ONEOK, Inc. (OKE, Financial), a leading energy company, has announced the successful completion of its acquisition of Medallion, a significant transaction aimed at enhancing its strategic position in the energy sector. The acquisition, finalized on October 31, 2024, involved the purchase of all issued and outstanding limited partner interests in GIP III Trophy Intermediate Holdings, L.P., commonly known as Medallion, for approximately $2.4 billion in cash.
This strategic move not only grants ONEOK the limited partner interests but also positions it as the general partner of Medallion, thereby assuming all associated rights and obligations. The acquisition is expected to bolster ONEOK's capabilities in the crude oil gathering pipeline sector, particularly in the Permian Basin, a key area for energy production.
In conjunction with the Medallion Transaction, ONEOK also acquired the remaining 60% membership interests in Medallion Midland Partners, LLC from the DoublePoint Group. This joint venture, which focuses on the construction, ownership, and operation of crude oil gathering pipelines, was acquired for an additional $170 million in cash.
The completion of these transactions underscores ONEOK's commitment to expanding its infrastructure and operational footprint in the energy sector. Investors and stakeholders are keenly observing how this acquisition will impact ONEOK's market position and financial performance in the coming quarters.
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