12:34 PM EDT, 09/30/2024 (MT Newswires) -- EnLink Midstream ( ENLC ) is unlikely to get any other buyers after ONEOK ( OKE ) acquires a 43% controlling stake from Global Infrastructure Partners, UBS said in a note Monday.

Analysts, including Manav Gupta, said that to acquire the remaining ENLC units, ONEOK ( OKE ) must go through a conflict committee made up of three independent board members. The committee will determine the control premium for the remaining shares. The floor price for these units is expected to be $14.90 and the ceiling price at $16.40.

"After ONEOK's ( OKE ) bid, we don't anticipate any other buyers for EnLink Midstream ( ENLC ), which is a key reason for the downgrade. While ONEOK ( OKE ) might pay a premium to buy the rest of EnLink, we lack clarity on what that premium would be, limiting our outlook on the stock," the analysts said.

The transaction strengthens ONEOK's ( OKE ) integrated gas and Natural Gas Liquids platform in Oklahoma and adds gas gathering and processing operations in North Texas and natural gas pipeline capacity in Louisiana. It also offers significant synergies, potentially delivering annual savings of $250 million to $450 million within three years. EnLink's upcoming projects include the Matterhorn Express Pipeline, with full benefits set to be realized by Q1 2025, the analysts said.

They added that are raising their 2025 earnings before interest, taxes, depreciation, and amortization estimate by 0.38% to $1.44 billion due to slightly higher volumes in Louisiana while keeping our 2026 EBITDA estimate mostly unchanged.

UBS downgraded EnLink Midstream ( ENLC ) to neutral from buy while keeping its $16 price target.

Price: 14.47, Change: -0.04, Percent Change: -0.31