ONEOK (NYSE:OKE) just made a power move in the energy sector. The pipeline giant announced it's snapping up the remaining public shares of EnLink Midstream (NYSE:ENLC) in an all-stock deal worth $4.3 billion. For every EnLink unit they don't already own, shareholders will get 0.1412 shares of ONEOK stocka deal that represents a sweet 5% premium to EnLink's last closing price. The transaction, expected to wrap up in early 2025, will add about 37 million new ONEOK shares, increasing its total share count by 6%.

Warning! GuruFocus has detected 11 Warning Signs with OKE.

This isn't ONEOK's first rodeo with EnLink. Back in August, they shelled out $3.3 billion for a 43% stake in the company, strengthening their foothold in the Permian Basin. With this deal, ONEOK is doubling down on the region, aiming to supercharge its natural gas transport game. The company is betting big on growing demand for gas to fuel data centers, liquefied natural gas exports, and cutting-edge hydrogen and ammonia facilities. With a sprawling 50,000-mile pipeline network already in place, ONEOK is positioning itself as a heavyweight in the race to power tomorrow's energy needs.

This deal isn't happening in a vacuum. The U.S. pipeline sector has been buzzing with activity as players scale up to navigate rising demand and tighter regulations on new infrastructure projects. Earlier this month, ONEOK sold off three natural gas pipelines to DT Midstream for $1.2 billion, streamlining its operations for this new phase of growth. The EnLink acquisition is another bold step in ONEOK's strategy to lead the pack in the evolving energy market, making sure they're not just part of the conversationthey're defining it.

This article first appeared on GuruFocus.

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