ONEOK completes $4.4 billion acquisition of Brazos Midstream’s Permian Midland Basin assets
ONEOK Inc. closed a cash purchase of Brazos Midstream’s natural‑gas gathering and processing system in the Permian Midland Basin. The transaction, valued at approximately $4.425 billion, adds about 700 miles of pipelines and 1.1 billion cubic feet per day of processing capacity, more than doubling ONEOK’s Midland Basin capacity to roughly 2.3 billion cubic feet per day. The deal is financed by a $9 billion non‑voting minority equity investment from Apollo Global Management and will be used to retire about $5 billion of debt.
Why it matters
ONEOK says the acquisition will accelerate its adjusted EBITDA growth to the mid‑to‑high single‑digit range over the next five to seven years and help lower its pro‑forma 2027 leverage to about 3.25 times debt‑to‑EBITDA. The financing arrangement and debt reduction are expected to improve the company’s balance sheet and may support higher dividend payouts or share buybacks.
Key facts
- 1ONEOK completed the acquisition for total cash consideration of approximately $4.425 billion. globenewswire.com
- 2The acquired system includes roughly 700 miles of gathering pipelines. finance.yahoo.com
- 3Processing capacity added is 1.1 billion cubic feet per day, raising total Midland Basin capacity to about 2.3 billion cubic feet per day. finance.yahoo.com
- 4The assets cover about 600,000 dedicated acres under long‑term fixed‑fee contracts with an average remaining term of more than 12 years. globenewswire.com
- 5ONEOK arranged a $9 billion non‑voting minority equity investment from Apollo Global Management to finance the deal. finance.yahoo.com
- 6ONEOK plans to retire roughly $5 billion of existing debt, targeting a pro‑forma 2027 leverage ratio of approximately 3.25 times. finance.yahoo.com
Open questions
- The purchase price is reported as $4.425 billion (materials 1,2,5) and $4.43 billion (material 4).
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.