ONEOK Inc. will acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets. The combined ONEOK and Brazos systems are expected to generate capital efficiencies as capacity is optimized across the platform.
The acquisition strengthens ONEOK’s integrated Permian-to-Gulf Coast strategy by expanding scale in the rapidly growing Permian Midland Basin; adding long-term, fee-based contracted growth with leading Permian producers; enhancing connectivity across the natural gas and natural gas liquids (NGL) value chain; and optimizing commercial and capital savings opportunities.
The acquired Brazos Midland assets create a scaled, integrated Permian Midland Basin platform that strengthens ONEOK’s position in one of the most active and economic producing regions in North America. Supported by approximately 600,000 dedicated acres under long-term fixed-fee contracts with a weighted average remaining term of more than 12 years, the system provides substantial visibility to future volume growth and is currently supported by 14 active drilling rigs from leading Permian producers including ExxonMobil, Diamondback Energy and Double Eagle.
Following completion of the Cassidy II processing plant expected in the third quarter of 2027, the Brazos Midland system will include approximately 700 miles of gathering infrastructure and 1.2 bcf/d of processing capacity across seven core Permian Midland Basin counties. Through the acquisition, ONEOK also obtains a Permian Midland Basin-wide area of mutual interest with a key private producer, creating additional opportunities to capture future growth.
The Brazos Midland assets are highly complementary to ONEOK’s existing Permian Midland Basin natural gas gathering and processing, NGL transportation, and crude oil infrastructure. The acquisition more than doubles ONEOK’s Midland Basin processing capacity to approximately 2.3 bcf/d, including plants currently under construction, and establishes one of the Permian Midland Basin’s largest integrated natural gas gathering and processing platforms.
The Brazos Midland acquisition is expected to close in the fourth quarter of 2026 and has been unanimously approved by ONEOK’s board of directors. The closing of the transaction is subject to customary closing conditions.
“This transaction demonstrates ONEOK’s strategy of intentionally expanding and extending our integrated energy infrastructure. These assets add a premier Permian Midland Basin platform supported by long-term contracts and attractive growth opportunities,” said Pierce H. Norton II, ONEOK president and chief executive officer. “The acquisition expands our scale in the Permian Midland Basin, advances our integrated wellhead-to-water strategy, and strengthens connectivity across our natural gas and NGL value chain, positioning ONEOK to capture significant volume growth in one of the most economic and rapidly growing resource plays.”
