ONEOK, Inc. to Acquire Brazos Midstream Assets for $4.425 Billion with $9 Billion Minority Equity Investment from Apollo Global Management
ONEOK, Inc. has entered into a definitive agreement to acquire Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for a total cash consideration of $4.425 billion. The acquisition is funded by a $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo Global Management. ONEOK, Inc. intends to use $5 billion of the proceeds from this equity investment to reduce its existing indebtedness, aiming to accelerate its deleveraging to a 3.25x debt-to-EBITDA ratio. The administration announced that the acquisition will be immediately accretive to earnings and free cash flow per share. Pierce H. Norton II, the president and CEO of ONEOK, Inc., stated that the transaction expands the company's scale in the Permian Midland Basin and strengthens connectivity across its natural gas and NGL value chain. The acquisition is expected to close in the fourth quarter of 2026. The minority equity investment from Apollo Global Management carries a capped internal rate of return for the first nine years. Distributions in excess of this cap will reduce the capital balance over time, increasing the economic value for ONEOK, Inc. common shareholders.
Sources
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ONEOK to Acquire Brazos Midstream's Permian Midland Basin Assets for $4.425 Billion
PR Newswire
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