ONEOK to Acquire Brazos Midstream's Permian 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 gathering and processing assets for $4.425 billion in cash, funded by a $9 billion nonvoting minority equity investment from Apollo. The deal more than doubles ONEOK's Midland processing capacity to 2.3 Bcf/d and is expected to be immediately accretive to earnings and free cash flow per share. ONEOK will use $5 billion of the Apollo proceeds to extinguish debt, accelerating deleveraging to 3.25x debt-to-EBITDA without issuing common equity. The transaction is expected to close in Q4 2026, with the Apollo investment closing in the first half of September. This follows ONEOK's strong Q2 results and raised guidance, and the company will host a conference call on August 31 to discuss the deal.
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: PR Newswire.