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ONEOK acquires Brazos’ Permian gas assets for $4.4bn

Дата публикации: 02-09-2026 23:33:13

BY Fraser Tennant  In a deal that more than doubles the US pipeline operator’s processing capacity in the region, ONEOK is to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for $4.4bn.Under the terms of the definitive agreement, the acquisition will be funded through a $9bn nonvoting minority equity investment from funds and affiliates managed by Apollo Global Management.As one of the largest integrated energy infrastructure companies in North America, ONEOK - an S&P 500 company headquartered in Tulsa, Oklahoma - delivers energy through its approximately 60,000-mile pipeline network.The Brazos transaction expands ONEOK’s ability to capture volume growth across the value chain while optimising capital deployment and utilising existing downstream infrastructure, including the company’s West Texas natural gas liquid (NGL) pipeline and soon to be-completed Medford NGL fractionation facility.By integrating commercial, operational and capital activities across the combined footprint, ONEOK expects to achieve significant recurring synergies over the long term, further reducing the effective acquisition multiple over time to be in line with ONEOK’s historical organic build multiples.“ONEOK has built one of the largest and most diversified midstream platforms in the country, providing essential services and infrastructure to help meet rapidly expanding domestic and international energy demand,” said Jamshid Ehsani, a partner at Apollo. “This transaction reflects Apollo’s ability to deliver flexible, high-grade capital solutions at scale, structured around ONEOK’s long-term strategic objectives.”Further strengthening its financial position, ONEOK has entered into an agreement with Apollo and affiliates for a $9bn minority equity investment, which has been unanimously approved by ONEOK’s board of directors.“The acquisition positions ONEOK to capture significant volume growth in one of the most economic and rapidly growing resource plays,” said Pierce H. Norton II, president and chief executive of ONEOK. “The combination of this acquisition with the minority equity investment demonstrates our commitment to creating shareholder value while further enhancing our balance sheet.”Expected to close in the fourth quarter of 2026, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino Act clearance.“This transaction demonstrates ONEOK’s strategy of intentionally expanding and extending our integrated energy infrastructure,” noted Mr Norton. “These assets add a premier platform supported by long-term contracts and attractive growth opportunities.”News: ONEOK to buy Brazos Midstream's Permian Midland Basin assets for $4.43 billion

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BY Fraser Tennant 

In a deal that more than doubles the US pipeline operator’s processing capacity in the region, ONEOK is to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for $4.4bn.

Under the terms of the definitive agreement, the acquisition will be funded through a $9bn nonvoting minority equity investment from funds and affiliates managed by Apollo Global Management.

As one of the largest integrated energy infrastructure companies in North America, ONEOK - an S&P 500 company headquartered in Tulsa, Oklahoma - delivers energy through its approximately 60,000-mile pipeline network.

The Brazos transaction expands ONEOK’s ability to capture volume growth across the value chain while optimising capital deployment and utilising existing downstream infrastructure, including the company’s West Texas natural gas liquid (NGL) pipeline and soon to be-completed Medford NGL fractionation facility.

By integrating commercial, operational and capital activities across the combined footprint, ONEOK expects to achieve significant recurring synergies over the long term, further reducing the effective acquisition multiple over time to be in line with ONEOK’s historical organic build multiples.

“ONEOK has built one of the largest and most diversified midstream platforms in the country, providing essential services and infrastructure to help meet rapidly expanding domestic and international energy demand,” said Jamshid Ehsani, a partner at Apollo. “This transaction reflects Apollo’s ability to deliver flexible, high-grade capital solutions at scale, structured around ONEOK’s long-term strategic objectives.”

Further strengthening its financial position, ONEOK has entered into an agreement with Apollo and affiliates for a $9bn minority equity investment, which has been unanimously approved by ONEOK’s board of directors.

“The acquisition positions ONEOK to capture significant volume growth in one of the most economic and rapidly growing resource plays,” said Pierce H. Norton II, president and chief executive of ONEOK. “The combination of this acquisition with the minority equity investment demonstrates our commitment to creating shareholder value while further enhancing our balance sheet.”

Expected to close in the fourth quarter of 2026, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino Act clearance.

“This transaction demonstrates ONEOK’s strategy of intentionally expanding and extending our integrated energy infrastructure,” noted Mr Norton. “These assets add a premier platform supported by long-term contracts and attractive growth opportunities.”

News: ONEOK to buy Brazos Midstream's Permian Midland Basin assets for $4.43 billion

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