ONEOK Acquires Brazos Midstream Assets for $4.42 Billion

ONEOK acquired Brazos Midstream's Permian Basin assets for $4.42 billion to scale its integrated gas value chain. To fund the purchase and reduce corporate debt, the company secured a $9 billion investment from Apollo Global Management.

This acquisition is part of a broader consolidation trend in the U.S. natural gas industry. Other recent deals include Williams' $5.5 billion purchase of Momentum Midstream and Western Midstream Partners' $1.6 billion acquisition of Brazos' Delaware Basin facilities. These moves anticipate surging demand from liquefied natural gas exports and AI data centers, with the U.S. Department of Energy projecting that natural gas output could rise 35% by 2050.

To resolve regional bottlenecks in West Texas, companies are investing in long-haul infrastructure. ONEOK is developing the Eiger Express Pipeline to transport gas to the Gulf Coast and data center hubs across Texas and Louisiana.