Brazos Midstream, the largest privately held midstream platform in the Midland Basin, is being sold to ONEOK for $4.425 billion in cash. The transaction includes the Cassidy II plant expansion, due online in Q3 2027, which will lift Brazos' processing capacity to 1.2 Bcf/d and extend its gathering network to approximately 700 miles. The deal more than doubles ONEOK's Midland Basin processing capacity to approximately 2.3 Bcf/d.

ONEOK will fund the acquisition through a $9 billion nonvoting minority equity investment from funds managed by Apollo, with $5 billion earmarked to reduce existing debt. The transaction implies a multiple of approximately 7.5x estimated 2027 EBITDA, narrowing to roughly 6.0x by 2028. Barclays served as ONEOK's financial adviser, while Latham & Watkins provided legal counsel.

Akin Gump Strauss Hauer & Feld advised Brazos Midstream. Editor's note: This news brief was produced with the assistance of artificial intelligence.