ONEOK, Inc. (OKE) has just completed a significant strategic maneuver, fully acquiring its Delaware Basin joint venture for $940 million, a move that immediately bolsters its Permian Basin processing capacity by over 700 MMcf/d and is projected to add $110 million in incremental EBITDA within its first year. This decisive consolidation not only solidifies the company's foothold in one of the most prolific energy basins but also underscores a broader industry trend towards vertical integration and enhanced control over the entire midstream value chain.
This latest development comes as ONEOK navigates a dynamic energy market, where its stock has recently reached $82.90, reflecting a positive market sentiment that has seen its value increase by +1.44% in a single day, as reported by Monexa AI. The acquisition is far more than a simple expansion; it represents a calculated effort to optimize operational efficiencies and secure future profitability in a sector increasingly defined by scale and strategic asset ownership.
Strategic Expansion in the Permian Basin#
The full acquisition of the remaining 49.9% interest in Delaware G&P LLC for $940 million marks a pivotal moment for ONEOK, directly expanding its Permian Basin footprint. This move, announced on June 3, 2025, according to Reuters.com, consolidates ownership of a processing system exceeding 700 MMcf/d in capacity. This represents approximately 10% of ONEOK's total system-wide processing capabilities, providing a robust platform for increased volume throughput and enhanced natural gas liquids (NGL) control.
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Historically, joint ventures can offer shared risk and capital, but full ownership, as ONEOK has pursued here, allows for complete strategic alignment and operational synergy realization. This level of control is crucial in a basin as competitive and rapidly developing as the Permian, enabling ONEOK to more effectively integrate its assets and service offerings for key producers such as EOG Resources, Coterra Energy, and Matador Resources, as indicated by Monexa AI data. The immediate projected incremental EBITDA of $110 million in the first 12 months post-acquisition highlights the expected efficiency gains and revenue uplift.
Furthermore, the acquisition significantly enhances ONEOK's grip on NGL production within the Permian, securing full ownership of approximately 90 Mb/d of NGLs, which accounts for 43% of its Permian NGL output. This integrated control over the NGL value chain is a strategic advantage, allowing for better margin management and revenue growth, especially as the system currently operates at 79% utilization, leaving substantial room for future throughput expansion. This strategic move mirrors past industry efforts to de-risk operations and capture more value from prolific production regions.
Post-Acquisition Capacity and Profitability Metrics#
| Capacity/Metric | Details |
|---|---|
| Processing Capacity (MMcf/d) | >700 MMcf/d |
| Percentage of System Capacity | 10% |
| Incremental EBITDA (First 12 months) | $110 million |
| Current Utilization Rate | 79% |
| Main Producers | EOG Resources, Coterra Energy, Matador Resources |
All financial data is sourced from Monexa AI.
Financial Performance and Market Valuation#
ONEOK's financial performance in Q1 2025 provides a strong backdrop to its recent strategic moves. The company reported a net income of $636 million and an adjusted EBITDA of $1.78 billion, reflecting robust volumes and contributions from its strategic assets, as detailed in its April 29, 2025 earnings announcement, cited by Monexa AI.
The company’s stock, trading at $82.90 with a market capitalization of approximately $51.78 billion as of recent market data from Monexa AI, showcases investor confidence. Its P/E ratio stands at 16.19, with an EPS of $5.12. While this valuation appears to be at a premium compared to some peers, it reflects the company's growth-oriented strategy and stable dividend profile.
As of June 2025, ONEOK's forward P/E ratio is approximately 14.55, slightly higher than its midstream counterparts like MPLX LP (11.53) and Enterprise Products Partners (11.9), according to Monexa AI data. Despite this premium, analysts maintain an optimistic outlook, with a consensus