ONEOK to Acquire More Midstream Capacity in Permian's Midland

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

ONEOK's planned acquisition of Brazos Midstream Holdings will add to its portfolio a massive gathering and processing system in the Permian Basin's Midland sub-basin, as well as more than double its processing capacity in the formation.

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Making Strides in the Midland

Oil and gas midstream operator ONEOK Incorporated continues to expand its role in the Permian Basin with a definitive agreement to acquire Brazos Midstream Holdings LLC's natural gas gathering and processing assets in the Permian's Midland sub-basin. Industrial Info Resources is tracking more than $8.3 billion worth of active and proposed projects from ONEOK, about 75% of which is attributed to pipelines designed to transport natural gas or natural gas liquid (NGL).

The Brazos Midstream acquisition will bring ONEOK a massive gathering and processing system, supported by about 600,000 dedicated acres under long-term, fixed-fee contracts with producers such as Exxon Mobil Corporation and Diamondback Energy Incorporated. Readers can consult detailed profiles for operational pipelines in the Permian from ONEOK and Brazos Midstream.

"These assets add a premier Permian Midland Basin platform, supported by long-term contracts and attractive growth opportunities," said Pierce H. Norton II, the chief executive officer of ONEOK, in a press release. "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."

In addition to the expanded midstream infrastructure, the acquisition would more than double ONEOK's processing capacity in the Permian to about 2.3 billion cubic feet per day, when including facilities under construction. Earlier this year, the company kicked off site preparations for its Bighorn Natural Gas Processing Plant in Mentone, Texas, which is designed to process up to 300 million standard cubic feet per day of natural gas from the Permian's Delaware Basin.

According to Industrial Info Resources data, another 100 million standard cubic feet per day of capacity could be added through a proposed second train at the Riptide Natural Gas Processing Plant in Lenorah, Texas, which would double that facility's capacity to 200 million standard cubic feet per day. Lenorah sits about 110 miles northeast of Mentone.

Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can consult profiles of the Bighorn and Riptide plants, and can find details--including construction schedules, investment values and necessary equipment--in reports on the Bighorn and Riptide projects.

The Brazos Midland acquisition is expected to close in the fourth quarter of 2026 and has been unanimously approved by ONEOK's Board of Directors, according to the press release. ONEOK says its total cash consideration for the acquisition stands at $4.425 billion.

By the Numbers

• More than $8.3 billion: Total investment value of ONEOK-led projects tracked by Industrial Info Resources
• About 2.3 billion cubic feet per day: ONEOK's projected total processing capacity in the Permian, following the acquisition
• $4.425 billion: ONEOK's total cash consideration for its acquisition of Brazos Midland

Upbeat Outlook for Year's Back Half

In a recent quarterly earnings-related conference call, ONEOK executives said the company's full-year 2026 capital-expenditure guidance remains unchanged at $2.7 billion to $3.2 billion. Executives also cited "strong year-to-date performance and continued momentum heading into the back half of the year."

Executives also said ONEOK's rebuild of its NGL Processing Complex in Medford, Oklahoma, remains on track to be completed in the first quarter of 2027, following a July 2022 explosion and fire. Randy Lentz, the chief operating officer of ONEOK, says the facility will be able to produce 100,000 barrels per day (bpd) by the end of the fourth quarter, with the full, 200,000-bpd of capacity set to be completed in first-quarter 2027. Readers can learn more about the Medford development in a plant profile and a detailed project report.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects from ONEOK.

Key Takeaways

• Brazos Midstream acquisition will bring ONEOK about 600,000 dedicated acres of midstream infrastructure in the Permian Basin.
• ONEOK says the deal will strengthen connectivity across its natural gas and NGL value chain.
• The company's full-year 2026 capital-expenditure guidance remains unchanged at $2.7 billion to $3.2 billion.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).