MMP Stock Recent News

ONEOK Inc and Magellan Midstream Partners merger would create the fourth largest US midstream company with combined enterprise value of $60 billion.

The pipelines combination of Oneoke and Magellan requires shareholder approval from both sides. That is far from certain amid questions about the merit of the $18.8 billion transaction.

Magellan Midstream Partners will become a fully owned subsidiary of Oneok in the next quarter. Investors in the oil stock can still expect big dividends after the merger.

TULSA, Okla. , May 18, 2023 /PRNewswire/ -- Magellan Midstream Partners, L.P.

Magellan (MMP) and ONEOK join forces to create a midstream giant with a net enterprise value of $60.0 billion.

Natural gas pipeline operator ONEOK agreed to buy Magellan Midstream Partners, L.P. for $18.8 billion.

Magellan (MMP) projects free cash flow of $1.1 billion and net income per unit of $4.95 for 2023. It also expects refined product rates to increase 11% on Jul 1, 2023.

Shares of Magellan Midstream Partners NYSE: MMP rose by as much as 16% during the opening of Monday's trading session, while the stock's price action retreated to close the day up by 12.99%; the move is due to undeniably good news for shareholders. ONEOK NYSE: OKE has struck a deal to acquire Magellan Midstream Partners for a total sum of $18.8 billion; the transaction will be broken down into ONEOK reaching all of Magellan's outstanding common stock for a price of $67.50 per share, a term receiving the full credit of Monday's monster rally.

Shares of Magellan Midstream Partners LP (NYSE: MMP) opened 15% up on Monday after Oneok Inc (NYSE: OKE) said it will buy the petroleum products distributor for $18.8 billion.

Oneok and Magellan Midstream Partners will combine to form an energy infrastructure giant. Magellan's shareholders will get a big premium, so they may want to remain invested in Oneok after the merger.