ONEOK's $4.425B Brazos Midland deal more than double Midland Basin processing capacity and expand its Permian footprint.
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ONEOK NYSE: OKE said it has agreed to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Basin's Midland Basin for $4.425 billion, alongside a $9 billion minority equity investment from funds and affiliates managed by Apollo.
ONEOK is downgraded to "Hold" as valuation limits clear double-digit annual total return potential despite strong fundamentals. OKE delivered record Q2 2026 results with 52.8% YoY revenue growth, robust NGL throughput, and raised 2026 EBITDA guidance to $8.35 billion. Growth is underpinned by data center-driven demand, new supply contracts, and a pipeline of expansion projects slated through 2028.
ONEOK is set to acquire Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for $4.43 billion, expanding its footprint in prolific American oil hub.
ONEOK said on Sunday it has agreed to buy Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for around $4.43 billion, more than doubling the U.S. pipeline operator's processing capacity in the region.
ONEOK remains a compelling “Buy” for income, value, and growth, supported by a 4.5% yield and a forward P/E of 15.9x. OKE's integrated wellhead-to-water network, record NGL throughput, and rising export demand underpin a robust growth outlook. Management guides for mid-to-high single-digit adjusted EBITDA growth annually over the next 5-7 years, leveraging unused system capacity.
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ONEOK raises its 2026 outlook as project start-ups, higher utilization and commercial wins support mid- to high-single-digit EBITDA growth.