ONEOK, Inc. announced that it has agreed to acquire a system of natural gas liquids (NGL) pipelines from Easton Energy, a Houston-based midstream company, for approximately $280 million, subject to customary purchase price adjustments.
The transaction includes approximately 450 miles of NGL pipelines located in the strategic Gulf Coast market centers for NGLs, refined products and crude oil. These pipelines transport a wide range of liquids products through a portion of its capacity to existing customers.
ONEOK plans to connect the pipelines to ONEOK's Mont Belvieu, Texas, NGL infrastructure and ONEOK's Houston refined products and crude oil infrastructure, accelerating commercial synergies.
"This strategic acquisition provides the quickest pipeline connectivity to and within the critical supply and demand centers for our NGLs, refined products and crude oil assets in the Gulf Coast," said Pierce H. Norton II, ONEOK president and chief executive officer. "We expect that this acquisition will accelerate the ability to capture commercial synergies related to our recent Magellan acquisition and future earnings growth."
ONEOK expects to close the transaction mid-year 2024. Closing is subject to customary conditions including termination or expiration of the waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act.
