- Energy Transfer (NYSE:ET) agrees to acquire Enable Midstream Partners (ENBL) in an all-equity transaction valued at ~$7.2B.
- Under the deal terms, Enable common unitholders will receive 0.8595 Energy Transfer common units for each Enable unit, an exchange ratio that represents an at-the-market transaction, based on the 10-day volume-weighted average price of ET and ENBL units on Feb. 12.
- Energy Transfer says the acquisition will increase its footprint across multiple regions and provide increased connectivity for its natural gas and NGL transportation businesses.
- Energy Transfer expects the combined company to generate more than $100M of annual run-rate cost and efficiency synergies, excluding potential financial and commercial synergies.
- OGE Energy (NYSE:OGE), holder of 25.5% limited partner interest and 50% general partner interest in ENBL, says it supports the deal.
- Energy Transfer is a "deep value story" whose headwinds already are well represented in the stock price, Value Detection and Research writes in a bullish analysis posted recently on Seeking Alpha.