![\"Apollo](\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2026\/08\/2026-08-31-apollo-hero.jpg\")
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HedgeCo.Net \u2014 ONEOK said Sunday it had agreed to buy Brazos Midstream\u2019s Permian Midland Basin natural gas gathering and processing assets for $4.425 billion in cash, funded through a $9 billion nonvoting minority equity investment from funds and affiliates managed by Apollo. ONEOK\u2019s investor-relations release is the primary. Apollo\u2019s own press page independently carried the same $4.425 billion asset price and the same $9 billion equity line.<\/p>\n
ONEOK intends to use $5 billion of the Apollo proceeds to reduce existing indebtedness, with a path that includes repayments, make-whole calls, and a tender for senior notes. The firm said the debt cut would take expected pro forma 2027 leverage to about 3.25 times debt-to-EBITDA. The Apollo investment carries an IRR capped at 7.0% for the first years of the structure, below ONEOK\u2019s stated cost of publicly traded equity, with excess distributions designed to amortize Apollo\u2019s capital account over time.<\/p>\n
The Brazos Midland purchase is expected to close in the fourth quarter of 2026, subject to Hart-Scott-Rodino clearance and customary conditions. Both boards have approved their sides of the package. A Monday morning conference call was scheduled for management to walk through the capital stack.<\/p>\n
The allocator object is Apollo\u2019s $9 billion minority equity check, not a plain midstream bolt-on. Marking only the $4.425 billion asset price and ignoring the equity sleeve misses half the print.<\/p>\n","protected":false},"excerpt":{"rendered":"
HedgeCo.Net \u2014 ONEOK said Sunday it had agreed to buy Brazos Midstream\u2019s Permian Midland Basin natural gas gathering and processing assets for $4.425 billion in cash, funded through\u2026 Continue reading