Oneok, Inc. (NYSE:OKE) shares are trading higher during Monday’s premarket session. On Monday, the company disclosed a plan to acquire Brazos Midstream’s Permian Midland Basin assets for $4.425 billion.
The acquisition includes natural gas gathering and processing assets in the Permian Midland Basin.
Transaction Details
The deal values Brazos at approximately 7.5x estimated 2027 EBITDA, including $80 million in annual synergies, and 6.0x estimated 2028 EBITDA.
The acquisition will be financed through a $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo (NYSE:APO), with $5 billion of the proceeds earmarked to reduce ONEOK’s existing debt.
