ONEOK acquires Brazos Midstream Permian assets for $4.425 billion, funded by $9 billion Apollo investment
ONEOK agreed to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Basin's Midland sub-basin for $4.425 billion in cash. The deal is funded by a $9 billion nonvoting minority equity investment from Apollo Global Management, with $5 billion used to repay debt. The acquisition includes 700 miles of gathering infrastructure and 1.2 Bcf/d of processing capacity, more than doubling ONEOK's Midland Basin processing capacity to 2.3 Bcf/d. The transaction is expected to close in Q4 2026.
Editorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page itself is projected from evidence records.
- Current automated evidence projection
Cross-source coverage
Wire timeline
Oneok's $4.4 Billion Acquisition and Apollo Deal Bolster 4.5% Dividend Yield
Pipeline company Oneok (NYSE:OKE) is acquiring Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for over $4.4 billion in cash. The deal includes 700 miles of gathering infrastructure and 1.2 billion cubic feet per day of processing capacity, with 600,000 dedicated acres under long-term contracts averaging 12 years with producers including ExxonMobil and Diamondback Energy. To fund the acquisition, Apollo and its affiliates are making a $9 billion minority equity investment in Oneok through a Class B interest with a capped 7% IRR for the first nine years. Oneok will use part of the funds to retire $5 billion in debt, reducing its leverage ratio to around 3.25 times. The company expects the acquisition to be immediately accretive to earnings and free cash flow, supporting its approximately 4.5% dividend yield. The financing structure mirrors a similar deal Apollo made with Realty Income earlier in 2026.
ONEOK Acquires Brazos Midstream for $4.4B with $9B Apollo Investment
ONEOK (NYSE:OKE) announced a $4.425 billion agreement to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Basin's Midland Basin, funded partly by a $9 billion minority equity investment from Apollo-managed funds. The deal includes approximately 600,000 dedicated acres, contracts averaging over 12 years, 14 active drilling rigs, and about 700 miles of gathering infrastructure. ONEOK expects the acquisition to more than double its Midland Basin processing capacity to roughly 2.3 billion cubic feet per day, including plants under construction. CEO Pierce Norton stated the transactions are immediately accretive to earnings and free cash flow per share, while strengthening the balance sheet without issuing common equity. The purchase price represents a 7.5-times multiple of expected 2027 EBITDA, including $80 million in full-year synergies, declining to about six times by 2028. ONEOK projects NGL volumes from Brazos to increase from 30,000 barrels per day to as much as 150,000 barrels per day by 2029, with annual growth of about 20% beginning in 2027.
ONEOK to acquire Brazos Midstream Permian Basin assets for $4.43 billion
ONEOK, a major energy infrastructure company, has announced a definitive agreement to acquire Brazos Midstream's natural gas gathering and processing assets located in the Permian Midland Basin. The transaction is valued at $4.43 billion. This acquisition will significantly expand ONEOK's footprint in the Permian Basin, one of the most prolific oil and natural gas producing regions in the United States. The deal includes extensive gathering pipelines and processing plants that support natural gas production in the area. The acquisition is expected to enhance ONEOK's integrated midstream services and provide additional scale in a key growth region. The transaction is subject to customary closing conditions and regulatory approvals.
Show 2 older updatesHide older updates
ONEOK to acquire Brazos Midstream Permian assets in $4.425 billion cash deal
ONEOK has signed a definitive agreement to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Midland Basin for $4.425 billion in cash. The transaction, expected to close in Q4 2026, will be financed by a $9 billion nonvoting minority equity investment from funds managed by Apollo. ONEOK plans to use $5 billion of that investment to repay existing debt, targeting a pro forma 2027 leverage ratio of about 3.25 times debt-to-EBITDA. The acquired assets include approximately 700 miles of gathering infrastructure and 1.2 billion cubic feet per day of processing capacity across seven counties, supported by roughly 600,000 dedicated acres under long-term fixed-fee contracts with a weighted average remaining term of over 12 years and 14 active drilling rigs. Upon completion of the Cassidy II processing plant in Q3 2027, combined operations will more than double ONEOK's Midland Basin processing capacity to nearly 2.3 bcf/d. The deal is valued at approximately 7.5 times estimated 2027 EBITDA, including about $80 million in full-year synergies. ONEOK expects the acquisition to be immediately accretive to earnings and free cash flow per share.
ONEOK to Acquire Brazos Midland Gas Assets for $4.425 Billion
ONEOK has agreed to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Basin's Midland sub-basin for $4.425 billion in cash. The acquisition will be funded through a separate $9 billion nonvoting minority equity investment from Apollo Global Management, with roughly $5 billion used to extinguish existing debt and the remainder funding the Brazos purchase. The deal is structured to avoid issuing common equity. The Brazos system is supported by approximately 600,000 dedicated acres under fixed-fee contracts with a weighted average remaining term exceeding 12 years, with producers including ExxonMobil, Diamondback Energy, and Double Eagle. After completing the Cassidy II processing plant in Q3 2027, the acquired system will include about 700 miles of gathering infrastructure and 1.2 billion cubic feet per day of gas processing capacity across seven Midland Basin counties. The acquisition will more than double ONEOK's Midland Basin processing capacity to approximately 2.3 Bcf/d. The purchase price is estimated at about 7.5 times projected 2027 EBITDA, including approximately $80 million of anticipated annual synergies. The transaction is expected to close in Q4 2026, subject to regulatory approval.