[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 4 sources · 5 days · First seen · Last updated

ONEOK acquisition of Brazos Midstream assets

Overview

ONEOK, Inc. has finalized a $4.425 billion cash acquisition of Brazos Midstream’s natural gas gathering and processing assets located in the Permian Midland Basin.

The acquired infrastructure includes approximately 700 miles of gathering pipelines and a processing capacity of 1.1 billion cubic feet per day, including facilities under construction. This transaction more than doubles ONEOK’s Midland Basin processing capacity to roughly 2.3 billion cubic feet per day. The assets are supported by roughly 600,000 dedicated acres and secured through long-term, fixed-fee contracts with a weighted-average remaining term exceeding 12 years.

ONEOK indicated that the acquisition, following a $9 billion minority equity investment from Apollo-managed funds, will be used to support the purchase and approximately $5 billion in debt reduction. The company expects the deal to immediately increase earnings and free cash flow per share.

Entities

Brazos Midstream · Pierce H. Norton II · Midland Basin · Brad Iles · Western Midstream Partners, LP

Timeline

  1. [BUSINESS] 2 sources
    ONEOK completes $4.425 billion Brazos Midstream acquisition

    ONEOK has completed a $4.425 billion cash acquisition of Brazos Midstream’s natural gas assets in the Permian Midland Basin, doubling its regional processing capacity.

  2. [BUSINESS] 2 sources
    ONEOK acquires Brazos Midstream assets in Midland Basin for $4.425 billion

    Brazos Midstream has completed the $4.425 billion sale of its Midland Basin natural gas gathering and processing assets to ONEOK, Inc.

Sources

businessnewsthisweek.com · finchannel.com · offshoresource.com · pulse2.com