TULSA, Okla. — ONEOK Inc. and Magellan Midstream Partners L.P. have executed a definitive merger agreement under which ONEOK will acquire all outstanding units of Magellan in a cash-and-stock transaction valued at approximately $18.8 billion including assumed debt, resulting in a combined company with a total enterprise value of $60 billion.

“ONEOK has a long history and track record of being at the forefront of transformational transactions. The combination of ONEOK and Magellan will create a diversified North American midstream infrastructure company with predominately fee-based earnings, a strong balance sheet and significant financial flexibility focused on delivering essential energy products and services to our customers and continued strong returns to investors,” said Pierce H. Norton II, ONEOK president and CEO.

Magellan will be merged into a newly created, 100% wholly owned subsidiary of ONEOK. The transaction is expected to close in the third quarter of 2023 and has been unanimously approved by the board of directors of both companies.