ONEOK Buys Permian Midland Assets for $4.4B, Backed by $9B Apollo Investment
OKE sits 48% above its 52-week low of $64.02.
Summary
ONEOK is acquiring Brazos Midstream's Permian Midland Basin assets for $4.425 billion, funded by a $9 billion nonvoting minority equity investment from Apollo. The deal is expected to be immediately accretive to earnings and free cash flow per share. ONEOK plans to use $5 billion of the proceeds to reduce existing debt, strengthening its balance sheet. For Apollo, this is a major capital deployment into energy infrastructure, consistent with its strategy of large-scale private investments. The transaction significantly expands ONEOK's Permian footprint and is likely to be viewed positively by both companies' investors.
At the time of this announcement, OKE was trading at $94.76 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $59.7B. The 52-week trading range was $64.02 to $97.90. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.