ONEOK has completed its acquisition of Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for total cash consideration of approximately $4.425 billion. Brazos announced the closing on October 6, and ONEOK confirmed completion the same day.
The acquisition more than doubles ONEOK’s Midland Basin processing capacity to approximately 2.3 billion cubic feet per day, including facilities currently under construction. The acquired system covers about 600,000 dedicated acres under long-term fixed-fee contracts, with a weighted-average remaining term of more than 12 years, ONEOK said. Chief executive Pierce H. Norton II said the assets strengthen the company’s position in the Permian with a premier gathering and processing platform tied to leading producers.
Brazos built the system over the last four years into one of the Midland Basin’s premier gas gathering and processing platforms, with approximately 700 miles of natural gas gathering pipelines and 1.1 billion cubic feet per day of combined processing capacity, including capacity under construction. Chief executive Brad Iles thanked financial partners Old Ironsides Energy and EnCap Flatrock Midstream for supporting the buildout.
The announcement also referenced a related Delaware Basin asset sale, suggesting further portfolio pruning by the sellers. No financing details or leverage figures were disclosed.