ONEOK (OKE) has entered into an agreement to purchase Brazos Midstream’s Midland Basin assets for $4.425B, continuing its rapid expansion via dealmaking. Several balance-sheet moves suggest OKE’s shopping spree isn’t over.
The Brazos acquisition is fully funded through a $9B minority equity investment from Apollo (APO), OKE said in the Aug. 30 announcement. The assets were previously held under a joint venture between Brazos (85%) and Williams (WMB; 15%). The remaining ~$5B from the APO investment will be used to extinguish existing debt and bring down leverage, OKE said.
This acquisition comes on the heels of Western Midstream (WES) closing its $1.6B purchase of Brazos’ Delaware assets in June.
The Brazos – Midland G&P system has 500 MMcf/d of gas processing capacity from the Sundance 1 (200 MMcf/d) and Sundance 2 (300 MMcf/d) plants in Martin County, TX, and is adding 600 MMcf/d more from the Cassidy plants under construction in Glasscock County. Brazos plans to start Cassidy 1 (300 MMcf/d) by YE26 and Cassidy 2 (300 MMcf/d) in 3Q27.
From a footprint perspective, East Daley Analytics views the deal as a good move by ONEOK, deepening its coverage in the seven core counties in the Midland Basin. The Brazos assets overlay neatly with the Midland system OKE acquired in the EnLink Midstream acquisition in 2024, likely requiring minimal capex to integrate (see system map above, available in East Daley’s Energy Data Studio). The Sundance complex is near a series of OKE plants (War Horse, Phantom and Riptide) in Martin County, and the Cassidy complex in Glasscock County will be located near OKE’s Bearkat and Deadwood plants.
Leading producers on the Brazos system include ExxonMobil (XOM), Diamondback (FANG) and Double Eagle. The assets include 600,000 dedicated acres under long-term contracts with a weighted average life of over 12 years, OKE said.
OKE’s M&A Tab Tops $33B
ONEOK has been on a buying spree in recent years, growing both its geographic and commodity footprint through large-scale M&A. In 2023, OKE spent $18.8B in a mix of cash and stock to acquire Magellan Midstream Partners, immediately giving OKE one of largest refined products footprints in the US and adding a new segment to the company (Refined Products & Crude).
OKE followed the Magellan deal with three more in 2024, purchasing Easton Gulf Coast NGL pipelines ($280MM), Medallion Midstream ($2.6B) and a 43% controlling interest in Enlink Midstream Partners ($3.3B). In 2025, OKE purchased the remaining 57% interest in Enlink in an all-stock transaction valued at $4.3B. Including the Brazos deal, OKE will have spent ~$33.7B in cash and stock on M&A transactions over the past three years.
It would be unwise to count ONEOK out of any further deals. East Daley views as notable OKE’s use of cash from the Apollo investment. By taking on no debt to acquire the Brazos assets and using the remaining $5B in APO funds to reduce leverage, OKE appears to be leaving the door open for additional acquisitions.
OKE clearly sees the Permian as a key growth region for its future plans. It had to buy its way into the basin, and will effectively bolt the Brazos system onto the EnLink assets it previously acquired. Any footprint growth in the future will likely require more deals by the upstart company. – London Spivey, CFA Tickers: APO, FANG, OKE, WMB, XOM.
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