ONEOK to acquire Brazos Midstream assets for $4.425 billion

ONEOK has agreed to acquire the Permian Midland Basin natural gas gathering and processing assets of Brazos Midstream for $4.425 billion in cash. The transaction is being funded through a $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo.

ONEOK plans to allocate $5 billion of the proceeds from the Apollo investment to reduce existing debt, including repayments, make-whole calls, and a tender for senior notes. This move is expected to bring the company’s pro forma 2027 leverage to approximately 3.25 times debt-to-EBITDA.

The Apollo investment structure includes an internal rate of return (IRR) capped at 7.0% for the initial years, with excess distributions intended to amortize Apollo’s capital account over time. The acquisition of the Brazos assets is expected to close in the fourth quarter of 2026, pending Hart-Scott-Rodino clearance and other customary conditions.