Oneok Acquires $4.425 Billion in Brazos Assets to Expand Permian Operations
ONEOK Inc. (NYSE:OKE) has announced a $4.425 billion acquisition of natural gas gathering and processing assets from Brazos Midstream, aimed at expanding its operations in the Permian Basin's Midland region. The deal is valued at approximately 7.5x estimated 2027 EBITDA and includes long-term fixed-fee contracts with major producers like ExxonMobil and Diamondback Energy. The acquisition will be financed through a $9 billion nonvoting minority equity investment from Apollo Global Management (NYSE:APO), which will help ONEOK reduce its existing debt by about $5 billion. The transaction is expected to immediately lower the company's 2027 leverage ratio to around 3.25x, accelerating deleveraging without issuing new common shares. The addition of Brazos' assets is projected to more than double ONEOK’s processing capacity in the Midland Basin and support its Permian-to-Gulf Coast strategy by enhancing scale, connectivity, and capital efficiency.
