ONEOK, a U.S. midstream service provider, has executed a definitive agreement to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for a total cash consideration of $4.425 billion.
The acquisition will be funded through a $9 billion minority equity investment from funds and affiliates managed by Apollo. ONEOK also confirmed it intends to use $5 billion of proceeds from the equity investment to reduce its existing debt.
“This transaction demonstrates ONEOK’s strategy of intentionally expanding and extending our integrated energy infrastructure,” said Pierce H. Norton II, ONEOK president and CEO. “The acquisition expands our scale in the Permian Midland Basin, advances our integrated wellhead-to-water strategy and strengthens connectivity across our natural gas and NGL value chain, positioning ONEOK to capture significant volume growth in one of the most economic and rapidly growing resource plays.”
