ONEOK strengthens its position in the Permian with acquisitions worth USD 5.9 billion

ONEOK acquires midstream assets from Global Infrastructure Partners for USD 5.9 billion, optimizing its network in the Permian Basin and Mid-Continent and consolidating its position in the US hydrocarbon transportation market.

Share:

ONEOK purchases assets from Global Infrastructure Partners (GIP) for a total of USD 5.9 billion.
This acquisition includes a 43% stake in EnLink Midstream, as well as all management shares in this company.
ONEOK also acquires GIP’s interest in Medallion Midstream, a crude oil gathering and transportation operator in the Midland Basin.
This move comes against a backdrop of consolidation in the midstream sector, where companies are looking to maximize the efficiency of their existing infrastructure rather than commit to new projects often hampered by complex regulations.
EnLink’s assets, well anchored in the Permian, offer ONEOK the opportunity to manage the transportation and processing of hydrocarbons in an integrated way.
With this acquisition, ONEOK is targeting the optimization of its network capacities in a region where demand for transportation and processing services remains high.
The integration of Medallion Midstream, meanwhile, strengthens ONEOK’s access to producers in the Midland Basin, a strategic area for crude oil flows.

Financial and operational synergies expected

ONEOK estimates that these acquisitions will generate significant synergies, valued at between 250 and 450 million USD over the next three years.
These gains stem mainly from the integration of the new assets into the existing network, enabling economies of scale and more efficient use of infrastructure.
The assets acquired include tariff floor clauses, guaranteeing a minimum income and protecting ONEOK against gas price fluctuations, while maintaining growth prospects for the transportation and processing of natural gas liquids.
The company expects to finalize these transactions early in the fourth quarter of 2024, which should immediately contribute to its earnings and free cash flow.
This approach enables us to capture a larger share of the market, particularly by responding to increased demand from producers for efficient logistics solutions in active basins such as the Permian.

A strategic repositioning in a changing sector

The recent acquisitions are part of a broader strategy to consolidate and optimize ONEOK’s asset portfolio.
At a time when regulatory obstacles to the development of new infrastructure persist, focusing on the purchase of existing assets appears to be a pragmatic choice.
This strategy not only ensures stable growth, but also minimizes the risks associated with environmental approvals and long construction lead times.
Industry analysts, such as Raymond James, believe that despite the surprising timing of this announcement, given the recent integrations of Magellan and Easton, the quality of EnLink’s assets within a wider network offers attractive prospects.
Moreover, the possibility of other companies expressing an interest in the remaining shares of EnLink underlines the strategic value of these assets in the Permian, a basin that continues to attract investment.

Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.