ONEOK Acquires Permian Assets from Brazos Midstream for $4.425 Billion
ONEOK has agreed to acquire natural gas gathering and processing assets in the Permian Midland Basin from Brazos Midstream for $4.425 billion in cash, with a projected closing date of Q4 2026. The transaction is financed by an equity investment of $9 billion from Apollo funds, part of which will be used to reduce ONEOK's existing debt and target a leverage ratio of approximately 3.25 times EBITDA for 2027. The acquired assets include over 700 miles of gathering infrastructure and processing capacity totaling 1.2 bcf/d across seven counties, supported by long-term contracts on about 600,000 acres with an average remaining term exceeding 12 years. The addition is expected to significantly expand ONEOK's Midland Basin operations, nearly doubling its total processing capacity once the Cassidy II plant opens in Q3 2027. ONEOK anticipates immediate earnings and free cash flow per share accretion from this acquisition, which values the assets at around seven times estimated EBITDA for 2027. The deal aligns with ONEOK's strategy to expand its integrated energy infrastructure and strengthen operations in one of North America’s most active oil and gas regions.
