Magellan (MMP) Urges Unitholder 'Yes' Vote on ONEOK Deal
Energy infrastructure provider Magellan Midstream Partners, L.P. MMP has taken a significant step to engage investors toward its pending merger with another midstream operator ONEOK, Inc. OKE. In this context, the partnership has started sending informative materials to its unitholders outlining the key details and merits of the proposed transaction. This is aimed at encouraging them to cast their votes in favor of the merger before the scheduled special meeting next month.
The proposed transaction involves ONEOK's acquisition of all outstanding units of MMP through a mixture of cash and stock. Per the terms of the deal, Magellan Midstream unitholders stand to receive $25 in cash and 0.667 units of ONEOK common stock for each MMP common unit held.
The materials being dispatched to unitholders are comprehensive in nature and contain an overview of the tax implications considered by Magellan before approving the merger. To make things clearer and transparent, a video featuring president and CEO Aaron Milford discussing the advantages of the transaction and its alignment with MMP’s goals has been made available.
As it is, Magellan's board and leadership team have unequivocally stated that the combination with ONEOK holds the promise of unearthing greater value to unitholders, against what would be achievable under Magellan's standalone trajectory.
The all-important virtual special meeting is slated for Sep 21, at 10:00 a.m. Central Time, where unitholders holding their positions as of Jul 24 will be able to exercise their votes and influence the outcome of the proposed merger.
Zacks Rank & Stock Picks
Tulsa, OK-based Magellan Midstream is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. It carries a Zacks Rank #3 (Hold) at present.
Meanwhile, investors interested in the energy sector might look at operators like Solaris Oilfield Infrastructure SOI and Helix Energy Solutions Group HLX. Both these companies currently have a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Solaris Oilfield Infrastructure: SOI beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters at an average of 18.8%.
SOI is valued at around $497 million. Solaris Oilfield Infrastructure has seen its shares move up 3.4% in a year.
Helix Energy Solutions Group: Over the past 30 days, Helix Energy Solutions Group saw the Zacks Consensus Estimate for 2023 move up 4.3%. The 2023 Zacks Consensus Estimate HLX indicates 200% year-over-year earnings per share growth.
Helix Energy Solutions Group is valued at around $1.4 billion. HLX has seen its shares surge 134.5% in a year.
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Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
Helix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis Report
Solaris Oilfield Infrastructure, Inc. (SOI) : Free Stock Analysis Report
