Dallas, Texas-based EnLink Midstream, LLC (NYSE:ENLC), a $7 billion market cap midstream energy company with $1.35 billion in EBITDA, announced today the departure of Jesse Arenivas, its President, CEO, and a board member of its managing member, EnLink Midstream Manager, LLC.
The exit is in line with the completion of the acquisition by ONEOK (NYSE:OKE), Inc., which is anticipated to finalize in the first quarter of 2025. According to InvestingPro data, ENLC currently trades at $14.33 and offers a 3.66% dividend yield.
Arenivas's departure is considered a "Qualifying Termination" as per his change in control agreement with a subsidiary of ENLC. This termination also affects the restricted incentive units awarded to him under the company's 2014 Long-Term Incentive Plan. The company clarified that his departure was not due to any disagreement with either the Manager or ENLC. Notably, ENLC has maintained consistent dividend payments for 11 consecutive years, demonstrating strong financial stability.
This development follows the agreement dated November 24, 2024, outlining ONEOK's acquisition of the remaining publicly held common units of ENLC. The transaction is expected to enhance ONEOK's position in the natural gas transmission sector.
The information disclosed is based on an 8-K filing with the Securities and Exchange Commission.
In other recent news, EnLink Midstream is set to release its third quarter 2024 earnings with projections from Mizuho (NYSE:MFG) Securities and Citi suggesting a Q3 EBITDA of $325 million.
EnLink Midstream's stock was downgraded by Raymond (NS:RYMD) James to Market Perform from Outperform, and also by Morgan Stanley (NYSE:MS) and Wells Fargo (NYSE:WFC) from Overweight to Equalweight. This change in ratings comes amid considerations of the stock's current valuation and potential acquisition costs by ONEOK, Inc.
ONEOK has recently completed its $2.6 billion acquisition of Medallion Midstream, expanding its assets in the Permian Basin's Midland region. This move is expected to yield substantial commercial synergies, given the interconnectedness of the Medallion and ONEOK pipelines. ONEOK continues to maintain its quarterly dividend at 99 cents per share, leading to an annualized dividend rate of $3.96 per share.
EnLink Midstream has been involved in the inauguration of the Matterhorn Express pipeline, a joint venture expected to boost U.S. oil production. Significant changes have occurred at EnLink Midstream, following a major transaction with ONEOK, Inc., leading to leadership changes and the appointment of ONEOK's Pierce H. Norton II as Board Chairman.
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