Asset manager Energy Income Partners LLC, one of the top shareholders in Magellan Midstream Partners, said on June 8 that it intends to vote against pipeline operator ONEOK Inc's deal to buy Magellan.
Energy Income said in a letter addressed to the company's board that the taxes paid by its funds and investors will exceed the premium offered by ONEOK and any potential benefits from the merger.
Energy Income is the fourth largest shareholder in Magellan with a roughly 3% stake.
The asset manager also said it wants Magellan to remain a stand-alone entity whose returns on invested capital are far superior to ONEOK.
ONEOK said last month that it would acquire Magellan in a cash-and-stock deal valued at about $18.8 billion.
Magellan and ONEOK did not immediately respond to requests for comment.
Recommended Reading
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Analysis: Middle Three Forks Bench Holds Vast Untapped Oil Potential
2025-01-07 - Williston Basin operators have mostly landed laterals in the shallower upper Three Forks bench. But the deeper middle Three Forks contains hundreds of millions of barrels of oil yet to be recovered, North Dakota state researchers report.
Tethys Oil Suspends Kunooz-1 Well in Oman
2024-12-13 - The decision to suspend its Kunooz-1 exploration well comes after flow testing failed to confirm the presence of commercially-viable hydrocarbons, Tethys said.
E&P Highlights: Jan. 27, 2025
2025-01-27 - Here’s a roundup of the latest E&P headlines including new drilling in the eastern Mediterranean and new contracts in Australia.
E&P Highlights: Jan. 13, 2025
2025-01-13 - Here’s a roundup of the latest E&P headlines, including Chevron starting production from a platform in the Gulf of Mexico and several new products for pipelines.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.