These two unitholders own approximately 79.2% of Enable’s outstanding common units. (“CNP”), which also control the General Partner of Enable, have entered into support agreements, pursuant to which they have agreed to vote their Enable units in favor of the merger, upon effectiveness of the S-4 Registration Statement with the SEC. The two largest unitholders of Enable, OGE Energy Corp. The transaction has been approved by the Board of Directors of ET and the Conflicts Committee and the Board of Directors of Enable. Potential commercial synergies include significant incremental earnings, which may result from integrating Enable’s Anadarko gathering and processing complex with Energy Transfer’s fractionation assets on the U.S. The combination of Energy Transfer’s significant infrastructure with Enable’s complementary assets will allow the combined company to pursue additional commercial opportunities and achieve cost savings while enhancing Energy Transfer’s ability to serve customers.Įnergy Transfer expects the combined company to generate more than $100 million of annual run-rate cost and efficiency synergies, excluding potential financial and commercial synergies. Energy Transfer will further enhance its connectivity to the global LNG market and the growing global demand for natural gas as the world transitions to cleaner power and fuel sources. The acquisition will also provide significant gas gathering and processing assets in the Arkoma basin across Oklahoma and Arkansas, as well as the Haynesville Shale in East Texas and North Louisiana.Įnable’s transportation and storage assets enhance Energy Transfer’s access to core markets with consistent sources of demand and bolster its portfolio of customers anchored by large, investment-grade customers with firm, long-term contracts. The all-equity nature of the transaction allows unitholders of both partnerships to participate in the value creation potential of the combined partnership.Įnergy Transfer’s acquisition of Enable will increase Energy Transfer’s footprint across multiple regions and provide increased connectivity for Energy Transfer’s natural gas and NGL transportation businesses.Įnergy Transfer will significantly strengthen its NGL infrastructure by adding natural gas gathering and processing assets in the Anadarko Basin in Oklahoma and integrate high-quality assets with Energy Transfer’s existing NGL transportation and fractionation assets on the U.S. The transaction furthers Energy Transfer’s deleveraging efforts as it is expected to be immediately accretive to free cash flow post-distributions, have a positive impact on credit metrics and add significant fee-based cash flows from fixed-fee contracts. View the full release here: Ĭomplementary Asset Base Drives Value Across Footprint – Creates Contiguous Asset Footprint (Graphic: Business Wire) The transaction will include a $10 million cash payment for Enable’s general partner. In addition, each outstanding Enable Series A preferred unit will be exchanged for 0.0265 Series G preferred units of Energy Transfer. Under the terms of the agreement, Enable common unitholders will receive 0.8595 ET common units for each Enable common unit, an exchange ratio that represents an at-the-market transaction, based on the 10-day volume-weighted average price of ET and Enable common units on February 12, 2021. 17, 2021-Įnergy Transfer LP (NYSE: ET) (“ET” or “Energy Transfer”) and Enable Midstream Partners, LP (NYSE: ENBL) (“Enable”) today announced that they have entered into a definitive merger agreement whereby Energy Transfer will acquire Enable in an all-equity transaction valued at approximately $7.2 billion. $100 million of operational / cost synergy opportunities expected, excluding additional upside from potential financing and commercial synergiesĭALLAS & OKLAHOMA CITY-(BUSINESS WIRE)-Feb. Adds investment grade credit profile and diversified asset base anchored by strong customers and fee-based contracts.Enhances midstream infrastructure with increased connectivity throughout Mid-Continent and U.S. Complementary assets with significant integration opportunities.All-equity, credit-accretive bolt-on acquisition.
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