ONEOK to acquire Brazos Midstream Permian Midland Basin assets for $4.43 billion

• Apollo Global Management will invest $9 billion in exchange for a Class B interest in newly formed ONEOK Holdings, L.L.C.
• ONEOK plans to use proceeds to extinguish approximately $5 billion of existing debt in addition to funding the acquisition
• The acquired assets will complement ONEOK's existing Permian Basin platform supported by 14 active drilling rigs from major producers including ExxonMobil and Diamondback Energy

ONEOK Acquires Brazos Midstream Permian Assets for $4.43 Billion

Key Transaction Details:

ONEOK announced the acquisition of Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for approximately $4.43 billion. The deal, expected to close in Q4 2026, will more than double ONEOK's processing capacity in the region and is projected to immediately boost earnings per share.

Financing Structure:

The acquisition will be funded through a $9 billion non-voting minority equity investment from Apollo Global Management. Apollo will receive Class B interest in a newly formed entity, ONEOK Holdings, L.L.C. ONEOK plans to use proceeds to extinguish approximately $5 billion in existing debt in addition to funding the purchase.

Strategic Context:

The deal positions ONEOK to capitalize on increased oil and gas output in the Permian Basin and rising natural gas demand driven by record LNG exports. The acquired Brazos assets will complement ONEOK's existing Permian Basin platform, currently supported by 14 active drilling rigs operated by major producers including ExxonMobil, Diamondback Energy, and Double Eagle.

Company Profile:

The Tulsa, Oklahoma-based ONEOK operates a 60,000-mile pipeline network transporting natural gas, natural gas liquids, refined products, and crude oil across the United States.

Market Implications:

This transaction reflects ongoing consolidation in the U.S. midstream energy sector as pipeline operators seek to expand capacity and capitalize on robust Permian Basin production growth. The sizable Apollo investment demonstrates continued institutional appetite for energy infrastructure assets amid strong fundamentals in natural gas markets.