ONEOK to Acquire Brazos Midstream's Permian Midland Basin Assets for $4.425 Billion

ONEOK said it has agreed to acquire Brazos Midstream’s assets in the Permian Midland Basin for $4.425 billion, according to an announcement issued Sunday. The company said the purchase is expected to be immediately accretive to earnings per share and free cash flow per share, while increasing momentum toward the high end of its mid- to high-single-digit adjusted EBITDA growth target over the next five to seven years. The announcement also referenced a $9 billion minority equity investment from Apollo funds, placing the transaction within a broader capital and ownership structure rather than presenting it as a standalone asset purchase.

The deal comes as ONEOK continues to build scale in energy infrastructure and as its reported FY 2025 revenue stood at $33.6 billion, up 55.0% year over year. That revenue growth provides a larger base against which the acquired assets will be measured, while the company’s reported diluted EPS was $5.42 and net margin was 10.1%. The new announcement changes the near-term focus from historical growth to whether the acquired Permian assets deliver the accretion and longer-term EBITDA trajectory described by management.

For ONEOK, the direct mechanism is the addition of Brazos Midstream’s Midland Basin infrastructure and the associated contribution to earnings and free cash flow per share. The Permian Basin is the operating link: production growth and gathering, processing or related midstream activity on the acquired footprint would determine how much of the stated growth target becomes recurring cash generation. Apollo funds are connected through the disclosed $9 billion minority equity investment, which indicates that outside capital is part of the transaction’s funding or ownership framework.

The company’s accretion and growth claims are management expectations, not reported post-closing results. The announcement does not provide asset-level revenue, EBITDA, purchase-price multiples, financing costs, closing timing or integration targets in the supplied material. It therefore leaves open how much of the expected benefit comes from underlying asset performance and how much depends on execution, capital allocation and the final structure of the transaction.

The next evidence will be ONEOK’s disclosures on closing, funding and the acquired assets’ contribution to results. Future earnings reports should show whether the transaction is in fact accretive to EPS and free cash flow per share and whether growth is tracking toward the high end of the stated target. Investors will also need asset-level figures and updated guidance to establish the deal’s effect on leverage, margins and cash generation; none of those figures are provided in the announcement summary.