ACQUISITIONS |
9 Months Ended |
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Sep. 30, 2026 | |
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |
| ACQUISITIONS | ACQUISITIONS On August 18, 2026, we entered into the Brazos Midland Purchase Agreement with Brazos Midstream to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets. Subsequent event - On October 6, 2026, we completed the Brazos Midland Acquisition and acquired 100% of the issued and outstanding membership interests of Brazos Midland for total cash consideration of approximately $4.6 billion, which includes the $4.425 billion announced purchase price and approximately $135 million of closing adjustments related primarily to Brazos Midstream capital spend. We funded the acquisition with proceeds received from the ONEOK Holdings Transaction and short-term borrowings. For additional information on the ONEOK Holdings Transaction, see Note F of the Notes to the Consolidated Financial Statements in this Quarterly Report. The Brazos Midland assets are highly complementary to our existing Permian Midland Basin natural gas gathering and processing and NGL transportation infrastructure. The acquisition in our Natural Gas Gathering and Processing segment is expected to more than double our Midland Basin natural gas processing capacity to approximately 2.3 Bcf/d, including facilities currently under construction, and expand our integrated natural gas gathering and processing platform in the Permian Basin. The Brazos Midland Acquisition will be accounted for using the acquisition method of accounting for business combinations pursuant to Accounting Standards Codification 805, “Business Combinations,” which requires, among other things, assets acquired and liabilities assumed to be recorded at their fair value on the acquisition date. Any excess of consideration to be transferred over the estimated fair value of assets acquired and liabilities assumed will be recorded as goodwill. Determining the fair value of acquired assets and liabilities assumed requires management’s judgment and the use of independent valuation specialists. At the time of this filing, it is impracticable to disclose all the information required by ASC 805, “Business Combinations,” as we are in the process of evaluating the purchase accounting and pro forma implications of this transaction. For the three and nine months ended September 30, 2026, transaction costs related to the Brazos Midland Acquisition were not material.
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