ONEOK Closes $9 Billion Apollo Minority Equity Investment
ONEOK finalizes a landmark $9 billion equity deal with Apollo-managed funds, marking one of the largest minority investments in US midstream energy.
ONEOK, Inc. closed a $9 billion minority equity investment Thursday from funds and affiliates managed by Apollo, the Tulsa-based pipeline giant confirmed in a statement, completing a deal that had been previously announced and closely watched by energy markets.
The transaction ranks among the most significant private capital placements in the US midstream energy sector in recent memory, with Apollo deploying a substantial block of capital into ONEOK's equity structure without taking a controlling stake. Minority equity deals of this scale allow the target company to strengthen its balance sheet and fund expansion while existing shareholders retain operational control.
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ONEOK, which trades on the New York Stock Exchange under the ticker OKE, operates one of the nation's largest natural gas and natural gas liquids pipeline networks. Apollo, itself publicly traded under the ticker APO, is one of Wall Street's premier alternative asset managers with a long track record of large-scale infrastructure and energy investments.
The closing signals continued appetite among institutional and private equity investors for midstream infrastructure assets, which generate stable, fee-based cash flows and are seen as critical to US energy security and export capacity. Analysts have noted that deals of this type often precede accelerated capital expenditure programs at the operating company level, though ONEOK has not yet detailed specific use-of-proceeds plans tied to the closing.
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