Oneok to Double Midland Basin Gas Processing With $4.4B Brazos Buy
Key Takeaways
- •Oneok agreed to pay $4.425 billion for Brazos Midstream’s Midland Basin natural gas gathering and processing assets.
- •The acquisition would more than double Oneok’s processing capacity in the Midland Basin.
- •Oneok said the assets would raise its Midland Basin processing capacity to more than 2 Bcf/d.
- •The deal would expand Oneok’s footprint in the Permian Basin, where natural gas activity has been growing.
- •The transaction adds to Oneok’s strategy of expanding natural gas infrastructure through asset purchases and system integrations.
Oneok agreed to pay $4.425 billion for Brazos Midstream’s Midland Basin natural gas gathering and processing assets, a transaction that would more than double the midstream company’s processing capacity in that portion of the Permian Basin.
The deal gives Oneok a larger footprint in the Midland Basin, where natural gas activity has been growing. According to the company, the assets would lift its processing capacity in the area to more than 2 Bcf/d.
At a Glance
- Oneok is buying Brazos Midstream assets
- Processing capacity in the Midland Basin would rise to more than 2 Bcf/d
- Permian gas activity continues to grow
The acquisition underscores the continued expansion of natural gas infrastructure in the Permian Basin, one of the most active oil and gas producing regions in the United States. The Midland Basin is a key producing area within the Permian, and gathering and processing systems there are used to move and handle gas output from wells across the region. For midstream operators, added capacity in this part of West Texas can be significant because production growth often requires more takeaway, processing and system integration to keep gas moving from the wellhead through local infrastructure.
Oneok is among the major U.S. midstream companies and has been expanding its natural gas infrastructure through a series of asset purchases and system integrations. The Brazos Midstream transaction would add to that strategy by increasing its capacity in West Texas, further concentrating the company’s presence in a basin that remains central to U.S. oil and gas output.
Jodi Shafto joined NGI as a Senior Natural Gas Reporter in October 2023. Before that, she was a business news reporter for South Carolina's largest daily newspaper, The Post and Courier, and was a Senior Energy Markets Reporter at S\u0026P Global Market Intelligence. Based in Charleston, Shafto has covered U.S. energy markets since 2005 as a reporter, editor and analyst. A New Jersey native, she holds a BS in Journalism from Bowling Green State University.
