ONEOK will buy Brazos Midstream’s Permian Midland Basin Assets for $4.43 Billion

ONEOK announced on Sunday that it has purchased Brazos Midstream’s Permian -Midland Basin Natural Gas Gathering and Processing Assets for around $4.43 Billion. This will more than double the U.S. Pipeline Operator's processing capability in the region.

As pipeline operators in the U.S. benefit from increased oil and?gas output in the Permian basin, and increasing natural gas demand amid record LNG exports, the acquisition is timely.

The company stated that the deal is expected to close in the fourth quarter 2026 and will immediately increase 'earnings-per-share and free cashflow for ONEOK.

ONEOK?said that the acquisition would be financed through a $9 Billion non-voting minor equity investment by funds and affiliates of Apollo Global Management.

The Brazos Midland assets acquired by ONEOK will be added to the existing Permian?platform. This platform is currently supported with 14 active drilling rigs, including those from ExxonMobil Diamondback Energy, and Double Eagle.

ONEOK Holdings LLC, a newly-formed holding company that transports natural 'gas, liquid natural 'gas, refined products, and crude oil, announced that Apollo would invest $9 billion for a Class B share in the new company.

The Tulsa-based company said it would extinguish about $5 billion in existing debts, as well as funding the acquisition.

(source: Reuters)