Aug. 31 at 8:45 PM
ONEOK announced a transformative
$4.425 billion cash acquisition of Brazos Midstream’s natural gas gathering and processing assets in the Permian Midland Basin. The deal is expected to more than double ONEOK’s combined processing capacity in the Midland to about 2.3 billion cubic feet per day, including plants under construction, significantly expanding its position in one of the U.S.’s most prolific oil and gas regions.
The acquisition will be funded through a
$9 billion non-voting minority equity investment from Apollo-managed funds, with no dilution to existing common shareholders. ONEOK plans to use
$5 billion of the proceeds to repay debt, potentially reducing pro forma leverage to about 3.25x debt/EBITDA by 2027. The company also launched a
$2 billion cash tender offer for 20 series of senior notes as part of its broader debt-reduction plan.
$OKE