ONEOK Acquires Remaining Interest in Delaware Basin JV

Rhea-AI Summary

ONEOK (NYSE: OKE) has acquired the remaining 49.9% interest in Delaware G&P LLC from NGP XI Midstream Holdings for $940 million, combining $530 million in cash and $410 million in ONEOK common stock. The transaction, completed on May 28, 2025, gives ONEOK full ownership of Delaware Basin JV, which operates natural gas gathering and processing facilities in the Delaware Basin across West Texas and New Mexico. The facilities boast a significant processing capacity exceeding 700 million cubic feet per day. This strategic acquisition strengthens ONEOK's position as a leading midstream operator with a 60,000-mile pipeline network, providing essential energy infrastructure services including gathering, processing, fractionation, transportation, storage, and marine export services across North America.

Positive

• Full ownership acquisition of Delaware Basin JV increases operational control and flexibility
• Strategic expansion in the valuable Permian Basin region
• Addition of substantial processing capacity of over 700 million cubic feet per day
• Mixed payment structure using both cash and stock helps preserve cash reserves

Negative

• Significant cash outlay of $530 million may impact short-term liquidity
• Stock component of $410 million will result in shareholder dilution
• Integration costs and risks associated with full ownership transition

Insights

Energy Infrastructure Analyst

ONEOK strengthens Delaware Basin position by acquiring remaining 49.9% JV interest for $940M, gaining full control of 700+ MMcf/d processing capacity.

ONEOK's $940 million acquisition of the remaining 49.9% stake in Delaware Basin JV represents a strategic consolidation move that enhances the company's Permian Basin footprint. This transaction, split between $530 million cash and $410 million in equity, gives ONEOK complete ownership of significant midstream infrastructure with over 700 million cubic feet per day of natural gas processing capacity in the prolific Delaware Basin.

The full ownership structure streamlines operations and eliminates the complexity of joint venture management, allowing ONEOK to capture 100% of the cash flows from these assets rather than just half. The Delaware Basin continues to be one of North America's most active production regions despite commodity price fluctuations, making these midstream assets particularly valuable for long-term growth.

The transaction's structure - using both cash and equity - helps ONEOK maintain balance sheet flexibility while expanding its operating footprint. The processing capacity acquired is substantial, representing approximately 10% of ONEOK's total system-wide processing capabilities. This consolidation strengthens ONEOK's integrated value chain in one of the most economically viable production basins in the U.S., potentially improving margins through operational synergies and enhanced scale.

Acquisition Advances Permian Basin Growth Strategy

TULSA, Okla., June 3, 2025 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced the acquisition of the remaining 49.9% interest in Delaware G&P LLC (Delaware Basin JV) from NGP XI Midstream Holdings, L.L.C. for $940 million, consisting of $530 million in cash and $410 million in ONEOK common stock.  

Delaware Basin JV owns natural gas gathering and processing facilities in the Delaware Basin in West Texas and New Mexico, with a total processing capacity of more than 700 million cubic feet per day. Following the close of the transaction on May 28, 2025, ONEOK became the sole owner of Delaware Basin JV.

At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.

ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.

For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.

Analyst Contact:	Megan Patterson
	918-561-5325
Media Contact:	Brad Borror
	918-588-7582

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SOURCE ONEOK, Inc.

FAQ

What is the total value of ONEOK's Delaware Basin JV acquisition?

ONEOK acquired the remaining 49.9% interest in Delaware Basin JV for $940 million, consisting of $530 million in cash and $410 million in ONEOK common stock.

What processing capacity does the Delaware Basin JV facility have?

The Delaware Basin JV facilities have a total natural gas processing capacity of more than 700 million cubic feet per day.

When did ONEOK complete the Delaware Basin JV acquisition?

ONEOK completed the acquisition of the remaining interest in Delaware Basin JV on May 28, 2025.

Who did ONEOK purchase the Delaware Basin JV stake from?

ONEOK purchased the 49.9% stake from NGP XI Midstream Holdings, L.L.C.

What assets does the Delaware Basin JV own?

Delaware Basin JV owns natural gas gathering and processing facilities located in the Delaware Basin in West Texas and New Mexico.