ONEOK to Acquire Remaining Interest in West Texas LPG Pipeline System

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Jul 25, 2018, 16:10 ET

TULSA, Okla., July 25, 2018 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced it has entered into an agreement with Martin Midstream Partners L.P. (Martin Midstream) to acquire its 20 percent interest in the West Texas LPG Pipeline Limited Partnership (West Texas LPG) for $195 million. With this acquisition, ONEOK will become the sole owner of West Texas LPG. ONEOK completed the acquisition of its initial 80 percent interest in West Texas LPG in December 2014.

"Acquiring the remaining interest in West Texas LPG is a strategic step in our broader Permian Basin strategy," said Terry K. Spencer, ONEOK president and chief executive officer. "A wholly owned West Texas LPG allows ONEOK to more effectively integrate it into the rest of our extensive NGL system, positioning us for future expansion opportunities currently under development."

This transaction is expected to close on July 31, 2018, and be funded with cash on hand.

The West Texas LPG Pipeline is a natural gas liquids (NGL) pipeline system that provides takeaway capacity to Permian Basin producers and consists of approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.

ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.

ONEOK is a FORTUNE 500 company and is included in the S&P 500.

For information about ONEOK, visit the website: www.oneok.com.

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