Midstream Energy Sector Sees Surge in M&A Activity Driven by Export Demand

Midstream energy companies are seeing a surge in mergers and acquisitions (M&A) activity, driven by growing demand for natural gas and crude oil exports. Companies such as Williams Companies, ONEOK, and Enbridge are expanding their infrastructure to meet this increasing demand.

The largest deal so far is the $5.5 billion acquisition of Momentum Midstream by Williams Companies, which will expand its Haynesville natural gas infrastructure platform. The acquisition includes over 4,000 miles of pipe, more than 1 million dedicated acres, and 6 billion cubic feet per day (Bcf/d) of gathering capacity.

ONEOK is also expanding its Midland Basin processing capacity with a $4.4 billion acquisition of Brazos Midstream's Permian Midland Basin assets. The deal includes 700 miles of gathering infrastructure and will double ONEOK's Midland Basin processing capacity to approximately 2.3 Bcf/d.

Enbridge is also making significant moves, acquiring Tallgrass Energy's crude oil business for ~$2.6 billion and Salt Creek Midstream's Delaware Basin crude oil gathering business for $600 million. These deals will expand Enbridge's footprint in the Rockies and Permian basins, respectively.