U.S.-based ONEOK, Inc. announced it has acquired the remaining 49.9% stake in Delaware G&P LLC (Delaware Basin JV) for a total amount of $940mn. The transaction was made with NGP XI Midstream Holdings, L.L.C., a subsidiary of Texas-based fund NGP, and closed on May 28. The deal strengthens ONEOK’s position in the Permian Basin, one of the most active natural gas producing regions in the United States.
A mixed cash and stock transaction
The acquisition was settled with $530mn in cash, while the remaining $410mn was paid in ONEOK common stock. The company now becomes the sole owner of Delaware Basin JV, which owns and operates natural gas gathering and processing infrastructure in West Texas and southeastern New Mexico. The facilities in question have a processing capacity exceeding 700mn cubic feet per day.
This move is part of ONEOK’s long-term expansion strategy in the Permian Basin, which remains a key area for the development of hydrocarbon transportation and processing infrastructure. According to internal company data, the region represents a growing share of its processed volumes and investment flows.
Strengthening the gas transport network
ONEOK operates a pipeline network of approximately 60,000 miles across the United States, transporting natural gas, natural gas liquids (NGLs), refined products, and crude oil. With full control of Delaware Basin JV, the group fully integrates these assets into its portfolio, gaining operational flexibility in one of its strategic markets.
The transaction may allow ONEOK to better manage synergies with its other facilities in the region, particularly concerning compression, storage, and marine exports via the Gulf Coast. No specific timeline has been communicated regarding potential expansions or additional investments at this stage.
“This acquisition fully aligns our asset portfolio with our growth strategy in the Permian Basin,” said Pierce H. Norton II, Chief Executive Officer of ONEOK, quoted in the company press release issued on June 3.
