ONEOK Announces Full Ownership of Delaware Basin JV for $940M

ONEOK, Inc. OKE announced the acquisition of the remaining 49.9% interest in Delaware G&P LLC (Delaware Basin joint venture) from NGP XI Midstream Holdings, L.L.C. The deal is for $940 million, consisting of $530 million in cash and $410 million in ONEOK common stock.

With a combined processing capacity of over 700 million cubic feet per day, Delaware Basin JV owns natural gas collection and processing facilities in the Delaware Basin in West Texas and New Mexico. Following the closure of the deal on May 28, 2025, ONEOK became the sole owner of Delaware Basin JV.

ONEOK Benefits From Acquisitions

ONEOK continues to expand its operations through acquisitions. Acquisitions allow increased geographic diversification, enhanced infrastructure integration and improved fee-based earnings. The company runs an extensive pipeline network that spans around 60,000 miles and transports crude oil, processed goods, natural gas and natural gas liquids (NGLs). 

ONEOK’s acquisition of Magellan Midstream Partners, L.P. created one of the largest oil and natural gas pipeline companies in the United States. In 2024, ONEOK also completed the acquisition of a system of NGL pipelines from Easton Energy. This acquisition aims to provide the quickest pipeline connectivity to and within the critical supply and demand centers for its NGL, refined products and crude oil assets in the Gulf Coast.

In October 2024, ONEOK completed the acquisition of Medallion Midstream from Global Infrastructure Partners. This further diversifies ONEOK's asset portfolio and adds an expansive and well-connected crude oil gathering system to its Permian Basin platform. In January 2025, ONEOK completed its acquisition of EnLink Midstream, LLC. This deal further enhances 
OKE's integrated midstream business and provides exceptional value to all stakeholders.

These strategic acquisitions are expected to yield significant cost savings and synergies, thereby further enhancing the company's profitability.

Mergers & Acquisitions in Oil & Gas Sector

Here are some oil and gas companies that are also focused on expanding their operations through mergers and acquisitions.

Energy Transfer ET is expected to maintain its well-balanced growth strategy, which includes internal expansion, strategic acquisitions, actions to boost the profitability of its existing assets, and the use of cost-control measures to manage its operations (where necessary). The firm’s acquisition of WTG Midstream Holdings LLC helped it acquire assets worth 6,000 miles of complementary gas gathering pipelines that extend ET’s network in the Midland Basin.

ET’s long-term (three to five-year) earnings growth rate is 21.4%. The Zacks Consensus Estimate for 2025 earnings per unit indicates a year-over-year increase of 12.5%.

TotalEnergies SE TTE: During the first quarter of 2025, it acquired $836 million worth of assets. These strategic acquisitions should assist the company in further expanding its multi-energy assets worldwide.

TTE’s long-term earnings growth rate is 7.09%. The Zacks Consensus Estimate for 2025 earnings per share indicates a year-over-year decrease of 12.4%.

Devon Energy’s DVN multi-basin portfolio, high-quality assets and acquisitions continue to expand operations and boost production. DVN’s acquisition of the Williston Basin business of Grayson Mill Energy increased its net acre position in Williston Basin to 430,000 acres from 123,000 acres, while production volume is expected to triple to 150,000 Boe/d from 50,000 Boe/d from this region.

DVN’s long-term earnings growth rate is 3.42%. The Zacks Consensus Estimate for 2025 sales indicates a year-over-year increase of 4.3%.

OKE’s Stock Price Performance

Over the past three months, ONEOK’s shares have lost 9.4% compared with the industry’s 5.7% decline.

OKE’s Zacks Rank

ONEOK currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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