Summary
ONEOK Inc. (OKE), through its subsidiary ONEOK Partners, L.P., announced a significant strategic acquisition on October 27, 2014, involving the purchase of an 80 percent interest in West Texas LPG Pipeline Limited Partnership and a 100 percent interest in the Mesquite Pipeline. This transaction, valued at approximately $800 million, is expected to expand ONEOK Partners' midstream infrastructure, particularly in the liquids-focused Permian Basin, aligning with the company's strategy to grow its fee-based business and enhance its competitive position. The acquisition is subject to customary post-closing adjustments, indicating potential for minor changes in the final purchase price.
Key Highlights
- 1ONEOK Partners, L.P. is acquiring an 80% stake in West Texas LPG Pipeline Limited Partnership.
- 2ONEOK Partners, L.P. is acquiring a 100% stake in the Mesquite Pipeline.
- 3The combined acquisition cost is approximately $800 million, subject to adjustments.
- 4The transaction is focused on expanding ONEOK's midstream natural gas liquids (NGL) infrastructure.
- 5The acquired assets are located in the Permian Basin, a key energy-producing region.
- 6This acquisition is part of ONEOK's strategy to grow its fee-based business segments.