opportunities in our core businesses as well as enhance our ability to participate in the ongoing energy transformation with an increased presence in sustainable fuel and hydrogen corridors."
"On a combined basis, we'll own nearly 50,000 miles of combined pipeline assets primarily in the central U.S., which are 25,000 miles of liquid-oriented pipelines," Norton said in a conference call with industry analysts on Monday. "We forecast $200 million of base annual synergies and estimate these could exceed total synergies exceeding $400 million within the next two to four years."
The Magellan East Houston terminal is a crude oil delivery point for the Intercontinental Exchange Incorporated (ICE) WTI Midland Futures contract, and a key pricing point for Argus and Platts.
Among the ONEOK projects being tracked by Industrial Info is the 125,000-barrel-per-day (BBL/d) NGL Fractionator (MB-5) Addition at its Mont Belvieu site in Texas. The fractionator will extract NGL from increased wet natural gas production from the Granite Wash, Cana-Woodford Shale and the Eagle Ford Shale, bringing total site capacity to 400,000 BBL/d of ethane, propane, isobutane, normal butane, and natural gasoline. Completion is planned for mid-July.
Also being tracked is ONEOK's planned 125,000-BBL/d MB-6 Mont Belvieu NGL Fractionator Addition, which would bring the site's capacity to 525,000 BBL/d. Construction kickoff is planned for second-quarter 2024, with completion in second-quarter 2026.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the MB-5 Addition project report and click here for the MB-6 Addition project report.
Industrial Info also is tracking Magellan's Houston-to-El Paso refined products pipeline expansion. The project, which is planned to kick off in the third quarter of this year, consists of 30 miles of 16-inch-diameter pipeline to transport an additional 30,000 BBL/d of refined product along the existing route between Odessa, Texas, and Crane, Texas. Subscribers can click here for the project report.
Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.
Subscribers also can click here for all ONEOK projects tracked by Industrial Info and click here for all Magellan project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
The two companies announced the cash and stock acquisition on Sunday. The deal would close in the third quarter of this year. Industrial Info is tracking more than $3.21 billion worth of ONEOK projects and $1.5 billion worth of Magellan projects.
ONEOK is a major midstream service provider; its natural gas liquids (NGL) system connects NGL supply in the Rocky Mountain, Permian and Mid-Continent regions with key market centers, and it owns a network of gathering, processing, fractionation, transportation and storage assets. Magellan transports, stores and distributes refined petroleum products and crude oil. Magellan says it owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
ONEOK Chief Executive Officer Pierce Norton II said in a press release the combination of the two companies "will create a diversified North American midstream infrastructure company with predominately fee-based earnings, a strong balance sheet and significant financial flexibility focused on delivering essential energy products and services to our customers and continued strong returns to investors."
He added, "Our expanded products platform will present further opportunities in our core businesses as well as enhance our ability to participate in the ongoing energy transformation with an increased presence in sustainable fuel and hydrogen corridors."
"On a combined basis, we'll own nearly 50,000 miles of combined pipeline assets primarily in the central U.S., which are 25,000 miles of liquid-oriented pipelines," Norton said in a conference call with industry analysts on Monday. "We forecast $200 million of base annual synergies and estimate these could exceed total synergies exceeding $400 million within the next two to four years."
The Magellan East Houston terminal is a crude oil delivery point for the Intercontinental Exchange Incorporated (ICE) WTI Midland Futures contract, and a key pricing point for Argus and Platts.
Among the ONEOK projects being tracked by Industrial Info is the 125,000-barrel-per-day (BBL/d) NGL Fractionator (MB-5) Addition at its Mont Belvieu site in Texas. The fractionator will extract NGL from increased wet natural gas production from the Granite Wash, Cana-Woodford Shale and the Eagle Ford Shale, bringing total site capacity to 400,000 BBL/d of ethane, propane, isobutane, normal butane, and natural gasoline. Completion is planned for mid-July.
Also being tracked is ONEOK's planned 125,000-BBL/d MB-6 Mont Belvieu NGL Fractionator Addition, which would bring the site's capacity to 525,000 BBL/d. Construction kickoff is planned for second-quarter 2024, with completion in second-quarter 2026.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the MB-5 Addition project report and click here for the MB-6 Addition project report.
Industrial Info also is tracking Magellan's Houston-to-El Paso refined products pipeline expansion. The project, which is planned to kick off in the third quarter of this year, consists of 30 miles of 16-inch-diameter pipeline to transport an additional 30,000 BBL/d of refined product along the existing route between Odessa, Texas, and Crane, Texas. Subscribers can click here for the project report.
Subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.
Subscribers also can click here for all ONEOK projects tracked by Industrial Info and click here for all Magellan project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
