ONEOK has completed its $4.425 billion acquisition of Brazos Midstream’s natural gas gathering and processing assets in the Midland Basin, according to Rigzone’s October 8 report. The purchased network includes approximately 700 miles of gathering pipelines and 1.1 billion cubic feet per day of processing capacity, counting facilities under construction.
The deal brings ONEOK’s Midland Basin processing capacity to about 2.3 billion cubic feet per day, more than twice its previous level when projects under construction are included. The Cassidy 2 processing plant is expected to be finished in the third quarter of 2027. Long-term fixed-fee contracts cover 600,000 dedicated acres, with more than 12 years remaining on average.
The acquisition was supported by Apollo Global Management’s $9 billion investment. ONEOK said the transaction advances its adjusted EBITDA growth objectives for the next five to seven years and strengthens flexibility for potential dividend increases and share repurchases. Management also linked the combined transactions to reaching a debt-to-EBITDA ratio of 3.25 times.
Source: Rigzone
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