What is the purchase price and strategic significance of ONEOK's acquisition of Brazos Midstream's Permian Midland Basin assets?

ONEOK agreed to buy Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for around $4.43 billion, a transaction that will more than double its processing capacity in the region. The deal aligns with broader industry trends of rising oil and gas output in the Permian Basin and increasing natural gas demand driven by record LNG exports. It is expected to close in the fourth quarter of 2026 and will immediately add to ONEOK’s earnings per share and free cash flow.

How is ONEOK financing the $4.43 billion acquisition, and what structural changes will result from the funding arrangement?

The acquisition will be funded through a $9 billion non-voting minority equity investment from funds and affiliates managed by Apollo Global Management, which will receive a Class B interest in a newly formed holding company, ONEOK Holdings, L.L.C. In addition to funding the purchase, ONEOK intends to use part of the proceeds to extinguish approximately $5 billion of existing debt.

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

Aug 30, 2026

ONEOK agreed to acquire Brazos Midstream's Permian Basin natural gas assets for $4.43 billion, doubling its regional processing capacity. Funded by a $9 billion Apollo investment, the deal is expected to close in Q4 2026.

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