May 14, 2024 [Storage Terminals Magazine]- ONEOK, Inc. has announced its agreement to acquire a system of natural gas liquids pipelines from Easton Energy, a Houston-based midstream company, for approximately $280 million, subject to customary purchase price adjustments.
The acquisition encompasses approximately 450 miles of NGL pipelines strategically located in Gulf Coast market centres for NGLs, refined products, and crude oil. These pipelines facilitate the transportation of various liquid products to existing customers.
ONEOK intends to integrate the acquired pipelines with its Mont Belvieu, Texas, NGL infrastructure and Houston refined products and crude oil infrastructure, thereby enhancing commercial synergies.
Pierce H. Norton II, president and chief executive officer of ONEOK, stated, “This strategic acquisition provides the quickest pipeline connectivity to and within the critical supply and demand centres for their NGLs, refined products, and crude oil assets in the Gulf Coast. They expect that this acquisition will accelerate the ability to capture commercial synergies related to their recent Magellan acquisition and future earnings growth.”
The transaction is expected to close mid-year 2024, subject to customary conditions, including the termination or expiration of the waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act.
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