Magellan Midstream Files Investor Presentation Highlighting Benefits Of Pending ONEOK Transaction

Author: Happy Mohamed | August 29, 2023 04:39pm

Transaction delivers full value to Magellan unitholders and provides unitholders with ownership in a stronger combined company

Combined company better positioned to address secular risks and achieve strong growth and value creation over the long term

Board carefully considered alternative opportunities, structures and tax implications

Magellan urges unitholders to vote "FOR" the pending merger today

TULSA, Okla., Aug. 29, 2023 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE:MMP) ("Magellan") today announced the filing of an investor presentation with the U.S. Securities and Exchange Commission in connection with our pending merger with ONEOK, Inc. (NYSE:OKE) ("ONEOK"). The investor presentation is also available at MaximizingValueforMMPunitholders.com.

"We are confident the pending merger with ONEOK is the best path forward for Magellan and is in the best interests of Magellan unitholders," said Aaron Milford, chief executive officer. "The merger provides significant premium value to Magellan unitholders, with a meaningful upfront cash consideration as well as substantial ownership in a stronger combined company that has greater growth opportunities, scale, diversification and resilience. We urge all Magellan unitholders to vote 'FOR' the pending merger today to receive full value for their units."

Highlights of the presentation include:

Magellan believes the transaction delivers full value to Magellan unitholders 

• Transaction multiple and premium exceed precedent industry transactions, representing the highest enterprise value to adjusted EBITDA ("EV / EBITDA") multiple of comparable midstream energy transactions since 2016, an EV / EBITDA multiple that is 2.5x higher than Magellan's publicly traded peers1, and, at 22%, the highest premium of comparable midstream transactions since the pandemic induced a sector re-rating
• Implied value of merger consideration exceeds Magellan's trading value at any point in approximately 5 years
• Board negotiated 4 price increases, fiduciary out, lower termination fee, ability to pay pre-closing special distributions and significant cash component – and carefully evaluated ONEOK assets, strategy and track record before determining transaction maximized value
  • As shown below, the proposed transaction premium adds to Magellan's already premium EV / EBITDA trading multiple. If the transaction fails to close, Magellan's unit price could decline to a multiple in line with our peers, which would result in a 28% decline to the implied transaction value

Posted In: MMP OKE