ONEOK to buy Permian assets from Brazos Midstream in $4.425bn deal

ONEOK Inc. agreed to buy Brazos Midstream's Permian Basin assets for $4.425 billion, funded by a $9 billion equity investment from Apollo. The deal doubles ONEOK's processing capacity in the region, with 600,000 acres under long-term contracts. ONEOK aims to accelerate EBITDA growth and deleverage to 3.25x debt-to-EBITDA, with plans to settle $5 billion in debt.

Oneok (OKE) is acquiring Brazos Midstream's Permian Midland assets for $4.4B, funded by a $9B investment from Apollo (APO). The deal will double OKE's processing capacity, reduce leverage, and is expected to be accretive to earnings and free cash flow. OKE aims to maintain 3-4% annual dividend growth, with potential for increases.

Apollo Global Management plans to convert its $9 billion stake in Oneok Inc. into investment-grade debt for sale. The deal, announced Sunday, allows Oneok to raise capital without adding conventional debt or affecting its credit rating. Apollo aims to structure the securities so they can receive investment-grade ratings, with some placed with Athene and third-party insurers. This strategy has been used in over $100 billion of transactions, including deals with Intel and BP.

ONEOK (OKE) is acquiring Brazos Midstream’s Permian assets for $4.43B in cash, with a $9B equity investment from Apollo. The deal is expected to double its processing capacity and be immediately accretive to earnings and free cash flow per share. ONEOK plans to use $5B from Apollo to reduce debt, aiming for 3.25x debt-to-EBITDA by 2027. The acquisition includes 700 miles of gathering infrastructure and 1.2 Bcf/d of processing capacity, with long-term contracts backing 600,000 dedicated acres.

ONEOK received a $9 billion investment from Apollo's affiliate, AP Falcon Holdings, for Class B units. The funds will support the Brazos Midland acquisition and repay $5 billion in senior debt. The agreement includes governance terms and buyout rights, effective from September 10, 2026.

ONEOK Inc. (OKE) is restructuring its balance sheet with a $5 billion debt repayment plan, including a $2 billion tender offer and a minority equity investment from Apollo Global Management (APO). The deal aims to retire senior debt and support a $4.4 billion acquisition. Apollo's investment will be structured as investment-grade debt securities, providing capital without threatening ONEOK's credit rating.