ONEOK to Acquire Brazos Midland Gas Assets in $4.425 Billion Deal
ONEOK has agreed to acquire natural gas gathering and processing assets from Brazos Midstream for $4.425 billion, expanding its presence in the Permian Basin's Midland sub-basin. The acquisition is funded through a separate $9 billion nonvoting minority equity investment by Apollo Global Management, with part of the proceeds used to reduce existing debt. ONEOK expects this move to strengthen its balance sheet and bring its 2027 pro forma debt-to-EBITDA ratio down to about 3.25 times. The acquired assets include over 600,000 dedicated acres with long-term contracts supporting producers like ExxonMobil and Diamondback Energy. Post-acquisition, ONEOK's Midland Basin processing capacity is expected to more than double to approximately 2.3 billion cubic feet per day (Bcf/d). The company plans to integrate the assets into its broader natural gas liquids infrastructure. ONEOK has been actively expanding its midstream portfolio through a series of acquisitions in recent years, including Magellan Midstream Partners and EnLink Midstream. The Brazos acquisition is expected to be immediately accretive to earnings and free cash flow per share.
