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
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
Repsol to Drop Marcellus Rig in June
2024-04-26 - Spain’s Repsol plans to drop its Marcellus Shale rig in June and reduce capex in the play due to the current U.S. gas price environment, CEO Josu Jon Imaz told analysts during a quarterly webcast.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
US Gas Rig Count Falls to Lowest Since January 2022
2024-03-22 - The combined oil and gas rig count, an early indicator of future output, fell by five to 624 in the week to March 22.
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row-Baker Hughes
2024-04-12 - The oil and gas rig count, an early indicator of future output, fell by three to 617 in the week to April 12, the lowest since November.