ONEOK Finishes The Job In Picking Up EnLink Midstream
- ONEOK's stock dropped 5% after announcing a $4.3 billion all-stock acquisition of the remaining 57% of EnLink Midstream, a move anticipated by the market.
- Despite recent gains, ONEOK still warrants a marginal 'buy' rating due to expected synergies and significant cash flows from recent acquisitions.
- ONEOK's valuation is mid-tier compared to peers, but its low net leverage ratio and focus on dividends and buybacks make it a quality prospect.
- Buying EnLink Midstream shares offers a slightly better return due to the spread between current trading prices and the implied buyout price.
spooh
November 25th ended up being a very interesting day for shareholders of midstream/pipeline giant ONEOK (NYSE:OKE). This is because the stock dropped after, the evening before, announcing that management had agreed to acquire the rest of
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
