ONEOK to Acquire Brazos Midstream's Permian Midland Basin Assets for $4.425 Billion

ONEOK, Inc. has announced a definitive agreement to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Midland Basin for $4.425 billion. The acquisition, supported by a $9 billion minority equity investment from Apollo, is expected to enhance ONEOK's financial position and growth outlook.

The company plans to utilize approximately $5 billion from the equity investment to reduce its existing debt. This move aims to lower ONEOK's leverage to approximately 3.25 times debt-to-EBITDA, enhancing the company's ability to pursue organic growth opportunities, potential dividend increases, and share buybacks.

According to Pierce H. Norton II, ONEOK's president and CEO, the acquisition aligns with the company's strategy to expand its integrated energy infrastructure. The acquisition is expected to be immediately accretive to earnings and free cash flow per share, bolstered by substantial contracted growth from the acquired assets.

The transaction is projected to close in the fourth quarter of 2026, following customary regulatory approvals. The approval for the minority equity investment is anticipated in the first half of September, pending similar conditions. The acquisition is seen as a key strategic step to strengthen ONEOK's position in one of the most economically valuable regions for energy production in North America.

ONEOK's acquisition of Brazos Midstream enhances its midstream capabilities and is set to support a significant backlog of growth opportunities in the Permian Basin and beyond, contributing positively to the company's adjusted EBITDA growth target over the next five to seven years.