Oneok Stock Tumbles After Megadeal for Magellan Midstream Partners

Oneok stock sold off sharply over concerns about diluting shareholders and diversifying into the oil side of the oil & gas business. Time to buy?

Oneok stock OKE stock Oil and gas infrastructure
(Image credit: Getty Images)

Oneok's (OKE) $18.8 billion deal for Magellan Midstream Partners (MMP) announced over the weekend shouldn't come as too much of a surprise. After all, the oil and gas pipeline and storage industry has been ripe for consolidation. What perhaps did take investors off guard was the steep drop in Oneok stock when markets opened Monday.

While it's not uncommon for shares in an acquiring company to falter after making a deal announcement, Oneok stock gapped down as much as 10% at one point soon after the opening bell. Magellan Midstream Partners stock, for its part, popped 15% on the news.

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Dan Burrows
Senior Investing Writer, Kiplinger.com

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.