It will create a "more resilient energy infrastructure company that is expected to produce stable cash flows through diverse commodity cycles", per the statement. Crude prices have traded off in 2023 on potential recession fears, although not as badly has natural gas. natural gas prices have struggled this year because of oversupply concerns. Norton II, who will head the combined company, said in a statement. "The combination of ONEOK and Magellan will create a diversified North American midstream infrastructure company with predominately fee-based earnings, a strong balance sheet and significant financial flexibility," ONEOK CEO Pierce H. The combined company will have 44% of its business in NGLs, and 21% in refined products, according to a presentation. The deal will give ONEOK, until now a transporter of natural gas liquids and natural gas, access to Magellan's refined products and crude oil transportation business. The buyer will also assume Magellan's $5 billion debt pile. ONEOK will pay $25 and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit, representing a premium of 22% based on Magellan shares' closing price on May 12. pipeline operator Magellan Midstream Partners (MMP.N) in a cash-and-stock deal valued at about $18.8 billion including debt, bringing natural gas-focused ONEOK into transporting refined products and oil. May 14 (Reuters) - ONEOK Inc (OKE.N) agreed on Sunday to buy U.S.
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