ONEOK completed its acquisition of Brazos Midstream’s natural gas gathering and processing assets in the Permian Basin for approximately $4.425 billion in cash.
The transaction significantly expands ONEOK’s position in the Midland Basin and establishes one of the region’s largest integrated natural gas gathering and processing platforms.
The acquired system is supported by high-quality acreage, long-term customer contracts, and production from major Permian Basin operators.
ONEOK said the transaction more than doubles its Midland Basin processing capacity.
Including facilities currently under construction, the company’s processing capacity in the region will increase to approximately 2.3 billion cubic feet per day.
The assets are supported by approximately 600,000 dedicated acres.
Those acreage commitments are primarily covered by long-term fixed-fee agreements with a weighted-average remaining contract life exceeding 12 years.
ONEOK expects the expanded platform to create additional opportunities to connect growing natural gas and natural gas liquids production with its broader integrated infrastructure network.
The company operates approximately 60,000 miles of pipelines transporting natural gas, NGLs, refined products, and crude oil.
KEY QUOTES:
“The completion of this acquisition further strengthens our Permian Midland Basin position with a premier gathering and processing platform supported by high-quality acreage, long-term contracts and some of the basin’s leading producers.”
Pierce H. Norton II, President and CEO of ONEOK
“These assets provide significant opportunities for future growth and enhance our ability to connect increasing natural gas and NGL production across ONEOK’s integrated system.”
Pierce H. Norton II, President and CEO of ONEOK
