{"id":58658,"date":"2023-09-08T17:23:52","date_gmt":"2023-09-08T21:23:52","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/magellan-midstream-partners-and-oneok-the-upcoming-vote-is-heating-up-nyseoke\/"},"modified":"2023-09-08T17:23:57","modified_gmt":"2023-09-08T21:23:57","slug":"magellan-midstream-partners-and-oneok-the-upcoming-vote-is-heating-up-nyseoke","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=58658","title":{"rendered":"Magellan Midstream Partners And ONEOK: The Upcoming Vote Is Heating Up (NYSE:OKE)"},"content":{"rendered":"
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In May 2023, it was announced that Oneok would attempt to acquire Magellan Midstream Partners. At the time of the announcement, the acquisition valued Magellan Midstream Partners at $67.50 per share. This represented a significant premium to where shares were trading near $55 per share. On the day of the announcement, Oneok took a 10 percent dive on the news but has since recovered.<\/span><\/p>\n

The vote on whether the merger will be approved by unitholders is set for September 21 at 10 am CST and there has been some organized opposition to the merger. It is important that unitholders who plan to vote have the information necessary to make an informed decision. Both companies have laid out the reasons why the merger makes sense for unitholders.<\/p>\n

With the voting just days away, it will be exciting and interesting to watch the outcome as there are two adamantly opposed sides of the deal.<\/span><\/p>\n

History of Magellan Midstream Partners<\/h2>\n

Before I cover the details of the acquisition, I always like to cover the brief history of the company in question. Magellan Midstream Partners originally began trading publicly as Williams Energy Partners in February 2001. A couple of years later, the company changed its name to Magellan Midstream Partners in September 2003.<\/p>\n

Prior to February 2001, the company was part of a portfolio of companies under the broader umbrella of the Williams Companies, headquartered in Tulsa, Oklahoma.<\/p>\n

The Williams Companies may sound familiar as it is currently a publicly traded Fortune 500 company that focuses on electricity generation and natural gas transportation and processing. In 2011, the Williams Companies also spun off their energy exploration and production assets into WPX Energy.<\/p>\n

WPX Energy recently merged with Devon Energy in 2021, as I wrote about here, and held an impressive portfolio of assets.<\/p>\n

The history of the Williams Companies goes back to 1908 when the two Williams Brothers, began a construction business that transformed into a pipeline construction company that originated in Fort Smith, Arkansas.<\/p>\n

The pipeline industry was a small but growing industry and had previously been confined to the northeastern states where oil was first discovered. At the turn of the century, oil began to be discovered in southern states such as Texas and Oklahoma.<\/p>\n

During World War II, The Williams Company played an important role in connecting pipelines to the Eastern United States to ensure a continuous supply of energy in the event that the United States was attacked. In this unlikely event, it would be able to access energy from different regions of the United States.<\/p>\n

What is Oneok Getting?<\/h2>\n

Since being separated from The Williams Companies, Magellan Midstream Partners has had a solid track record and today owns an impressive portfolio of midstream assets. According to their website, this includes:<\/p>\n