ONEOK wraps up $280 million acquisition of more southern pipelines

ONEOK, Inc. announced that it has completed its acquisition of a system of natural gas liquids (NGL) pipelines from Houston’s Easton Energy for approximately $280 million.

The sale was originally announced in May.

“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. “These new assets offer significant connectivity between critical Gulf Coast supply and demand centers.”

The transaction includes approximately 450 miles of liquids products pipelines located in the strategic Gulf Coast market centers for NGLs, refined products and crude oil. However, Easton indicated it will continue operating its natural gas liquids and olefins storage business located in Markham, Texas.

At the time of the original announcement, G.R. “Jerry” Cardillo, Easton’s Chief Executive Officer called the pipelines a “critical piece of the U.S. Gulf Coast NGL and hydrocarbon value chain.”

Easton is a portfolio company of Cresta Fund Management, a Dallas-based private equity fund that manages more than $1.6 billion of capital.

Easton’s salt dome storage infrastructure is located between key NGL and petrochemical markets in Mont Belvieu and Corpus Christi, Texas. This infrastructure includes brine handling facilities and multiple salt dome wells with approximately 40 million barrels of NGL and olefins storage capacity.

ONEOK plans to connect the pipelines to its Mont Belvieu, Texas, NGL infrastructure and ONEOK’s Houston refined products and crude oil infrastructure.

View a map of the acquired pipelines.

The post ONEOK wraps up $280 million acquisition of more southern pipelines first appeared on Oklahoma Energy Today.