ONEOK completes acquisition of NGL assets in Permian Basin

ONEOK Partners LP

ONEOK Partners LP (NYSE: OKS) has completed the acquisition of natural gas liquids (NGL) pipelines and related assets from affiliates of Chevron Corp. for $800 million.

ONEOK Partners now owns an 80% interest in the West Texas LPG Pipeline Limited Partnership and a 100% interest in the Mesquite Pipeline, which collectively consist of 2,600 miles of NGL gathering pipelines extending from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas. ONEOK Partners is the operator of both pipelines. The remaining 20% of West Texas LPG is owned by Martin Midstream Partners LP.

The Permian Basin, located in southeastern New Mexico and western Texas, is the largest crude-oil and natural gas producing basin in the US – three times larger than the Bakken shale play in North Dakota. This basin encompasses 15 million acres and has multi-stacked producing formations with approximately 500 rigs currently operating across the region.

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