ONEOK to Acquire Brazos Midstream Assets for $4.425 Billion
The acquisition will expand ONEOK's natural gas gathering and processing operations in the Permian Midland Basin and more than double its processing capacity in the region.
- ONEOK will acquire Brazos Midstream's Permian Midland Basin operations for $4.425 billion in cash.
- A $9 billion nonvoting minority equity investment from Apollo-managed funds and affiliates will support the transaction.
- ONEOK plans to use about $5 billion of the investment proceeds to reduce existing debt.
- The acquisition will more than double ONEOK's Midland Basin processing capacity to roughly 2.3 Bcf/d.
- The Brazos assets cover about 600,000 dedicated acres under long-term fixed-fee agreements.
- The transaction is expected to close in the fourth quarter of 2026.
MONTREAL (Oil Monster): ONEOK has agreed to acquire Brazos Midstream's natural gas gathering and processing operations in the Permian Midland Basin for $4.425 billion in cash. The deal expands the company's presence in one of North America's busiest energy-producing regions.
Apollo Investment Will Support the Acquisition and Debt Reduction
The deal will be supported by a $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo. ONEOK plans to use about $5 billion of the investment proceeds to reduce existing debt.
ONEOK Will More Than Double Midland Basin Processing Capacity
The acquisition will more than double ONEOK's Midland Basin processing capacity to roughly 2.3 billion cubic feet per day (Bcf/d), including facilities still under construction.
The expanded network will also connect more closely with ONEOK's existing NGL transportation and crude oil infrastructure.
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Long-Term Contracts Back the Brazos Midstream Assets
The Brazos assets cover about 600,000 dedicated acres under long-term fixed-fee agreements.
The contracts are currently backed by 14 drilling rigs operated by major producers, including ExxonMobil, Diamondback Energy and Double Eagle.
What ONEOK Expects From the Transaction
The transaction is expected to support stronger volume growth, operating efficiencies and long-term synergies, ONEOK noted.
The company said the deal could help push adjusted EBITDA growth toward the upper end of its 5%-to-9% target over the next five to seven years.
When the ONEOK-Brazos Deal Is Expected to Close
The transaction is expected to close in the fourth quarter of 2026, subject to regulatory and other customary conditions.
Frequently Asked Questions
How much is ONEOK paying for the Brazos Midstream assets?
ONEOK has agreed to pay $4.425 billion in cash for Brazos Midstream's natural gas gathering and processing operations in the Permian Midland Basin.
How is the ONEOK acquisition being supported?
The transaction will be supported by a $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo.
How much debt does ONEOK plan to reduce?
ONEOK plans to use about $5 billion of the Apollo investment proceeds to reduce existing debt.
What will ONEOK's Midland Basin processing capacity be?
The acquisition will more than double ONEOK's Midland Basin processing capacity to roughly 2.3 Bcf/d, including facilities still under construction.
When is the ONEOK-Brazos transaction expected to close?
The transaction is expected to close in the fourth quarter of 2026, subject to regulatory and other customary conditions.