In September 2024, ONEOK announced its strategic acquisition of a controlling interest in EnLink from Global Infrastructure Partners (GIP) along with its plans to acquire all EnLink’s publicly held interest. This acquisition is a significant strategic step for ONEOK, positioning it to not only gain a foothold in the prolific G&P play in the Permian but also takes it a step closer to full midstream value chain vertical integration in natural gas liquids (NGL) space. With one piece of the value chain puzzle remaining, ONEOK has positioned itself to become a part of the “NGL Club” joining their brethren Energy Transfer, Enterprise, Targa and P66.

Importance of Vertical Integration for NGLs

There seems to be little doubt that vertically integrated midstream companies with scale in the NGL space that own and operate gathering systems, interconnected processing plants, Y-grade and residue pipelines, downstream large fractionation, NGL storage and NGL export dock, have a significant competitive edge over smaller and less integrated companies. It allows them to control the entire value chain, from “wellhead to ship” which is critical when market is competitive. Specifically: