ONEOK outlines USD 4.43 billion Brazos Midstream acquisition - OKE News | RalliesONEOK outlines USD 4.43 billion Brazos Midstream acquisition
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OKE• ONEOK outlines Brazos Midstream acquisition and funding plan
- ONEOK outlined an all-cash USD 4.425 billion acquisition of Brazos Midstream to expand its Permian Midland Basin platform.
- A USD 9 billion nonvoting minority equity investment is set to fund the deal, repay a USD 1.2 billion term loan, and retire USD 3.8 billion of debt.
- Minority equity carries a 7% capped IRR for nine years; Class B receives 15% of quarterly cash flow from operations.
- The company targets pro forma 2027 leverage of about 3.25x debt-to-EBITDA and expects immediate per-share earnings and free cash flow accretion.
- Permian Midland processing capacity is expected to reach 2.3 Bcf/d by Q3 2027, with total Permian processing capacity at 3.5 Bcf/d.
