ONEOK's AI Gas Deal and $4.4B Permian Buy Reshape Growth
First AI data-center gas supply deal ONEOK signed its first deal to supply natural gas to a 1-gigawatt power plant for AI data centers, a $100 million project with strong returns. It is in late talks on more such deals, opening a new demand source for its pipelines.
New demand channel that can lift long-term volumes and earnings.
$4.425B Brazos Permian acquisition ONEOK agreed to buy Brazos Midstream's Permian assets for $4.425 billion, more than doubling its Midland Basin processing capacity to about 2.3 Bcf/d. The deal is immediately accretive and speeds deleveraging without issuing common stock.
Major growth deal that expands core Permian footprint and earnings.
Apollo-backed $5B debt overhaul Apollo is investing $9 billion in minority equity, with $5 billion used to cut debt. ONEOK launched a $5 billion debt repayment plan and tender offer, aiming to lower leverage to 3.25x and improve free cash flow without diluting common shareholders.
Strengthens balance sheet and funds acquisition, reducing financial risk.
Record Q2 results and raised guidance ONEOK beat Q2 estimates with $1.53 EPS on record NGL volumes and $12.05 billion revenue, then raised 2026 net income guidance to $3.41–$3.79 billion. Shares have gained 9.2% since the report, reflecting stronger cash flow and confidence.
Confirms operational strength and upward earnings trajectory.