Easton Energy is agreeing to sell 450 miles of lines along Southeast Texas coast to ONEOK. (Source: Shutterstock)
Midstream company ONEOK Inc. announced May 13 that the company had agreed to acquire a system of NGL pipelines from Houston-based Easton Energy LLC for approximately $280 million.
The network includes 450 miles of NGL pipelines centered around the Houston Ship Channel, expanding a network already in place for ONEOK. The pipelines currently transport several types of liquids products through a portion of its capacity to existing customers.
"This strategic acquisition provides the quickest pipeline connectivity to and within the critical supply and demand centers for our NGLs, refined products and crude oil assets in the Gulf Coast," Pierce H. Norton II, ONEOK president and CEO, said in a press release about the transaction.
ONEOK plans to connect the pipelines to its Mont Belvieu, Texas, NGL infrastructure and the company’s Houston-based refined products and crude oil infrastructure. The transaction is expected to close mid-2024.
“This transaction recognizes value for our customers, shareholders and our business partners. We will now pivot our focus to our remaining business, our NGL and olefins storage business,” G.R. “Jerry” Cardillo, Easton CEO, stated in a press release.
Easton Energy will continue to operate an NGL and olefins storage facility in Markham, Texas, a small town to the west of Houston.
Easton is a portfolio company of Cresta Fund Management (Cresta), a Dallas-based private equity fund managing over $1.6 billion of capital.
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