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Midstream energy giant Oneok is doubling down on the Permian Basin, unveiling plans Monday to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Midland Basin, in a deal valued at roughly $4.425 billion — a transaction built with three separate law firms steering it toward the finish line.

How the Deal Gets Financed

Rather than relying purely on debt or cash reserves, Oneok structured the acquisition around a $9 billion nonvoting equity investment from funds managed by private equity giant Apollo, according to a company statement. Of that total, Oneok plans to direct $5 billion of the proceeds specifically toward paying down existing debt — a move that positions this deal as much about balance-sheet discipline as it is about expansion.

The Legal Teams Behind the Transaction

Latham & Watkins LLP advised Oneok on the deal, while Milbank LLP represented Apollo, and Akin Gump Strauss Hauer & Feld LLP advised Brazos throughout the negotiations.

Why Oneok Wants These Assets

The acquisition is designed to accelerate Oneok's deleveraging efforts while simultaneously fueling organic growth opportunities, particularly within the Permian Basin, according to the statement. It's also expected to reinforce Oneok's broader integrated Permian-to-Gulf Coast strategy, by boosting scale in the Permian Basin, unlocking commercial and capital savings, and delivering an immediate lift to both earnings and free cash flow per share.

Leadership's Strategic Vision

"This transaction demonstrates Oneok's strategy of intentionally expanding and extending our integrated energy infrastructure," said Oneok President and CEO Pierce H. Norton II. "These assets add a premier Permian Midland Basin platform supported by long-term contracts and attractive growth opportunities."

Building an Integrated Permian Platform

The newly acquired assets will merge into an integrated Permian Midland Basin platform, strengthening Oneok's overall footprint in the region by complementing its existing natural gas gathering and processing operations, natural gas liquids transportation, and crude oil infrastructure already in place. Perhaps most strikingly, the deal more than doubles Oneok's Midland Basin processing capacity, pushing it up to roughly 2.3 billion cubic feet per day — a dramatic capacity jump that signals just how central this acquisition is to Oneok's regional ambitions.

Apollo's Perspective on the Investment

Apollo partner Jamshid Ehsani framed the deal as evidence of both Oneok's industry standing and Apollo's own capital-deployment capabilities. "Oneok has built one of the largest and most diversified midstream platforms in the country, providing essential services and infrastructure to help meet rapidly expanding domestic and international energy demand," Ehsani said. "This transaction reflects Apollo's ability to deliver flexible, high-grade capital solutions at scale, structured around Oneok's long-term strategic objectives."

Timeline for Closing

The acquisition is expected to close during the fourth quarter of 2026, while Apollo's minority equity investment is on track to close separately, sometime in the first half of September.

Full Breakdown of Legal Advisers

The Latham & Watkins corporate team advising Oneok was led by partners David Miller, Sam Rettew and Ryan Maierson. Tax guidance came from partners Tim Fenn and Bryant Lee, while securities law advice was handled by partners Michele Anderson, Paul Dudek, Joel Trotter and Alex Cohen.

The Milbank team representing Apollo was led by John Franchini, global corporate mergers and acquisitions partner and co-head of Milbank's global infrastructure practice, alongside Dan Bartfeld, chair of the firm's global project, energy and infrastructure finance group, and partners Sean O'Neill and Benjamin Fidler.

Full legal counsel information for the Akin Gump team advising Brazos was not immediately available.