ONEOK Acquires Brazos Midstream for $4.4B with Apollo's $9B Investment
ONEOK has agreed to acquire Brazos Midstream’s Permian Basin assets in the Midland Basin for $4.425 billion, significantly expanding its natural gas gathering and processing capabilities. The deal includes approximately 600,000 dedicated acres, over 700 miles of infrastructure, and expected processing capacity reaching 1.2 billion cubic feet per day by 2027. Apollo-managed funds are investing $9 billion in minority equity to finance the acquisition and help repay about $5 billion in debt. This is projected to reduce ONEOK’s pro forma 2027 debt-to-EBITDA ratio from its previous target of 3.5 times down to around 3.25 times, strengthening the company's balance sheet. The CEO stated that these transactions are expected to be immediately accretive to earnings and free cash flow per share while enhancing operational flexibility and commercial reach in West Texas and along ONEOK’s Gulf Coast export facility.
Topics: acquisition debt restructuring energy infrastructure Permian Basin