(Reuters) -U.S. pipeline operator ONEOK (NYSE:OKE) said on Wednesday that it struck two deals worth $5.9 billion with infrastructure investor GIP to boost its presence in the Permian Basin as well as mid-continent, North Texas and Louisiana regions.
ONEOK said it would buy GIP’s 43% stake in EnLink Midstream (NYSE:ENLC) for $14.90 per unit and GIP’s full interest in EnLink’s managing member for a total of about $3.3 billion in cash.
The price per unit is a 12.8% premium to EnLink’s closing market price on Aug. 27.
ONEOK said it would also buy from GIP its equity interests in Medallion Midstream, a crude gathering and transportation system in the Permian’s Midland Basin, for $2.6 billion in cash.
ONEOK said it expects the deals to immediately add to its earnings and free cash flow, bolstering its ability to execute its planned $2 billion share repurchase program.
It expects synergies between $250 million and $450 million over the next three years as a result of these acquisitions, it said in a statement.
ONEOK said it has secured financing commitments worth up to $6 billion from JPMorgan Chase (NYSE:JPM) and Goldman Sachs to fund the deals.
