ONEOK fully acquires Delaware Basin JV for $940 million

Published 03/06/2025, 21:26
ONEOK fully acquires Delaware Basin JV for $940 million

TULSA, Okla. - ONEOK, Inc. (NYSE: OKE), a prominent midstream service provider, has announced the complete acquisition of Delaware G&P LLC (Delaware Basin JV), purchasing the remaining 49.9% stake from NGP XI Midstream Holdings, L.L.C. The transaction, which closed on May 28, 2025, was valued at $940 million, comprising $530 million in cash and $410 million in ONEOK common stock.

Delaware Basin JV operates natural gas gathering and processing facilities in the Delaware Basin, which spans parts of West Texas and New Mexico. With this acquisition, ONEOK now has full ownership of the joint venture, which boasts a total processing capacity exceeding 700 million cubic feet per day. The company maintains a GOOD financial health score of 2.65 out of 5 on InvestingPro, reflecting solid operational performance and stability.

ONEOK’s acquisition marks a significant expansion of its operations in the Permian Basin, enhancing its portfolio of energy infrastructure assets. The company, headquartered in Tulsa, Oklahoma, is an S&P 500 listed entity and one of North America’s largest integrated energy infrastructure companies.

The company operates a vast network of approximately 60,000 miles of pipelines, transporting natural gas, natural gas liquids (NGLs), refined products, and crude oil. ONEOK’s services are crucial in meeting both domestic and international energy demands, contributing to energy security and offering reliable energy solutions.

This strategic move consolidates ONEOK’s position in the midstream sector and underscores its growth strategy in the Permian Basin. The acquisition is based on a press release statement from ONEOK, Inc.

In other recent news, ONEOK Inc. reported strong financial results for the first quarter of 2025, with net income reaching $636 million, or $1.04 per share. The company’s adjusted EBITDA was $1.78 billion, highlighting the impact of strategic expansions and operational achievements. ONEOK also reaffirmed its financial guidance for 2025, expecting increased volumes in the upcoming quarters and targeting $870 million in synergies and growth by 2026. In addition to financial results, ONEOK shareholders approved two new equity incentive plans, the 2025 Equity Incentive Plan and the 2025 Employee Stock Award Program. These plans are designed to align the interests of employees and directors with those of shareholders by authorizing the issuance of shares upon reaching certain benchmarks. The company’s board also ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Furthermore, ONEOK’s focus on organic growth projects and strategic joint ventures positions it well in the competitive energy sector. The company has completed several growth projects, which have increased NGL and natural gas volumes, and has no borrowings outstanding on its $3.5 billion facility.

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