ONEOK acquisitions strengthen portfolio

ONEOK, a Tulsa-based pipeline operator, is reinforcing its presence in the U.S. energy infrastructure sector through two midstream acquisitions worth $5.9 billion, expanding its footprint in the Permian Basin. These acquisitions, along with its 2023 purchase of Magellan Midstream Partners for $18.8 billion, significantly increase its crude oil and refined products capacity. While this expansion raises ONEOK’s leverage temporarily, the firm expects to return to target debt levels by 2026, thanks to projected synergies generating $250-450 million annually. S&P has reaffirmed ONEOK’s BBB credit rating, and the company is expected to maintain stable dividends with 3-4% growth in the coming years.


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