ONEOK completed Brazos acquisition on October 6, 2026, with 2.3 Bcf/d pro forma capacity.
Why it matters: The deal expands ONEOK's Midland Basin platform with about 700 miles of gathering pipelines, processing assets and 600,000 dedicated acres. The 2.3 Bcf/d pro forma figure includes capacity still under construction, so it is not all currently operating capacity.
- The all-cash transaction closed on October 6, 2026, at a $4.425 billion base purchase price subject to customary adjustments.
- At closing, the acquired system had about 1.1 Bcf/d of combined processing capacity, including facilities under construction.
- ONEOK expects acquired capacity to reach about 1.2 Bcf/d after Cassidy II is completed, implying Cassidy II adds about 0.1 Bcf/d.
- ONEOK's total pro forma Midland Basin processing capacity is approximately 2.3 Bcf/d, including capacity still under construction.
ONEOK completed its acquisition of Brazos Midstream's Permian Midland Basin natural-gas gathering and processing assets from Brazos Midland, LLC, on October 6, 2026, according to the company's completion announcement and an SEC filing. The filing says the purchase agreement called for a base cash price of $4.425 billion, subject to customary adjustments.
At closing, the acquired system had about 1.1 Bcf/d of combined processing capacity, including facilities under construction, Brazos said. ONEOK's transaction materials put the acquired platform's expected total at approximately 1.2 Bcf/d once Cassidy II is completed. That means Cassidy II is expected to add about 0.1 Bcf/d; the 1.2 Bcf/d figure is the platform's total expected capacity, not incremental capacity. The materials do not specify a completion date for Cassidy II.
ONEOK's materials project total pro forma Midland Basin processing capacity of approximately 2.3 Bcf/d, including facilities under construction. That is a projected pro forma figure, not a measure of capacity currently operating.
The assets span roughly 700 miles of gathering pipelines and are supported by about 600,000 dedicated acres under fixed-fee contracts with a weighted-average remaining term of more than 12 years. ONEOK's materials also cite 14 active drilling rigs operated by or associated with producers including ExxonMobil, Diamondback Energy and Double Eagle.
ONEOK President and CEO Pierce H. Norton II described the assets as a premier Midland Basin gathering and processing platform. Brazos CEO Brad Iles called the sale an important milestone for the company, according to ONEOK's transaction materials.
ONEOK's materials say the transaction followed Brazos's sale of its Delaware Basin assets to Western Midstream Partners earlier in 2026. They also identify Old Ironsides Energy and EnCap Flatrock Midstream, along with management and other strategic investors, as Brazos backers.
ONEOK estimated the purchase at approximately 7.5 times projected 2027 EBITDA, including about $80 million of full-year synergies, and approximately 6.0 times projected 2028 EBITDA, its transaction materials said. Those are ONEOK projections, rather than independently verified operating results.
By the numbers
- 1.1 Bcf/d - acquired processing capacity at closing, including facilities under construction
- 1.2 Bcf/d - expected total acquired capacity after Cassidy II is completed
- 2.3 Bcf/d - ONEOK's projected pro forma Midland Basin capacity, including capacity under construction
Yes, but: The capacity figures are not all current operating capacity: both the 1.1 Bcf/d acquired figure and the 2.3 Bcf/d pro forma figure include facilities under construction, while 1.2 Bcf/d is an expected total after Cassidy II is completed.