US company ONEOK has entered into a definitive agreement to acquire Brazos Midstream’s natural gas gathering and processing assets in the Permian Midland Basin for USD4.4bn (ONEOK press release, 30/06/2026).
The transaction covers approximately 700 miles (over 1,100 km) of gathering infrastructure and 1.2 bcf/d (12 bcm/year) of processing capacity across seven counties in the Permian Midland Basin. The assets are underpinned by around 600,000 dedicated acres (nearly 243,000 ha) secured through long-term fixed-fee contracts, with a weighted average remaining contract term of more than 12 years. The portfolio currently includes 14 active drilling rigs.
Once the Cassidy II processing plant is completed in the third quarter of 2027, the combined operations will more than double ONEOK’s Midland Basin processing capacity to nearly 2.3 bcf/d (24 bcm/year), including plants currently under construction. The company will also acquire a Permian Midland Basin-wide area of mutual interest with a private producer, creating further opportunities for growth.
"The acquisition expands our scale in the Permian Midland Basin, advances our integrated wellhead-to-water strategy and strengthens connectivity across our natural gas and NGL value chain”, said ONEOK’s CEO. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
The US midstream sector is undergoing consolidation, with Canadian company Enbridge recently announcing the acquisition of Salt Creek Midstream’s crude oil gathering business. The business comprises approximately 500 miles of crude oil gathering infrastructure located in the core of the Delaware Basin. The transaction includes 100% of the Orla and Wink North systems and a 50% interest in the Delaware Crossing (DCX) system (KEI, 01/09/2026).