EnLink Midstream, LLC (NYSE:ENLC), a Dallas-based natural gas transmission company with a market capitalization of $7.32 billion and annual revenue of $6.65 billion, has provided additional voluntary disclosures related to its ongoing merger with ONEOK , Inc. (NYSE:OKE), an energy company headquartered in Tulsa, Oklahoma.
The disclosures come in response to demand letters from purported EnLink unitholders and three filed complaints alleging deficiencies in the proxy statement/prospectus concerning the merger. According to InvestingPro data, ENLC has demonstrated strong performance with a 34.59% return over the past year and maintains a healthy 3.43% dividend yield.
The merger, initially disclosed on November 24, 2024, involves a two-step process where EnLink will first merge with a direct, wholly-owned subsidiary of ONEOK, and subsequently with another subsidiary, resulting in EnLink becoming a part of ONEOK.
The definitive merger agreement was filed with the SEC, and the registration statement was declared effective on December 30, 2024. InvestingPro analysis reveals that EnLink enters this merger from a position of financial strength, with an overall GOOD health score and robust operational metrics, including $1.36 billion in EBITDA. Subscribers to InvestingPro can access the comprehensive merger analysis and additional insights through the exclusive Pro Research Report.
The additional disclosures, filed today, aim to address the alleged informational gaps and include detailed financial analyses underpinning the merger terms. EnLink clarified its discounted cash flow analysis, providing specific ranges for discount rates, EBITDA multiples, and perpetuity growth rates. Additionally, the company provided trading multiples for comparable companies and further details on the financial projections used in evaluating ONEOK.
EnLink maintains that the litigation claims are without merit but has chosen to make these supplemental disclosures to avoid potential delays in the merger process and to minimize litigation expenses. The company reaffirms its recommendation for unitholders to vote in favor of the merger proposal.
The supplemental disclosures also note that no new compensation arrangements between EnLink’s executive officers and ONEOK or its affiliates have been established or discussed in relation to the merger.
With the stock currently trading near its 52-week high of $16.40, InvestingPro subscribers can access detailed valuation metrics and 10 additional ProTips to make informed decisions about this merger. The information provided in this article is based on a press release statement, SEC filings, and InvestingPro data.
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