ONEOK buys remaining stake in Delaware Basin JV for $940 million
June 3 (Reuters) - U.S. pipeline operator ONEOK (OKE.N), opens new tab said on Tuesday that it had bought the remaining stake in Delaware Basin JV from NGP XI Midstream Holdings in a cash-and-stock deal valued at $940 million.
By acquiring the remaining 49.9% interest, ONEOK has gained sole ownership of the basin, which operates natural gas gathering and processing facilities in West Texas and New Mexico's Delaware Basin, with a total processing capacity exceeding 700 million cubic feet per day.
Over the past two years, the pipeline operator has diversified its portfolio with acquisitions, including a Gulf Coast NGL pipeline system from Easton Energy and the purchases of Medallion Midstream and EnLink Midstream.
These moves are part of a broader effort to boost its presence in the Permian Basin amid growing consolidation in the U.S. energy sector.
The company said that the deal comprises $530 million in cash and $410 million in ONEOK common stock.
ONEOK operates a 60,000-mile pipeline network that transports natural gas, natural gas liquids, refined products, and crude oil.
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