ONEOK To Acquire Magellan Midstream Partners In Multi-Billion Dollar Deal

ONEOK is acquiring the oil company Magellan Midstream Partners in a multi-billion dollar deal.

ONEOK said after the merger, the company will be worth about $60 billion.

Hours after the nearly $19 billion deal was announced, the CEOs of both companies spoke on a conference call Monday morning to discuss the merger.

"Today is truly a historic day for both of our companies,” ONEOK President and CEO Pierce Norton II said.

Both ONEOK and Magellan operate pipelines, with ONEOK focused on natural gas and Magellan focused on refined products and crude oil.

Magellan's President and CEO Aaron Milford said this is the next logical step for the company.

"We are pleased to join them in creating a stronger more diversified midstream company with more opportunities than either of us could pursue on our own,” Milford said.

Former CFO of Magellan, and longtime investor John Chandler, said the deal is good for the City of Tulsa and the state.

"The other outcome probably would have been in Texas or someplace outside the state of Oklahoma if Magellan were to merge with some other company, which obviously is not ideal for the City of Tulsa," said Chandler.

Chandler is currently helping TU redesign its energy programs within the business school. He said not only is this merger good for job retention, but it shows traditional energy is doing well.

"ONEOK is doing very well, financially. Magellan is doing very well financially. And this is proof again that these traditional energy businesses are gonna be viable for a long time to come,” Chandler said.

The deal is expected to close in a few months, after regulators, shareholders and unitholders with both companies approve it.

In a statement President and CEO of the Tulsa Regional Chamber Mike Neal said, “ONEOK dates back more than a century, and Magellan Midstream Partners has been operating under its name in Tulsa for roughly two decades. This kind of local legacy, which will continue under this acquisition, is something the Tulsa Regional Chamber holds dear. Both energy infrastructure businesses value community involvement, and we are grateful this combined company will stay in our city.”