ONEOK to Acquire Brazos Midstream's Permian Midland Basin Assets for $4.425 Billion
Energy company ONEOK announced its agreement to acquire Brazos Midstream's assets in the Permian Midland Basin for $4.425 billion. The transaction is expected to immediately boost earnings and free cash flow.
Energy company ONEOK has agreed to acquire Brazos Midstream's assets located in the Permian Midland Basin, United States, for approximately $4.425 billion. This acquisition represents a significant move for ONEOK as it pursues its strategic growth objectives.
The company stated that the acquisition supports its target for mid- to high-single-digit annual growth in adjusted EBITDA over the next five to seven years. The deal is also anticipated to be immediately accretive to earnings and free cash flow per share.
As part of the financing, ONEOK will receive a $9 billion minority equity investment from Apollo Funds. This investment is intended to strengthen the company's financial position and support its ongoing development and growth initiatives.
The assets being acquired from Brazos Midstream are involved in the gathering and processing of natural gas and crude oil products within the Permian region. The transaction is projected to close in the first quarter of 2024, subject to customary regulatory approvals.