ONEOK completes acquisition of Gulf Coast Pipeline System from Easton Energy
ONEOK, Inc. (NYSE: OKE) has announced the completion of its strategic acquisition of Gulf Coast Pipeline System, a network of natural gas liquids (NGL) pipelines from Easton Energy for approximately $280 million. This significant purchase expands ONEOK’s presence in the crucial Gulf Coast region, enhancing its infrastructure capabilities in key supply and demand centers.
The deal includes around 450 miles of pipelines that are strategically located in the Gulf Coast market centers, crucial for NGLs, refined products, and crude oil. These assets are expected to integrate seamlessly with ONEOK’s existing Mont Belvieu, Texas, facilities and further extend into the Houston area, promising enhanced service capabilities and connectivity.
Pierce H. Norton II, President and Chief Executive Officer of ONEOK, highlighted the acquisition’s immediate benefits to earnings and its role in accelerating the company’s commercial synergies, especially following the recent acquisition of Magellan. “These new assets offer significant connectivity between critical Gulf Coast supply and demand centers,” Norton stated, emphasizing the strategic importance of the new infrastructure.
The newly acquired pipeline system is set to enhance ONEOK’s ability to manage a comprehensive network of NGL and hydrocarbon pipelines across the Texas and Louisiana Gulf Coast midstream corridors. This expansion not only solidifies ONEOK’s market position but also supports the company’s long-term strategic goals of increasing operational efficiency and market reach.
With this acquisition, ONEOK plans to further capitalize on the growing demand for energy infrastructure in the Gulf Coast, a key hub for oil and gas operations in the United States. The integration of these assets is expected to improve the company’s service offerings and operational logistics, driving future earnings growth and reinforcing its commitment to being a leader in the energy sector.