ONEOK Lands Brazos Assets in $4.425 Billion Permian Play

ONEOK is expanding its presence in the Permian Basin's Midland sub-basin with a $4.425 billion acquisition of Brazos Midstream's natural gas gathering and processing assets.

The deal, funded by Apollo Global Management's $9 billion nonvoting minority equity investment, will more than double ONEOK's Midland Basin processing capacity to approximately 2.3 Bcf/d.

ONEOK plans to use $5 billion of the Apollo proceeds to extinguish existing debt, while the remainder will fund the acquisition and allow the company to finance the transaction without issuing common equity.

The acquired system is supported by roughly 600,000 dedicated acres under fixed-fee contracts with a weighted average remaining term exceeding 12 years.