ONEOK Buys Brazos Midstream Assets for $4.425B, Expands Permian Footprint

Midstream operator 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 as part of a separate $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo Global Management.

ONEOK plans to use roughly $5 billion of the Apollo proceeds to extinguish existing debt, while the remainder will fund the Brazos acquisition.

The structure allows ONEOK to finance the transaction without issuing common equity.