ONEOK Completes $4.425 Billion Natural Gas Asset Acquisition

en.Wedoany.com Reported - On October 6, U.S. energy infrastructure operator ONEOK completed its acquisition of Brazos Midstream's natural gas gathering and processing assets in the Midland sub-basin of the Permian Basin for a cash consideration of approximately $4.425 billion. The acquisition more than doubles ONEOK's natural gas processing capacity in the Midland sub-basin, bringing total processing capacity, including facilities under construction, to approximately 2.3 billion cubic feet per day. The transaction covers approximately 600,000 acres under long-term contracts, with the related fixed-fee agreements having a weighted average remaining term of more than 12 years.

The acquisition encompasses Brazos's natural gas gathering and processing systems across seven core counties in the Midland sub-basin. According to ONEOK's previously disclosed asset inventory, upon completion of the Cassidy II processing plant, the acquired assets will include approximately 700 miles of gathering pipelines and 1.2 billion cubic feet per day of natural gas processing capacity. Cassidy II is scheduled to come online in the third quarter of 2027 and is currently under construction. The aforementioned processing capacity represents the designed scale once the new assets are completed.

The oil and gas production areas covered by the Brazos assets operate under long-term fixed-fee contracts, with customers including producers such as ExxonMobil, Diamondback Energy, and Double Eagle. ONEOK previously disclosed that there are 14 active drilling rigs within these contract areas. The acquired assets also include a joint development area arrangement in the Midland sub-basin with a private oil and gas producer, through which additional incremental gas volumes can be transported via ONEOK's existing natural gas and natural gas liquids pipeline networks.

The transaction was initially executed under a definitive purchase agreement on August 30, 2026, with an original target completion in the fourth quarter. ONEOK previously arranged a $9 billion non-voting minority equity investment through funds managed by Apollo and affiliated arrangements, and completed that financing transaction on September 10. In addition to funding this asset acquisition, the proceeds are also planned to repay approximately $5 billion of existing debt. The transaction completion announcement on October 6 confirmed the official closing of the Brazos asset acquisition.