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
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
FERC Approves ONEOK Pipeline Segment Connecting Permian to Mexico
2024-02-16 - ONEOK’s Saguaro Connector Pipeline will transport U.S. gas to Mexico Pacific’s Saguaro LNG project.
Post $7.1B Crestwood Deal, Energy Transfer ‘Ready to Roll’ on M&A—CEO
2024-02-15 - Energy Transfer co-CEO Tom Long said the company is continuing to evaluate deal opportunities following the acquisitions of Lotus and Crestwood Equity Partners in 2023.
Williams CEO: Louisiana Energy Gateway Start Temporarily in Limbo
2024-03-21 - Williams CEO Alan Armstrong said the project still moving forward after hitting a snag in a dispute with Energy Transfer but lacks a definitive start date.
EQT CEO: Biden's LNG Pause Mirrors Midstream ‘Playbook’ of Delay, Doubt
2024-02-06 - At a Congressional hearing, EQT CEO Toby Rice blasted the Biden administration and said the same tactics used to stifle pipeline construction—by introducing delays and uncertainty—appear to be behind President Joe Biden’s pause on LNG terminal permitting.