M&A · Energy · Pipe Lines (No Natural Gas)
ONEOK Inc to acquire Magellan Midstream Partners, L.P.
Announced May 14, 2023 · Closed Sep 25, 2023
Deal value$18.80BEV $18.80B
Premium22.0%To unaffected price
EV / Adj. EBITDA12.2x5.5x EV / Revenue
ConsiderationCash and stock
Transaction
- Acquirer
- ONEOK Inc (OKE)
- Target
- Magellan Midstream Partners, L.P.
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- $18.80B
- Status
- Closed Sep 25, 2023
Deal protections
- Break fee (target pays)
- $275M · 1.5%
- Reverse fee (buyer pays)
- $450M · 2.4%
- Go-shop
- No-shop
- Financing
- Committed · Goldman Sachs
Advisors
- To the acquirer
- Goldman Sachs, Perella Weinberg
- To the target
- Morgan Stanley
Sector context · Energy
- Comparable deals
- 34 in the prior 24 months
- Premium
- 22.0% vs. 28.6% sector median
- EV / Adj. EBITDA
- 12.2x vs. 10.2x sector median
- Break fee
- 1.5% vs. 2.8% sector median
Timeline
- AnnouncedMay 14, 2023
- Proxy filedJul 25, 2023
- Definitive proxyJul 25, 2023
- Shareholder voteSep 21, 2023
- ClosedSep 25, 2023
Valuation · fairness opinions
Premiums paidGoldman Sachs$61.86$75.11
Premiums paidGoldman Sachs$58.64$75.29
Premiums paidGoldman Sachs$66.42$86.68
Premiums paidGoldman Sachs$61.42$76.68
Other analysisGoldman Sachs$69.25$91.53
Discounted cash flowMorgan Stanley$59.00$71.00
Trading comparablesMorgan Stanley$57.00$75.00
Trading comparablesMorgan Stanley$58.00$76.00
Discounted cash flowMorgan Stanley$63.00$78.00
Analyst price targetsMorgan Stanley$61.00$81.00
Implied value per Magellan Midstream Partners, L.P. share by analysis, from Goldman Sachs and Morgan Stanley · DCF discount rate 6%–7.5%.