ONEOK, Inc. has finalized its acquisition of a natural gas liquids (NGL) pipeline system from Easton Energy for about $280 million, Zacks Equity Research announced on Tuesday, June 18, 2024. 

The deal, which was first announced in May 2024, brings roughly 450 miles of pipelines for liquid products, including crude oil, refined products, and NGLs, under ONEOK’s ownership. 

ONEOK plans to integrate the acquired pipelines located in strategic Gulf Coast market centers with its existing infrastructure, including its Mont Belvieu, NGL infrastructure, Texas, and Houston refined products and crude oil infrastructure.

"The closing of this strategic acquisition provides immediate earnings, expands our natural gas liquids asset portfolio, and accelerates ONEOK's ability to capture commercial synergies related to our recent acquisition of Magellan," said Pierce H. Norton II, ONEOK president and chief executive officer, said in a statement reported by Quantisnow on Monday, June 17.

"These new assets offer significant connectivity between critical Gulf Coast supply and demand centers," he added. 

The acquisition bolsters ONEOK's growth strategy, which focuses on expansion through acquisitions. In September 2023, ONEOK completed its $18.8 billion acquisition of Magellan Midstream Partners, creating one of the largest oil and natural gas pipeline companies in the United States. 

The merger of the two companies is expected to generate an average of $1 billion annually in additional free cash flow after dividends and growth capital over the first four years.