$OKE (ONEOK INC /NEW/) — 8-K: ONEOK to acquire Permian Midland Basin assets for $4.425 billion

ONEOK executed a definitive agreement to acquire Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for total cash consideration of $4.425 billion. The acquisition will be funded through a $9 billion nonvoting minority equity investment from Apollo funds and affiliates. ONEOK intends to use $5 billion of proceeds to reduce existing indebtedness, lowering expected pro forma 2027 leverage to approximately 3.25 times debt-to-EBITDA. The transaction is expected to be immediately accretive to earnings and free cash flow per share and increases momentum toward the high end of ONEOK's mid- to high-single-digit adjusted EBITDA growth target over the next five to seven years.

ONEOK executed a definitive agreement to acquire Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for total cash consideration of $4.425 billion. The acquisition will be funded through a $9 billion nonvoting minority equity investment from Apollo funds and affiliates. ONEOK intends to use $5 billion of proceeds to reduce existing indebtedness, lowering expected pro forma 2027 leverage to approximately 3.25 times debt-to-EBITDA. The transaction is expected to be immediately accretive to earnings and free cash flow per share and increases momentum toward the high end of ONEOK's mid- to high-single-digit adjusted EBITDA growth target over the next five to seven years.