Oneok Inc. has taken full control of Delaware G&P LLC, widely known as the Delaware Basin Joint Venture, after acquiring the remaining 49.9% interest from NGP XI Midstream Holdings Llc. The $940 million transaction includes $530 million in cash and $410 million in Oneok common stock, the company said.
The acquisition strengthens Oneok’s position in the Delaware Basin, a key subregion of the Permian Basin that spans West Texas and southeastern New Mexico. Known as one of the most prolific oil and gas producing areas in the country, the Delaware Basin continues to attract major infrastructure investment amid strong production levels, according to Oneok.
With this deal, Oneok now fully owns the Delaware G&P system, which includes over 700 million cubic feet per day of natural gas processing capacity, along with an extensive network of gathering pipelines and associated infrastructure. The move consolidates operations and eliminates the joint venture structure, giving Oneok full strategic and operational control over a core asset, the company said.
“This transaction further aligns our midstream operations in the Permian and enhances our ability to deliver reliable energy infrastructure services,” the company said in a written statement.
Industry observers say the acquisition reflects Oneok’s intent to deepen its integration in Permian, where demand for midstream services continues to rise. Full ownership allows for more agile decision-making on expansions, maintenance, and capital allocation—key factors as natural gas production in the region climbs.
The Delaware Basin has maintained strong momentum thanks to favorable geology and economics, with producers pushing for more efficient infrastructure to support growing volumes. For Oneok, the deal is part of a broader strategy to optimize its gathering and processing network while meeting the evolving needs of customers in the basin.
The company did not outline any immediate operational changes following the transaction but emphasized the long-term benefits of greater efficiency and flexibility across its portfolio.
Oneok previously expanded its midstream footprint with the $28 billion acquisition of Magellan Midstream Partners in 2023, a move that broadened its capabilities in transporting crude oil and refined products. With the Delaware Basin deal, Oneok further consolidates its presence in a region central to U.S. energy growth.
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