ONEOK to acquire Gulf Coast NGL pipelines from Easton Energy

May 21, 2024 By    

ONEOK Inc. agreed to acquire a system of natural gas liquids (NGL) pipelines from Easton Energy, a Houston-based midstream company, for about $280 million, subject to customary purchase price adjustments.

The transaction, expected to close mid-year 2024, includes about 450 miles of NGL pipelines located in the Gulf Coast market centers for NGLs, refined products and crude oil. The pipelines transport a wide range of liquid products through a portion of their capacity to existing customers.

ONEOK plans to connect the pipelines to its Mont Belvieu, Texas, NGL infrastructure and its 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,” says Pierce H. Norton II, ONEOK president and CEO. “We expect that this acquisition will accelerate the ability to capture commercial synergies related to our recent Magellan acquisition and future earnings growth.”

ONEOK completed its acquisition of Magellan Midstream Partners last September after announcing it in May 2023. In the deal, ONEOK acquired all outstanding units of Magellan in a cash-and-stock transaction valued at about $18.8 billion, including assumed debt, resulting in a combined company with a total enterprise value of $60 billion.

“This is a significant day for Tulsa and the industry as we bring together the talented ONEOK and Magellan teams and look to the future as one company,” Norton II said last September. “Our expanded products platform will present additional opportunities in ONEOK’s core businesses and further enhance the resiliency of our company. We are committed to ensuring a smooth transition aimed at delivering on the many benefits of this combination for our customers, employees and shareholders.”

ONEOK, headquartered in Tulsa, Oklahoma, is a midstream operator that provides gathering, processing, fractionation, transportation and storage services.

Featured homepage image: designer491/iStock / Getty Images Plus/Getty Images

About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

Comments are currently closed.